Important points before buying CDW (collision damage waiver)
New Zealand, which is an island country in the Pacific Ocean, is made up of two larger landmasses (the North Island and the South Island) and several smaller islands. The island is known for its scenic beauty and geographical isolation. It is located 2000 km (1250 miles) southeast of Australia, across the Tasman Sea. Due to its location, New Zealand has a very distinct collection, but rich in flora and fauna. All of this has made New Zealand one of the best places on Earth that are worth visiting.
After reading all of this, if you planned to buy a rental car in New Zealand while traveling to the island country, you must pay for the most important point: the collision damage waiver (CDW). However, there are many conditions that apply to the CDW, as many car rental companies reject the purchase of the damage waiver as they consider that their own car policies will not provide adequate coverage when using a rental vehicle.
Therefore, this can be a risky undertaking, if an insurance company, after inspecting a vehicle, assesses the damage before authorizing the repair or disposal of the vehicle. And it is a general trend that you find with the car rental company that is quicker to recover the car from the lessee and put it back into service or dispose of it quickly. The rent can also request immediate payment, even for any damage, even when using the credit card of the renter, exceeding up to its maximum limit. In some or most of the cases for automobile policies, the rental company is provided with a loss of revenue accounting due to an accident and the loss of revenue can be greatly increased by hundreds of dollars, even crossing the limits of tenant policy. . In addition, according to the lease, the tenant is responsible for administrative charges such as valuation, storage and towing, etc.
Therefore, do not deny the collision damage exemption; however, you can check all of your options before signing any contract documents. You can start by checking your own car insurance policy, as it may sometimes not provide something necessary present in rental insurance.
The next step in proper care regarding CDW for car rental in New Zealand is credit cards. However, you can escape the purchase of car rental insurance, as it may already be covered by the credit card with which you are purchasing the car rental. Check well before your credit card company checks whether it covers insurance for the model of the car you are hiring. However, also check all the terms and conditions offered by the credit card company.
If you are a business traveler and your trip is sponsored by the company, you can save your company valuable dollars by checking if they can cover the car you rented. Since companies are used to their employees using rental cars, they provide full coverage to avoid additional expenses. After all, you are obliged to buy car rentals and ensure that you don’t get caught up in something very unnecessary. Rental companies do their best to make you cheat and force them to sign up for what they offer.
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