News, Should you pay for rent-a-car insurance? (car rental, vehicle, auto)

[John1960]

You might already be covered, experts say, so do your homework.

Should you pay for rent-a-car insurance? - Tips - MSNBC.com

[BLAZER PROPHET]

First, state laws vary widly and case law changes things continuously. What was true one month may not be the next.

Second, there are some things your insurance may not cover.

Here's a few thoughts from a claims adjuster with over 14,000 claims under his old belt.....

Some states allow policies to be written that exclude rental vehicles. Some states allow it for exclusion for rental vehicles over a certain GVW. One state I know allows a rental exclusion for drivers under 21. So KNOW YOUR POLICY!

Another thought. If you get into an accident while driving a rental vehicle, YOU are responsible for the rental vehicle regardless of who is at fault in the accident. If you have insurance and another person is at fault in an accident, when their carrier finds out it is a rental vehicle, they will simply deny payment and force you to use your carrier (which, in turn, will subrogate against the other carrier. BUT, you can easily get screwed and have your rates go up if they cannot subrogate 100%- which is tough in these cases). Why? YOU will also be tagged with diminuation of value, loss of income for that vehicle by the rental company, administration fees by the rental company and most rental car companies will total a vehicle with only 40% repair to total value due to their liabiity procedures. Are YOU responsible for all of those extra charges? And can your carrier subrogate for them. Well, yes & no. Even if you buy the rental insurance, it will not cover most of these things.

My best advice.

1) Make certain your policy covers a rental vehicle.

2) If you can afford it, buy the additional rental vehicle insurance.

3) Even though you may take the hit, if it comes down to your carrier or the other driver's paying firrst, have yours do it as they are supposed to look out for your best ineterest (unless you have Allstate, then you are screwed to hell).

4) If in an accident and some things are not covered by any of the insurance carriers, make a claim with the credit card company you used to secure the rental. Often there are coverages there for things the auto carriers do not cover.

Good luck. You're going to need it.

[18Montclair]

I think my VISA has insurance on car rentals so I dont even have to use their coverage-not sure though.

[greggd]

I usually take the rental car coverage, physical damage portion becuase its about $10-15 per day.

That way, in the event of a misfortunate experience, you shrug your shoulders, toss the car rental rep the keys, and walk.

[tcb]

visa/discover/amex all do enough insurance for me along with my regular insurance company.