Please tell me the Pros and Cons of Car Rental Insurance

[mithuri]

Hi - We're debating whether to buy Car Rental Insurance or not...
We have a credit card that provides collision coverage - however, the collision coverage will only cover my rental car - not the other party if I'm at fault. I also have a rider on my auto-insurance to cover me for rentals - However, if I make a claim against my auto-insurance, then my premiums will go up - Am I better off simply paying an extra $200.00 and getting the collision coverage offered by the rental companies for peace of mind? thx

 

[SandraC]

We don't buy the rental car insurance and rely on our credit card and car insurance coverage from home.

We've been to Florida several times doing this. Sandra

 

[bunnyfoo]

Last trip, DF added car rentals to his insurance policy. I think it was called Endorsement 27 or something like that. It cost us about $40 and it covers all the rentals for the year. We were able to get the CDW from our credit card.

 

[misslissa]

I always go with the extra insurance. There are a couple of reasons for that.

If you go with the extra coverage from your auto insurance at home, you are still subject to your premiums going up if something happens. There is also the deductible to consider, what more could wreck a trip than knowing that you have to pay a $200/$500 deductible? Also, my insurance company told me that if something happens to my car at home, it isn't covered, only one car is covered at a time. This is something to think about if you are leaving your car at a hotel, park and fly or anywhere outside of your property... and most definitely if you have kids who will be at home driving your car!!!!!!!!!!

With the credit card coverage, there are a lot of limitations. They will do everything to get out of paying. Know the limitations, get a copy of the policy, and read it carefully. It would scare me to death knowing that it doesn't cover other drivers that you may get in an accident with. Companies sometimes pay millions for injuries sustained by other drivers.

Good luck with your decision!

 

[Sillyminny40]

We go to our local insurance person in town here before we even leave town and get the insurance for very little. Covers us for everything in the U.S.

We are in Manitoba and it is so easy to do this, even though we have it automatically on our VISA we still get our own insurance for extra.

 

[OntFamily]

I read that some people mention that credits cards will not cover the other party's damages in the event of an accident. It's important to understand that most auto insurance is in two parts:

1) collision - this is the cost to fix the vehicle you are driving. Most premium credit cards will carry coverage to cover collision insurance. However, you need to "read the fine print" to ensure you know what is covered. You must pay for the rental using the credit card (no using a discount card for the rental, and then try to use the premium card's insurance coverage). Second, many credit card's collision insurance is secondary (ie they will want proof you have no other insurance ) coverage.

2) liability - this is the cost to pay another party's damages (ie their medical costs, lawyers, etc. No credit card covers this insurance. You must either buy it from the rental car company, or buy a separate rider on your personal auto insurance (most inexpensive way to have the insurance, as this rider also covers collision insurance).


I have rented many cars in the USA, and haven't bought the rental car insurance in 8 or 9 years (no matter what the rental agent from Alamo told me.....).

 

[ferris198]

It is called OPCF 27, and it covers rental
The rental must be in the name of the policy holder.
It is considered an extension of your current policy.
Depending in the insurer it is usually under $50.00 bucks a year.
Used to be about $27.00.
And, other vehicles you may own are still covered under your policy. It is an extension of the current policy.

 

[barkley]

i'm not from canada so i don't know how your car insurance policies work but i thought i'de pass on some info. regarding u.s. rental cars that's becoming the increasing norm and should be considered in evaluating weather your private auto insurance is sufficient.

rental companies here are putting into their rental contracts that if the vehical you rent is damaged then not only are you responsible for the damage but also you are responsible for paying the rental rate that vehical could generate per day for however long it takes to get that vehical repaired. it is'nt nesc. the rate you rented if for-it could be whatever the highest rate they rent the vehical for (like the one day highest, no coupon or promotional rate).

i bring this to your attention because when we first encountered it i contacted our auto carrier and learned that while i have coverage for rental cars it would not cover this expense. i thought perhaps because my policy would allow me a rental car during a repair period for my own vehical were it damaged it might cover this expense, but i learned that this coverage was not applicable to a rental vehical that is damaged.

 

[surfer_ed]

Also, my insurance company told me that if something happens to my car at home, it isn't covered, only one car is covered at a time. This is something to think about if you are leaving your car at a hotel, park and fly or anywhere outside of your property... and most definitely if you have kids who will be at home driving your car!!!!!!!!!!

I would get a new insurance company if that is the case.

I also checked into this pretty good and use my insurance company for liability and credit Card for collision. The rental car "waiver" is different from my own Policy coverage. Yes, premiums and deductable apply but it should not effect your own auto coverage.

 

[trivial]

$200 does sound like a lot... I didn't realize it cost that much. A few things to keep in mind though: if you do get into an accident, not only will your premiums go up, but most likely you'll have a deductable to pay.

 

[ferris198]

In Ontario we have no fault.
Your premium only increases if you are at fault in the accident.