Loss Damage Waiver Cost What You Actually Pay

The loss damage waiver is the most profitable thing a rental company sells, and the problem is that its price is wildly inflated relative to what it actually costs them to provide. Understanding what you are really paying for, and how the price is set, is the first step toward deciding whether it is ever worth the money.The waiver typically costs between fifteen and thirty dollars a day, which can double the price of an economy rental over a week, and it is sold as protection against the full cost of the car. But the rental company is not paying retail for its own repairs, it buys parts and labor at cost and often self-insures, so the true cost of the coverage to them is a fraction of what you pay. The markup is the business model, which is why the counter agents push it so hard.What you are actually buying is not just the repair, but the avoidance of a claim on your own