Check your car hire cover

[jjcollins]

Found this article in the Sunday Times today -- i'll be checking my car hire cover after reading this


Check the small print or pay $5m

British tourists hiring cars in America are being warned to check the small print of their rental agreements, after a Sunday Times journalist who thought he was fully insured found himself facing a bill of $5m (£3m) after a minor accident.

The Association of British Insurers (ABI) says the case of Robin Morgan is typical of the problems holidaymakers can encounter when driving in America. Morgan, who was involved in a car crash in Maryland, says: “I found myself served with a $5m lawsuit after a fairly minor collision. I’d ticked all the boxes and thought I had full cover, but it emerged the firm limited its liability to $20,000. I had to pay the rest.”

Morgan’s lawyer eventually persuaded the claimants to accept an offer of $20,000, the sum covered by the firm. But the ABI says car-hire firms often limit their basic liability cover to the minimum set by individual US states, usually between $20,000 and $50,000.

“Driving with minimal cover is a particular problem in America because it is such a litigious society,” it says. “You need personal liability cover for at least $1m.”

Achieving the right level of insurance can seem an impossible task. Drivers should check existing travel- and car-insurance policies to see if they are already covered for third-party damages, take out a supplement with the rental company or consult a specialist broker. Hertz (0870 844 8844, www.hertz.co.uk), for example, the world’s biggest car-hire company, charges up to £6.70 extra per day for a liability insurance supplement, which guarantees up to $1m on all third-party liability claims.

Hertz says: “We don’t make customers take the supplement because some people may already be covered, or may just prefer to take the risk.”



jj........

 

[UKDEB]

Originally posted by jjcollins
I’d ticked all the boxes and thought I had full cover

He clearly didn't tick the one which asks if you want SLI! Nor, it seems, did he read even one of the k-zillion warnings explaining exactly the potential risks of not doing so. To suggest this information is only included in the small print is nonsense. I've been travelling to the US for over 10 years now and this aspect of hiring a car was made <i>very</i> clear right from the first trip. I find it hard to believe that any Brit travelling to the US is not aware of it. On the other hand, I find it very easy to believe that many choose to ignore the advice and hope they get away with it. Seems like this guy learned the hard way.

 

[rob@rar.org.uk]

He's lucky he was involved only in a minor accident, and that the plaintives accepted $20,000 minimum cover that came with his car hire. A few years ago I read a newspaper story about a British man who was responsible for a serious accident in California in which somebody died. He did not have car insurance, and was eventually declared bankrupt aftewr selling his house, etc to pay some of the liabilities arising from the car crash.

Insurance is one of the things in which I tend not to look for bargains. For the sake of a few extra tens of pounds I like to be fully covered.

Regards

Rob

 

[GO2209]

I am surprised that people don't just take the 'all-inclusive' packages that are offered. Everything is paid up front and no further hassles.

However, maybe I am wrong on this, but the first time I hired a car in Florida - I seem to remember a big deal being made of the CDW coverage. I opted for EP (extended protection?) at the time - but I don't recall it being explained as essential?

Today, all the brochures appear to state the neccessity of good insurance cover...

 

[rob@rar.org.uk]

Originally posted by GO2209
I am surprised that people don't just take the 'all-inclusive' packages that are offered. Everything is paid up front and no further hassles.

There's nothing wrong with the all-inclusive policies in terms of the cover they offer - the problem is that they are incredibly expensive. I pay less for my annual motor insurance in the UK than the cost of two weeks all-inclusive policy offered by the travel/hire companies.

There are cheaper ways of getting the same (or better) level of cover, particularly if you go for more than two weeks or travel to the USA more than once per year.

Regards

Rob

 

[floridalol]

I always take the Virgin All-Inclusive package because I can't be bothered to chase around for alternative insurance, although it does seem to be a little high I have the peace of mind that if anything did happen then there would be no hassle trying to sort it out with Dollar to get a new vehicle etc. Also one has to take in mind that car hire insurance is always higher than normal personal car insurance. For the sake of a few quid I think it's worthwhile taking the insurance offered by the car rental company.

Rob - I'm impressed by your personal car insurance cover being less than two weeks holiday cover - I pay £760 for mine (fully comp and full no claims bonus!).

 

[rob@rar.org.uk]

Originally posted by floridalol
For the sake of a few quid I think it's worthwhile taking the insurance offered by the car rental company.

If it were just a few quid I would agree that the extra hassle would not be worth it for such a small saving. But for us (we normally take 2 Orlando holidays in one year) the saving is more than £300. For that kind of money I'm prepared to put up with a little bit of extra hassle!

