zero deductible car insurance

zero deductible car insurance

What insurance is included and what are the options regarding deductible?

The standard insurance against damage and theft offers good cover in case of damage or theft of your rental vehicle. Make sure you are well informed about your deductible.

All rates shown include insurance against damage. If your rental car is a write-off, the CDW insurance offers you cover for most of the costs. The remaining amount is your deductible.

All rates shown include insurance against theft.

As with the damage insurance, a deductible applies.

The standard insurance for damage and theft provides good cover in the event of damage or theft of your rental vehicle. In most cases, you will still have a deductible. The amount of this deductible is stated in the terms and conditions of the selected vehicle.

With deductible, covered deductible zero deductible?

There are pros and cons associated with all three options. We run through the three variants so you can decide what is right for you.

You have a deductible and must pay a deposit at the rental location with a credit card in your own name. In case of damage, the rental company will keep (part of) this deposit.

  • Without deductible cover
  • You must pay a deposit at the rental location (using a credit card in your name)
  • If case of damage you lose (part of) your deposit and things can get very expensive.

With this variant you first pay a deposit. In case of damage or theft, the rental company will retain an amount from this. You can claim this retained amount back from us later.

  • Cheaper than local insurance
  • You must pay a deposit at the rental location (using a credit card in your name)
  • Ultimately zero deductible: you get your deposit back.

You choose a vehicle with zero deductible through us. Then in many cases, you do not have to pay a deposit at the rental location (or at least a much smaller one).

  • Expensive
  • No or (much) lower deposit required
  • Excellent insurance, little hassle

Both variants (coverage and zero deductible) and a comprehensive version to include cover for damage to windows, tires, underbody and roof. We call this 'comprehensive coverage'.

Buy off deductible when you pick up your rental vehicle

Zero deductible and covered deductible is not always available to book through our site. However, you can buy off the deductible when you pick up your rental vehicle. It is an excellent form of insurance but also the most expensive, and the full amount is not disclosed in advance.

The most FAQs regarding deductible.

The staff at the local rental company will try to sell you numerous types of extra insurance because they can make money out of it. Don't be persuaded to insure items that are already covered by our policy no matter how persistent the agent in question is!

Make sure you have enough credit on your credit card to pay the deposit. In some cases you will need to type in your pincode: can you remember your credit card's pincode?

The rental company may offer you additional insurance policies that do actually offer added value. It's up to you whether you want additional insurance.

Covered deductible: how do I lodge a claim?

If your rental vehicle has been damaged or stolen you must produce the following documents:

  • Rental agreement
  • Damage report from the vehicle rental company
  • Police report or a written account from the police in the case of a one-sided incident
  • A proof of payment and/or a copy of the credit card statement

A refund will only be made when all documents have been shown and deliberate misconduct and negligence can both be ruled out.

The exact procedure is described in the terms and conditions you are required to accept when you book the rental vehicle. These are found on the voucher that you receive after booking.

We have the perfect vehicle for you

Discover why we are the number one, Los Cabos Car Rental. We have car rental service at the airport in Los Cabos 24hrs.

America Car Rental is a company with over 20 years experience in leasing cars, starting its operations in the city of Cancun, with the passage of time have learned to meet our customers and that is why we have given the task of providing the best experience in car rental.

Today we know the needs of our customers and that is why America Car Rental continues to expand its services in different cities in Mexico and the United States, so we can offer the best solution for car rentals in cities like Cancun, Playa del Carmen, Tulum, Riviera Maya, Merida, Mexico City, Monterrey and now in Los Cabos.

America Car Rental offers affordable rates that include all insurance (Collision Damage, Liability, Medical Expenses and Coverage 0% deductible), guaranteeing be protected with any situation that may occur to the vehicle or third parties.

24Hrs have service 365 days a year in our offices Airport and offer the best service guaranteeing fair lease to the arrival time without worrying about the time. All our offices outside the airport also operate 365 days a year with a schedule of 8am to 8pm.

