Hertz wants you to know the facts. There are a lot of misconceptions and misunderstandings about insurance on rental cars these days, but one thing is certain:  not knowing exactly what you are covered for, could have a significant financial impact. The following information is designed to give you some important facts and help keep you from taking unnecessary chances.

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How well do you know your coverage?

• Credit Card Coverage
• Personal Automobile Insurance Coverage
• What should you do?
• Options available to you...
• How do I accept these Options? 
   

A summary of Hertz Optional Services

• Loss Damage Waiver (LDW)
• Partial Damage Waiver (PDW)
• Limited Loss Damage Waiver (LLDW)
• Liability Insurance Supplement (LIS)
• Personal Accident Insurance (PAI)
• And Personal Effects Coverage (PEC) offered as a package with PAI

Loss Damage Waiver (LDW) 

• What is your responsibility?
• What protection does Hertz LDW offer?
• Will my own car insurance cover damage to the rental car?
• Hertz and your insurer
• What about credit card coverage?
• Should you accept LDW? 
   

Partial Damage Waiver (PDW)

• What is Partial Damage Waiver? 

Limited Loss Damage Waiver (LLDW)

• What is Limited Loss Damage Waiver? 
   

Liability Insurance Supplement(LIS)

• Does LIS coverage apply everywhere?
• Does my personal policy provide liability coverage?
• What about credit card coverage?
• LIS exclusions
• How to file an LIS claim 
   

Personal Accident Insurance(PAI)†

• Accidental Death Benefit
• Accident Medical Expense and Ambulance Expense Benefit
• When are you covered?
• Exclusions
• How to file a PAI claim

Personal Effects Coverage (PEC)†

• What PEC covers
• Coverage limits
• Exclusions
• How to file a PEC Claim
  

How well do you know your coverage?

Credit Card Coverage

If you have an accident with a Hertz car and you've declined the Hertz Optional Protection Plans because you thought your credit card insurance covered you, consider these facts:

• You must pay for your rental using the card providing coverage or the coverage will not apply.
• Most cards only reimburse you for your deductible after your own insurance pays.
• Some cards don't pay unless you submit documented, "paid by you first" repair bills within a specified time.
• Some don't cover rentals that last longer than a certain period.
• Some don't cover certain car types or classes, (e.g., large Sport Utility Vehicles or certain luxury cars).
• Some only cover you if you purchase a separate, additional, one-time rental car coverage before each rental or enroll in advance and pay an additional fee for each rental.
• Some don't cover rentals on cards issued outside the USA.
• Credit card rental car coverage is for damage to the car, not for liability claims against you by people injured in an accident.

Personal Automobile Insurance Coverage

And if you think your own car insurance covers you for damage to the Hertz car, consider these facts:

• Insurance coverage varies depending on the state in which it is issued.
• Insurance coverage can also vary from insurer to insurer.
• Your coverage may be limited to the value of the car you own, not the one you're renting, or the limits of your property damage coverage.
• Some policies don't cover rental cars, or cover them only when your car is being repaired.
• If your insurance doesn't pay Hertz in full, you're still responsible for the remainder.
• Your insurance premium could be raised because of this claim.
• Your insurance could be cancelled if that claim makes you too high of a risk.

What should you do?
If you've carefully checked with your own insurance agent or insurer and the charge card company you use to rent and are fully satisfied with the coverage they provide, you may choose to decline the Hertz Optional Protection Plans.

But if you are not sure about your coverage, or if you have determined you are not adequately covered, accepting the Hertz Optional Protection Plan that suits your needs may be a good choice for you.

Options available to you...
Hertz offers optional services individually and in a variety of protection packages, which contain useful combinations of the optional services. When describing these services, we've tried to eliminate the confusing legal terms in order to give you a clearer understanding of the options available to you and to help you determine which, if any, you may need.

How do I accept these Options?
To accept any of the Optional Services outlined below, simply advise the Hertz counter agent at the time of rental. You will then be automatically covered for the rental period for the additional daily charge specified on the Rental Agreement for each of the Optional Services selected. You are under no obligation to purchase any of these options as a condition of renting.

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A Summary of Hertz Optional Services*

Hertz Loss Damage Waiver (LDW)
When you purchase Hertz' LDW, which is not insurance, you will not be held responsible for damage to the Hertz car in the event that any damage should occur, provided the loss or damage was not the result of any prohibited use of the car.

