What is CDW insurance on Car Rentals?

Auto insurance in Costa Rica is a federal government dominance of the INS (Instituto Nacional de Seguros). Obligation insurance coverage through the INS is mandated for legal reasons, but provides just minimal protection. Leasing agencies offer supplemental programs which cover deductibles and contingencies besides a simple traffic accident.

Fording a river in Costa Rica

Figures 2) and 3) are replaced by your credit card coverage (see details for credit card protection). Check before you decide to lease, and obtain it on paper. Some creditors have exclusions particularly against Latin American rentals. Some local rental organizations don't allow you to definitely waive this insurance coverage irrespective of various other protection.

1) Required by Law—Mandatory SLI, TPL, SLC or API

Liability insurance coverage from the INS is required despite your guidelines at home or what you believe your titanium, platinum, or zirconium charge card card covers. The price ranges from $United States 10-20 a day with respect to the automobile. This insurance coverage cannot cover your local rental car at all, only damages to many other individuals, their cars, or residential property. If you don't buy supplements, or have recorded protection from your own charge card you are however accountable for all problems towards the rental car.

This insurance coverage is not changed with bank card protection.

2) Optional—CDW or LDW

Collision harm Waivers tend to be a product underwritten by the rental company to cut back your responsibility for your local rental car to your deductible quantity ($United States 1, 500-3, 000 depending on the business and vehicle) only when it comes to an accident. The cost ranges from $US 15-40 daily with respect to the company and car. You might be nonetheless responsible for all losings or problems in the case of neglect, vandalism, road harm, or theft.

3) Optional—Zero Obligation

In brands of full dental coverage plans, Vandalism Supplement, harm Supplement, and Theft Insurance these extra policies are intended to lower your obligation to zero whenever along with SLI and CDW. For example, if the trunk is harmed by thieves while they steal your baggage you will end up held responsible for damage if you do not have actually purchased a 3rd level of insurance. The price ranges from $US 5-20 each day (added above others insurances) depending on the small print and car.

Even more Confusion—The confusion and frustration involved in getting a fair price on an automobile leasing gets worse before it improves. Some local rental vehicle companies lump the expense of more than one types of insurance coverage in to the leasing price, other individuals incorporate the us government insurance in their CDW or LDW coverage, as well as others appear to intentionally confuse the three types so as to make their prices appear better.

Revenue Motive

Insurance coverage and harm Waivers tend to be a major source of income for rental agencies since they're basically pure profit. The Rental Car Association of Costa Rica says that a lot of the pressure to acquire comes considering that the sales representatives tend to be paid a commission on the products.

The local rental business just will pay about $2 per day to your INS for the government mandated SLI then again charges between ten dollars and $25 a day.

The CDW “insurance” is even more profitable because 99per cent of the time no harm does occur plus in the infrequent cases that it does it's usually covered by the two grand allowable your tenant however must shell out of pocket regardless of if they chosen CDW coverage.

It could better provide customers when they only increased their prices so they had a lasting business model without high-pressure product sales (many merely won’t lease for your requirements in the event that you don’t buy CDW) of dubious “insurance” services and products. Unfortunately the local rental businesses tend to be style of stuck because consumers don’t easily choose a business who’s rates look 25% higher-up front even in the event they’re 10% low in the end.

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