next »

[corny]

So, the fiancé and I are renting a car and driving out of state to spend Thanksgiving with friends next week. Here is the question that I always forget about until I'm standing at the rental car counter: do I need some of their overpriced insurance? I know that the damage waiver - which is the thing they try to push the most - is more or less unnecessary, because my credit card covers such things. What I'm wondering about are the other kinds of insurance they offer - personal accident insurance and supplemental liability protection. The reason I ask is that we don't own a car, and thus - unlike, I suppose, most rental car customers - we don't have any auto insurance of our own. But I've heard some people say that rental car companies carry their own liability insurance, for example, that would cover you if you hit someone. I basically feel irritatingly clueless about what insurance I might need or not need, and find that most discussions of this assume that the renter has car insurance of her own. I realize that y'all aren't insurance agents, but can anyone help enlighten me on this? Obviously, I'd rather not spend the extra money if I don't have to, and I've rented cars plenty of times before without buying the insurance, but the question nags.

[sinenomine]

Check with your credit card company on whether or not you're automatically covered when using the card -- that's frequently the case.

[aman1278]

In addition to checking w/ your credit card, you should check your regular car insurance to see if you signed up for rental car coverage.

Also if you have an American Express card, you may want to consider their premium car rental insurance.  It's a flat fee per rental (about $25, compared to roughly $20 *per day* for the car rental company's insurance) and it becomes your only insurance for the rental car - your regular car insurance never needs to know anything even if something happens to the rental car.  I love it.

[lizzy]

Make sure you have full coverage through your regular policy and your credit card.

My husband hit a deer in a rental car, and we had to fight a long battle about who was responsible for paying the damages.

[corny]

Thanks, guys. Just to clarify a couple of things:

I do not have any regular car insurance of my own, because I don't own a car. That's why I'm wondering about coverage through the car rental place.

I do have rental car coverage through my credit card that covers damage to the vehicle. I've read through the information about that coverage and my impression is that it does *not* cover the other kinds of things that get covered by auto insurance - liability for damage or injury to another person or vehicle, and injury/medical expenses should I get injured myself.

Sadly, I don't have an AmEx card, so that won't help me here.

[aandsdean]

In most states, the rental comes with the minimum required liability for that state, which is secondary to your auto insurance if you have auto insurance, which you don't, so it would become primary.

That said, the limits of liability are ridiculously low, like $15,000 per person/$35,000 per occurrence, which will usually fix a broken leg if you're lucky.  If you don't have any assets that's ok:  they can sue you and go whistle.  But if you do have assets that you need to protect, you need to do better.  In which case, it sounds to me as though your only option is to buy the appallingly expensive extra liability cover that the rental co. offers.

[crowie]

If you and your fiance don't have your own insurance because you don't have a car, then YES, get the insurance, more than LDW, get the "comprehensive" package with accident coverage etc.  I know it's a pain because it's so expensive but if something happens you WILL be liable if you didn't buy their insurance and don't have any of your own.  Just think of this as a short term expense compared to those of us who live in areas that force us to have a car and carry insurance 365 days a year.

That said, even if you don't have an AmEx, you should check the policies on all your credit cards (if you have more than one) in case one of them has some kind of coverage.  It's likely, however, that the coverage is pretty basic and you should carefully compare it to what's offered by the rental car company and check how comprehensive it is.  

My ex and I were in the same situation as you and in a moment of cheapness waived the insurance, even though neither of us had auto insurance of our own.  It made the entire time we were in the car for the next four days up to the moment we pulled it into the rental car return lot much more stressful than it should have been.

We did not have any accidents, thankfully, but the anxiety was not worth the savings.  

[bemused_befuddled]

Yes, you need to purchase rental coverage through the rental company since you do not have auto insurance (or you need to see what your cc covers). Without proof of insurance, I don't even think they'd let you rent.

On the other hand, you never need to purchase the rental car insurance if you have full insurance  (meaning comp, coll and PD) on your own car.  All of your coverage transfers over to your rental car including what your deductible might be. This does not apply to renting moving trucks in which case only your PD transfers over.  Understand though that if you get in to an accident in a rental car they can and will ask for your full deductible on the spot (or charge it to your cc) this is unlike when you get in to an accident and you wait to pay your deductible until you get your car repaired. So you should verify, since you must buy the rental insurance how they will handle the deductible if you get in to an accident.

[wet_blanket]

Without proof of insurance, I don't even think they'd let you rent.

Umm, no.  Renting a car comes automatically with some coverage; the OP's question is the level of the coverage and whether s/he should take the option of upping it.

I think the answer depends on how risk-averse you are.  I can imagine feeling much as Crowie describes.

My ex and I were in the same situation as you and in a moment of cheapness waived the insurance, even though neither of us had auto insurance of our own.  It made the entire time we were in the car for the next four days up to the moment we pulled it into the rental car return lot much more stressful than it should have been.

