(Closed) PSA: rental car insurance is a scam

posted 10 years ago in Money
Post # 17
Member
3942 posts
Honey bee

Ugh I hate car rental places. My car broke down Christmas morning as we were preparing to visit family in 3 states in 1 day (aka-driving the entire day). Luckily, we were close to the airport and stopped to get a rental but we were SO stressed out. Then the sales people started in with their hour long pitch trying to sell us everything under the sun. They make it sound so scary like “if you don’t buy this, this, and this then you will probably get into an accident and pay 1 million dollars. So….just sign here, here, and here”.

That day stresses me out just thinking about it.

Post # 17
Member
3942 posts
Honey bee

Ugh I hate car rental places. My car broke down Christmas morning as we were preparing to visit family in 3 states in 1 day (aka-driving the entire day). Luckily, we were close to the airport and stopped to get a rental but we were SO stressed out. Then the sales people started in with their hour long pitch trying to sell us everything under the sun. They make it sound so scary like “if you don’t buy this, this, and this then you will probably get into an accident and pay 1 million dollars. So….just sign here, here, and here”.

That day stresses me out just thinking about it.

Post # 19
Member
166 posts
Blushing bee
  • Wedding: October 2013

This is good information.  I’d like to add that the first time we rented a car, our regular auto insurance policy did not cover rentals.  The day we went in to pick up our rental, we called our agent and upgraded our policy to one with a very low deductible that would cover rentals.  When our vacation ended and we returned the car, we called our agent and switched our policy back to normal.  We were charged a prorated fee for the temporary upgrade that amounted to significantly less than even the lowest of Enterprise’s daily insurance rates.  So even if you think that your policy won’t cover you in a rental, talk to your insurance company.

Post # 20
Member
2628 posts
Sugar bee
  • Wedding: December 2009

Our car insurance policy doesn’t cover rental policies, so I think the moral of the story is…know what kind of policy you have to avoid paying for extra insurance/or add the insurance if your normal policy doesn’t cover it.

Post # 21
Member
123 posts
Blushing bee

It’s not a scam. I think you’re misunderstanding what the additional rental insurance hedges you against. I have car insurance but through my parents (I am listed as a policyholder as well) for when I go back home and use my car. I currently live in NYC and don’t have a use for a car here. Regardless of that, I always purchase the additional rental insurance. 

Let’s say you get into an accident with a rental car. Regardless of whose fault it is (unless it’s a clear cut rear-end situation where the fault is 100% on one party), if the other party’s insurance co finds out you have an insurance through your own car, they can go after your insurance company. However if they know you purchased the renter’s insurance, then they will deal with the renter directly. If your company offers discounts for having a good record, any claim under your policy can ruin that. 

It’s a personal choice. When I buy Apple products, I always purchased AppleCare (extended warranty). It covers you in addition to the standard time. It just hedges your bet. 

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