Came across this article on "Auto Insurance Davenport Illinois"
Although appearing on a US website blog links go back to webbcarr.com - Australia and New Zealand Car Rental.
Car Hire Accidents And The Excess Reduction
This eventuates in the rental company self insuring the hire cars. In doing so they take on the cost of the accident damage themselves and offset that expense by offering a CDW to you. This is a much more ecomonical way for them to maintain the rental car fleet and the company do not pay the insurance companies the big premiums for every car.
Car Rental companies are in business to make money and this aspect of car rental becomes an extra revenue raiser itself and that is why the sales staff at the car hire branch will do their best to sell you this option. In regards to vehicle accidents, Australian law states that the liability lies with the owner of the vehicle unless you are acting as an agent for the owner, and as the hirer it is therefore unlikely you would come under that clasification.
Serious thought should be given as to whether you accept the offer of excess reduction to reduce your liability. One obvious reason to take up the offer is to reduce the stress on yourself and not drive around knowing that in the event of an accident you would have to pay a high excess that in most cases has been inflated to scare you into taking the CDW. In all hosesty it does not take long for the CDW costs to add up and amount to more than paying the excess in the unfortunate event of an accident. Here is the dilermma!
Some credit card companies offer their clients insurance to cover excess liability when renting cars and some clients think they are covered when they are not you should check with your credit card company and get it in writing that you will be covered and under what circumstances are you covered for. Sometimes the credit card companies will only cover you if you have not been offer excess reduction by the car hire company or their cover may only cover the difference between the two.
At the time of booking is when you should be giving thought to all these things and make a decision as to whether you take the CDW. The car hire company will be doing their best to encourage you to take this option afterall it is in their best interests.
Next we have the situation where the unthinkable happened, a car accident. Assuming no one was hurt, in which case an ambulance should be called as soon as possible, the first objective will be to approach the other driver or drivers and collect their full particulars. This will include sighting their driver’s license and noting its full details. A tip here is to confirm that the address on the license is in fact their current address. If the accident has occurred in a busy location you may need to move the vehicles but it is always best to leave them if possible unless the police instruct you to move the cars. The police will need to be called depending on the severity of the accident or if anyone has been injured.
The accident isn’t the only thing you will have to contend with, the tow truck drivers are very competitive and sometimes extremely pushy. Try not to be taken for a ride, under no circumstances allow them to tow the rental car unless you are given the OK by the car hire company or told to do so by the police. Tow truck drivers or companies are paid a higher rate for what is call a police tow. Someone will have to pay for this tow and that could be you.
Tow truck drivers also receive commissions from panel repairs if he delivers the damaged vehicles to thier facility. That is why they are so anxious to get your vehicle off the road it isn’t because they want to look after you it’s because they wish to look after themselves. If he gets your rental car attached to his truck it is almost impossible to get him to release the vehicle.
Your next problem to deal with will be paying the excess to the car rental company and then attempting to recover it in the event that you were not at fault. This process may take a very long time and to some extent depend on the honesty and integrity of everyone involved.
Do your homework when it comes to insurance and car rental and be reassured that there are only a very few collisions. Drive Safely
If you are travelling to Australia or New Zealand or travelling from those countries don't forget you can arrange your car hire excess insurance at www.car-hire-insurance.info