Insurance for Rental cars
#1
Original Poster
Join Date: May 2004
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Posts: 8,215
Insurance for Rental cars
Newbie advice needed!
OK. I need someone to explain this to me. First the facts, then the question.
Facts: I recently got a US driver's license after many years without one. I live in a city with decent mass transit and traveled frequently (but never to a place where renting a car was a good idea). It just wasn't worth the hassle (in my jurisdiction, you have to make an appointment months in advance to test for a driver's license.
I do not own a car and do not intend to get one. For the occasional local trip, I use car2go where insurance is automatically included. I want to rent a car for a longer distance trip.
How do I go about insuring the rental? I know that the car rental company can provide insurance, but I have heard that those policies are expensive and can have significant gaps in coverage. I believe some credit cards provide free insurance if you book the car with their card.
So, what recommendations do you have for insurance? Thanks in advance.
OK. I need someone to explain this to me. First the facts, then the question.
Facts: I recently got a US driver's license after many years without one. I live in a city with decent mass transit and traveled frequently (but never to a place where renting a car was a good idea). It just wasn't worth the hassle (in my jurisdiction, you have to make an appointment months in advance to test for a driver's license.
I do not own a car and do not intend to get one. For the occasional local trip, I use car2go where insurance is automatically included. I want to rent a car for a longer distance trip.
How do I go about insuring the rental? I know that the car rental company can provide insurance, but I have heard that those policies are expensive and can have significant gaps in coverage. I believe some credit cards provide free insurance if you book the car with their card.
So, what recommendations do you have for insurance? Thanks in advance.
#2
FlyerTalk Evangelist
Join Date: Apr 2001
Location: MEL CHC
Posts: 21,018
What state? Insurance requirements can vary by state
Look here:- http://www.flyertalk.com/forum/renta...surance-l.html
Look here:- http://www.flyertalk.com/forum/renta...surance-l.html
#3
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Join Date: Dec 2003
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Newbie advice needed!
OK. I need someone to explain this to me. First the facts, then the question.
Facts: I recently got a US driver's license after many years without one. I live in a city with decent mass transit and traveled frequently (but never to a place where renting a car was a good idea). It just wasn't worth the hassle (in my jurisdiction, you have to make an appointment months in advance to test for a driver's license.
I do not own a car and do not intend to get one. For the occasional local trip, I use car2go where insurance is automatically included. I want to rent a car for a longer distance trip.
How do I go about insuring the rental? I know that the car rental company can provide insurance, but I have heard that those policies are expensive and can have significant gaps in coverage. I believe some credit cards provide free insurance if you book the car with their card.
So, what recommendations do you have for insurance? Thanks in advance.
OK. I need someone to explain this to me. First the facts, then the question.
Facts: I recently got a US driver's license after many years without one. I live in a city with decent mass transit and traveled frequently (but never to a place where renting a car was a good idea). It just wasn't worth the hassle (in my jurisdiction, you have to make an appointment months in advance to test for a driver's license.
I do not own a car and do not intend to get one. For the occasional local trip, I use car2go where insurance is automatically included. I want to rent a car for a longer distance trip.
How do I go about insuring the rental? I know that the car rental company can provide insurance, but I have heard that those policies are expensive and can have significant gaps in coverage. I believe some credit cards provide free insurance if you book the car with their card.
So, what recommendations do you have for insurance? Thanks in advance.
#4
Moderator: Avis and Rental Cars
Join Date: Oct 2006
Posts: 8,032
Also, most rental insurance provided by cards is secondary (only applies after all other policies pay out) and covers the rental vehicle. That doesn't cover you for:
1. Bodily injury for you
2. Damage to other vehicles
3. Damage to property (guard rail, buildings, etc)
4. Bodily injury to people in other vehicles
1. Bodily injury for you
2. Damage to other vehicles
3. Damage to property (guard rail, buildings, etc)
4. Bodily injury to people in other vehicles
#5
Original Poster
Join Date: May 2004
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Posts: 8,215
#6
Original Poster
Join Date: May 2004
Programs: BA blue, LH Senator, KQ (FB) gold
Posts: 8,215
Also, most rental insurance provided by cards is secondary (only applies after all other policies pay out) and covers the rental vehicle. That doesn't cover you for:
1. Bodily injury for you
2. Damage to other vehicles
3. Damage to property (guard rail, buildings, etc)
4. Bodily injury to people in other vehicles
1. Bodily injury for you
2. Damage to other vehicles
3. Damage to property (guard rail, buildings, etc)
4. Bodily injury to people in other vehicles
Any idea what insurance policies provided by car rental companies cover?
#7
FlyerTalk Evangelist
Join Date: Dec 2003
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How many days do you expect to rent -- not how many times do you expect to rent. It's the total number of days per year that you will have to estimate in order to determine whether a non-owned-auto liability policy is cheaper than paying for the rental-car company's supplemental liability insurance for each day of rental.