Car Rental America cares about its customers and is always updating its fleet to ensure that you get a late-model car and in excellent condition. We have a wide range of vehicles from mini economy to luxury cars, so you can find the car that best fits your budget and meets your needs.

Do not be surprised by some car rental sites that try to offer rates practically given away, that upon reaching the counter they want to sell extras. That’s why America Car Rental offers an all-inclusive package with no hidden extra charges, so that you this quiet and protected.

Give us the opportunity to offer you the best deal for Car Rentals in Los Cabos, or in any other city that we can provide our leasing cars services.

We accept different payment methods credit card and debit card whenever a credit card is required for the vehicle warranty.

Do not hesitate and make your reservations in an easy way by entering the dates and times of interest.

WE ARE WAITING FOR YOU!

America Car Rental operates based on a system of policies and procedures, clear and duly authorized by regulating agencies, fur the benefit of the corporation and the client. For inquiries or comments, please call +52 (998) 253 61 12 or by e mail to [email protected], so a representative, from client services, can assist you.

  • Minimum age required is 21 years old. No limit above 21.
  • Driver´s license not expired with photo.

(America Car Rental reserves the right to verify and accept the licenses in relation to the norms set by America Car Rental and may reject the rent, must show the document free from amendments, modifications and must be legible.)

  • Official ID with photo not expired, IFE (Mexicans) or passport with photo not expired from place of residence.
  • Credit Card

For the payment of the rental, America Car Rental accepts all credit and debit cards (except Dinner Club) and traveler’s checks. America Car Rental accepts the following credit cards to warranty the rent or payment: American Express, Visa, MasterCard, and Discovery. WE DO NOT ACCEPT CREDIT CARDS FROM DEPARTMENT STORES

America Car Rental, reserves the right to decline a reservation, for such the car rental if the hirer does not comply satisfactorily with the requirements to complete the operation.

America Car Rental allows the holder of the lease, to assign an additional driver without charge. Additional drivers must comply with the same requirements as the main driver and will be alleged to the same driving obligations of the rental car as the main driver. If you require a second additional driver, this have an extra charge of 5 USD (taxes included) per day.

C) PAYMENT METHODS AND WARRANTY

America Car Rental for security reasons does not take cash to warranty a rent, in any currency, only credit cards in which a bank authorization will be requested, for the credit card provided, as a backup of the rental contract. The amount will depend on the car’s category.

A deductible is the amount of money subtracted from the value of a loss, which is not covered by insurance. For instance, if you are in an auto accident, and you suffer collision damage of $10,000 and have a deductible for collision of $500, then your insurance company will pay you $9,500 for your loss. If the collision damage is $450, then you collect nothing, because it is lower than your deductible.

The reasons for deductibles are to eliminate small claims, which helps keep premiums affordable, and to reduce moral and morale hazard. Coinsurance is another method commonly used to keep premiums affordable by having the insured pay part of the cost.

Since processing claims requires a minimum cost that is mostly independent of the amount of the claim, the expense of processing a small claim would constitute a large percentage of the claim itself. Thus, deductibles are an effective way to keep premiums affordable. Furthermore, most people or businesses can easily afford to pay for small losses with earned income. The primary purpose of insurance is to cover large, catastrophic losses—what is sometimes called the large-loss principle—that could financially ruin an individual or business.

Deductibles also reduce premiums by lowering the payouts for the losses by the insurance company. However, the size of the deductible and the amount of the savings is not linear. By increasing the size of the deductible, savings will be much greater at first, but decline dramatically with larger deductibles. For instance, the standard deductible for collision in car insurance is $500. If this insurance costs you $1,000 per year, increasing the deductible to $1,000 may reduce the premium to $800 per year. So in this scenario, by taking the lower deductible of $500, you are paying $200 per year for $500 worth of coverage—not a very good cost-benefit ratio. If you increase the deductible to $2,000, then your premium may only drop another $20. Thus, when buying insurance, it pays to compare various deductibles and the associated premiums.

Deductibles also help to reduce moral hazard, where the insured causes losses to collect the insurance money, because the insured will suffer the loss of the deductible for any losses. Losing the deductible also helps to reduce morale hazard, which exists because the insured may otherwise be nonchalant about losses, and do little to prevent losses because of insurance.