Hertz Partial Damage Waiver (PDW)
Partial Damage Waiver (PDW) is offered at select locations. When you purchase PDW, which is not insurance, you will not be held responsible for loss of or damage to the car in an amount equal to the applicable deductible on your personal automobile insurance, up to a maximum waiver of $1,000, provided the loss or damage was not a result of any prohibited use of the car.  PDW is not available in all states.

Hertz Limited Loss Damage Waiver (LLDW)
Limited Loss Damage Waiver (LLDW) is offered at select locations.  When you purchase LLDW, which is not insurance, you will not be held responsible for loss of or damage to the Hertz car up to a maximum waiver of $1,000, provided the loss or damage was not a result of any prohibited use of the car.  You will be responsible for all damages in excess of $1,000.

Hertz Liability Insurance Supplement (LIS)
Liability Insurance Supplement (LIS) provides you with up to $1 million of increased protection should bodily injury and property damage claims be made against you by people injured in an accident. LIS safeguards your insurance policy and/or your personal assets for the first $1 million should such claims be made against you. LIS also provides you with up to $100,000 in coverage for combined bodily injury and/or property damage claims, should you be harmed by an uninsured/underinsured driver.

Hertz Personal Accident Insurance (PAI)
Personal Accident Insurance (PAI) provides you with coverage not to exceed $2,500 in accidental medical expense benefits for treatment of an injury sustained as a result of an accident during the rental period and rendered within 90 days. In the event of your accidental death from an injury sustained during your rental term, PAI provides your beneficiary with a benefit not to exceed $175,000 along with more limited benefits for your passengers.**

And Hertz Personal Effects Coverage (PEC) offered as a package with PAI provides:
PAI benefits described, plus coverage not to exceed $1,800 for personal effects (yours and those belonging to immediate family members traveling with you) which incur a covered loss or are damaged while renting from Hertz. Payment on such a claim will be made to you regardless of whether you already carry similar coverage such as a Homeowner's policy.

The above information is an overview of Hertz' Optional Services. There are many important terms and conditions, including exclusions and rates that you should also know. More information on each of these options is set forth below.

*These Optional Services are available for an additional daily charge for each full or partial rental day for each Optional Service selected.

**Passengers are defined as all additional occupants including additional authorized operators of the Hertz vehicle.

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Loss Damage Waiver (LDW)

What is your responsibility?

In most states, when you rent a car from Hertz, you are responsible for any and all loss or damage to the car resulting from any cause, including but not limited to, collision, rollover, theft, vandalism, seizure, fire flood, hail or other acts of nature of God regardless of fault.

In most states, in the event of any loss or damage to the car, regardless of fault, your financial responsibility extends to the full value of the car at the time of rental, less its salvage value, plus expenses for towing, storage impound fees, an administrative fee and a reasonable charge for loss of use.  If your responsibility differs in the state in which you rent, it will be stated in paragraph 4 of the Rental Agreement.  In California, in the event of any loss or damage to the car regardless of fault, your financial responsibility will in no event exceed the fair market value of the car at the time of loss or damage less its salvage value, plus actual charges for towing, storage, impound fees and an administrative fee.  In California and Nevada, your responsibility for loss or damage to the car from vandalism unrelated to theft will not exceed $500 and you are not responsible for theft, regardless of purchasing LDW, unless the theft results from your fault.   In Illinois, your responsibility for loss or damage related to theft is limited to $2000, unless the theft results from your fault.  In New York, your financial responsibility shall not exceed (i) the actual and reasonable costs that Hertz incurs to repair the car, including costs for towing, storage and impound fees or that Hertz would have incurred if the car was repaired or (ii) the fair market value of the car immediately before the damages occurred, as determined by the applicable market for the retail sale of the car, less disposal proceeds.  Your responsibility for theft of the car shall not exceed the reasonable costs incurred by Hertz for loss due to theft up to its fair market value, if it is established that you or any authorized operator failed to exercise reasonable care or aided and abetted in the theft.

What protection does Hertz LDW offer?
By accepting LDW you will be relieved of all financial responsibility for loss or damage to the rental car, whether or not you have insurance to cover such damage. In order for LDW to be applied to any damage claims, you must properly report the related incident in accordance with the Rental Agreement.
 
However, if the vehicle is obtained through fraud or you have an accident resulting from use of the car in a manner prohibited by paragraph 5. of the Rental Agreement, LDW is void and you will be responsible for all loss of or damage to the car.

