Damage Waiver for Rental Vehicles: Is it Worth Purchasing?

Everyone knows that when you rent a car, you have the option of purchasing a "Damage Waiver" that relieves you of your responsibility for damages to the vehicle. There is a lot of controversy over whether or not to purchase the optional "insurance" as some people believe that it is nothing more than a money-making scam devised by the rental company. I assure you, it's not that simple. The rental company that I worked for paid for damages done to the rentals with that "pool" of funds, and believe me, with the cost of collision repairs today, we did not make money on the "insurance." I parenthesized insurance because that is not really an accurate name, as what you are actually buying is a waiver, not an actual insurance policy. Semantics aside, there are two much divided camps on whether or not to take this option-and it is always an option, regardless of what an agent may tell you--when you rent a vehicle and hopefully this can help you figure out which camp you belong in.

The most important time to get the optional coverage is when you do not have coverage of your own. If you do not have your own vehicle policy, or only carry liability, then you are 100% responsible for what happens to your rental-regardless of fault. Keep in mind that while the damage waiver is still optional, the rental agency reserves the right not to rent to you as you are essentially a risk not worth taking.