INTRODUCTION

Limited Damage Waver "LDW" (also called Collision Damage Waver "CDW" or Damage Deductible Waver "DDW") is a sellable option which, for a daily charge, the renter buys down their responsibility for any damage that is done to the vehicle while renting it. CARS+ allows for multiple "levels" of LDW each with its own customer responsibility amount. For example, the following Options could be set up:

Within CARS+, not only is the fact that a LDW like coverage has been sold recorded in the rental agreement but the amount of the resulting renter's responsibility is also stored in the RA. This chapter summaries the various rules that govern the amount of the customer's responsibility when LDW is sold, not sold, or included in the rental by some other means.


I. DEFINITIONS

A. Customer Responsibility: Customer responsibility is the total amount the renter will be held responsible for if any damages occur on the rented vehicle while in their possession. Generally, this is defined as an amount such as being responsible for the first $1,000.00 of damage. It can also be set up as a percentage of the replacement cost of the vehicle (responsible for up to 20% of the cost of the vehicle). In this chapter, the more common practice of an amount will be used in all examples and illustrations, but the same principles apply to the percentage logic as well.

B. Pricing Code: The price for options, including LDW, can vary by Vehicle Class. That is, LDW may be more expensive and the customer responsibilities greater on prestige class vehicles as compared to economy vehicles. Within CARS+, this distinction is made through the use of Pricing Codes. For example:

  • LDW1 for economy classes using Pricing Code "E" can be $9.95/day limiting the renter to the first $1000.00 in damage.
  • LDW1 for prestige classes using Pricing Code "P" can be $12.95/day limiting the renter to the first $1500.00 in damage.
  • and obviously LDW2 and LDW3 can be priced with the same two Pricing Codes

C. Buy Down Option: A buy down option is an additional coverage that can be sold in addition to LDW. It further reduces the customer responsibility amount on a rental. More on this in Section III below.

II. BASIC RULES

The following table indicates where within CARS+ the customer responsibility amount comes from in various situations:

Rental Situation

 Customer Responsibility comes from
LDW is rejected
 There is a hierarchy that is used to find the customer's reject responsibility:
1. The system exams the Option Rate records of all the LDW options for the vehicle's Pricing Code, to find the one with the lowest responsibility level (if it had been sold). On that option, the value in the "Decl Resp" column is examined, and if it is not zero, it is used as the renter's responsibility.
2. If that field is blank, using the Pricing Code of the vehicle rented, the system reads the Pricing Code table and uses the responsibility amount in the field "No ldw resp". As an alternative, the rejection responsibility amount can vary by the age of the renter using the fields "No ldw age 1" and "No ldw age 2" on this same record.
3. The above two responsibility amounts can also be further increased for underage drivers. If the under age driver charge has been applied to the rental, the value in the AGEnn Option Rate record column "Cvg Resp" is ADDED to the present responsibility amount that was derived from either steps 1 or 2 above.
4. Finally, if neither of the above fields are set up, the system uses the "No LDW Resp" field on the opening location's Location record for all classes of vehicles rented at this location.
5. If all of these fields are blank, the system assumes that the renter is NOT RESPONSIBLE for any damage charges
LDW is sold as a chargeable option
 Edit Optional Rates: Using the optional rate record of the LDW option sold, the value in the column "Cvg Resp" is used.
Like point 3 above, this amount will be adjusted up by any "Cvg Resp" on an underage surcharge applied to the rental.
Customer responsibility from a sold LDW option can be further reduced by a buydown option (see notes below).
LDW is included in the rental rate by virtue of the Y/N field "CVG1" in Edit Rental Rules and Rates
 Edit Pricing Code: Using the Pricing Code of the vehicle rented, the system uses the responsibility amount in the field "Incl ldw resp".
LDW is included in the rental Rate by virtue of an Inclusive Option Set assigned in Edit Rental Rules and Rates
 Edit Optional Rates: Using the optional rate record that would have been used if the LDW option had been sold separately, the value in the column "Cvg Resp" is used
LDW is included in a tour voucher
 Edit Optional Rates: Using the optional rate record that would have been used if the option had been sold separately, the value in the column "Cvg Resp" is used.
This is NOT true if the included LDW option is defined for the voucher only (TR ON value = V). In this case the LDW has no affect on the rental and does NOT adjust the customer responsibility amount.
LDW is offered at no charge as part of a CDPID priviledge
 Edit Privilege Codes: The privilege field itself that grants no charge LDW allows for the entry of the customer responsibility. This responsibility amount is the same for all classes, it does not vary by Pricing Code.


