As consumer damage from excessive repair costs and deductibles surrounding rental car use grows during the vacation season, Lotte Rent-a-Car's collision damage waiver, which can reduce the potential for disputes, is drawing attention.
Lotte Rent-a-Car's collision damage waiver clearly distinguishes the level of customer burden depending on the type of coverage purchased. Unlike some rental car companies that do not apply the waiver in the event of a single-vehicle accident, the amount specified at the time of contract becomes the maximum burden.
For domestic vehicles on the mainland, coverage is divided into three types: full waiver, 100,000 won, and 300,000 won. Imported vehicles are offered in two types: full waiver and 300,000 won. On Jeju Island, domestic vehicles are offered only as a full waiver single product, while imported vehicles can be chosen between full waiver and 300,000 won.
The advantage of Lotte Rent-a-Car's collision damage waiver is that even if a major accident occurs, the amount the user must bear is limited to the level specified at the time of contract. The full waiver product carries no customer burden regardless of the amount of vehicle damage. The 300,000 won product has a structure in which the customer bears repair costs if they are less than 300,000 won, and pays only 300,000 won if they exceed that amount.
The enrollment rate of the collision damage waiver among Lotte Rent-a-Car's domestic customers was 97.2% as of last year. Of these, the proportion who chose the full waiver product reached 97.9%.
The collision damage waiver has gained strong support because it can prevent consumer disputes caused by excessive repair charges in advance. Some rental car operators pass excess repair costs on to consumers or sell products that do not apply the waiver at all in the event of a single-vehicle accident under names such as "full collision" and "super collision." In response, the Korea Consumer Agency recommends that before purchasing collision insurance, consumers should not be misled by product names and should directly check the terms and conditions regarding deductible burden, coverage limits, and exclusion scope.
"When choosing an insurance product, it is important to directly check the terms and conditions on whether the customer deductible is waived and the repair cost settlement standards, rather than product names such as 'full' or 'super,'" a Lotte Rent-a-Car official said.
