Auto insurance and rental car. What to do?

[crazyforgoofy]

So what do you do? Do you spring for the rental car coverage? It's ridiculously expensive. I'm told my own auto insurance covers my liability and my credit card provides additional coverages for collision, etc. Is that what you understand? Any auto insurance agents lurking to answer my question? Advise appreciated

Mary Alice (aka crazyforgoofy)

 

[disneyberry]

i'm not an insurance agent, but i think that sounds about right.

your own auto insurance should cover liability for rental cars.

your home-owners insurance should cover personal property.

and most higher level (gold, platinum) MC and VISA's cover CDW/LDW. i believe most Amex's also cover this... but i know that some Amex's don't cover "loss of use" fees.
so basically, figure out which credit card of yours has the best CDW/LDW coverage, and use that card to pay for the rental.

for us, we don't own a car 'cause we don't need one in NYC, so we don't have auto insurance. as a result, we have no choice but to buy the expensive liability insurance.
either that, or pay hundreds of dollars a year for a non-owner umbrella liability policy, but that's only worth it if you rent a car a lot each year.

 

[sgtdisney]

I never take the Insurance that the rental companies offer. I called my Ins company and they said that I am covered.

 

[Uncleromulus]

Ditto. Just be certain that your Insurance policy does cover rentals. Most do.

 

[DVC-Don]

The rule of thumb is if you have your own policy that includes collision and comprehensive, you are covered in a rental. If you have a NY policy, even if you do not have collision & comp on your car, you will be covered for them in a rental. If you do not have your own auto policy, only then would you have to think about getting the extra coverage from the rental agency.

Credit cards often do have some coverage, but they only pick up if your personal auto does not cover something.

One note. The coverage offered by the rental agencies often do not kick in if you are ticketed for a traffic infraction. Say you are lost and make an illegal left turn and get into an accident--->excluded, no coverage. They will look to you for the damages. Seen it happen.

 

[peg2001]

Call your insurance agent and ASK! My State Farm agent in TN explained that I am covered in the rental car with the exact same coverage that I am in my regular policy. So, if my car gets older and I drop comprehensive and collision, I am no longer covered for those in a rental car either.

Peggy

 

[cindala]

Bring a copy of your declarations page from your insurance policy with you to the rental car agency. You are covered, but some agencies give you a hard time if you can't prove it.

 

[Dopey & Grumpy]

We rented a car from Payless last month and told them we were covered with our own insurance (checked with our agent). We were told, "Yes, that's true but if you're in an accident, without our insurance, you have to pay the daily rental rate for the car until it's repaired, no matter how long it takes. Are you willing to risk that for a mere $$ a day?". Needless to say, we were but when we mentioned the other rental places never said anything about that, they said "Well that's our policy". So even if you do have your own insurance, make sure you check with the rental company to see what you would actually have to pay for in the event of an accident...it pays to ask questions!

 

[DVC-Don]

without our insurance, you have to pay the daily rental rate for the car until it's repaired, no matter how long it takes.

When claims like that are presented to the insurance company, the claims department asks the rental company to prove that all their cars would have been rented during that period. They always drop the claim then.

 

[shelby2001]

The only thing I will add to this is if the waiver of deductible coverage is only a few dollars a day then I recommend to my customers that they take it. Yes your auto policy will cover you at least in our state but you are responsible for your deductible and the waiver will eliminate that. Just as with your own auto policy if you are at fault in an accident your deductible will apply along with surcharges to your auto policy.

 

[shelby2001]

The only thing I will add to this is if the waiver of deductible coverage is only a few dollars a day then I recommend to my customers that they take it. Yes your auto policy will cover you at least in our state but you are responsible for your deductible and the waiver will eliminate that. Just as with your own auto policy if you are at fault in an accident your deductible will apply along with surcharges to your auto policy.

 

[Poohbearmom]

I manage a State Farm Insurance Agency in Texas and I know that the Texas policy provides coverage for rental cars under the Liability Property Damage portion of the policy. Basically, that means you have coverage for anything that happens to the rental car (up to your policy limit) that you are contractually liable for, and there is no deductible. Some states may vary in the way the policies cover rental cars, so it is always best to ask your agent. My experience in working with rental car agencies, which I do on a daily basis, is that they will almost always pressure the customer to buy the insurance, but the majority of policies automatically provide the coverage.

 

[DVC-Don]

Hey! Same company I sell for Poohbearmom. (My wife is the agent)

Here in NY, rental car coverages are extended through the property damage coverage with a deductable of $100. So, you could have a $1000 deductable on your personal vehicle (like me), yet only have the $100 deductable while driving a rental car. This is not exclusive to State Farm, but is part of every NY auto policy. I fact, in NY it is illegal for rental car companies to even try to sell you the waivers.

 

[Dopey & Grumpy]

When claims like that are presented to the insurance company, the claims department asks the rental company to prove that all their cars would have been rented during that period. They always drop the claim then.

All this new information is very enlightning. I wish I had known this while renting the car. We've never had an accident with a rental car (knock on wood!!) but we were a little nervous driving the Payless car because of the statement they made. I think we'll stick to the rental companies who don't use those tactics to get you to take their insurance. This was the first time we've ever been pressured.

 

[Poohbearmom]

Hey, DVC-CON-- My Dad is the agent I work for. In fact, my husband & my Mom work there also. Nepotism runs rampant in S.F., doesn't it?