Rental car coverage can be one of the most confusing parts of planning a Guam trip. Is liability insurance already included? What is the difference between CDW and ZDW? Do you also need an NOC waiver? Although these products are often grouped together as “insurance,” they cover different costs. This guide explains what TAICO’s LP, CDW, ZDW, and NOC coverage does—and what can still remain your responsibility.
Quick answer: the four products do different jobs
| Product | Main purpose | Important limitation |
|---|---|---|
| LP | Liability for injury or property damage you cause to others | Included in TAICO’s rental rate; it does not cover damage to the rental vehicle. |
| CDW | Limits your repair-cost responsibility after an eligible collision between vehicles | Up to a $1,000 deductible, subject to eligibility rules and a coverage limit. |
| ZDW | Waives the deductible when CDW applies | Available only with CDW; it does not waive excluded damage or separate charges. |
| NOC | Waives the rental company’s loss-of-use charge after an accident | Separate from coverage for repairing the rental vehicle. |
LP included in the rate protects against liability to others
TAICO’s rental rate includes Automobile Liability Protection (LP). It responds, up to the contractual limits, when an accident causes bodily injury to a third party or damages another person’s vehicle or property.
LP does not pay to repair the vehicle you rented. “Insurance included” therefore does not mean that every kind of loss or fee has a zero out-of-pocket cost.
How CDW, ZDW, and NOC differ
CDW: protection for an eligible vehicle-to-vehicle collision
TAICO’s Collision Damage Waiver (CDW) limits your responsibility for damage to the rental vehicle to a deductible of up to $1,000 when an eligible accident occurs. The stated coverage limit is $50,000.
A key TAICO condition is that CDW generally applies only to a collision between two vehicles when a driver is present in both vehicles. A single-vehicle impact with a wall, curb, post, or other object is not covered. Windshield, tire, and wheel damage are also excluded. Do not assume that every product called “CDW” has the same scope; the TAICO terms determine whether a loss is eligible.
ZDW: waives the CDW deductible
Zero Deductible Waiver (ZDW) is an optional add-on that waives the deductible of up to $1,000 when CDW applies. It cannot be purchased on its own; you must also take CDW.
ZDW is not a promise that every accident-related cost will be zero. Damage excluded from CDW, NOC, towing, and the accident-handling legal fee must still be considered separately.
NOC: waives a loss-of-use charge
While a damaged vehicle is being repaired, the rental company may be unable to rent it to another customer. TAICO’s Non-Operation Charge (NOC) is $250 when the vehicle can still be driven and rented, and $400 when it cannot be driven or cannot be rented to the next customer. Purchasing the NOC waiver removes this charge.
NOC does not pay the vehicle’s repair bill. CDW/ZDW and NOC address different expenses and should be evaluated separately.
Costs and situations that may remain your responsibility
Under TAICO’s current published terms, coverage does not apply—or a separate charge may apply—in situations including:
- Reckless or dangerous driving, driving under the influence, illegal drug use, or using a mobile device while driving
- An accident or damage caused by a driver who is not listed on the rental agreement
- Impacts with objects such as walls, curbs, or posts, and damage to glass, tires, wheels, or keys
- Vehicle theft, vandalism, stolen personal property, or typhoon and other natural-disaster damage
- Leaving the accident scene, or failing to report the incident to police within 24 hours and obtain an accident case number
- Traffic fines, related service charges, towing, and recovery costs
TAICO also lists a $150 accident-handling legal fee for any accident, regardless of fault. This covers paperwork and processing involving the police, insurer, and repair company, and is separate from CDW, ZDW, and NOC.
What to do after an accident or new damage
- Make safety the priority: Call 911 if anyone is injured or an ongoing road hazard creates an emergency.
- Report the incident to police: TAICO requires police documentation for coverage. Report it within 24 hours and obtain the accident case number.
- Record essential details: When it is safe, note the other vehicle’s license plate, driver information, accident circumstances, and visible damage.
- Contact TAICO promptly: Do not arrange repairs or a private settlement on your own; follow the rental company’s instructions.
Will U.S. auto insurance or credit-card coverage work in Guam?
Some personal auto policies, travel policies, and credit-card benefits may extend to a Guam rental, but coverage is not automatic or uniform. Before the trip, confirm that Guam—a U.S. territory—is within the geographic coverage area. Ask specifically about rental-vehicle damage, the deductible, loss of use or NOC, towing, administrative fees, excluded vehicle types, maximum rental length, and whether you must decline the rental company’s waiver.
Also confirm whether the benefit pays the rental company directly or reimburses you after you pay and submit documents. Save the applicable benefit guide or policy wording instead of relying only on a general phone explanation.
Choosing coverage for your trip
- To limit repair-cost exposure after an eligible collision between vehicles: Consider CDW.
- To avoid the deductible of up to $1,000 when CDW applies: Add ZDW to CDW.
- To avoid TAICO’s accident-related loss-of-use charge: Add the NOC waiver.
Even taking CDW, ZDW, and the NOC waiver does not cover every loss or fee. Choose by matching each product to the cost it addresses, rather than treating the combination as unlimited “full coverage.”
Frequently asked questions
Does CDW eliminate all out-of-pocket costs?
No. When CDW applies, a deductible of up to $1,000 remains, and exclusions and separate fees can still apply. ZDW is required to waive the eligible CDW deductible.
Does CDW cover hitting a wall or parking-garage column?
No. TAICO’s CDW generally covers a collision between two vehicles when a driver is present in each. A collision with a wall, column, curb, or other object is excluded.
Should I report even a small scratch to police?
Police documentation is required for TAICO coverage. Do not decide that the damage is too minor to report; contact TAICO and report the incident to police as instructed.
When can I add optional coverage?
Purchase methods and deadlines may depend on the booking terms. Confirm the available options during booking or before the rental agreement is completed.
Check the current rates and terms before signing
With rental car coverage, the exclusions and conditions matter as much as the product names. Rates, limits, deductibles, and eligibility rules can change. Review TAICO’s current official information and the rental agreement before booking and again before signing.
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