Renting a car - we don't have car insurance

[ivanova]

Because my DH works for a car manufacturer, both of the vehicles we drive daily are corporate vehicles. We do not have to insure them.

So, when renting a car for personal use we have to use a Platinum AmEx or Gold Visa (both provide CDW bennies to card holders).

Will the rental car companies give us grief if we waive the CDW coverage but don't have proof of insurance??

 

[disnurse]

check with your credit card. often times they cover you.

 

[ivanova]

We've got confirmation from the c/c companies that they'll cover us; we're just concerned that the rental car companies will try to pressure us into paying for their CDW coverage since we don't have actual personal car insurance.

I do plan on taking a print out of the benefits page from the c/c company's website, but was wondering if there's anything else I should arm myself with before WWIII breaks out at the rental company counter.

 

[DebbieB]

I always rent from National and have never been asked to show proof of insurance. Before I joined Emerald Club, I had to go to the counter and they asked if I wanted insurance, I said no and that was it. With Emerald Club, it's on my profile that insurance is declined, so they never ask.

One other thing to check - does the credit card also cover you for liability? Or is it just physical damage? You wouldn't want to be without liability coverage (pays for bodily injury or property damage to others when you cause an accident).

 

[Scotch]

First, as for not having personal auto insurance at home because you guys drive company cars, are you sure that the company auto insurance policy covers claims arising out of incidents when the car is not used for official company business, or during drive to and from work only? I guess a car manufacturing company would want the publicity of having its cars driven around in the street; so the policy may extend to personal use. Second, as for credit card coverage, read the terms carefully. Most credit cards only provide secondary collision damage coverage, meaning the coverage comes into place after exhaustion of your primary insurance coverage. I am not sure such coverage would apply if you don't have primary insurance coverage in the first place. Third, even if your credit card's coverage is primary, the coverage generally only covers collision damage to the rental car, up to a certain limit, and does not cover any liability that may arise from either property damage to other cars (or structures) or personal injury (for example, if you injure someone or if an uninsured motorist injures you). Nowadays it is the personal injury liability aspect of a car accident claim/lawsuit that can really really hurt you, since those injuries could result in damages valued easily at tens of thousands (for a broken arm) to hundreds of thousands (and more) (whereas any property damage to any object is limited by the replacement cost). Do you have any umbrella liability policy for such claims, e.g., from home insurance? Personally, if I did not have personal auto insurance, I would spend the big bucks and pay for the outrageous liability insurance coverages charged by the car rental company. Insurance buys peace of mind. I know several people who have been involved in car accidents during vacation. Why would you want to drive under such risk? Finally, I think I've read some posts either here or elsewhere that many car rental companies now require proof of insurance (on renter's own cars) before allowing the election of not buying the CWD coverage. If you will be renting from one of these companies, you'll need to come up with something.

 

[GAIL HAYDEN]

Over the past year I have rented from Alamo, National and Avis and not once did they ask for any proof of insurance. The only one that I have heard of that does require proof is L&M.

 

[tonilea]

If you discover you are not covered as fully as you would like by your c/c, contact your insurance agent. I am sure they would be able to provide you with a short term car insurance that would be significantly cheaper than the choices offered by the rental company.

 

[seashoreCM]

Don't use Priceline or Hotwire. If the rental company refuses to give you the car, you will be the one who has to start world war 3. Even if you want the rental collision, it does not make sense to bid $15. a day for a car with $19.95 collision extra (total $35.) rather than reserve directly for $20. a day with $9.95 collision extra (total $30.).

1. If you have neither your own car collision insurance nor a credit card that has the collision benefit, you should either find a short term insurance policy from your insurance agent, or buy the rental company's coverage.

2. Unless the rental company policies say otherwise (find them on Travelocity.com) whether or not you buy the "optional" coverages is up to you, not them. You may repeat calmly as many times as you want that you are declining any coverage you do not want.

Rental companies may tell all kinds of stories to get you to buy insurance. Example: Florida law requires that cars go out with collision (false).

All rental companies I know of say that their collision coverage is not insurance. Experts say it is just a fee for the company's promise not to hold you responsible for collision damage. If you don't need or want that promise, you should not have to pay the fee. Otheriwse that fee is simply a refusal to honor their promised rate, otherwise known as bait and switch, which is illegal in most state.

If push comes to shove, you can tell your own stories at the rental counter. Like, if they won't give you the car, you will rent from some other company and hold them civilly liable for the difference in rate. Here it is advantageous to rent from a nationwide company since then you can go after them after you return home.

In case of difficulty you can also call the rental company headquarters from the pay phone in the rental office using the nationwide 800 number (another advantage of dealing only with nationwide companies).

If you decide to buy insurance or coverage against your will just to avoid the hassle, write the words "under protest" after your initials even if it runs over other printed material on the paper. This will also help if you decide to raise a dispute with the credit card charge after you get back home.

