Hi there,
Whether or not you should consider accepting the collision/loss damage waiver (CDW) and possible third-party liability insurance offered by the rental car company depends on two main factors:
1. Which credit card do you hold?
A number of Swiss credit cards provide a rental car collision damage waiver as a complimentary benefit, but the size of the waiver varies between cards. A collision and loss damage waiver of 2000 Swiss francs, for example, may be sufficient to cover the deductible of a budget or standard rental car is fully insured (comprehensive and collision car insurance) by the rental car company – but it may not cover the a high insurance deductible or excess (for a luxury car, for example) and would not even cover the cost of replacing a budget rental car in the case of a collision or theft if the car is not insured. In most countries in Europe, it is customary for vehicles to be fully insured – although the deductible which you as the renter must pay out of your own pocket can be high. If the CDW which you get with your credit card is relatively high (10,000 Swiss francs, for example), or if your card includes actual collision and comprehensive rental car insurance as a benefit (some Swiss credit cards do), then you will not normally need additional insurance or waivers. If the credit card CDW is low, make sure that it is sufficient to cover the out-of-pocket costs (insurance deductibles, for example) when you rent a car.
You can find out if your credit card offers a rental car CDW or insurance and how high the waiver or benefit is by clicking on the “Info” link corresponding to your card in the unbiased moneyland.ch credit card comparison. You can also sort credit cards based on the rental car insurance benefits they provide.
Other factors to consider are the age of the driver (credit card CDWs may only apply to drivers aged 21 and older, for example), the maximum length of time covered by the CDW (max. 31 days, for example) and the type of car (max. 9 passengers or max. 20 years old, for example).
2. Do you need liability car insurance coverage?
The benefits included on Swiss credit cards generally do not cover liability claims resulting from rental car use. Most countries require vehicles to have a minimum amount of third-party liability car insurance in order to drive on public roads. However, minimal liability coverage may not be enough to cover possible liability claims resulting from an accident for which you are deemed to be at fault. In some countries outside of Europe, liability car insurance is not compulsory at all, so cars may not be insured by car rental companies by default. In countries where compulsory liability insurance coverage is low or non-existent, it is very important that you take out additional rental car liability insurance unless you are insured by another policy. Just using your credit card to pay is not enough in this case.
Swiss personal liability insurance policies generally cover liability for damage or injury to third parties resulting from rental car use, but this coverage is typically limited to EU/EFTA member countries or excludes coverage for certain countries (such as the United States or Canada). Consider reviewing your liability insurance policy to determine whether you are covered, and what the limits are. If you are sufficiently covered, you will not need additional liability insurance.
If you have a Swiss car insurance policy, you may be covered while driving rental cars, depending on the policy you have. Liability car insurance from Baloise and Smile Direct, for example, covers policyholders when they use rental cars, as do some policies from Sympany and TCS (offered as an optional rider). Coverage is typically limited to the countries covered by your car insurance policy. Many Swiss car insurance policies do not cover liability for rental car use. If you have car insurance, check your policy to see if rental car coverage is included.
Some Swiss travel insurance providers offer rental car insurance which includes both a CDW and liability insurance coverage. Taking out one of these policies ahead of your trip can be more secure – and in some cases cheaper – than getting insurance when you collect the rental car at your destination.
Verdict
Even the lowest CDW which comes with a Swiss credit card will generally suffice for rentals of budget or standard vehicles which are fully insured by the rental car company, and the CDWs which come with more exclusive Swiss credit cards should be sufficient to cover most car rentals. However, you should always make sure that you are covered against third-party liability, as this is not included in the CDWs provided by Swiss credit cards.
Best regards from Moneyguru
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