Some types of insurance do not have deductibles. For instance, life insurance policies do not have a deductible because a deductible has no benefit. A deductible in life insurance would not be a moral or morale hazard, and there are no small claims—death occurs or it doesn't. Liability insurance also has no deductible, because almost all liability claims will be for fairly substantial sums of money, and because the insurer will want to handle the case from the beginning to minimize legal mistakes that could be more costly later on.

Deductibles in Property Insurance

Property insurance has 2 types of deductibles: lump sum and the percentage of the insured property. A lump-sum deductible is equal to a specific amount, such as the $500 deductible that is common for car insurance. A percentage deductible is equal to a specified percentage of the value of the insured property.

The deductible is applied either as a straight deductible or an aggregate deductible.

A straight deductible is a deductible that applies to each separate loss, and is the type of deductible in most personal lines of insurance. For instance, if, during the course of a year, you are involved in 2 separate auto accidents, then the deductible will be subtracted for each accident.

Commercial insurance often has an aggregate deductible, which is the total deductible for a given policy period. For instance, if a business has property insurance with an aggregate deductible of $10,000, then the business will have to cover the 1 st $10,000 worth of losses for each policy period—usually a year. So if, during the course of a year, a business has 3 separate losses of $2,000, then $6,000, then $4,000, the business will have to cover $10,000 of its losses, but will receive $2,000 from its insurance company for the last loss. Any more losses that occur within the same policy period will be fully covered. So if the business has another loss of $3,000, it will receive the full amount from its insurer.

An aggregate deductible makes more sense in commercial insurance, since businesses can have many separate losses during the course of a year, but would be unusual for an individual to experience multiple losses within a year.

Deductibles in Health Insurance

Deductibles for health insurance can be in the form of dollars or time. Most medical insurance policies have a dollar deductible, while disability insurance has a time deductible, where the insured must wait a specific amount of time after a disability to collect any insurance.

The most common type of deductible for basic medical expenses and major medical contracts is the calendar-year deductible, which is the amount that must be paid by the insured in a calendar year before the insurance company pays anything. After the insured has paid the deductible for the year, then the insurance company pays everything for the rest of the year. This is basically the same as the aggregate deductible in commercial insurance policies.

Often, employers provide employees with a basic medical expense plan that is supplemented with a major medical plan. A corridor deductible is the deductible that applies to the major medical plan that only pays what the basic plan does not, plus a specific dollar amount; thus, it bridges the 2 policies (hence, the name).

Most disability insurance policies have an elimination period deductible (aka waiting period) of 1 or more months, which requires the insured to be disabled for a time greater than the waiting period, and for which payments will be paid only for the time after the waiting period when the insured is disabled. To collect social security disability benefits, for instance, requires a waiting period of 1 year. Like the dollar deductible, shorter waiting periods command higher premiums.

Elimination period deductibles are common for any type of insurance that pays a specified amount over time, because it is more effective as a deductible than the dollar amount deductible. Like dollar deductibles, elimination period deductibles reduce premiums by eliminating small claims of disability of short duration, which should be paid by the insured with savings or other liquid assets. Also, dollar amount deductibles make no sense when the insurance provides a regular stream of payments, because the amount of the regular payments is specified in the contract, in contrast to other types of insurance that covers only losses and their associated expenses, where the amount of payment is determined by the amount of the loss.

Percentage Deductibles Becoming Norm for Damages from Natural Disasters

Many insurance companies are now using percentage deductibles in 17 states vulnerable to such natural disasters as wind, flood, hail, and earthquake—that range from 1% - 15% of the insured value of the home—instead of the traditional dollar deductible, such as a $1,000 deductible, for instance. Percentage deductibles usually result in higher deductibles that help insurance companies limit their losses in a major disaster. For instance, a house insured for $500,000 with a 5% deductible is equal to a $25,000 deductible. Although the deductible is higher, insurance premiums are generally lower with percentage deductibles. However, some states, such as North Carolina and Georgia, don't allow percentage deductibles. Some states give consumers a buy-back option that allows them to have a dollar deductible in exchange for higher premiums.