Regards

Rob

 

[GO2209]

I agree the all-inclusive offered by an operator is probably not the cheapest, but it is certainly the most obvious option.

I have used Amex insurance, which I found to be good value - but on occasions I have had hassle with certain rental agencies - some seem a bit reluctant to accept it...

If the gentleman in the article had arranged all his own holiday components (rather than using a travel agent), then I would have expected him to be aware of the insurance issues.

Rob - you obviously do some research, and are comfortable and confident enough to arrange your own Orlando holidays. You are still in a minority. Most go down to their travel agents and pick their trip out of a brochure. My point was, I don't understand how the package holiday buyer could fail to take out the correct insurance.

 

[rob@rar.org.uk]

Originally posted by GO2209
My point was, I don't understand how the package holiday buyer could fail to take out the correct insurance.

I agree with you entirely. Surely everybody who travels to the USA knows how expensive it is if you are involved in litigation or have to pay for healthcare? Anybody who deliberately does not buy the necessary insurance cover deserves what they get in my opinion, and anybody who does not have the intelligence to know they must have insurance should not be let out on their own!

Regards

Rob

 

[rob@rar.org.uk]

Originally posted by GO2209
I have used Amex insurance, which I found to be good value - but on occasions I have had hassle with certain rental agencies - some seem a bit reluctant to accept it...

I think examples of being given the hard sell on insurance are much more rare now than they used to be. In five years of decling the inclusive insurance policies I have not once been given the hard sell.

Regards

Rob

 

[floridalol]

Rob - £300 is a lot of money to save but have you or do you know anyone who has had the misfortune to have had an accident in Florida, and are not using the car hirers own insurance to make a claim? My point is that for example if it was with Dollar and without using their insurance they may not replace the car without first making sure that the insurance company you were using were going to compensate them etc. This could take a lot of time, maybe days knowing insurance companies, and you would be without the use of a replacement vehicle until Dollar were satisfied with their enquiries. At least using the car hirers own insurance would ensure that there would be no delay in getting a replacement vehicle.

Cannot agree more with your comment about going to the USA with no health cover, I know someone who does this all the time and up to now they have been fortunate but there is always that day that could come round and then probably bankrupt them - I know it would happen to me if I ever tried it!

 

[rob@rar.org.uk]

Originally posted by floridalol
Rob - £300 is a lot of money to save but have you or do you know anyone who has had the misfortune to have had an accident in Florida, and are not using the car hirers own insurance to make a claim? My point is that for example if it was with Dollar and without using their insurance they may not replace the car without first making sure that the insurance company you were using were going to compensate them etc. This could take a lot of time, maybe days knowing insurance companies, and you would be without the use of a replacement vehicle until Dollar were satisfied with their enquiries. At least using the car hirers own insurance would ensure that there would be no delay in getting a replacement vehicle.

Cannot agree more with your comment about going to the USA with no health cover, I know someone who does this all the time and up to now they have been fortunate but there is always that day that could come round and then probably bankrupt them - I know it would happen to me if I ever tried it!

Fortunately I've not had to claim on my Amex travel policy, but I have exchanged email with someone who has. He said that it was not a major problem, and with a couple of phone calls and the use of his credit card he was able to sort it out. I agree that it would probably be a little bit more straightforward if you were to use the hire companies own insurance, but given the savings can be significant that is a risk I'm prepared to take. It all depends on what your priorities are: for me I like to get a high level of insurance cover but not pay 'rip-off' prices. The extra bit of hassle that could arise from a claim is a worthwhile risk for me, but for others the risk may be too great and they should take out the inclusive policy.

The one thing we should all agree on is that adequate cover is essential.

Regards

Rob

 

[floridalol]

Hi Rob

It sounds like there is no problem with using alternative insurance then, but I think on a personal note I'll stick with the Virgin All-Inclusive Insurance. I always consider myself a "glass is half full" sort of character but maybe that is because I think of the worst possible scenario and act upon that leaving me peace of mind.

Thanks for your input on this subject, I always find your comments on these boards very useful.

Best wishes

FloridaLol

 

[allie5]

We had an accident (not our fault) this past trip and Im very glad we had the fully inclusive package. If we hadnt, things could have got SERIOUSLY complicated. As it was, the guy at Dollar just took a photo of the damage, filled out a form and took the info of the other driver and that was it. The consequences, if we HADNT got fully inclusive insurance would have been awful......even if the accident isnt your fault, you have to cover the cost of the damage to the car until the claim has been settled (might take years). You also cant hire a car in the US until any outstanding claim has been sorted. For a few extra $$$, its not worth the risk.