Rental car insurance changes - beware!

[hybridbear]

This reminded me of the below clip - the part about opting for insurance is at the 2:00 mark.

 

http://www.youtube.com/watch?v=4T2GmGSNvaM

One of the funniest Seinfeld scenes ever I think. Thanks for sharing it.

 

Speaking of insurance for car rentals. The dealer where we bought the white FFH has their own rental office run by the dealership, not Enterprise. When I was filling out the paperwork the rental counter guy didn't even discuss the insurance, he just showed me where to initial that I decline the coverage and he had that spot on the form highlighted, assuming that I'll decline. Their rental cars are also in bad shape with lots of scratches, dents & dings which he marked down on his form. As we were walking out to the car he even said, "I know this one has quite a bit of damage on it."

Edited July 31, 2014 by hybridbear

[hybridbear]

On a side note, at work I work in Purchasing & Finance. One of our corporate agreements that I work with is for car rental. The LDW cost to the rental company is so small that when we were negotiating our current contract in 2013 we expressed interest in adding it to our contract & it was added at no cost to us. Our daily rates did not change and the company locked in our rates for two more years with the third year of the contract seeing a $1/day increase in our rates. Prior to having the insurance included in our corporate agreement we were spending about $1500/year on damaged rental cars plus a number of man-hours for our Risk Management department. We were able to save that time & eliminate the cost just by asking our sales rep to include it in their proposal for a new contract. As far as the cost to the car rental company, our corporate travel agency had advised us that $0.50 to $0.75 per day is a reasonable cost for us to pay to add it to our agreement. They said that if the car rental company asks for a $1 per day increase or more to push back hard against that.

 

The way our contract works now is that if the damage is minimal, the rental company will just fix it and they won't even contact us. This happens if they're going to fix the car themselves instead of making a claim to their insurance company. If the damage is large enough that they'll make a claim against their insurance, then they will contact the renter and ask him/her to verify that the rental was for business use. Once the employee confirms business use then the discussion is over and the car rental company pays for all the repairs. We are not responsible for loss of use or diminished value. If the employee was renting the car through our corporate contract for personal use then they are on the hook for the damages as GrySql has pointed out.

 

This shows how much profit the rental companies make on their LDW sales to consumers.

Edited July 31, 2014 by hybridbear

[Sleddog]

What kind of credit cards do you guys have that don't cover this? Even my no-fee Citi card covers this stuff, at least I think it does, I can't find the fine print online.

I called the visa corporation direct before I rented the car that was hit. They explained the coverage. After the accident I called them also. It was visa that covered the cost, not the issuing company.

 

They were easy to work with, but the requirements for them to pay made me jump thru some hoops.

 

They did all the negotiations with the rental company. They would have cut me the check to pay the rental company but I would have been in my own with the dv and loss of use stuff.

 

It was a pain.

 

One more thing to consider. If you make a claim on your insurance, will your insurance company jack your rates up when you renew??

[GrySql]

The reason I brought this subject up was to provide some interesting liability issues for those of us who rent vehicles.

I seem to have accomplished that.

 

What we know is that 'most' personal car insurance companies will not cover DV and Loss of Use.

We know that some insurance agents aren't aware of this issue.

We know the Rental Car companies make money on this CDW coverage.

We know that the Rental Car coverage is not insurance as such, just a release by the Rental Company if damage occurs to the car.

We know that if you have the CDW and damage to the rental car occurs there is no claim reported to your personal insurance, and the chance of your personal premiums going up are nil.

We know that if you violate the CDW contract requirements all bets are off, you will need to involve your personal insurance.

 

There are a few more but the info is there in the links I provided and you all have a good day.

[Silver Bullet]

I appreciate GrySql's starting this thread on a subject on which I wasn't very well informed. I decided to try to find out what various rental car companies charged for damage waiver. Of the four I checked, only Budget had a fixed price, $27.99/day. The three others had prices that varied with the rental location. Avis was $9 to $30 and Enterprise was $11 to $25. Thrifty was unable to give me their range, so I threw out Chicago Midway and was told $13.50.

I also checked with my insurance carrier, USAA, and learned that using my own car insurance would cover rental repairs, but no diminished value or loss of use.

Finally I checked with my credit card company, American Express, with whom I carry a premium rental car coverage that ads $17.95 to any rental car bill. That covers repair and loss of use, but not diminished value. I was also advised that the credit card company is considered my primary coverage and should be used first and hopefully in lieu of involving my own car insurance. Just a little more to chew on.

[SteveB_TX]

This is why I avoid rental cars like the plague. :)

[jeff_h]

I decided to try to find out what various rental car companies charged for damage waiver. Of the four I checked, only Budget had a fixed price, $27.99/day. The three others had prices that varied with the rental location. Avis was $9 to $30 and Enterprise was $11 to $25.

 

I rented from Enterprise last weekend, paid $24.99 per day for the CDW -- when I told the guy at the counter that I only wanted the CDW, he said "yeah that is definitely the most popular one."

[hybridbear]

 

I rented from Enterprise last weekend, paid $24.99 per day for the CDW -- when I told the guy at the counter that I only wanted the CDW, he said "yeah that is definitely the most popular one."

What are the other options?

[GrySql]

What are the other options?

1. Damage Waiver (DW or CDW)

2. Personal Accident Insurance (PAI)

3. Supplemental Liability Insurance (SAI)

4. Roadside Assistance Protection (RAP)