What is the different between "Collision Damage Waiver" and "Liability Damage Waiver" for renting a motorhome?

Question

I am not familiar with driving such a big car like motorhome with the manual transmission.However,I am going to rent a motorhome for traveling in New Zealand but I quite don't understand about the insurance for the car renting.
I got an email from the motorhome renting company and I don't understand some details about it.

"Our Standard insurance is a Collision Damage Waiver (CDW), which covers the hired vehicle, other vehicles and property up to NZ$1Million.The excess (bond) is :
NZ$ 1500,-- ( for drivers aged 25 and over )
NZ$2000,-- ( for drivers between 21 and 24 years of age )
NZ$ 2500,- ( for drivers under 21 years ) "

What is the excess bond?
Why is it different between drivers age?

There is another options that is "Liability Damage Waiver" ,
the excess and bond can be reduced to :
NZ$ 250,- ( for drivers aged 25 and over )
NZ$ 500,- ( for drivers between 21 and 24 years of age )
NZ$ 750,- ( for drivers under 21 years )
Should I pay 16 NZ$ more to get this one instead?

Answer 1

Say you run the thing off the road, and damage someone's fence. CDW will pay the damage to the car, LDW pays for the fence. The "excess bond" is what we call deductible in the US...you would only be covered if the damage exceeds these amounts. The age difference just reflects the risk of someone of that age driving.

As the previous poster said, you may be covered either under your own automobile insurance policy, or by your credit card company (if you put the charges on your card). Those alternatives are worth investigating before you sign. If you aren't a resident of NZ, you may be better off getting as much insurance as is available, even if it's redundant. Dealing with these problems if you live elsewhere can be a load of trouble.

Answer 2

Collision damage waiver basically means if the motor home is damaged and you bought that coverage, then the motor home company pays for damages to the motor home. If you don't buy it, then you'd have to pay for it yourself or claim it on your insurance if you have any (if you only have a private passenger auto, I am not sure that your normal auto policy would cover the damages to the motor home).

Liability damage waiver is the same thing as well, except liability coverage is what pays for the damage you cause if you are at fault. Again, if you don't buy it then the rental company will pay, instead of you or your insurance company.

You really need to find out if your own insurance covers this vehicle at all. If not, you need to buy both coverages.

Answer 3

Call your insurance agent. Most of the time your own car insurance policy will cover a rental and all damages that occur. The CDW & LDW are just ways for the rental company to make more money off you.