Renting a car with no collision insurance

[LadyBeBop]

In a nutshell...if you have a gold card, don't you have rental car insurance through the credit card company?

DD24 (who lies out of state) was going to rent a car with her boyfriend (age 26). They were going to rent in their hometown in Louisiana to tour the South. They were quoted one price. However, when they went to pick up the car, they were quoted a price which was double. Since both own older cars, neither has full coverage, only liability.

I understand having to take out their insurance if they don't have collision. But would it double the price of the rental?

Also, could another reason is that they were adding on a driver under 25? I'm assuming his name was the primary on the contract and she was added on as the driver. (Which would be a shame, because she turns 25 next month).

Also, I asked about the gold card. I'm not even sure either has a gold card. But isn't there a collision waiver if you rent a car on a gold card?

BTW, they turned down the rental, and they're using DD's car for the trip. They needed to fix a headlight before leaving. But, even though it's five years old, it's still reliable and only has about 75,000 miles on it.

As always, many thanks for responding.

 

[seashoreCM]

Check the benefits and rules of the specific credit card you have (regardless of color).

Except for a small number of rental companies that have it in their rules, you do not need collision insurance on your own car in order to decline the rental company coverage.

But it is not smart to rent with none of the three: your own car collision coverage, your credit card collision benefit, or the rental company collision waiver.

Both the rental collision waiver and the under 25 surcharge can add a great amount to the rental.

Coverage from any of the three I listed above can be voided if you don't follow the rental company rules for example don't declare an under 25 driver and s/he drives it.

 

[LadyBeBop]

Thanks for getting back to me so quickly.

Have another thought. In making the reservation, could they have forgotten to tell them that they were taking the car outside Louisiana and its surrounding area? Their trip takes them beyond Arkansas and Mississippi and into Tennessee and probably Georgia and Alabama. That would cost more too, right?

 

[OrangeCountyCommuter]

Yes, she would have been charged the "underage driver" fee.

Also, they appear to have had no insurance? (Liablity does nto protect the rental car company when they total the car) In this case they should be glad to pay. I doubt they want to buy the car if it's wrecked.

As for the "gold card" well, the color of your card may mean nothing. Credit card companies can make them any color they want... I have a "silver" color card that gives the BEST insurance coverage (it's primary, no deductible etc...) So next time have them read the "benefits" with any card they own. (And Silver is the default color for this card it's noting "special")

 

[seashoreCM]

Thanks for getting back to me so quickly.

Have another thought. In making the reservation, could they have forgotten to tell them that they were taking the car outside Louisiana and its surrounding area? Their trip takes them beyond Arkansas and Mississippi and into Tennessee and probably Georgia and Alabama. That would cost more too, right?

They need to check that particular rental company's rules for "geographical restrictions". Typically you are limited to the state where you rented the car and the immediate neighboring states, but that can vary. Going outside the area is a violation of the rental rules.

The rental company can agree to a larger geographical area for a fee but if they forgot to tell the ageint, then I am guessing the agent did not catch this to go about adding that fee.

Another detail, underage drivers may be required to buy the collision coverage, but this would be stated in the rental company's rules.

 

[Polydweller]

Check the benefits and rules of the specific credit card you have (regardless of color).

Except for a small number of rental companies that have it in their rules, you do not need collision insurance on your own car in order to decline the rental company coverage.

But it is not smart to rent with none of the three: your own car collision coverage, your credit card collision benefit, or the rental company collision waiver.

Both the rental collision waiver and the under 25 surcharge can add a great amount to the rental.

Coverage from any of the three I listed above can be voided if you don't follow the rental company rules for example don't declare an under 25 driver and s/he drives it.

Very well laid out. I would say especially look at the bolded item. Read those details carefully and make sure that your card actually has that automatically on it (not all do) and that it covers you sufficiently. The terms can have limitations to payments and reporting obligations that you have to follow.

Underage does cost and the age is firm. They have to set the line somewhere so yes she'd have to pay it.

 

[backyardponder]

Some insurance companys have agreements with major car rental companies so that the under-age fees are reduced or eliminated. Check your insurance company's web site and see if they have any agreements like this. Mine has these types of agreements with Avis, Budget, and Hertz.