Will my own car insurance cover damage to the rental car?
This is the question we are asked most often. The answer depends on the state in which you live and the type of policy you have. Each policy should be thoroughly checked for the specific terms and conditions associated with rental vehicles. You may indeed have sufficient coverage under your own auto policy. However, you may be responsible for a deductible and possibly be subject to premium increases or even policy cancellation, in the event of a claim involving a rental car. If you are not sure of the extent of your policy's coverage, ask your insurance agent or your insurer.

Hertz and your insurer
Should you choose to rely on your own insurance, if your rental car is damaged, Hertz will work with your insurer to reach a settlement. However, you are still responsible for any balance or damages which your insurer does not pay.

What about credit card coverage?
As with any policy, you should check the extent of the coverage carefully with the card issuer. Remember, most credit card insurance is supplemental, which means it will only reimburse you for loss or damages over and above what is covered by any other insurance you may have and will not cover you for any damage, regardless of cause, if you accept LDW.

Should you accept LDW?
Only you can make that choice. By accepting LDW you are relieved from all financial responsibility in the event of loss or damage to the rental car. Moreover, it eliminates the worry about policy limits and extended costs often associated in filing a claim with your own carrier. Hertz offers Loss Damage Waiver as an option to help protect you, should you need it. However, the choice is entirely yours.

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Partial Damage Waiver (PDW)

What is Partial Damage Waiver?
In most states, when you rent a car from Hertz, you are responsible for any and all loss of or damage to the car resulting from any cause, regardless of fault. By accepting Partial Damage Waiver (PDW), which is available at select locations and is not available in all states, Hertz will not hold you responsible for damage to the car in an amount equal to the applicable deductible on your personal automobile insurance, up to a maximum waiver of $1,000. In order for PDW to apply you must properly report the accident in accordance with the terms and conditions of the Rental Agreement.
 
Limited Loss Damage Waiver (LLDW)
In most states, when you rent a car from Hertz, you are responsible for any and all loss of or damage to the car resulting from any cause, regardless of fault.  By accepting Limited Loss Damage Waiver (LLDW), which is available at select locations, you will be relieved of responsibility up to $1,000 for loss of or damage to the Hertz vehicle.

Personal Accident Insurance/Personal Effect Coverage (PAI/PEC) †
To help take the worry out of traveling, Hertz makes a broad insurance protection package available to you that includes both Personal Accident Insurance and Personal Effects Coverage. Called PAI and PEC respectively, the benefits of each are outlined below. Please note that PAI and PEC are not available separately and must be taken in combination.
 
Personal Accident Insurance (PAI) †

Personal Accident Insurance allows you to elect accidental death and accidental medical expense coverage for yourself and your passengers during the rental period of the vehicle.

†Insurance that provides Accidental Death Benefits for an additional charge. Only one like coverage per rental.

PAI Coverage:

 Benefits Schedule*                                                 Renter           Each Passenger  

 Accidental Death:                                                  $175,000         $17,500
 Accidental Medical Expenses       
 not to exceed:                                                          $2,500             $2,500
 Ambulance Expense       
 not to exceed:                                                          $250                $250

*Benefits referred to in this synopsis are not applicable for vehicles rented in the State of New York. In New York, the medical expenses limit is $3,500 for the renter and each passenger. The ambulance expense limit is $150 for the renter and each passenger.

Total benefits for any one accident are limited to $225,000 and are payable in addition to any other coverage for which you or your passengers are eligible. However, your benefits provided by other coverage may be affected by the PAI benefits. Rentals originating in the State of Mississippi do not have a single accident limit of $225,000.

Accidental Death Benefit
We will provide benefits according to the Benefit Schedule, for accidental death, which is independent of all other causes of death, which occurs during a period of car rental.

Accidental Medical Expense and Ambulance Expense Benefit
We will provide benefits according to the Benefit Schedule, for Reasonable and Customary Charges associated with confinement to a hospital; treatment by a physician; transportation to or from a hospital by a professional ambulance service; and/or services rendered by a registered nurse within 90 days of an accident and upon recommendation of a physician.

When are you covered?
If this coverage is accepted, the benefits for you apply to all accidental injuries during your rental period, regardless of whether you are actually in the car. Your passengers are also covered, but only for incidents occurring while they occupy the Hertz rental car.  The first renter to sign the rental agreement shall be considered the renter.

