'Extras' on Car Rentals

[tchrrx]

What, if anything, do you add to your car rentals? Do you get any of the extra insurance? My insurance company said that I don't need it, but I thought I'd double check.

ETA: Do you pay at rental counter or pay online? Is there a benefit to one over the other?

 

[4HppyCamprs]

My insurance (state farm) said to purchase the loss/damage waiver because they will not cover the daily fee for time out of service that is charged by some rental companies in the event the vehicle is damaged or stolen.

Sent from my iPhone using DISBoards

 

[stevil73]

My insurance (state farm) said to purchase the loss/damage waiver because they will not cover the daily fee for time out of service that is charged by some rental companies in the event the vehicle is damaged or stolen.

Sent from my iPhone using DISBoards

Your credit card company may offer additional insurance to cover loss/damage. I use Amex and it specifically says to decline the additional loss/damage and Amex will cover up to $50K.

 

[seashoreCM]

Here are the major things you might get charged for if you have an accident in the rental car:
1. Repairing the damage.
2. Loss of use -- extra days charged to you while the car is repaired.
3. Diminution of value -- the estimated difference between what an undamaged car sells for and a repaired car sells for when time comes to replace the fleet of rental cars.

Many insurance companies and credit card companies do not cover #2 and #3. You will have to decide whether to take the risk and decline the rental company's own coverage that covers all three.

When you rely on your own insurance you have to pay the deductible.

In many cases when you use the credit card company's coverage, your own insurance, if any, pays what it can and should first (is primary) and the credit card company (is secondary and) picks up what's left such as the deductible. This can result in higher insurance rates.

Unless its printed rules allow it to (true for a few companies) the rental company may not require you to buy extra coverages in order to rent the car.

 

[ohiomom28]

I have only purchased a full tank of gas once because the rate was way lower than gas stations.

As for paying online or at counter, you usually get a discount to prepay but can't cancel for free.

Sent from my Galaxy S3 using DISBoards

 

[Lewisc]

Most of us have adequate coverage via our personal auto policies and credit card coverage. You need to check and make sure you have adequate coverage.

I recently discovered the per gallon rate for gas charged to customers who elect the pre-paid gas plan is subject to the same taxes as your rental. That means sales tax, concession fee, airport taxes etc. After you add those fees the pre-paid price per gallon is likely to be higher then the average pump price. That means you might be paying more, even if you return your car without any gas. I mean even if you literally run out of gas while you're returning your car.

 

[ohiomom28]

Most of us have adequate coverage via our personal auto policies and credit card coverage. You need to check and make sure you have adequate coverage.

I recently discovered the per gallon rate for gas charged to customers who elect the pre-paid gas plan is subject to the same taxes as your rental. That means sales tax, concession fee, airport taxes etc. After you add those fees the pre-paid price per gallon is likely to be higher then the average pump price. That means you might be paying more, even if you return your car without any gas. I mean even if you literally run out of gas while you're returning your car.

Interesting. The counter at Enterprise accidentally posted gas at $1 cheaper than the guy meant to. They had to honor it. Guess I was in the right place at the right time. Taxes couldn't have been that high being off-airport. ;-) normally I don't purchase anything extra.

Sent from my Galaxy S3 using DISBoards

 

[hpriamson]

If you call your credit card provider, they'll be able to tell you what coverage they add when you use their card. For example, my Visa card will cover the deductible from my own car insurance, plus the loss of use by the rental car company.

When deciding, remember that these coverages are a HUGE money-maker to the rental car companies. Their reps are all incentivized to push the coverage as hard as they can. So while you still may decide to go with it (or not), don't be in any way swayed by the horror stories the rep tells you when you pick up the car.

 

[seashoreCM]

Interesting. The counter at Enterprise accidentally posted gas at $1 cheaper than the guy meant to. They had to honor it. Guess I was in the right place at the right time. Taxes couldn't have been that high being off-airport. ;-) normally I don't purchase anything extra.

Note that it is not unusual for about 2-1/2 gallons of gas to still be in the car when you buy the tankful up front and return it "empty". This is about nine dollars worth at today's prices. If the agent sold the tankful at a dollar a gallon less than he thought he was selling it for, your savings are therefore not that great.

Also a shortweighted tankful is not unheard of. If the attendant had to fill the car and took the gas hose out when the pump first clicked off, or if the previous renter filled up some distance away from the airport, the tank would not really be full.

 

[DSLRuser]

I just did this research.

your insurance company will cover your rental car just like it is your normal car.

say you crash your rental car and cause $3,000 worth of damage.

1- your insurance comapny will cover the $3,000 minus your deductable, so if you have a $500 deductable, you are responsable for the $500. DO NOT BUY THE EXTRA

2- BUT...the rental car tries to sell you extra iinsurance for $10 a day, to cover your deductable. MOST credit cards will cover this extra deductable as part of their bennifits. so DO NOT BUY THE EXTAR

3- so, knowing these 2 points, rental companies invented a 3rd level of coverage called "loss of use" They sell this insurance for $5 a day. it covers the time the car will not be in service should you damage it. So say your $3,000 fender bender takes 2 weeks to fix. They rent that car for $30 a day. The car rental company will charge you $30 x 14 days = $420 (the money they will lose because they cant rent the car while it is being fixed)

#3 is the only charge there is no way of not paying out of pocket unless you buy the extra from the car rental.

saying all that...DONT BUY EXTRA INSURANCE

 

[jlewisinsyr]

Also a shortweighted tankful is not unheard of. If the attendant had to fill the car and took the gas hose out when the pump first clicked off, or if the previous renter filled up some distance away from the airport, the tank would not really be full.

