Understanding Basic Insurance (CDW & TP) and Excess
As a travel agent, it is crucial to accurately inform your clients about their financial responsibility during a car rental. Most rates booked include basic insurance, which consists of CDW and TP.
1. Collision Damage Waiver (CDW)
CDW is a mandatory protection that limits the client's liability for damage to the vehicle's bodywork.
- Agent Note: This is not full insurance. If the car is damaged in a collision, the client is responsible for paying a fixed amount (the Excess), while the rental provider covers the rest.
- Exclusions: Please inform your clients that CDW typically does not cover "vulnerable" parts of the car, such as tires, windshield, undercarriage, and the interior.
2. Theft Protection (TP)
TP limits the client's liability if the vehicle is stolen or damaged during an attempted theft.
- Agent Note: Just like with CDW, the client is not responsible for the full value of the car, but only up to the agreed Excess amount.
3. Understanding the "Excess" (Liability)
The "Excess" (or Francizė) is the maximum amount the client is required to pay in the event of damage or theft.
- Varies by Destination: The exact Excess amount depends on the country of rental and the vehicle category.
- Security Deposit: At the time of pick-up, the rental desk will block a deposit on the client’s credit card. This deposit usually covers the Excess amount plus a tank of fuel.
- Important: Ensure your client has a valid credit card in the primary driver's name with a sufficient limit to cover this deposit.
Reducing Client Liability
If your client prefers "Zero Excess" (full peace of mind), you can advise them that Hertz offers optional Super Cover at the rental counter, but usually it's cheaper to book in advance with Hertz Business Plus programme CDP. This additional coverage eliminates the Excess, meaning the client would have no financial responsibility in case of an accident or theft.