Questor’s Insurance Jargon Buster
At Questor Insurance we know insurance can be tricky, that’s why we have put together a handy guide to understanding insurance jargon!
CDW: Also known as collision damage waiver. This is the insurance which covers the full value of the hire vehicle. This is usually included in your rental package, leaving you liable for an excess fee rather than the full amount of the vehicle.
If you do not have CDW included in your rental package, you will be liable for the full amount of the vehicle rather than an excess fee, in which case you can purchase our additional CDW insurance up to £50,000. If you have this optional extra you will only require third party insurance in place with your rental package.
LDW: Also known as loss damage waiver. This covers you for any physical loss or damage to the hire vehicle for which you are responsible for under the terms of the hire agreement following a fire, lightning strike, explosion, accident, accidental damage, theft or attempted theft, malicious damage, storm and flood. This section includes loss or damage to auto glass, roof, tyres, wheel rims and the under body and towing and loss of use.
You may find that you have a zero excess policy in place with your rental, however you could still be liable for the full costs of any damage to tyres, windscreen and underbody of the vehicle. Our standard policy will cover you up to £5,000 for this type of damage.
Third party Insurance/ Third party Liability/supplementary liability: This is the insurance which covers you for any damage caused to another person or their property. This is mandatory within Europe and you may find that it is generally always included in the rental package as standard. However, when travelling outside of Europe, you may find that you need to purchase this separately or as an extra with your rental. Unfortunately we are unable to offer this type of insurance.
Excess: This is the amount that you will be held liable for when you have CDW insurance in place with your rental package. An excess fee is typically anything between £500-£2,000. This is the amount which you will be charged in the event that the vehicle is damaged. Beware that rental companies can charge you the full excess fee regardless of the cost of damage before the vehicle is repaired.
Deposit: This is the amount which the rental company will hold on your credit card upon your arrival at the rental desk. In the event of damage, they will keep this charge.
Reimbursement: Our policy is reimbursement insurance. This means in the event that you damage the hire vehicle, the rental company will charge you the fees and you would then claim those fees back through our claims handlers.
FYI: With our insurance, you will not require the additional insurance that the rental company offers you at the rental desk (Super CDW, comfort waiver etc.). The rental company will ask you to leave a deposit on your credit card and in the event of damage, they would keep this charge and you would then have 31 days from the incident to notify us and claim back for reimbursement.
Excess reimbursement is a non-mandatory insurance. Therefore, you are not required by law to purchase either our cover or the rental company’s extra daily waiver. You may be aware that rental companies can often be pushy when offering their excess waivers as this is where they earn their commission. Our insurance should not be declined unless it states in their terms and conditions that they do not accept insurance provided by a third party.
Date Created: 23 July 2015 by Chloe Loughran-Taylor