Purchase car rental insurance??

[annabelle]

I'm doing my first car rental this year... and I was wondering if I should purchase National's rental insurance... here's what' I've figured so far...

Option 1.) DECLINE the rental car insurance and use our own...
I was told by my auto insurance agent that our plan includes rental coverage... *BUT* it DOES NOT cover what rental car companies consider "loss of use" charges. In other words, we would be charged a fee (out of our own pockets) for each day the rental car is out of commission sitting in a shop (about $45/day). And again that is NOT covered by our regular car insurance. On top of that, we would have our deductible to pay ($500) and the wreck would also goes on our driving record.

Option 2.) ACCEPT the car rental insurance and pay about $21/day for it. In this case, if we wreck... there is NO deductible to pay OR "loss of use" daily fees AND it would NOT go on our driving record (at least that's what the National rep told me on the phone). We're renting for 6 days, at $21/day, we'd pay an extra $126 for their rental insurance. Might be worth it for peace of mind....

I just don't know what to do. I know the chances are SLIM of us wrecking down there... but it COULD happen. Just trying to weigh out our options.

What do you all do? Pay for their insurance or use your own?

Thanks,

Annabelle

 

[Lewisc]

Most credit cards offer rental car coverage that will cover your $500 deductible. You'll have to pay it and get your money back. Some credit cards might cover loss of use, not sure. The rental agency has to show 100% of all the cars in that class were rented at the time your car was in the shop if they want to charge you for loss of use. Several posters have reported getting the charge taken off once they asked for the rental logs for the dates in question.

Most of us, who have coverage, skip the extra coverage and save the $$$.

 

[cabowser]

I always, always, always get the insurance, and never rent using a debit card!!!

Jan

 

[DebMcDonald]

We're not $21 is alot of money daily, yes if we get in an accident it would be worth it, but we are covered through our credit cards.

I put this in the same catagory as best buy(or any other company for that matter) selling me product replacement plans and service plans (I used to work there). Best Buy makes HUGE money off of those things, because most of the time you either don't remember you purchased them or nothing breaks.....

 

[annabelle]

Thanks for the patience with me you guys... we are new to the world of credit cards and rental cars. No, we're not just out of college... we're actually in our mid-30's but have always used debit cards and never rented a car.

So, I called the 800# on the back of our new AMEX card and they said that they DO cover our insurance deductible... but don't cover the "loss of use" fees. But as someone mentioned above, how can rental car companies do that if they have 20 other similar cars just sitting on the lot ready to rent?

Ok, I at least have some direction now. We will DECLINE the rental car isurance and use our own personal auto insurance PLUS our credit card as secondary insurance.

Then we'll PRAY THAT WE DON'T GET INTO A WRECK ANYWAY!

 

[seashoreCM]

If you have neither collision on a car of your own back at home nor a credit card that covers collision (some cards cover loss of use also) you should buy the rental company's collision.

By getting or choosing a card that covers loss of use as well the credit card company will negotiate down the loss of use charge. You can too although the process is complicated. Check with your own insurance company to be sure they cover rental cars and to see if they cover loss of use too.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm

 

[DebbieB]

My Platnium Visa covers loss of use.

 

[FirstTimertoDiz]

Does anyone know offhand if the Disney Visa covers any of these? If no one knows, I will call on Monday and see if I can find out.

Thanks!
Lisa

 

[Disneyjosh229]

Ok for me this is an extremly logical equation.

1. You pay a REDICULOUS amount of money for rental car insurance on a vehicle you allready have some coverage on.

2. What are the chances that you get in a major accident driving around Disney World?

3. In the event you do get in a major accident, chances are, you would probibly total the car (how much is a used rental car worth?)

Im not sure that its worth the extra ''cost'' of the insurance.

 

[manning]

Diners Club

has primary coverage. In other words your auto insurance company won't become involved!!!

 

[katboferguson]

The way credit card coverage works for rental cars is like this. All Visa credit cards have it, with the exception of debit and/or check cards. They do not. All platinum and gold master cards have it. All amex and discover cards have it. This type of coverage allways fall second to whatever you have. If all you have on your own auto policy is liability, then it "goes first". If you have comp. and collision as well, then it "goes second". My guess is that the diner's club card works the same way. In addition, the rental can be no longer than 15-20 days in length depending on the credit card policy (call your credit card co for exact details). As long as the cardholder is listed on the rental agreement as a driver and pays with the credit card, this coverage also covers any other driver listed on the rental contract as well. Hope this helps.

 

[Lewisc]

Diner's is primary. AFAIK it's the only cc that offers primary coverage.

My guess is that the diner's club card works the same way. In addition, the rental can be no longer than 15-20 days in length depending on the credit card policy (call your credit card co for exact details). As long as the cardholder is listed on the rental agreement as a driver and pays with the credit card, this coverage also covers any other driver listed on the rental contract as well. Hope this helps.

 

[magsmom]

Depending on the state, your car insurance (if the insurance covers you as opposed to your car) may cover you when you rent as well.

 

[LarryM]

My amex has a program that for a flat 20 dollars per rental the car is covered. As oppossed to taking the companies insurance at 20 dollars a day.

 

[manning]

Confirmed........Diners is PRIMARY COVERAGE.

Got it in writing and verbally.

 

[cabowser]

I never paid $20.00 a day for the insurance, it was about $7.00 for the whole time, but then I don't think I have rented for more than about 2 days at a time, mainly when my car was in the shop.

Jan

 

[funcinderella]

Also, as far as it going on your driving record, I don't think the agent is correct. At least in NJ, the accidents follow the DRIVER, not the car. So even if your insurance company pays out nothing on an accident, it STILL goes on your record. For example, say you are driving your friends' car and get in an accident. Her insurance company pays for the damage, but YOUR insurance goes up, even though your company did not even have to pay out. Please correct me if I am wrong, but I don't think I am.