As someone who was quite accustomed to paying extra for a collision damage waiver, I sure stopped in a hurry when a friend who is an area manager for a large car rental agency, told me that he and his staff were on an incentive program and routinely sold waivers to people they knew had no use for them.

What they did was understandable, to a degree. Like most industries, the competition is fierce and all competitors are forced to offer a rock bottom price for basic service. It's the extras and the add-ons that really keep them in business. Which explains how he and his staff could talk customers into the damage waiver even as they paid with a gold or platinum credit card the employees knew would offer the same or better protection, at no cost.

In my case, I checked with my own insurance agent who advised me that my own policy did not cover me but I could add what is here referred to as an OPCF endorsement to my policy at a cost of about $30 dollars annually. This was about the same cost as was being offered by the car rental company for a duration of three weeks, except that the coverage offered by my regular provider was much more comprehensive. Many of the waivers offered by the car rental companies include fine print that restricts their coverage, such as if the collision occurs on an unpaved surface.

I would never suggest leaving yourself unprotected, but remember that the damage waiver offered by the rental company is a cash grab and is your last resort if you've no coverage with either your own insurance provider or credit card company.

Learn more about this author, Russell Dawson.
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