Exclusions
Benefits are not paid for any loss caused directly or indirectly by or charges for:

• Intentional self-inflicted injury, suicide, or any attempted suicide, while insane or sane;
• Aircraft travel;
• Committing or attempting to commit an assault or a felony;
• An accident which occurs while under the influence of alcohol or narcotics, unless prescribed and taken at the advice of a physician**;
• An accident which occurs while participating in a prearranged or organized race or testing of a vehicle;
• War or any act of war;
• Engagement in an illegal occupation;
• Pregnancy or complications thereof or resulting childbirth;
• Eyeglass replacement or eye examination unless injury causes impairment of sight.
• Insurance will not be in effect if the Renter converts the rental vehicle or during any period while the insured Renter is in violation of the Rental Agreement. The renter shall be deemed to have converted the rental vehicle whenever the rental vehicle is not returned to the Lessor by the return date or by the extended return date. This is a summary only and other restrictions may apply. See the Policy for additional exclusions, limitations and exceptions.
   

**In Connecticut, the voluntary use of any controlled substance as defined in Title II of the Comprehensive Drug Abuse Prevention & Control Act of 1970, unless prescribed by a physician.

How to file a PAI claim
You may obtain a PAI claim form from any Hertz rental counter and submit it with a copy of the Rental Agreement to:

Hertz Claim Management Corporation
P.O. Box 716
Park Ridge, NJ  07656

Claims must be submitted to the above address within twenty (20)*** days of the date of loss.

***In Mississippi, 30 days of the date of loss.

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Personal Effects Coverage (PEC)†

What PEC covers
PEC is an option that insures against risk of loss or damage to help protect your personal belongings while renting from Hertz. By electing PEC you will be insured throughout the entire rental period.  PEC is insurance protection and pays in addition to any other policy you may have (such as a Homeowner's policy). However, your benefits provided by other coverage may be affected by the PEC benefit. PEC insurance coverage includes those personal effects owned by you and those members of your immediate family traveling with you during the rental period who are permanent residents of your household. PEC does not extend to non-family members traveling with you.

†Insurance that insures Personal Possessions for an additional daily charge.  Only one like coverage per rental.

Coverage Limits

• Up to $600 per person, with the maximum coverage for all claims during any rental limited to $1,800*.
• In the event any claims are made under the Policy, coverage for succeeding claims during the same rental will be reduced by the amount of the claim paid.
   

*Benefits referred to in this synopsis are not applicable for vehicles rented in the State of New York. In New York, the coverage limits are $500 per person, with the maximum coverage for all claims during any rental limited to $1,500.  Rentals originating in the State of Mississippi are not subject to the $1,800 per rental maximum.

Exclusions
Personal Effects not covered for loss or damage include:

• Automobiles and their equipment, motorcycles, boats, motors or other conveyances or their appurtenances;
• Household furniture, currency, coins, stamps, deeds, securities, bullion, tickets, or documents;
• CB radios, radar detectors, guns, merchandise for sale or fine art.
  Contact lenses, artificial teeth and limbs;
• Perishables or animals.

PEC does not cover loss by mysterious disappearance nor does it cover:

Loss or damage caused by wear and tear, gradual deterioration, moths, vermin, inherent vice or damage sustained due  to any process or while actually being worked upon and resulting therefrom, or while in the care, custody or control of any common carrier are also not covered.

• Loss caused by War or any act of war;
• Transporting contraband or illegal trade;
• Loss by nuclear reaction, radiation or radioactive contamination;
• Loss or damage due to theft unless reported to Police.
   

All losses by theft must be reported to appropriate law enforcement authorities or they will not be covered.  Coverage is excluded if the renter is in violation of the Rental Agreement.

How to file a PEC Claim**
You may obtain a copy of the PEC claim form at the Hertz rental counter, or write:

Hertz Claim Management Corporation
P.O. Box 716
Park Ridge, NJ 07656

Claims must be submitted to the above address within thirty (30) days of the loss.

*Policy Series:  C22800/04 (Rev. 7/00)
PAI and PEC coverage underwritten by National Union Fire Insurance Company of Pittsburgh, PA with principal place of business in New York, NY.
**Written proof of loss must be submitted to the above address within ninety (90) days of the date of loss.

