Insurance for Rental Car

[Just Love Disney]

I am confused as to whether it is necessary to purchase the Rental Car Insurance thru the Rental Car Agencies.

I know that Discover Card, possibly Disney Visa, and maybe all credit cards offer some sort of rental insurance but I don't know if it's the 'right' type of insurance needed when renting a car.

I have purchased the insurance in advance before and it was much cheaper than at the rental car counter, however, I am wondering if that is even necessary...

The only thing I am sure about is that MY insurance company does not cover rental cars.

I have lots of homework to do on this subject but thought I would ask here first because I feel confident that with all the wonderful people on this board, someone has encountered these issues before.

Thanks so much for any insight you can provide!

 

[seashoreCM]

There are 5 kinds of coverage related to rental cars: liability, comprehensive, collision, loss of use, and diminuation of value.

Are you sure your own insurance company covers none of the five when it comes to driving a rental car?

Most credit cards offer comprehensive and collision only, some offer one or more of the other three.

The rental agency offers your choice of all five, sometimes collision, loss of use, comprehensive, and diminution of value must be selected all or none.

Some rental companies offer different grades of coverage for example basic collision with a deductible or copayment of so much and premium collision with no deductible or copayment. If you are sure you have enough coverage from your credit card and the agent asks "paper or plastic?", er, "basic collision or premium collision" you should say "none."

It is unwise to go without collision and liability; if neither your credit card nor your own insurance will cover a rental car then you should buy those from the rental agency.

A small number of local agencies reserve the right not to rent to you unless your own insurance company covers some or all of the five.

Unless it has a written procedure to the contrary, the rental company must rent the car to you even if you decline any or all of the coverages they offer. Keep saying "no" if this is what you want.

Loss of use covers the time, expressed in additional rental days, that the car is in the repair shop.

Diminution of value is the estimated reduction in sale price when the car is taken out of service and sold and a new car added to the rental fleet in its place when the car was involved in a crash compared with never.

Comprehensive covers damage due to vandals, hail, floods, storms, etc. unrelated to a crash.

Most companies offer no coverage for mechanical breakdown whether or not caused by careless operation. Perhaps some day there will be a sixth coverage for this.

 

[migel]

We rent frequently, I've always declined insurance based on my Credit Card's coverage. However, I did run into one agency that demanded I produce proof of my personal car insurance, stating I can get ticketed if stopped by police. When I challenged them, they backed off, this was clearly a push to get me to fork up for insurance (they also noted the fantastic cheap rental price I secured online.) Having said that, last year I verified through my personal home/auto insurer that I am fully covered (liability, comprehensive, etc) for any rentals in Canada or the US. I would call your personal insurance to check. Credit card coverage won't help much, especially if an accident is deemed your fault.

 

[supersnoop]

Most coverage provided by credit cards is "secondary" coverage, which means you'll have to file any claim against your own insurance and the credit card will only pick up the difference, if there is any. There are a few credit cards that offer "primary" coverage, but they usually come with high annual fees, like the American Express Platinum card.

 

[stitchlovestink]

I am confused as to whether it is necessary to purchase the Rental Car Insurance thru the Rental Car Agencies.

I know that Discover Card, possibly Disney Visa, and maybe all credit cards offer some sort of rental insurance but I don't know if it's the 'right' type of insurance needed when renting a car.

I have purchased the insurance in advance before and it was much cheaper than at the rental car counter, however, I am wondering if that is even necessary...

The only thing I am sure about is that MY insurance company does not cover rental cars.

I have lots of homework to do on this subject but thought I would ask here first because I feel confident that with all the wonderful people on this board, someone has encountered these issues before.

Thanks so much for any insight you can provide!

We were notified by Discover card that as of the end of August, they were discontinuing rental car coverage on their cards. They were reevaluating what products were useful to their customers and making adjustments accordingly....and that was one coverage they were doing away with.
I would double check your Discover card. Everyone in my house has their own and we all received our own separate written notice in the mail.

 

[Shelly F - Ohio]

I used Orbitz if I need insurance. They offer $9 a day insurance that is Primary insurance where as the insurance through your credit card company often times is secondary insurance.

Here is a good article

http://www.mouseprint.org/2015/09/15/credit-cards-cutting-back-on-benefits/