And the state of your residence -- not the state where you will be renting -- will determine whether a non-owned-auto liability policy will also cover you for loss/damage to a rental car -- in addition to third-party liability.
#8
Moderator: Avis and Rental Cars
Join Date: Oct 2006
Posts: 8,032
#9
Original Poster
Join Date: May 2004
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Posts: 8,215
You answered two questions I did not ask.
How many days do you expect to rent -- not how many times do you expect to rent. It's the total number of days per year that you will have to estimate in order to determine whether a non-owned-auto liability policy is cheaper than paying for the rental-car company's supplemental liability insurance for each day of rental.
And the state of your residence -- not the state where you will be renting -- will determine whether a non-owned-auto liability policy will also cover you for loss/damage to a rental car -- in addition to third-party liability.
How many days do you expect to rent -- not how many times do you expect to rent. It's the total number of days per year that you will have to estimate in order to determine whether a non-owned-auto liability policy is cheaper than paying for the rental-car company's supplemental liability insurance for each day of rental.
And the state of your residence -- not the state where you will be renting -- will determine whether a non-owned-auto liability policy will also cover you for loss/damage to a rental car -- in addition to third-party liability.
#10
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If it matters to you, SLI coverage is typically $1,000,000; the maximum liability that Travelers has offered me on my non-owned-auto liability policy with them is $500K.
#11
Original Poster
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Based on your estimated number of rental days, get a quote for a non-owned-auto liability policy, and then compare that to the daily cost of purchasing SLI from the rental-car companies in the places where you are most likely to rent. SLI prices can vary from location to location.
If it matters to you, SLI coverage is typically $1,000,000; the maximum liability that Travelers has offered me on my non-owned-auto liability policy with them is $500K.
If it matters to you, SLI coverage is typically $1,000,000; the maximum liability that Travelers has offered me on my non-owned-auto liability policy with them is $500K.
#12
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OP - What guv1976 is providing you with is invaluable. It is not just the cost, but the policy limits.
People tend to fixate on who pays for the dent to the rental vehicle and what the deductible is. That may be an immediate issue.
But, what happens if someone else is injured and spends the next year in a hospital and you have the required minimum coverage of $20K, but earn decent money? A judgment in the US is good against you for 20 years and personal bankruptcy is not really an option these days. $1 Million in coverage sounds like a lot, but it isn't.
People tend to fixate on who pays for the dent to the rental vehicle and what the deductible is. That may be an immediate issue.
But, what happens if someone else is injured and spends the next year in a hospital and you have the required minimum coverage of $20K, but earn decent money? A judgment in the US is good against you for 20 years and personal bankruptcy is not really an option these days. $1 Million in coverage sounds like a lot, but it isn't.
#13
Original Poster
Join Date: May 2004
Programs: BA blue, LH Senator, KQ (FB) gold
Posts: 8,215
OP - What guv1976 is providing you with is invaluable. It is not just the cost, but the policy limits.
People tend to fixate on who pays for the dent to the rental vehicle and what the deductible is. That may be an immediate issue.
But, what happens if someone else is injured and spends the next year in a hospital and you have the required minimum coverage of $20K, but earn decent money? A judgment in the US is good against you for 20 years and personal bankruptcy is not really an option these days. $1 Million in coverage sounds like a lot, but it isn't.
People tend to fixate on who pays for the dent to the rental vehicle and what the deductible is. That may be an immediate issue.
But, what happens if someone else is injured and spends the next year in a hospital and you have the required minimum coverage of $20K, but earn decent money? A judgment in the US is good against you for 20 years and personal bankruptcy is not really an option these days. $1 Million in coverage sounds like a lot, but it isn't.
#14
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Thanks, although you didn't really explain why where I live matters. Are there jurisdictions where this type of policy is not available? After all, I am likely to move at some point, and it is more helpful to the general FT public to have a broader understanding of this area.
"And the state of your residence -- not the state where you will be renting -- will determine whether a non-owned-auto liability policy will also cover you for loss/damage to a rental car -- in addition to third-party liability."
In NYS, for example, all personal auto-insurance policies must provide coverage for rental-car loss/damage. That is a mixed blessing. It means that, unless you have a credit card that provides primary -- not secondary -- coverage to New York residents for rental cars charged to the card, you will be forced to claim against your personal auto-insurance policy for rental-car loss/damage, even if you do not cause injury or damage to a third party, and even if you rented the car elsewhere in the U.S.
Re: liability limits, if $1,000,000 coverage is not sufficient for you, you might explore whether a company that offers a non-owned-auto liability policy can also offer you an umbrella policy with higher limits. But that might require that you have your home/condo/renter's insurance policy with the same company.
#15
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For high-net-worth individuals, Chubb "Masterpiece" home-owner's insurance is a potential option: It offers an excess-liability option that specifically covers third-party liability when driving a rental car.
https://www2.chubb.com/ca-en/individ...liability.aspx
https://www2.chubb.com/ca-en/individ...liability.aspx