Actually you should stop filling when the pump stops; it's very bad for modern emission systems that include charcoal filters in the filler neck to keep trying to pump, pump until you see the fuel or round off. A tank is full when the pump stops (assuming the pump is working correctly).

I just did this research.

your insurance company will cover your rental car just like it is your normal car.

say you crash your rental car and cause $3,000 worth of damage.

1- your insurance comapny will cover the $3,000 minus your deductable, so if you have a $500 deductable, you are responsable for the $500. DO NOT BUY THE EXTRA

This varies greatly by state/country; best to ALWAYS check your own policy (and ask your insurance company if you do not understand) along with contacting your credit card issuer.

2- BUT...the rental car tries to sell you extra iinsurance for $10 a day, to cover your deductable. MOST credit cards will cover this extra deductable as part of their bennifits. so DO NOT BUY THE EXTAR

Most coverage by a rental companies are primary, your insurance is never involved unless you are violating the contract, which then you have a whole lot of other issues (i.e. DWI, Unauthorized Driver, etc.)

3- so, knowing these 2 points, rental companies invented a 3rd level of coverage called "loss of use" They sell this insurance for $5 a day. it covers the time the car will not be in service should you damage it. So say your $3,000 fender bender takes 2 weeks to fix. They rent that car for $30 a day. The car rental company will charge you $30 x 14 days = $420 (the money they will lose because they cant rent the car while it is being fixed)

#3 is the only charge there is no way of not paying out of pocket unless you buy the extra from the car rental.

This varies by insurance and credit card companies. Some cover loss of use, some do not.

 

[Lewisc]

I just did this research.

your insurance company will cover your rental car just like it is your normal car.

say you crash your rental car and cause $3,000 worth of damage.

1- your insurance comapny will cover the $3,000 minus your deductable, so if you have a $500 deductable, you are responsable for the $500. DO NOT BUY THE EXTRA

2- BUT...the rental car tries to sell you extra iinsurance for $10 a day, to cover your deductable. MOST credit cards will cover this extra deductable as part of their bennifits. so DO NOT BUY THE EXTAR

You did a poor job with your research. The answer varies from state to state, and sometimes from insurance carrier to insurance carrier.

Your description of rental car coverage included on personal auto policies is wrong with respect to most policies issued to NY residents.

A link for any NY resident who wants official information.

http://www.dfs.ny.gov/insurance/auto/autorent.htm

The general rule is most people have adequate coverage with their personal auto policy and credit card coverage. The absolute rule is people need to research their own policies and credit card coverage and not rely on research posted on internet discussion forums.

 

[Poohlovr]

My insurance (state farm) said to purchase the loss/damage waiver because they will not cover the daily fee for time out of service that is charged by some rental companies in the event the vehicle is damaged or stolen.

Sent from my iPhone using DISBoards

This is what I was told by my insurance company, too. I also found out that none of my credit cards over the loss of use, either. I always get the waiver

 

[DSLRuser]

You did a poor job with your research. The answer varies from state to state, and sometimes from insurance carrier to insurance carrier.

.

UH NO!

That is how it is handled in my state with my insurance and my American express.

Sorry if I did not clarify "varies by state"

 

[hpriamson]

3- so, knowing these 2 points, rental companies invented a 3rd level of coverage called "loss of use" They sell this insurance for $5 a day. it covers the time the car will not be in service should you damage it. So say your $3,000 fender bender takes 2 weeks to fix. They rent that car for $30 a day. The car rental company will charge you $30 x 14 days = $420 (the money they will lose because they cant rent the car while it is being fixed)

#3 is the only charge there is no way of not paying out of pocket unless you buy the extra from the car rental.

Even if loss of use is not covered by your car insurance/credit card, the waiver is a terrible deal on insurance. If you're renting for a week, and the waiver is $5/day, you're paying $35 for $420 worth of coverage, or 8.3% of the covered amount. That's just horrible. How often do you have an accident that leaves the car out of service for 2 weeks? Hopefully not 8.3% of the weeks you drive.

Insurance is for losses you literally cannot afford to cover. That's why you want to make absolutely sure you've got some coverage, through your own insurance, credit card, or paying the CDW, for a loss of the car - you don't want to be paying $20,000 out of pocket because the car was totalled. But probably most people going on vacation to Florida could afford an extra $420 out of pocket, even if it means tightening the belt after you get home. And paying close to 10% of the covered amount is an awful deal.

 

[DSLRuser]

But probably most people going on vacation to Florida could afford an extra $420 out of pocket, even if it means tightening the belt after you get home. And paying close to 10% of the covered amount is an awful deal.

Yep. I will even tip the car rental counter guy $10 bucks. #1 to help me secure a good rental, sometimes even some free upgrades. and #2 to compensate him for lost commision since i never buy the extras.

 

[mellvswdw1]

I am an Insurance Agent for a company mentioned before in the state of Indiana. You may want to check with your insurance company about adding an endorsement onto your policy that will cover loss of use and property damage. My company partners with two large rental companies, so we have an aggreement with those companies to automatically cover property damage and loss of use. My company also has a bank and if you use one of their credit cards, it will waive the deductible.

As was stated before, different states have different rules, so always call your insurance agent first to detirmine if you need the additional coverages.