Most car rental companies have included the damage excess as a mandatory condition in their car hire insurance. To reduce their costs, they have added this option in their policies. By agreeing with the condition, you are bound to bear a major portion of the cost, when the rented vehicle is damaged or needs repairing.
This excess amount is closely related to the CDW (Collision Damage Waiver) part of the car hire excess insurance. The amount varies depending on the car rental company and size of the car.
On the time of returning the car, if any kind of damage is found on the vehicle, which was not existing on the car prior to your rental, a hefty amount could be taken from your credit card.
In the event of any damage, the rental company will take the money directly from your credit card whether a third party was responsible for the incident or not. If the car rental company can recoup the money from the third parties later, then you may be refunded the money taken from you.
