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I rent cars often and want to know is it important to spend for the insurance as well? What insurance do I get from my credit card? Isn’t the extra $25 just another way from the car rental to make more money?
from consumer reports magazine:
Resist the pitch for insurance. The car-rental agent will probably attempt to persuade you to buy insurance to cover any damage to your rented car. But your own automobile insurance policy might already provide protection. Most private policies cover rented cars as long as the person who signs the rental agreement is behind the wheel. If you have any doubts, check your policy or call your agent. Some credit-card companies also pay for rental-car coverage as a benefit for premium cardholders. Just make sure you use that card when you book your rental.
more tips from consumer reports:
* Shop by price. Remember that you are renting a car, not a company. All of the majors rent new or nearly new low-mileage vehicles. Don’t care whose car you drive? Anne Banas, executive editor of http://www.smartertravel.com, suggests that you consider http://www.hotwire.com, a discount-travel site that offers deals without revealing the name of the rental agency until after booking is completed.
* Forget labels. Some rental outfits–such as Advantage, Fox Rent A Car, and Midway–aren’t name brands but offer good deals, says Neil Abrams, a consultant in Purchase, N.Y., on the car-rental business. Go to http://www.carrentalexpress.com, http://www.carrentals.com, or similar Web sites to find some of these independent agencies.
* Ask about taxes and fees. Car-rental agreements might include extra costs such as an airport-concession fee (the rent or royalty paid to the airport), excise tax (the costs associated with registering a vehicle), and, of course, sales tax. In some areas, additional surcharges are levied on car rentals to help finance municipal projects like convention centers, sports arenas, and mass-transportation projects. Before you make your reservation, get a firm, bottom-line quote that includes all extra charges.
* Beware of other charges. You’ll be penalized if you turn in the car late. The clock starts ticking from the moment you take the keys. If you show up after your scheduled return time, you could be stuck paying for a full extra day. (Sorry, but the one- or two-hour grace period is now often only 30 minutes.) Also, expect to pay an additional charge for renting a car in one location and dropping it off in another. While a few routes may incur no penalty, most do. And Abrams says to avoid paying for “bells and whistles, like a GPS unit or satellite radio, you don’t need.”
* Ask for discounts. Always inquire if the rental agency gives discounts to members of AAA, AARP, or warehouse clubs like Costco or Sam’s Club. Most of them do. Also watch for coupons or offers in travel magazines or at warehouse-club checkout areas. A discount might equal one day’s rental or an upgrade.
* Go off-site. It’s often cheaper to rent from a branch office that isn’t at the airport. Ask your hotel if there’s one nearby. Or type the hotel’s street address into the car-rental company’s Web site to find branch offices. Some rental companies, such as Enterprise, will pick you up and drop you off–usually within a specified mile radius–at no charge.
* Book small, hope big. Always reserve the smallest vehicle you can tolerate. It’s a good bet you’ll be bumped to a bigger model free, because most rental companies have larger fleets of intermediate- and full-sized cars. Just don’t let the agent talk you into paying extra for the upgrade. If your teeny Geo isn’t available on time, you might be able to enjoy a spacious Lincoln Continental for the same price.
* Inspect your car before departure. Make sure that the rental representative sees every significant nick, scratch, or dent on the vehicle and notes them on your rental agreement. Otherwise you could be held liable for damage that was caused by a previous customer.
* Gas up. If you don’t fill the tank before returning the car, you could pay dearly–two to three times more than at the pump–for the company to do it. As you are driving away from the rental-car lot, jot down the locations of nearby gas stations so you’ll know where to refuel just before you return the vehicle.
Your collision insurance (if you carry it) and your CC may cover the cost of repairing the rental car, but MAY NOT cover what the rental agency calls “loss of use” which means if:
* it takes your ins co / CC 4 days to get down to see the car, * another 4 days to settle the claim (longer, if the rental co contests it, which they probably will) and
* another 4 days for the rental co to repair the damage,
you might be in the hook for the cost of the daily rental while the car is out of commission.
All this can be avoided for the extra $10-$15. Is it worth the gamble? At $29.99 per day for the average car, 12 days could set you back close to $350. Something to consider, if they charge for loss of use (check the fine print on the contract)
It’s been a long time since the last time I rented a car but I used to rent cars to date girls who lives out of town.
I used to take out the extra insurance because I was told that no matter what happened I could just return the keys and be off the hook. If I used the insurance supplied by the CC it would be my responsibility to fight it out with them if there were any issues in the fine print.
There was one time it came in handy, I stopped at a rest area and when I came out the whole drivers side was smashed in. There were no notes left or anything. I made sure the girl never saw that side of the car (didn’t help- she said no anyway) and let the rental place know about it the next morning. The only thing they wanted to know is if everyone is OK.
On the other hand I only rented the car for one day at a time- if you are renting for a week or more the extra $25 can really add up.
I’ve had experience both with taking out the agency’s insurance and relying on the credit card. Both cases I didn’t have to pay a cent, but when I took out the rental agency’s insurance the process was hassle-free even though we were at fault and when I relied on the credit card I found the card company and the rental agency refuse to call each other and for each document I would need to call back and forth though the other side was clearly at fault. Depending on your circumstances decide if it worth the potential hassle. I rent close to 30 days a year and do NOT take out the additional insurance.
What coverage for a rental does your own personal auto insurance provide, on top of what the credit card company provides?
check your personal policy. If your auto insurance covers rentals the credit card will NOT, they are secondary insurance and when you file a claim they specifically ask if your personal insurance covers rentals
Does having both credit card AND personal auto insurance coverage provide additional coverage than just one or the other?
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