any frequent car renters here? what do you do about insurance?

ard · 04:56 PM

Hi,

I am looking for wisdom on personal (not business) car rentals.

What is the consenus of fellow Pelicanites on / what are the alternatives to buying the insurance offered through the rental companies?

I know that if I do not purchase the insurance offered by the rental company, then for a domestic rental my own insurance is "primary".

I don't like that idea, but the idea of paying ~$40 / day (that > $14,000! per year) to the rental company seems like the proverbial highway robbery. (yes I know, a rental car is rarely rented out 365 days a year, but you get my point).

I have heard anecdotal evidence of there being credit card companies that offer "primary" insurance when paying with that credit card, but I have never actually run across such a card. Does anyone know of such a card? Even if such a card exists my, again anecdotal, recollection is that it covers only damage to the rented vehicle not other vehicles, or liability.

I am planning a trip by car from New York (pickup at Kennedy airport), to Philadelphia and back to Boston and up into Maine in the summer. Quite a bit of driving, so "per mile driven" which seems a reasonable proxy for the likelihood of having an accident, buying the offered insurance may not be such a bad deal.

Thoughts?

Thanks in advance.

Laneco · 04-09-2009, 05:16 PM

Two big things to check:

First - your base car insurance "may" cover rentals with the same coverage as your personal car (and same deductibles). Need to confirm with your agent.

Second - your credit card may supply the additional insurance - check in great detail.

angela

Dantilla · 04-09-2009, 05:18 PM

The only time I asked for the rental-supplied insurance was in snowy conditions, and they didn't offer it!

Pure profit/ripoff for the rental companies. As stated above, this is a question for your insurance agent.

BeyGon · 04-09-2009, 05:20 PM

Talk to your insurance carrier, they have a supplemental type policy for rental cars. If you wreck the rental, the company CAN charge you for all the time that car is in the shop for repair, just as if you are renting it. I think people that rent cars alot have a extra policy with their own company. A much better deal.

jriera · 04-09-2009, 07:21 PM

I rent way too many cars .... 3 to 5 times a month, I always decline any insurance (it is on my profile anyway) based on the two items that Angela quotes.

Check with your insurance agent.

Insurance is probably the biggest moeny maker for car rental companies ... only after child-seat rental :-)

Quote:

Originally Posted by Laneco

Two big things to check:

First - your base car insurance "may" cover rentals with the same coverage as your personal car (and same deductibles). Need to confirm with your agent.

Second - your credit card may supply the additional insurance - check in great detail.

angela

aigel · aigel's Garage

Personal car insurance covers my rental cars. I always decline.

G

Rick Lee · Rick Lee's Garage

Personal insurance may cover it, but if you get the rental company's insurance, I think your own insurance never hears about it if you trash the car, as long as you don't get cited. $25-$40 a day sure beats a rate hike, if you don't do it too often.

I did get into a staged, intentional accident on my honeymoon and, since I rear-ended the car (that deliberately panic-braked for a green light inside the intersection), I was at fault. Sure wish I hadn't had to call my insurance co. about that one. Amex covered the deductible for the rental car, but I got a rate hike that was a lot more than the rental insurance co's would have been for that week.

Dottore · 04-09-2009, 08:54 PM

Most major credit cards cover your car rental insurance if you pay for the rental with the card.

JavaBrewer · JavaBrewer's Garage

Decline.

widgeon13 · 04-10-2009, 03:12 AM

Decline!

USAA and Platinum Amex covered

imcarthur · imcarthur's Garage

Decline. I use the CC insurance (VISA & AMEX). And yes, I have had to make a claim & it was handled without problems. I smacked another car - but their fault - in Vero Beach several years ago. I have another claim pending at the moment for a smash & grab on a rental in Montreal.

Ian

Ned, NYNA11 · 04-10-2009, 03:32 AM

Personal accident Insurance for rentals is part of the package with a World Mastercard.

I use it in Ireland where there is a hard sell to buy the rental company insurance.

I never had an accident so am not sure how well it works

legion · 04-10-2009, 04:54 AM

The only time I ever purchased the insurance from a rental place was when I was renting an open trailer to bring my motorcycle home. Most car policies exclude damage to items in an open trailer, the policy at the rental place did not. Funny, the trailer rental was $15 and the insurance was $20. Oh well, I figured $20 for coverage to my motorcycle was better than nothing.

Type911 · 04-10-2009, 05:10 AM

Call your Agent. You can add a rider onto your auto policy that covers you for "time out of force". If you wreck the rental car and they want to charge you for lost revenue while the car is being repaired your insurance company picks up the tab. I have this on my auto policy, runs about $25 annually. Add this to your policy & refuse the rental car add-on ins.

onewhippedpuppy · 04-10-2009, 05:14 AM

Pay for the insurance, then see how far you can jump an Impala.

legion · 04-10-2009, 05:22 AM

Maybe Hugh can jump in, but there was a scene about this in Jackass The Movie...

onewhippedpuppy · 04-10-2009, 05:25 AM

In the pre-Jackass CKY days they beat the crap out of one then set it on fire.

LWJ · 04-10-2009, 08:13 AM

Here is what you really need to know:

1) Your personal lines insurance will cover you for physical damage IF you have it set up this way. Call your agent.
2) Your personal lines insurance will not cover you for the rental companie's "loss of use" which is typically billed at or near standard rental rates. ONLY the rental company insurance covers this.
3) You probably DON'T have coverage internationally and should buy it from the rental company.

I work in the insurance industry and always decline it. I gamble on the loss of use issue. My wife is going abroad shortly. She will be purchasing it as there is no coverage where she is going.

Good luck.
Larry

gr8fl4porsche · gr8fl4porsche's Garage

Just asked my Insurance agent this question yesterday.

If you wreck the car, they can charge you for lost rental revenue. They will charge your credit card. A friend of mine wrecked a rental car and they successfully charged him a substantial amount of money. I think it was a months rental at the highest daily rate. Your standard policy probably does not cover this. Some Ins companies will provide this option - mine did not.

The rental companies are now charging you for diminished value on the car as well. If a wreck shows up on Carfax, which it should, then the residual value of the car could be reduced and they will attempt to charge you for this as well.

I rented a couple of cars a few weeks ago and went for the additional coverage. It was a nice feeling driving a car and not worrying about what happens to it. I believe it was $25 a day.

Hugh R · 04-10-2009, 12:45 PM

Quote:

Originally Posted by legion

Maybe Hugh can jump in, but there was a scene about this in Jackass The Movie...

Yeah, we rented a car, smashed the crap out of it and brought it back to get their reaction; when we pointed out we had taken out the extra collision insurance. After the bit, we actually paid for the car, got him a brand new one of the same model and options.

OTOH, I know one movie that came out recently where they went to Rent-a-Wreck and used a car for some spirited downhill driving through brush as a test to see if the actual picture car, which was the same year and model, could actually make it down the hill. Brought it back with a few scratches on it.

Decline the extra insurance and talk to your insurance agent/credit card company.