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Getting around Bonaire: Why is rental car insurance so complicated?
Bonaire Talk: Getting around Bonaire: Archives: Archives 2009: Why is rental car insurance so complicated?
Top of pagePrevious messageNext messageBottom of page Link to this message  By Mike Southard (New BonaireTalk Poster - Post #5) on Wednesday, October 28, 2009 - 6:48 pm:     Edit PostPrint Post

I've looked at a bunch of threads here and I've walked away with more questions than answers. So maybe this will be the definitive thread on the subject :-)

First question: What exactly does CDW insurance cover and exclude?

Does CDW cover Liability? What are the limits?

From the Budget website, it looks like it covers just about everything, except with a pretty stout deductible.

"Coverage
The acceptance of the CDW (Collision Damage Waiver) charge per day per car (US$ 11.00 / Naf 19.25 per day) is mandatory and is included in the rental rate, your deductible is limited to US$ 300,00 (Naf 525,00) for damage to your car. We will ask you for a deposit of US$ 300,00 when renting the car. This amount will be returned in full, if the car will be returned free of damage. In case of damage caused by theft and/or joyriding and vandalism you will always be responsible for the deductible of US$ 300,00 (Naf 525,00)."

Whereas with AB, CDW apparently does NOT cover theft and vandalism:

Damage to the rental car by fault of the renter.

- Deductible
No Insurance Full liability
CDW US$ 350.00
Full Coverage US$ 100.00

Damage to the rental car resulting from theft.

- Deductible
No Insurance Full liability
CDW Full liability
Full Coverage NONE **

Other damages to the rental car, e.g. third party, flood, fire, "Act of God" etc.

- Deductible
No Insurance Full liability
CDW Full liability
Full Coverage US$ 100.00

Damage to a third party caused by the rental car by fault of the renter.

- Deductible
No Insurance Full liability
CDW US $350.00
Full Coverage US$ 100.00


I have more questions, but in the interest of clarity, I'll pose the questions in subsequent posts.

Thanks for any help on this. It is an incredible maze.


 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Fiona Rattray (Experienced BonaireTalker - Post #427) on Wednesday, October 28, 2009 - 11:59 pm:     Edit PostPrint Post

My cynical point of view is that the insurance companies think the more complex it is, the more likely you are to throw up your hands and spend more money.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Vince DePietro-www.bonairebeachcondo.com (Supreme BonaireTalker - Post #2530) on Thursday, October 29, 2009 - 6:14 am:     Edit PostPrint Post

Mike: Policies are written by underwriters & lawyers also get involved. Of course they're going to make it complicated! I've been involved with & studied policies for many years..
Which is why now I use the "KISS" method.

Get an AMEX gold, add the "premium car rental protection" ($19.95 per rental)& waive all the collision & theft surcharges.

Liability damage' referred to as 3rd party coverage (if you injured someone or damage others property) "should" be covered by the blanket liability policy issued to the rental company as part of "fleet coverage". You'd have to review their policy to ascertain this(which they won't let you have).
If their carrier denies the defense & indemnification of the 3rd party claim claim, excess coverage would then come from an umbrella policy endorsed onto your homeowners policy in the states.

PS And if you think deciphering insurance policies are complicated, try reading the US Internal Revenue Code (courtesy of the good folks in Washington). They've elevated the term "obfuscation" to a whole new level!

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Mike Southard (New BonaireTalk Poster - Post #6) on Friday, October 30, 2009 - 12:00 am:     Edit PostPrint Post

Hey Vince, thanks for that info, it is very interesting and places more pieces of the puzzle.

I checked today with my insurance company and I don't currently have an umbrella policy, and it may be cost prohibitive because of rental property I own (lots of exposure). So, I decided to try out my new Skype to Go number (check it out, it's rather cool) and call Budget Bonaire. As I rather expected, I got vague and puzzling information about my exposure to liability for the other vehicle/driver if I was in a crash. According to the woman with Budget, if I may paraphrase, if I have a crash involving another vehicle, I must report the crash to the police within 24 hours, then the police report will be used to determine whether it is the rental company or I who is responsible for the costs associated with the other vehicle and passengers. Trying to get a lucid explanation of how they would make that determination was like riding smoke.

I'm also still curious if there is supposed to be some standard of the limits and exclusions for CDW across different rental companies.

More observations:

With AB, it looks like you must purchase "full" insurance or you are not covered for the most common incidence on Bonaire, Vandalism. And, even upon purchasing insurance which costs the same amount as the rental of the vehicle ($175) you still are faced with deductibles.

Now, to confuse matters even further, Budget does not offer "Full" insurance, as offered by AB. So, unless I'm misunderstanding something, anybody who rents from Budget who does not carry a private umbrella policy is exposed to liability from a second vehicle involved in any crash regardless of whether you purchase CDW or not.



I must be missing something. Am I?

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Vince DePietro-www.bonairebeachcondo.com (Supreme BonaireTalker - Post #2536) on Friday, October 30, 2009 - 5:52 am:     Edit PostPrint Post

Well Mike don't know what else to advise you. As I indicated I use the Amex premium car rental for first party coverage to the vehicle.

I SUSPECT that basic liability coverage is afforded under the fleet policy issued to the car rental company but I do rely on my umbrella which affords world wide liability coverage. So, that would be the route I recommend.

Generally speaking the premiums for an umbrella are relatively inexpensive.If you own another rental property, obviously you need a primary policy on that property to protect you (in fact I have 2 liability policies in Bonaire; one for the complex & the other specifically for my condo).

So I'd focus my efforts on getting the umbrella in the U.S. instead of trying to get the info from clerks who work for the car rental operation.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By lisa z (Experienced BonaireTalker - Post #273) on Friday, October 30, 2009 - 2:18 pm:     Edit PostPrint Post

I can explain it very simply.
They scare you into giving them your money.
It's all about the dollar.

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Vince DePietro-www.bonairebeachcondo.com (Supreme BonaireTalker - Post #2537) on Friday, October 30, 2009 - 5:36 pm:     Edit PostPrint Post

Lisa..I do suspect there's a lot of truth in that!

 

Top of pagePrevious messageNext messageBottom of page Link to this message  By Will Brown (Experienced BonaireTalker - Post #153) on Wednesday, December 2, 2009 - 12:33 pm:     Edit PostPrint Post

On the AMEX, be careful if you use the protection as mentioned by Vince. When they rental car company runs the card, AMEX automatically hits you for the $19.95 if you have signed up for the plan. However, lets say you go the next day to add another driver and the rental company runs your card again to add the driver, AMEX automatically hits you again for $19.95.

Basically, if you are signed up for the plan - then anytime a car rental place runs your card (FOR ANY REASON) you will get tagged for the $19.95. It wasnt a problem to call and correct it with AMEX later. I discussed it with them and thats just how there system handles it.

 


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