We did not have any accidents, thankfully, but the anxiety was not worth the savings. 

[professor_pat]

I had an awful experience with a rental car company a couple of years ago (A***o), and the bottom line is that if I ever have to rent a car again (which I would now go to greater lengths to avoid, and never again from that company), I'd probably very pi$$ed-offedly get their insurance. In that incident, I declined the company's expensive insurance, took excellent care of the car for the 3-day weekend, returned it in perfect condition -- before leaving it in the garage, I looked very carefully over the whole car for even a scratch - nada.

A week or two later, I got a bill from the rental company for almost $1000. They claimed the front of the car had been severely damaged: complete BS. If it was damaged, it was after I turned it in...probably when one of their attendants moved it around the garage. My insurance company took it to mediation and lost (???), and ultimately decided to cover it, but not before asking me a whole lot of questions. Fortunately, my rates didn't go up, but they sure could have.

That rental company made a whale of a lot of money off of my having declined the insurance, and since I had to pay the deductible, I was out a lot more than if I'd just bought their insurance. They have a great setup for themselves.

(Of course, another moral of this story is to TAKE PICTURES of the car when you turn it in; also give yourself extra time at the airport to make sure one of their people can come sign off on its good condition. Finally, check the BBB rating of your rental company; mine had a D- rating for exactly this kind of shenanigan.)

[charlesr]

If both you and your fiance plan to drive the car then make sure you are both authorized drivers for the rental car.  This may cost extra.

[anon99]

If both you and your fiance plan to drive the car then make sure you are both authorized drivers for the rental car.  This may cost extra.

This is one way to save money.  Only have one person drive the vehicle and therefore you only need insurance for one person.  If for some reason you both need to drive the car, often there is a max charge to add a second driver.  Not sure how the costs are for insurance with two drivers as the only time I have added a second driver, both of us had insurance through our regular auto insurance.

[clean]

personal accident insurance

If you have health insurance, then I would say no to this one.  It goes by a few names, but some states require that you have it and if you are in an accident and either you, your passenger or the other car occupants take care of their own health care up to the limits of the coverage.  If you have health insurance, this is redundant.

Collision is not much of a problem because your card will cover this.  Liability is the question.  You have an unlimited risk here.  You do not own a car of your own, so do not have coverage.  While it may seem expensive, and it is, it is WAY cheaper to have it than to not have it.

In your case, I would read the policies that are offered before you get to your destination.  You may even want to print them and take them to your insurance agent (Do you have Homeowners or renters insurance?).  You may be able to get something through them, or it may be a part (or added to) your current policies.  Perhaps (and I dont know) an umbrella policy would be something for you to consider.

Of course, if you own nothing (destitute recent grad with tons of student loans, whose only asset is a diploma), then you are likely judgement proof... What are they going to do, take your birthday? 

But for peace of mind, you may want to pay for the insurance.  Shop around for the best total priced car rental agency. 

[oldadjunct]

personal accident insurance

If you have health insurance, then I would say no to this one.  It goes by a few names, but some states require that you have it and if you are in an accident and either you, your passenger or the other car occupants take care of their own health care up to the limits of the coverage.  If you have health insurance, this is redundant.

Collision is not much of a problem because your card will cover this.  Liability is the question.  You have an unlimited risk here.  You do not own a car of your own, so do not have coverage.  While it may seem expensive, and it is, it is WAY cheaper to have it than to not have it.

In your case, I would read the policies that are offered before you get to your destination.  You may even want to print them and take them to your insurance agent (Do you have Homeowners or renters insurance?).  You may be able to get something through them, or it may be a part (or added to) your current policies.  Perhaps (and I dont know) an umbrella policy would be something for you to consider.

Of course, if you own nothing (destitute recent grad with tons of student loans, whose only asset is a diploma), then you are likely judgement proof... What are they going to do, take your birthday? 

But for peace of mind, you may want to pay for the insurance.  Shop around for the best total priced car rental agency. 

If, on the other hand, you have assets (significant or not), you might look into an Umbrella Policy.  Last I checked $500k coverage ran about $100/year.

[clean]

Perhaps (and I dont know) an umbrella policy would be something for you to consider.

If, on the other hand, you have assets (significant or not), you might look into an Umbrella Policy.  Last I checked $500k coverage ran about $100/year.

I do think that you should look into an umbrella policy.  My only question on that is that when I looked into it they required maximum coverages for the cars.... You dont have cars, so I dont know if that is a good thing or a bad thing .... If you would qualify for one. 

But by all means, call and ask.  An umbrella policy covers a lot of risks that you are self insuring now!  IF nothing else, it buys attorney time, paid for by the insurance company... and they have the MEAN lawyers!!