Car Rental? Additional Insurance To buy or Not

[AnnaS]

Many, many years ago when we first started to get a rental (we hardly do anymore), we purchased the additional insurance. Over time, we found out that it was not necessary to purchase since most of us are covered by our personal insurance and/or our credit card. Because of this, the last few times we rented, we did not purchase any.

We rented a car for our August trip since we are going to Vero first and we plan on going to Universal while in WDW. A friend of ours who does a lot of traveling told us that we should purchase the additional insurance. Even though we are covered God Forbid an accident, he said they can come after us for money lost that the car is not generating while in the shop. So now I am wondering if we should purchase it.

Does anyone else purchase it? Was anyone aware of this fine print? Maybe they tell us but it has been so long since we rented a car, I don't know.

Just curious. TIA.

 

[kbeam]

We just rented a car from Dollar (Orlando) in June. Because we didn't bring our insurance card, we were told we were REQUIRED to purchase their insurance. This was a new one for me...not sure if something changed, but I NEVER brought my card with me anywhere and always declined the coverage. So...we got the bare minimum. Return the car, check it all out, get the thumbs up from the car tech at the airport, and a month later, we get a bill for $250! States that we were in an accident. Since we didn't get the full coverage, I freaked out that they were trying to scam us, and we would have no recourse. Turns out, the form showing all the damage was signed by the customer...and it wasn't our signature. My husband immediately got on the phone with them, the customer service rep pulled up the photos of the damage they have on file, and he couldn't see any damage. So we aren't sure if they just mixed our car up with another car or if they were trying to pull a fast one. Anyway...lesson learned...I'll be bringing my own insurance card from now on and NOT taking ANY of their insurance.

 

[gkrykewy]

I have never heard that (what the OP was told by their friend).

The general rule is that if you get rental car damage insurance from your credit card (most cards provide this, but always check with the customer service number first to be sure), you should decline the collision/damage coverage from from the rental company. In fact, the credit card coverage rules are often written such that you *must* decline the additional collision coverage, otherwise the coverage from the credit card is voided for that rental.

Regarding 3rd-party liability, if you have personal auto insurance that covers you in other vehicles, you should waive that as well.

We always accept the liability coverage since we don't have a personal auto insurance policy (we do not own a car).

 

[JimMIA]

he said they can come after us for money lost that the car is not generating while in the shop.

That sounds pretty far-fetched to me and I've never heard of a company doing it. Car damage is one of the risks of the car rental business and I'm sure they are insured for it. Can you imagine the angry threads on vacation BBS's if a company did that?

Most people actually have double coverage on rental cars anyway. Your own car insurance may cover any vehicle you are driving (mine does, at least), and then most credit cards also cover you if you use that card to pay for the rental (although gkrykewy's suggestion to double-check is certainly good advice). You can't collect twice - so don't go wrecking rental cars as a new career! - but what one doesn't cover, the other usually will.

I think the only real downside of declining is that if you actually have an accident you will probably have to pay the deductible. But that's no big deal, and you might get reimbursed by your insurance company if you are not at fault, or by the credit card company.

 

[DVCSAMNH]

The experts on the Transportation Board here on the DIS would know where this info came from but I read there a few years ago that the best card to use to rent a car is a VISA card because it covers "loss of use" to the rental agency when the car is out of service for repairs. I believe this is what the OP is referring to.
They are the only or one of very few cards that covers this. So, I use it every time to rent. Keep in mind, things could have changed since I read that info so you might want to ask the gurus over on that board.

 

[Cindyrellablue]

From an article that explains this coverage:

Loss Damage Waiver/Collision Damage: This covers all costs you might incur if the rental car is damaged or stolen. It also pays "loss of use" fees to the rental company - the money lost by the company when the car is being fixed and thus can't be rented. This is not actually insurance, instead it is a legal provision saying that the rental company agrees to waive any financial claims against you for damage. It typically costs between $8 and $15 a day.

Many people who already have comprehensive collision insurance on their vehicles automatically pass on this option. But according to Martin, this is the waiver that people should examine most closely. Here's why:

# Only eight states offer insurance policies that cover "loss of use" charges. If you are in an accident and the rental car winds up in the shop for a week or more, you could end up owing the rental company a lot of money in lost rental fees. The state auto policies that DO cover "loss of use" include: Alaska, Connecticut, Louisiana, Minnesota, North Dakota, New York, Rhode Island and Texas.

# If you are renting a car that is more expensive than the car you currently own and/or you have dropped comprehensive collision coverage from your policy, the waiver may be for you.

# If you file a claim on your personal auto insurance policy for an accident you cause with a rented car (which may be more likely as the car and location in which you are driving is unfamiliar to you), your auto insurance provider will categorize you as a higher risk driver, resulting in an increase in your auto insurance premiums. If you are concerned about this, it may be worthwhile to buy the collision damage waiver.

# Finally, your collision insurance may not cover accidents that take place in another country. Consider buying the waiver if driving your rental car into Canada or Mexico.

 

[disney11fan]

Many, many years ago when we first started to get a rental (we hardly do anymore), we purchased the additional insurance. Over time, we found out that it was not necessary to purchase since most of us are covered by our personal insurance and/or our credit card. Because of this, the last few times we rented, we did not purchase any.

We rented a car for our August trip since we are going to Vero first and we plan on going to Universal while in WDW. A friend of ours who does a lot of traveling told us that we should purchase the additional insurance. Even though we are covered God Forbid an accident, he said they can come after us for money lost that the car is not generating while in the shop. So now I am wondering if we should purchase it.