CDW/Zero Deductible Insurance in US

When you rent a car in the US and Canada your default excess (also called your "liability") is usually equal to the entire value of your rental car. Some states in the US and Canada do not require that the vehicle owner has mandatory third party liability, meaning the driver of the car is potentially liable for injuries to other people and their property.

The following explanation seeks to answer the question frequently raised when hiring a vehicle: How can a renter decrease their potential excess for the car they have rented?

High or Low Car Insurance Deductible: What Should You Do?

Having a high car insurance deductible is smart, money experts will tell you, because your monthly payments will be lower. “Good deal,” you think, and so you opt for the $1,000 deductible.

Then you hit a telephone pole while backing out of a parking space. When you take your car to the body shop for a quote, you realize you’re on the hook for paying the entire cost of repairs. How is this a good deal?

When you’re weighing high or low deductible car insurance, you have to consider a few factors, including your finances, your driving record and your premium costs. We’ll help you choose.

What Is a Car Insurance Deductible?

First off: let’s explain what this ‘deductible’ thing is. Your auto insurance deductible is the amount you pay out of pocket when you make a claim. It acts as an insurance for your insurer that you might think twice about claiming and won’t claim for lots of little things. For example, if a broken windshield costs $400 to replace and your deductible is $250, you’ll pay $250 and your insurer will pay $150. But, if you have a chip on your windshield that costs $100 to fill, you’ll just cover the cost yourself.

Deductibles are annoying. Why can’t your insurance company just pay the whole cost? A deductible represents “a sharing of the risk between the insurance company and the policyholder,” according to the Insurance Information Institute. In other words, you might be more careful about parallel parking if you know you’ll have to pony up $500 for repairs to your bumper.

A car insurance deductible typically applies only to the parts of your policy concerning damage to your property: comprehensive and collision coverage. Liability coverage has no deductible. So if you hit someone else at a red light, your insurance will pay the entire cost (up to your coverage limits) of repairs to the other driver’s vehicle. Got it?

The Pros and Cons of a Low Car Insurance Deductible

Having a low car insurance deductible gives you peace of mind, especially if you’re on a tight budget. If your finances would be seriously rocked by an unexpected $500 or $1,000 expense, play it safe and opt for a low deductible, such as $250. Some companies even offer a $0 deductible, so you’ll never have to pay a dime on top of your regular premiums if your car needs some TLC after an accident.

Having a lower deductible means that you’ll pay more in monthly premiums, but you won’t have to panic if something happens to your car. If you have a history of backing into another car in the Starbucks parking lot (no judgment!) a low deductible car insurance policy is probably smart.

You’ll also want to opt for a lower deductible if you’re leasing or financing your car. Most lease/finance agreements mandate a deductible of $500 or less, so that takes the decision out of your hands. If you’re driving a beater car, you may even drop your collision and comprehensive coverage entirely. No coverage, no deductible.

The Pros and Cons of a High Car Insurance Deductible

The biggest reason to go with a high auto insurance deductible? It lowers your monthly premiums, sometimes dramatically. The Insurance Information Institute calculates that raising your deductible from $200 to $500 can reduce your premiums by 15 to 30 percent. Double your deductible to $1,000 and you could save 40 percent.

These numbers sound good, but remember they’re just estimates — and the savings only apply to premiums for collision and comprehensive coverage. To determine if high deductible car insurance will save you a significant amount of money, you’ll have to run the numbers. Use Compare’s free auto insurance quote tool to play around with your deductible amounts and see how they affect premiums.

Then, do a little more math. How long will it take for your annual savings to equal the cost of your high deductible? Say you’re saving $50 per year on premiums for raising your deductible from $250 to $500, but then you have to make a claim. It’ll take five years for your savings to equal the $250 you spent. On the other hand, if you decline to make an insurance claim and just pay for everything out of pocket, your insurance premiums may remain lower in the long run.

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