When you’re renting a car, you may be liable for a lot more than you are aware of… We demystify the real costs of renting a car and explore the value and different types of car rental waivers.

It’s the most wonderful time of the year… You’ve booked your flights and just can’t wait to get on that plane and start your festive fun. Once you land, you’ll be picking up your rental vehicle, sign a couple of documents and off you’ll go on your merry way.

Sounds divine, right? And nine out of ten times it is. But there’s a lot more to that car rental agreement than you may have thought such as how much you really are liable for in the event of the proverbial ‘number two’ hitting the fan.

The reality is that most of us simply tick a couple of boxes on the rental agreement without really knowing what we are and aren’t signing up and paying for. Instead, we really should be taking note of the real cost of rentals (including the cost of waivers and replacing anything that gets damaged or lost while it is in your possession).

First things first: Insurance cover for rentals is a myth

Contrary to popular belief, vehicle hire companies don’t actually offer insurance because they are not authorised financial services providers. Instead, they offer responsibility waivers.

What’s the difference?

Responsibility waivers are legal agreements between the rental company and the individual renting the vehicle.  With a signed waiver in place, a possible claim against a car renter is limited in the event that the rented car be stolen, damaged or written off.

This means that if you, for example, hit a pothole while travelling in a rented car you will not be responsible for the full cost of repairing the damage or replacing the tyre/rim – depending on the waiver that you have signed. If, however, there was no waiver in place at all, the rental company could hold you liable for all the costs involved. This is why signing the official vehicle renting agreement that clearly states what your liabilities and rights are is a compulsory step in the renting process at most vehicle hire companies.

Types of waivers:

  • Collision damage waiver – these types of waivers limit your liability in the event of an accident involving another vehicle.
  • Theft loss waiver – when you take out this waiver, you will not be liable for the complete amount in the event that the vehicle or any part thereof be lost or stolen.
  • Windscreen tyre damage waiver – to protect yourself against the costs involved in replacing or fixing a windscreen or tyre, you have the option of opting for this waiver instead.
  • Super waivers or comprehensive waivers – consider these the mother of all waivers. Absolving yourself completely from any and all responsibility in the event of damage, loss or theft, this waiver offers you complete protection regardless of what happens to the vehicle.

Of course, the more coverage you take, the more you’re going to pay, so it’s important to ask you’re the rental company’s service consultant about the different waiver options so that you can make an educated decision.

Understanding the issue of negligence:

Even the most sophisticated and comprehensive waiver will not be valid if the incident was caused as a result of your negligence. This means that should you fail to behave with the level of care that someone of “ordinary prudence” would have exercised under the same circumstances, your waiver may be null and void and you may be held responsible for all of the damage or loss of the vehicle.

Besides when you are declared negligent, the following are some of the conditions that you may be held fully liable for if you choose not to take, and pay for the waivers:

  • When you breach your agreement with the rental company in any form
  • When an incident occurs while someone is driving who is not authorised to do so
  • When damage is caused to a light, window, tyre, rim or the under carriage of the vehicle without there being signs of a collision
  • When damage occurs as a result of you having failed to ensure that the engine has enough lubricants or water
  • When damages is caused as a result of the vehicle hitting a pothole or driving on a gravel road

Accidents happen, particularly during the festive period when way more people are on the road. It is wise to be prepared and do some homework about your options when it comes to waivers.  Remember that the rental vehicle is your responsibility from the moment they hand over the keys, so be sure to get a representative of the rental company to inspect the car with you before you take responsibility for it.