Collision Damage Waivers

When renting a car in Manhattan, there are ways you can save money by checking ahead before you rent. Most of the rental car agencies in Manhattan structure their staff compensation on commissions based on the sale of the Collision Damage Waiver. The Collision Damage Waiver is also known as a Loss Damage Waiver. These are abbreviated as CDW and LDW. The CDW and LDW are offered by the Manhattan car rental companies as coverage in the event the rental car is damaged while being driven in Manhattan or anywhere. In exchange for a daily fee of $9 and up, the Manhattan rent a car company will not hold the car rental customer responsible for damage to the rental car in the event of a collision, a theft, or any other damage. This product is called a "waiver" because the Manhattan car rental company waives its right to collect for the damage to the rental car in exchange for the daily fee. Since this is a waiver and not an actual insurance product, the CDW or LDW is taxable in Manhattan at whatever rate is currently in effect as set by New York State. In 2010, this rate was 19.887%.

Should the Manhattan rent a car customer not purchase the CDW coverage from the rental car company, the customer would be liable for any damage done to the rental car. With cars costing anywhere from $15,000 and up, this is a high risk to take. Oftentimes, you are better to pay the fee for the CDW to the Manhattan rent a car company than to be liable for the entire cost and value of the rented vehicle.

Personal Insurance for Manhattan Residents

However, what many Manhattan residents do not realize is that there are ways the Manhattan consumer already has coverage for the rented vehicle, and, consequently, they do not need to purchase the CDW when renting a car in Manhattan.

Manhattan residents who own a car likely have the coverage for the rental car damage through their personal automobile policy. Nearly all automobile policies written and offered in New York state have included coverage for rental cars in New York state when those cars are rented by New York state residents. This applies to Manhattan residents as well of course. In the event that a Manhattan resident rents a car, they are covered for any potential damage done to the rental car while they are renting it. If you are a Manhattan resident and own a car, we suggest that you contact your car insurance broker or your insurance company representative directly to determine if you have this coverage.

Credit Car Coverage

Aside from the possibility that Manhattan residents have coverage through their car insurance company, coverage for potential damage to the Manhattan rent a car may also be available through your credit card. American Express and Visa have many credit cards that offer their Manhattan credit card account holders coverage so that they don't need to purchase the CDW from the Manhattan car rental company. There are often restrictions and limitations imposed by the credit card companies however. Before making a final decision to decline the CDW offered by the Manhattan rent a car company, we suggest you call and speak with your credit card company representative to learn the benefits and restrictions. Such restrictions could include how long you can rent the car for. Additionally, if you own a car, the coverage offered by the credit card company may be secondary to your personal car insurance coverage.

Restrictions on Your Coverage

Whether you purchase the CDW coverage from the Manhattan rent a car company or use alternate coverage, you must always keep in mind that all coverage will be voided if the terms and conditions of the Manhattan rental are not followed. For example, you must be sure to follow the laws of New York State or any jurisdiction you are in. You must also stay away from consuming drugs or alcohol so as not to be impaired. In addition, you cannot allow others not authorized by the Manhattan rental car company to drive the rental car.

Allcar Rent-A-Car maintains two rental car offices in Manhattan, which offer current car models, vans, and 15-passenger vans at competitive rates. The offices are located at 415 West 45 Street and 540 West 38 Street.

that you call your insurance provider to verify that you have this coverage and also to verify its limits.

Queens residents may have coverage for damage to rental cars through their credit card company as well; however, there may be limitations and restrictions. Before making the decision of declining the LDW offered by the Queens car rental agency, we suggest you speak with your credit card provider to be better informed of the benefits and/or restrictions they offer.

What If Your Coverage Is Insufficient?

If you find that the coverage offered through your auto policy or credit cards is insufficient, you have the option of accepting the coverage offered by the Queens rent a car agent. Please keep in mind that whether you purchase coverage from the Queens rent a car agency or use another form of coverage, all coverage will be void if the terms and conditions of the Queens car rental agency and/or New York State laws are violated. This also applies to the laws of any state or jurisdiction you are in with the rented vehicle. Queens car rental companies also offer coverage on passenger van rentals, minivan rentals, and 15-passenger van rentals.

Should you have any questions, please contact the Queens office of Allcar Rent-A-Car. We're located in the heart of Queens at 96-18C 63rd Drive, Rego Park.