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

If you don't have collision on your own car, the credit card coverage, even if secondary, will pick up with the first dollar of coverage. In some states your personal car's property damage insurance will pay first, then the credit card company's collision benefit. Also the credit card benefit, even if secondary, will pay any deductible.

 

[ducklite]

From personal experience, I can tell you that Florida's insurance laws provide that your medical bills don't need to be covered if you are not a resident of Florida and are involved in an accident with a driver from Florida and a car insured in Florida.

I was hit by a car while I was a pedestrian in the parking lot of Universal (and the lack of concern that Universal showed was unbelievable--wouldn't assist me with medical care or call the police, we had to call 9-1-1 from a payphone to get OPD to respond). The jerk that hit me was some trash from the Tampa area with a 23 page DMV abstract and a suspended license. His insurance refused to cover my medical, and even a call to then Govenor Lawton Childs' office got me no where. My medical didn't cover because it was an accident with a motor vehicle, and the MV insurance should have covered. My auto didn't cover because I was a pedestrian, and my car was 1800 miles away at the time. Luckily the bills weren't terrribly high, because I never did get reimbursed, although I did get the jerks butt thrown in jail.

Point of story is that be sure you know what insurance you do and don't have.

Anne

 

[ivanova]

Anne,

All I can say is "OUCH"!!

 

[DVC-Don]

Showing proof of insurance depends on the clerk, not the company. I've rented from all the onsite agencies, Alamo and Hertz offsite. The only times I had to show proof was one time at Alamo and one time at Hertz. The clerk at Alamo would not accept my insurance ID card as proof and did not back off until I showed her my business card. The business card ID'd me as a Senior Auto Claims Rep of the same company. (Up to that point she had told me I did not understand how insurance worked) The clerks get paid commission on any upsells they may tag you with.

 

[tonilea]

DVC-Don - ROFLMAO!!! I bet she wanted to crawl under the counter!

 

[ivanova]

My concern is that we do not have proof of insurance to provide. The corporate vehicles we drive on a day-to-day basis are covered at all times we are driving them, by a bond the company has put up with the state (basically, self insured). It also covers my DH when he rents cars on business trips, but not rentals for personal use.

So our only insurance coverage will be what is provided by the credit card company (both Platinum AmEx and Gold Visa offer the benefit). I just need to know for sure that the rental car companies will accept that, but I'm not paying $10-$20 a day for 15 days for the rental car companies coverage.

 

[DebbieB]

What car rental company are you renting from?

I work for an insurance company and I would seriously urge you to make sure that the credit card company is also providing liability coverage, not just physical damage. You could have a huge mess if you are at fault for an accident and don't have liability coverage. I checked the sheet I have for Visa Platnium and they have alot of exclusions, it does not appear that they cover liability, just collision damage. If you are in an accident, they would cover damage to the rental vehicle, but not damage to other person's car, bodily injury or other property damage.

 

[ivanova]

DebbieB

They both offer CDW only. No personal liability coverage.

Can I get personal liability coverage through an insurance company before I leave? I figure for what I'd pay the car insurance company I'd probably be better off buying coverage thru an insurance company -- only problem -- I don't have a vehicle to insure, just 2 drivers (because of the corporate vehicle issue).

 

[shelby2001]

If I were you, I would just to be on the safe side check with your Companies again to be sure you have coverage in those business vehicles while on personal time and carrying passengers in that vehicle. Second I would double check with the credit card companies and get it in writting as to what type of collision and comprehensive coverage you have and what deductible you are responsible for in an accident, and most important find out what the Bodily Injury limits are on your credit cards. If they have a low limit and you hit a pedestrian or severly injury someone in an at fault accident you can have attachments put on your personal assets.
I'm going to add this I just saw no liability coverage I do both personal and commercial insurance and a personal umbrella coverage will extend to an insured auto once the underlying limit of liability either $100,000 or $250,000 has been paid first and then the umbrella coverage will pick up Homeowners give you no coverage while in a vehicle. That's how it works where I am check with you agent in California and see if they can work with you to get liability, if not I wouldn't rent a car.

 

[DebbieB]

I would contact a local insurance agent for advice, perhaps the one who has your homeowners policy. I work in commercial insurance, I'm not sure how a personal policy for non-owned vehicles works. You would probably be looking at a minimum premium, which maybe more than the rental car company charges. I would ask the car rental company for a breakout between the liability coverage & physical damage coverages they offer and compare.

 

[ivanova]

The rental car companies were quoting $10-$20 per day just for personal liability coverage (comp & collision were separate). The credit card coverage would only cover comp & collision, no personal liability.

So for a 15 day rental, personal liability through the rental car company was going to end up being between $150 and $300.

My insurance agent (homeowner's policy) just called me back after 4 days of research. They can write an "umbrella policy" for us to cover the personal liability portion at $184 / year. Since I'd be shelling out about that much for a 2 week period, I may as well get it for the whole 12 months!!