The deductible is one of the costs to consider when you need to rent a car. Depending on the rental company, the type of insurance and the chosen payment method, you may encounter differences in the amount and in the way the agency collects it.
Today we want to help you understand what it is, how it works and how you can avoid paying it.
What the insurance deductible is
The insurance deductible is the maximum amount the customer must pay in the event of damage to the vehicle. It is a fixed amount defined at the time of the contract and may be held on your credit card or requested as a security deposit.
If the vehicle is returned at the end of the rental period with no damage, this amount is refunded to the driver. If damage has occurred, the cost of any repairs will be deducted from the deductible and charged to the customer. This amount represents a maximum threshold for which the driver is responsible. The remaining amount will be covered by the insurance policy and therefore by the rental company.
The amount of the deductible varies depending on the rental company and is usually included in the most common types of insurance: theft protection and damage liability limitation.
When renting a vehicle, the driver is not always required to pay the full deductible in case of an issue. The payment is strictly linked to the repair cost. However, it is important to remember that not all damages are covered by insurance.
For example, in the case of damage liability limitation, only the bodywork is covered. If damage occurs to other parts, this type of policy does not apply. Moreover, the policy cannot be used if the damage results from certain driver behaviours, such as:
- exceeding speed limits, dangerous driving or driving under the influence;
- driving in a country not included in the policy;
- driving by someone who is not the authorised driver listed in the contract;
- driving on unpaved roads.
There are cases in which it is possible to avoid paying the deductible. For example, you can purchase an additional insurance coverage at the time of booking, either through the rental agency or through external insurance companies.
What is a security deposit?
The security deposit is an amount that is temporarily held on your credit card, making it unavailable until the vehicle is returned and the rental company releases the hold. It is not an actual charge, as the company simply blocks the amount as a guarantee for a set period.
Some rental companies allow the security deposit to be paid using other methods:
- cash
- prepaid cards
- debit cards
In all cases, the amount will be withheld and later refunded at the end of the rental, after damage inspection if necessary.
CDW insurance coverage
CDW stands for Collision Damage Waiver and, together with the Loss Damage Waiver (LDW), refers to protection against damage to the vehicle and the different levels of coverage available. CDW is one of the most common insurance options and includes a deductible that limits the driver’s maximum financial responsibility in the event of damage, regardless of the type of incident.
If a claim exceeds this amount, the rental company will cover the financial difference between the repair cost and the value of the deductible.
On the Ellepirental website you can book your rental car and enjoy your trip to Sardinia freely and without worries. Choose your rental car from the many models available!
