The Reason Rental Car Companies Push The Insurance

[clkelley]

The agents jobs depend on it!!!!

My brother worked for a rental car company and was promised management, etc., etc., due to his finance degree and previous customer service experience in the banking industry.

He worked his tail off for this company for two years, had superior customer service ratings, good reviews from management, etc., etc., but one day instead of a move to management, he was fired!!

Their reason, he did not meet a predetermined, undisclosed quota on supplemental insurance coverage sales! Notwithstanding he was working at a location at a local car dealer where most people were getting warranty work done and the car dealer was paying for most of the rentals!!

However, there is a silver lining in all of this, he went back to school for teaching and teaches elementary school at a private school. Says its the best thing that ever happened to him!

 

[inkkognito]

I wish the companies would realize that by forcing the agents to push the insurance, they are alienating many customers. They make a lot of money on the insurance, but I wonder how much they lose in people who don't want to deal with it. I've only had an agent get rude with me once when I refused, although I've had them be very pushy. The rude guy was at Thrifty...he started to go into his spiel, and I asked him not to bother. He got in a real huff and insisted on going through it anyway. What was the point, other than to tick me off? I already told him I was definitely NOT interested.
Barb

 

[Lewisc]

Thrifty in Las Vegas has little transparent circles less than 1/4" they put around dents and dings. Anything not marked would be charged to you. That was one way to hard sell the insurance. Twice I had to correct the agent, he "thought" my no meant I only wanted the "basic extra insurance". The car went out with the gas gage 3/4 full, I was told that was full on that car. Of course when I filled the tank it went all the way to F. I waited on line to get a credit.

We "demand" rates so low the only way the rental agency can make money is to push the insurance. I suspect one reason rates are drifting up on companies like National is the "quick rent" programs make it harder for them to "push" the insurance.

 

[Brian Noble]

One more reason I'm very happy that my employer's contract ID includes LDW "for free". (Actually, we get very good rates, in addition to included LDW. It's fairly rare that another contract ID beats the rate I get.)

 

[inkkognito]

We had a weird incident with Avis once. We had booked through Avis and our ressie was prepaid. Our flight was due to land about 11 p.m. and we ended up getting in after midnight. When the agent tried to get it to issue a car, it kept coming up that the rate was not available, even though we were prepaid! It appeared to have something to do with it technically being the next day. Anyway, the only way she was able to get it to work was to give us some kind of ressie with the insurance included in the rate. I've never understood that, but now it makes sense...I wonder if she used some kind of corporate code. All I know is that it took her and the manager 20 minutes of finagling to get the computer to give in and give us a car!
Barb

 

[ncbyrne]

After a rather pushy clerk convinced my DH at Newark Airport that he NEEDED insurance (we did NOT, since we are covered with other means), I joined every car rental membership available. Dollar's Fastlane has been the best for us so far. Everything about the car and our rental is predetermined before we get there - no questions asked. And the added bonus of not having to wait in the long lines is a bonus!

 

[seashoreCM]

Originally posted by Lewisc
... little transparent circles less than 1/4" they put around dents and dings. Anything not marked would be charged to you.

I would be leery of that because the little circles could come off while you have the car.

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

 

[seashoreCM]

Originally posted by inkkognito
I wish the companies would realize that by forcing the agents to push the insurance, they are alienating many customers. I've only had an agent get rude with me once when I refused, although I've had them be very pushy. The rude guy was at...he started to go into his spiel, and I asked him not to bother. He got in a real huff and insisted on going through it anyway.

Rude employees, clerks, agents, waiters, drivers, or flight attendants anywhere are worthy of a letter to the company asking for some kind of future perk.

 

[Chicago526]

Originally posted by Lewisc
We "demand" rates so low the only way the rental agency can make money is to push the insurance. I suspect one reason rates are drifting up on companies like National is the "quick rent" programs make it harder for them to "push" the insurance.

You hit the nail on the head!

I wish the car companies would just raise the rates a little and stop pushing the extras. Just offer it, no explaination and no hard sell. If the customer asks for details, then go into the spiel!. This way, they make enough money on the rental so that if the insureance isn't purchased, it's no big deal.

 

[seashoreCM]

There are too many taxes and fees much of which go to non-tourist related activities.

The Cardinals are getting a new stadium, paid for with tax money. So they will soon be able to kiss goodbye to the place where they were swept in the World Series. I am not sure how much of the financing comes from taxes on rental cars and hotel rooms.

I haven't rented a car in Boston but the Red Sox have received no tax money for Fenway Park. They have put pressure on the Mass. legislature for a new park to be built next to Fenway, though.

I have always declined the insurances but, does anybody know if in Florida the tax applies to the rental total including insurances, or just the base rate?