Why Damage Waiver is a Rip Off

Originally Posted by Unregistered

There's no PAYOFF with the waiver, but there is an UPSIDE.

No there is not. It is the lesser of two downsides.

Originally Posted by Unregistered

There's no PAYOFF with the waiver, but there is an UPSIDE.

Well maybe you are right.... that is if you are a commissioned ERAC employee.

explain to me the "downside" of being able to walk away from an accident and all you have to do is give a story. You don't have to pay anything, face no penalties, all you did was paid $16 before hand,

vs saying "no that's a rip off" getting into an accident, having to pay a deductible out of your pocket, going through insurance agents, having penalties on your record, because you thought it was a ripoff ?

Originally Posted by Unregistered

explain to me the "downside" of being able to walk away from an accident and all you have to do is give a story. You don't have to pay anything, face no penalties, all you did was paid $16 before hand,

vs saying "no that's a rip off" getting into an accident, having to pay a deductible out of your pocket, going through insurance agents, having penalties on your record, because you thought it was a ripoff ?

They both cost or can cost you money. Thus the lesser of two downsides. Do I need to draw it out for you Mensa's on construction paper with my 3 year old's crayons?

Originally Posted by FailingEnterpriseAdmin

I believe I've read other messages indicating that if you damage a car (this might take perhaps more than once), even if it was "covered" by CDW, you could end up on a do-not-rent list. Isn't this essentially denying future coverage because of past claims?

This can happen if you violate the contract (unauthorized driver, offroading, operating outside of authorized area, towing, under the influence, etc.). I have not seen any put on DNR simply because they have damaged more than one car while having the CDW. In fact, at my office their is a corporate account that frequently damages vehicle due to the type of work that they do. I cant honestly say that it doesn't happen but it is extremely rare.

Originally Posted by FailingEnterpriseAdmin

You make absolutely valid points, and are seeing this more clearly than many other people on the board. However, given that employees are so heavily incentivized (sorry for using that word) for selling CDW, I conclude that over the long haul, it's profitable to Enterprise.

Well duh. Of course it is. Its profitable to all large rental companies. Its profitable for all insurance companies as well. Both rental agencies and insurance agencies have the same system of accurately computing their future losses for the year, the amount of insured, then they tack on the desired profit and distribute to its customers.

I'd only call it a rip off if it doesn't provide any possibilty of a better result should certain events occur. If you don't want to pay it then fine.. otherwise if you do pay it, it can be beneficial and probably most cases, worth even more than $20.

[FailingEnterpriseAdmin]

Originally Posted by Unregistered

This can happen if you violate the contract (unauthorized driver, offroading, operating outside of authorized area, towing, under the influence, etc.). I have not seen any put on DNR simply because they have damaged more than one car while having the CDW. In fact, at my office their is a corporate account that frequently damages vehicle due to the type of work that they do. I cant honestly say that it doesn't happen but it is extremely rare.




Well duh. Of course it is. Its profitable to all large rental companies. Its profitable for all insurance companies as well. Both rental agencies and insurance agencies have the same system of accurately computing their future losses for the year, the amount of insured, then they tack on the desired profit and distribute to its customers.

When the VP came out to meet with me when I first created Failing Enterprise, he explained to me that "We lose money on CDW". Maybe this isn't true?

Originally Posted by FailingEnterpriseAdmin

When the VP came out to meet with me when I first created Failing Enterprise, he explained to me that "We lose money on CDW". Maybe this isn't true?

It's a revenue generator, Enterprise takes on the risk for the customer in return for a daily fee. Alot of accidents and then Enterprise would lose money on it.

Originally Posted by FailingEnterpriseAdmin

When the VP came out to meet with me when I first created Failing Enterprise, he explained to me that "We lose money on CDW". Maybe this isn't true?

Admin,
Put a thread out to insurance employees and ask them how they calculate their premiums for the year.

In the end the same system is used for insurance and with Enterprise's CDW. A profit is always figured into the price in the overall grand scheme of things. If they didn't do this then from a business perspective I would think that it would be kind of foolish.

Would you be happy purchasing stock for a risky company that continually lost money and it's stock price went down? Of course not, you want to be rewarded with a rising stock price to compensate for the risk taken.

Originally Posted by Unregistered

Admin,
Put a thread out to insurance employees and ask them how they calculate their premiums for the year.

In the end the same system is used for insurance and with Enterprise's CDW. A profit is always figured into the price in the overall grand scheme of things. If they didn't do this then from a business perspective I would think that it would be kind of foolish.

Would you be happy purchasing stock for a risky company that continually lost money and it's stock price went down? Of course not, you want to be rewarded with a rising stock price to compensate for the risk taken.

I think you give ERAC WAY too much credit here. There is NO underwriting mechanism or actuaries that figure out how much should be charged for CDW. It is up to the Group to determine, if the price is not mandated by the State. Hell, as a L3 I used to change the price all the time to see what impact it had on sales % by employees and total revenue.

Honestly, there is little, if any "science" to it.