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Fellow renters: you don't want to purchase the full package or both liability and collision coverage, would/do you buy collision or liability coverage when renting a car?
Though I can see huge benefits to buying liability (especially, if you're at fault in an accident and are sued to cover medical and/or other expenses), I almost always opt out and just go for the collision coverage. Yes, its a risk, but any accident that causes damage to the rental car will always involve collision coverage, while not necessarily requiring liability coverage; I'm fairly confident in my own driving abilities, though not necessarily in the abilities of other drivers, which makes collision make more sense to me (again, a risk, but one that I've found worth taking).
By the way, collision has paid off for me. I rented a full-size SUV from Enterprise recently, and, when I returned the vehicle to the rental company, it was noticed that the right headlight was slightly cracked (I don't know how that happened). With replacement fees (I still thought it was good to drive, but the station manager thought otherwise, though there was disagreement between her and other staff on this point), service charges, and loss of use charges, I was easily looking at charges of $500+ (probably closer to $1,000+). So that extra $11.99 came through big time! Just dropped the car off and was good to go.
I'm curious to know what other people opt for (if you are buying coverage from the rental company) and why!
I called State Farm and they said my auto insurance covers rentals.
So, I said..no... to the car rental company's insurance.
That's great! I don't have a car/personal, so that's not a realistic option for me now). I'm curious, though, does your personal auto insurance require that you pay a deductible and/or front the costs in the event of an accident? If so, I'd imagine that there could be some benefits to purchasing the rental company insurance anyway.
I called State Farm and they said my auto insurance covers rentals.
So, I said..no... to the car rental company's insurance.
it does...but it doesn't cover loss of use...
meaning...if you wreck the rental...it takes 2 weeks to repair, you would owe for the cost of rental while the vehicle was not available for rent (if the rental car company can prove it) plus your deductible.
also...if you wreck a rental and have to use your personal car insurance to cover the loss, that loss is reported on your CLUE report...whereas...if you bought the rental car insurance coverage...no loss is reported.
I currently work for "the rental company". I always take collision coverage only. Even if I eventually move on and am no longer employed by the rental company, I will continue to do this in most cases. The reason for this is simple: It "potentially" could save me money in the long run.
If the rental gets hit while it's parked in a parking lot, and the person who hit it takes off and leaves no note, you are on the hook. If you have your own insurance, you'll have to call them, pay your deductible, and run the risk that your rates might go up, depending on your record and history. Also, like you guys mentioned, loss of use typically isn't covered through your personal insurance (or credit card for that matter).
Obviously if you have no insurance of your own, you better get both. A lot of rental companies now won't even let you rent if you tell them that you don't have your own liability insurance, unless you purchase theirs of course. Some companies require the same of collision if you don't have full coverage on your own policy.
Fellow renters: you don't want to purchase the full package or both liability and collision coverage, would/do you buy collision or liability coverage when renting a car?
Though I can see huge benefits to buying liability (especially, if you're at fault in an accident and are sued to cover medical and/or other expenses), I almost always opt out and just go for the collision coverage. Yes, its a risk, but any accident that causes damage to the rental car will always involve collision coverage, while not necessarily requiring liability coverage; I'm fairly confident in my own driving abilities, though not necessarily in the abilities of other drivers, which makes collision make more sense to me (again, a risk, but one that I've found worth taking).
By the way, collision has paid off for me. I rented a full-size SUV from Enterprise recently, and, when I returned the vehicle to the rental company, it was noticed that the right headlight was slightly cracked (I don't know how that happened). With replacement fees (I still thought it was good to drive, but the station manager thought otherwise, though there was disagreement between her and other staff on this point), service charges, and loss of use charges, I was easily looking at charges of $500+ (probably closer to $1,000+). So that extra $11.99 came through big time! Just dropped the car off and was good to go.
I'm curious to know what other people opt for (if you are buying coverage from the rental company) and why!
Do you have $300,000 or $500,000 or more just sitting in your sock drawer waiting to be spent?
If so, go ahead and go with no liability coverage...
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by VJDAY81445
I called State Farm and they said my auto insurance covers rentals.
So, I said..no... to the car rental company's insurance.
When was that? My State Farm agent used to say that too, until the last time I asked, when I found out bout the "loss of use" charges. The rental agencies now charge you for the rent they would have gotten while the car is in the auto body shop, and that can be a long time if they have to order parts. Not covered by State Farm. The claim can also raise your State Farm rates. Now I buy the coverage from the rental place that covers everything.
Do you have $300,000 or $500,000 or more just sitting in your sock drawer waiting to be spent?
If so, go ahead and go with no liability coverage...
Very late reply, but I've never seen rental car liability coverage come anywhere close to $300,000-$500,000.
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