Does anyone else purchase it? Was anyone aware of this fine print? Maybe they tell us but it has been so long since we rented a car, I don't know.

Just curious. TIA.

Check with your car insurance agent and also check with the credit card company you will use to hold the reservation. Some credit card companies will cover you. Oh one last thing check with your Human Resource Dept. Many companies will cover you on personal travel. They will provide you with a code that the car rental agent will put on your agreement.

 

[jlewisinsyr]

Oh one last thing check with your Human Resource Dept. Many companies will cover you on personal travel. They will provide you with a code that the car rental agent will put on your agreement.

I've NEVER have heard of a company taking liability of an employees personal travel, ever. Sure, there is a code you can use in most cases, but you have to indicate if it is for business or personal use. The code carries the corporate discount from the rate, but if you choose personal use, the liability falls back to the renter.

 

[DebbieB]

Check with your credit card, many of them cover loss of use. I never buy the insurance.

 

[hellerjw]

If you have an AMEX check with them. At one time they offered a pretty comprehensive car rental option where you paid like $20 each time you rented a car and it covered you for the entire rental, not like the $10-$15/day the car rental companies want to charge you.

 

[Cindyrellablue]

I'm renting a car in December, and due to this thread, I called both my Amex and Disney Visa Cards:

Amex: does not cover loss of use

Disney Visa: covers loss of use so long as you follow certain terms...you can call ahead to find out what type of terms they are talking about, mostly type of vehicle rented and that you have to decline all rental agency insurances, oh, and no rentals over 15 days.

 

[AnnaS]

Thank you everyone. We will call Allstate and our Visa card. Funny thing is that this person told us that the only card that covers loss of use was Amex and here everyone says no. This person might/might not be right.

Also cindurellablue says that only 8 states cover the loss of use and Florida is not one of them.

I am going to forward this thread to my brother - we are going together and he will have his own rental.

 

[jlewisinsyr]

Thank you everyone. We will call Allstate and our Visa card. Funny thing is that this person told us that the only card that covers loss of use was Amex and here everyone says no. This person might/might not be right.

Also cindurellablue says that only 8 states cover the loss of use and Florida is not one of them.

I am going to forward this thread to my brother - we are going together and he will have his own rental.

Note, it's not the state where you rent, rather it's the state where the insurance is issued, in the case of personal insurance, where your personal insurance is issued.

AMEX also will cover Loss of Use, but the problem with most is they require documentation that the car really caused a loss of income. A car sitting on the lot is no different then sitting in a repair shop, neither is generating income to the rental agency. If the rental agency can prove the car would have generated income (ie. they were sold out in the class), then most cards will cover it.

 

[AnnaS]

Note, it's not the state where you rent, rather it's the state where the insurance is issued, in the case of personal insurance, where your personal insurance is issued.

AMEX also will cover Loss of Use, but the problem with most is they require documentation that the car really caused a loss of income. A car sitting on the lot is no different then sitting in a repair shop, neither is generating income to the rental agency. If the rental agency can prove the car would have generated income (ie. they were sold out in the class), then most cards will cover it.

So my State would be covered - NY and I don't have an AMEX card - so I won't have to call them up, lol. My dh and brother tonite said they don't plan on buying the extra insurance since we never have before but will call Allstate and my Disney Visa (Chase) soon.

Thanks again everyone.

 

[buzz5985]

I'm renting a car in December, and due to this thread, I called both my Amex and Disney Visa Cards:

Amex: does not cover loss of use

Disney Visa: covers loss of use so long as you follow certain terms...you can call ahead to find out what type of terms they are talking about, mostly type of vehicle rented and that you have to decline all rental agency insurances, oh, and no rentals over 15 days.

Yes - my Amex didn't cover loss of use.

I found that my Discover Card offered the best coverage - so the Discover card was taken out of Moth Balls and used this past June for my rental.

 

[dbs1228]

This thread made me laugh, years ago we rented a car that happened to be a mustang convertible GT, (declined insurance as we always do) and the reason I know it was a GT is that we received on our credit card an OUTRAGEOUS bill from the rental car company saying that the "GT" emblem was missing after our rental! We always check our car over carefully and never noticed (not that we would) a missing emblem. I immediately disputed this charge with my credit card company (visa) and never had to pay the charge. Crazy

 

[kbeam]

This thread made me laugh, years ago we rented a car that happened to be a mustang convertible GT, (declined insurance as we always do) and the reason I know it was a GT is that we received on our credit card an OUTRAGEOUS bill from the rental car company saying that the "GT" emblem was missing after our rental! We always check our car over carefully and never noticed (not that we would) a missing emblem. I immediately disputed this charge with my credit card company (visa) and never had to pay the charge. Crazy

My husband and I decided that from now on, as crazy as we'll look, we're going to take a thorough video of the car before and after!!!

 

[Sandisw]

My husband and I decided that from now on, as crazy as we'll look, we're going to take a thorough video of the car before and after!!!

We do that--well, I take pictures on my phone and if I see something that is on the car, etc, even a scratch, I go back to the attendant in the garage and ask him/her to note it on my rental contract.

When we turn the car back in, I do the same thing--I take the pictures on my phone in the parking garage line.

While some may think it is silly, I at least would have some proof to dispute a charge if it were to come.