Liability Insurance Supplement (LIS)*
At many Hertz locations, you receive secondary liability protection, and, in a few locations, no liability protection under the terms of the Rental Agreement from claims of injury by others against you resulting from an accident with your rental car. Some locations provide primary protection under the Rental Agreement. However, in those situations where protection is provided by Hertz, such protection is generally no more than the minimum limits required by individual state law. (See chart for these Financial Responsibility Limits.)

For these reasons, some people feel more comfortable traveling with additional liability protection. That is why Hertz makes this Liability Insurance Supplement (LIS) option available to you. Here are some facts we think you should know:

• LIS provides coverage for you and other authorized operators of your rental vehicle for third party claims.
• LIS is primary protection to your personal policy and provides for the first $1,000,000** of coverage for combined bodily injury and/or property damage claims for each occurrence.
• LIS includes Uninsured/Underinsured Motorists Coverage of up to $100,000** per occurrence*** for combined bodily injury and/or property damage claims.†
   

*LIS Program includes an Excess Third Party Liability Insurance Policy issued by ACE American Insurance Company.

**Represents a combined total of the state limit where the accident occurred, plus LIS.

***In New York, LIS includes up to $100,000 per person/$300,000 per accident Uninsured/Underinsured Motorist Coverage. Recoveries under any per accident limit are subject to the per person limit.

 † In Vermont, LIS includes up to $50,000 per person/$100,000 per accident Uninsured/Underinsured Motorist Coverage.  Recoveries under any pre accident limit are subject to the per person limit.

Does LIS coverage apply everywhere?
You and authorized drivers are covered while driving the rental car within the United States and Canada, but only if the car is rented in the U.S. Coverage does not apply in Mexico.

Does my personal policy provide liability coverage?
The terms of different automobile and umbrella policies vary greatly. Because LIS may provide a duplication of coverage already provided by your personal policy, it is recommended that you check your policy or consult your insurance agent or insurer.  But remember that in most cases, before any coverage by your own policy would be applied to a claim, the protection provided under the Rental Agreement and LIS, if you accept it, would first have to be exhausted.  Keep in mind that claims against your personal policy can often result in premium increases or even lead to cancellation.

What about credit card coverage?
We suggest you check as to the types and extent of coverage being offered. Credit card insurance may not cover third party liability claims or may be supplemental and only reimburse you for amounts not covered by any other insurance.

Exclusions
There are some exclusions to this coverage which we feel you should know. Under LIS, in the event of an accident, you will not be protected for third party liability:

• If LIS is not accepted at commencement of the rental or if you fail to pay the charges for LIS.
• If you or an authorized driver operated the rental car in violation of the Rental Agreement, including, but not limited to operating the car while legally intoxicated or under the influence of alcohol, drugs or other absorbed elements.
• If the car or LIS coverage was obtained by fraud or misrepresentation. 
   

LIS is third party liability coverage only.  Except where permitted by law or pertaining to Uninsured/Underinsured Motorist Coverage:

• LIS does not cover personal injury to you or any authorized operator of the rental car or to your or their family members who are related by blood, marriage or adoption and reside in your or their household.

How to file an LIS claim
LIS coverage will automatically attach to the claim once you have properly reported the accident in accordance with the Rental Agreement.

This is only a brief summary of LIS, PAI and PEC coverages.  These coverages may provide a duplication of coverage provided by your personal insurance or other source of coverage.  Neither Hertz nor the counter representatives are qualified or authorized to evaluate the adequacy of your existing insurance coverage.  The specific terms and conditions are subject to all the provisions, limitations and exclusions contained in the LIS policy issued by ACE American Insurance Company through Willis of New Jersey, Inc, Insurance Brokers or, as applicable, the PAI/PEC policy issued by National Union Fire Insurance Company of Pittsburgh, PA.  If you purchase any of the Optional Insurance Plans available, upon request a copy of the Policy will be available for review for further costs and details.

Financial Responsibility Limits by State
The following chart lists the Automobile Financial Responsibility Limits of the various states. Hertz is not required to provide such minimum protection in all states. However, the purchase of LIS will include primary protection which combines these minimum limits of protection with an excess insurance policy to provide the first $1,000,000 of combined bodily injury and/or property damage for each occurrence.

**Financial Responsibility Limits: Per Person Bodily Injury/All Persons Bodily Injury/All Property Damage (in thousands of dollars). At many Hertz locations, you receive secondary liability protection, and, in a few locations, no liability protection under the terms of the Rental Agreement. Limits effective 03/1/05.

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