rental car insurance

[Scoff50]

is it worth it to get the rental car insurance or does your personal auto insurance cover it?

thanks

 

[PADISFAM]

you may or may not have it on your personal insurance -- check you policy.

Some credit cards cover you as well, check the card you will be using.

 

[jlewisinsyr]

What state do you live in, that is probably a good starting place. NY based policies are some of the best when it comes to rental cars, while other states, not so much.

Many credit cards cover rental cars, but most are secondary, meaning filing through insurance has to occur first, followed by the card picking anything up that insurance doesn't (ie. deductable, excess above and beyond coverage). Many credit cards don't cover SUVs, larger vans (minivans are usually covered) and higher end cars (ie. BMW, MB, Volvo, Lexus, Jaguar, Cadillac SUVs, Lincoln SUVs, etc.)

AMEX offers a Premium Rental Insurance coverage, for a fixed rate, regardless of the rental (as long as the rental is charged to the card). It is primary coverage and covers most vehicles (including those excluded in the second paragraph above).

 

[Scoff50]

i live in New Jersey, have NJM Insurance and will be putting it on a visa card.

 

[DebbieB]

i live in New Jersey, have NJM Insurance and will be putting it on a visa card.

You need to talk to your agent to see what your policy covers.

 

[a1tinkfans]

is it worth it to get the rental car insurance or does your personal auto insurance cover it?

thanks

Check your policy or Call your carrier for verification. You likely have coverage and they (rentals) PUSH as they get Big commissions

 

[Drew Sailbum]

You have three primary areas to think about when considering rental car insurance.

Liability insurance would pay to cover another person's losses if you are at fault in an accident. I would pay, up to the policy limits, for property damage or bodily injury caused by your negligent act.

Collision coverage would pay to repair your car if you are at fault in an accident. It covers damage from collision or overturning of your vehicle. Often drivers drop this coverage for older personal vehicles.

Comprehensive coverage would pay to cover loss from theft, vandalism, fire (not resulting from a collision), and collision with a wild animal (deer strike). Again many drivers drop this coverage for older personal vehicles.

Often your personal auto insurance (liability, collision, or comprehensive) will cover your insurance needs for a rental car. Check with your agent. If you have dropped comprehensive and collision then your insurance would not cover that for a rental car.

Often gold or platinum credit cards will cover the comprehensive/collision insurance if you charge the rental to your card. Check with you card. There is usually a limit of either 15 or 30 days - longer rentals are NOT covered at all.

Loss of Use
There is one more issue - Loss of Use. When you sign a rental car contract, you guarantee to compensate the rental car company for being unable to rent out a car while it is being repaired.

For various reasons, insurance companies (either you insurance company or the credit card company's insurer) often have problems getting the necessary documentation from the rental car company regarding loss of use claims. Car rental companies often refuse to provide usage logs to verify how often the vehicle would be expected to be rented out. They claim this is proprietary business information.

If your insurance company cannot obtain the documentation, they will not pay that portion of the claim. You are still potentially liable for this! The rental car company's overpriced "Collision Damage Waiver" covers this matter.

 

[jlewisinsyr]

Often your personal auto insurance (liability, collision, or comprehensive) will cover your insurance needs for a rental car. Check with your agent. If you have dropped comprehensive and collision then your insurance would not cover that for a rental car.

This varies by state, different states use different portions of your personal insurance to cover claims on rental cars.

Loss of Use
There is one more issue - Loss of Use. When you sign a rental car contract, you guarantee to compensate the rental car company for being unable to rent out a car while it is being repaired.

For various reasons, insurance companies (either you insurance company or the credit card company's insurer) often have problems getting the necessary documentation from the rental car company regarding loss of use claims. Car rental companies often refuse to provide usage logs to verify how often the vehicle would be expected to be rented out. They claim this is proprietary business information.

If your insurance company cannot obtain the documentation, they will not pay that portion of the claim. You are still potentially liable for this! The rental car company's overpriced "Collision Damage Waiver" covers this matter.

I agree this is one of the trickier parts of a claim. In most cases loss of use charges are overstated and usury in comparison to the revenue that would have actually been generated. Courts have battled back and forth, some siding with the rental companies (or their third party agencies that handle claims), other's have sided with the consumers. Unfortunately there is no cut and dry rule around this risk.

If you're unsure look at your credit card coverage (most personal insurance won't touch loss of use), Discover I know clearly denies all loss of use charges. Other cards vary.

 

[Scoff50]

thanks for the info, i have full coverage on my personal car, my insurance co won't cover loss of use..looks like visa covers it though...

 

[leebee]

don't let the car rental company scare you into renting insurance you don't need- and they sure will try! These days, most people who have full car insurance and rent using a major credit card will be covered between the two.