III. RESPONSIBILITY BUY DOWN

In addition to selling a LDW type of coverage, CARS+ allows a second coverage to be sold that further reduces the renter's responsibility amount. This option must be set up as follows:
  1. As a Type "C" option in Edit Optional Items.
  2. And the following columns must be set up in it's Edit Option Rates records:

To aid in the sale of these options, the F/5 pop-up window that is used to sell options, displays in the upper right corner the present amount of the renter's responsibility.

Select options: Current Damage Resp 5000
C=Charge *=No charge X=Included
Option C/* Rate Calc Qty Deductible
LDW * 15.99 /DAY
LDW1 * 9.99^ /DAY 500
PAI * 3.99* /DAY
PEC * 3.99* /DAY
SLI * 7.99* /DAY
BUYDOWN * 5.95+ /DAY 50
SKI RACK * 7.00 /DAY
MAP * 4.00 /ITM 1
CHILDSEAT * 5.00 /DAY
BOXES * 2.50 /ITM 1
GPS * 12.00 /DAY


Press Return Here to Accept Changes [ ]

(Down arrow for more Options)

Before any options are sold, the display is the responsibility amount required when NO LDW is sold (in the illustration above it is $5000.00).

Once an LDW type option is sold, this amount is adjusted accordingly:

Select options: Current Damage Resp 500
C=Charge *=No charge X=Included
Option C/* Rate Calc Qty Deductible
LDW * 15.99 /DAY
LDW1 C 9.99^ /DAY 500
PAI * 3.99* /DAY
PEC * 3.99* /DAY
SLI * 7.99* /DAY
BUYDOWN * 5.95+ /DAY 50
SKI RACK * 7.00 /DAY
MAP * 4.00 /ITM 1
CHILDSEAT * 5.00 /DAY
BOXES * 2.50 /ITM 1
GPS * 12.00 /DAY


Press Return Here to Accept Changes [ ]

(Down arrow for more Options)

Selling the BUYDOWN option changes it as follows:

Select options: Current Damage Resp 50
C=Charge *=No charge X=Included
Option C/* Rate Calc Qty Deductible
LDW * 15.99 /DAY
LDW1 C 9.99^ /DAY 500
PAI * 3.99* /DAY
PEC * 3.99* /DAY
SLI * 7.99* /DAY
BUYDOWN C 5.95+ /DAY 50
SKI RACK * 7.00 /DAY
MAP * 4.00 /ITM 1
CHILDSEAT * 5.00 /DAY
BOXES * 2.50 /ITM 1
GPS * 12.00 /DAY


Press Return Here to Accept Changes [ ]

(Down arrow for more Options)

The final customer responsibility amount is stored in a field within the RA that appears in the D Subwindow (Options) of RA Open:

OPTION: ______________ OPTIONAL CHARGES PAGE 1
Option Qty Rate/Weekly/Xday/Monthly/Hourly Max Deductible
1 LDW1 1 9.99/*/*/*/* 500
2 BUYDOWN 1 5.95/*/*/*/* 50
3 * * */*/*/*/* *
4 * * */*/*/*/* *
5 * * */*/*/*/* *
6 * * */*/*/*/* *
7 * * */*/*/*/* *
Desired Options * Damage Responsibility Amt 50

F2 NEXT 4 F4 PREV 4


IV. THE IMPACT OF CUSTOMER RESPONSIBILITY ON OTHER CARS+ PROGRAMS

The customer responsibility limits the amount of the damage charge that will be added to a rental agreement by the Damage Report Entry program. After repair costs have been entered, the maximum charge that can be applied to the rental is the RA's customer responsibility amount. There is one exception to this rule, if a "N" is entered in the field "Damage Covered", the renter will be charged for the full amount of all repairs.


OPTION: ______________ DAMAGE REPORT ENTRY
1 RA# * Renter * Dmg Rpt*
2 Non-Rev# * Address * VIR Sta*
3 Unit # * City/St/Z */*/*
4 Accident DetailsN Reg# *
5 Customer Present* Open Date * Make *
6 Renter Driving? Y Open Loc * Model *
7 Driver Injured? N
8 3rd Party Invld?* Clos Date * Year 00
9 Admits Fault? * Clos Loc * Own Loc*
10 Damage Covered? N Cvg Sold Y Excess 50 Chg on RA N (Y/N)
11 Nature of Breach OFF ROAD DRIVING
12 Renters Claim # *
13 Excess Charged *
14 Accident Desc *

15 Damage Code * 16 Type *
17 Damage Code * 18 Type *
19 Damage Code * 20 Type *
21 Damage Code * 22 Type *
23 Damage Code * 24 Type *

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