# Rental car and insurance



## JudyH (Nov 9, 2012)

When we got a rental car from Payless in FL last week, they "encouraged" us to get the extra collision (I think) insurance, even tho I had my own insurance and credit card insurance.  They said even with those insurances, if the car was damaged, and needed repairs, I would still be liable for the days the car was out of use and getting fixed.  True or scam?


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## Luanne (Nov 9, 2012)

Check with your insurance company.  I was given the same information when I rented from Enterprise and opted not to take their additional insurance.  I think that yes, they will charge you the "loss of use" fee, but your car insurance may cover that.  Luckily I never needed to find out. 

So, did you take their insurance or not?  I never do.


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## Timeshare Von (Nov 9, 2012)

JudyH said:


> When we got a rental car from Payless in FL last week, they "encouraged" us to get the extra collision (I think) insurance, even tho I had my own insurance and credit card insurance.  They said even with those insurances, if the car was damaged, and needed repairs, I would still be liable for the days the car was out of use and getting fixed.  True or scam?



Yes it is true that if a car is out of the rental pool due to an accident (regardless of who's at fault) they will charge you for that unless you have their insurance.

It may be that your personal car policy will cover it but in the meantime, the car rental company will charge you and you'll have to file claim w/ your company to be reimbursed (again, if they cover it).


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## bogey21 (Nov 9, 2012)

I haven't rented a car in a while but back when I rented lots of them I always used the American Express "Primary" coverage.  I think it cost $19.95 for the entire rental.  That way American Express, who has the resources to challange "Loss of Use", would be responsible for it and would no doubt fight it.

George


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## pacodemountainside (Nov 9, 2012)

Yes, if you read rental contract you are definately  responsible for loss of use. Generally credit card  or your insurance covers if exceeds deductible. Like you rear end some one  with your   car and they have to rent a car while theirs is in shop.

Based on several articles on this,   problem arises  when your credit card or insurance company  demands proof of loss. In other words they want a receipt before they pay.

Frequently rental car company has  several   unrented cars on hand  and therefore does not suffer any rental  loss when your wreck is in shop.

You end up in middle , insurance will pay with proof of loss and rental company cannot provide.

This is one of those look in Crystal ball situations. If you are accident prone and  rent 1-2 times a year probably  go for the outrageous  $200 or so.

If you rent several times and haven't had an accident in many years think of it as self insuring.


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## isisdave (Nov 9, 2012)

Not only that, but they have no incentive to repair it quickly.  I think insurance companies tell them they have x days to get it fixed, and if they think it will take longer, the insurer's contracted body shop will take over.


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## cmh (Nov 14, 2012)

bogey21 said:


> I haven't rented a car in a while but back when I rented lots of them I always used the American Express "Primary" coverage.  I think it cost $19.95 for the entire rental.  That way American Express, who has the resources to challange "Loss of Use", would be responsible for it and would no doubt fight it.
> 
> George



I have used the American Express rental car insurance several times for rentals in other countries.  I can recommend it. I can also attest to how well their claims administration works, thanks to my SIL hitting a big rock while we were in South Africa.


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## riverdees05 (Nov 14, 2012)

The American Express coverage is now $25.00.


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## bogey21 (Nov 14, 2012)

riverdees05 said:


> The American Express coverage is now $25.00.



IMO $25 is not bad as it covers the whole rental.  What I liked about it was (1) that it was primary, and  (2) that if I had an accident, I would have professinals negotiating the settlement.

George


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## PigsDad (Nov 14, 2012)

riverdees05 said:


> The American Express coverage is now $25.00.


It is $17.95 for California residents, $24.95 for all others.

Kurt


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## baz48 (Nov 22, 2012)

We live in Oregon and were charged $19.95 last month for a rental.  We signed up for the insurance plan a couple of years ago, so maybe they've raised the rates for new plans.  Or else Oregon is less than some other states.


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## travelguy (Nov 23, 2012)

*Two AMEX car rental plans???*

If my memory serves me correctly, AMEX has (had?) two plans.  One was $19.95 for the entire rental period and the other was $24.95.  I switched to the $25 plan at one point several years ago.  IIRC, the only difference was the coverage amount but that amount justified the extra $5 since it is PRIMARY insurance.


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## Carolinian (Nov 24, 2012)

I have had two times that car rental insurance came into play in Europe.  One was in France where someone broke out a back window to steal a jacket I had left in the back seat and forgotten about overnight.  The other was on Corfu, Greece where a local who had been drinking ran into the back of my car while I was stopped to make a turn.  In both cases I had Amex insurance which worked like a charm.  Having to get the police reports was a bit of a pain, but there was not even much paperwork on the insurance, and Amex handled everything.


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## Ken555 (Nov 24, 2012)

Years ago I had to use the Amex coverage in the UK. When I returned the car, the rental company said that one of the front lights had been cracked, likely by a rock, and that I was responsible. I just used their phone to call Amex, tell them the details, and I was instructed to just use my Amex to charge the repair (which the rental company wanted). It was about as easy as it could have been. Of course, no accident, so no police reports etc. Perhaps after Amex may have required them to submit additional proof, but as far as I was concerned the incident was over. And this was with the included insurance with all cards (at least the way it used to be) when overseas, since it assumed primary responsibility.

These days I also subscribe to the $17.95 per rental rate (I'm in California) for peace of mind.


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## T_R_Oglodyte (Nov 24, 2012)

Loss of use is included in the coverage provided under my VISA card.  It's also covered in my business auto policy, which applies as primary coverage on close to 75% of the rentals that I do.  (And it's included at no additional charge on my business owners policy as long as my business doesn't actually own any vehicles.)

Credit card coverage, when it applies, almost always has higher limits than the coverage offered by the car rental companies. Car rental companies push the insurance coverage because it is a *huge* money maker for them.  It is incredibly overpriced.  If you want insurance on your rentals and you don't want your personal auto insurance to be primary coverage, you are so much better off getting AMEX and paying the flat rate per rental fee.  You get better coverage at a fraction of the cost.


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