Does adding additional drivers REALLY matter?
Jun 28, 2011 | 11:40 am
#1
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Does adding additional drivers REALLY matter?
This is a question that has irked me for ages...does adding authorized drivers to a rental contract really matter? It seems to me that as long as you didn't sign up for Hertz's additional insurance, there's no real consequence that can come from it, right? I'm assuming that if you signed up for Hertz's insurance and broke the terms of the contract, they would void your coverage, etc. I'm also assuming that any additional drivers have their own personal auto insurance. To me, it seems no different than driving a friends car with your own insurance, for example.
Sure, Hertz won't be happy with you (the renter) if something happens, but what real consequences are there as long as the additional driver was insured? Hertz
Some background- I'm so used to sharing a car with no issue between coworkers (corporate CDP allows any company employee to drive the rentals) that I think nothing of it to give somebody else my keys. Flash forward to this week where I'm renting with family and my dad is taking a hard-line stance on not even touching the keys because he's paranoid about not being on the contract, and his stance is causing all sorts of issues because I'm the only one he will allow to drive the car.
Thoughts?
Sure, Hertz won't be happy with you (the renter) if something happens, but what real consequences are there as long as the additional driver was insured? Hertz
Some background- I'm so used to sharing a car with no issue between coworkers (corporate CDP allows any company employee to drive the rentals) that I think nothing of it to give somebody else my keys. Flash forward to this week where I'm renting with family and my dad is taking a hard-line stance on not even touching the keys because he's paranoid about not being on the contract, and his stance is causing all sorts of issues because I'm the only one he will allow to drive the car.
Thoughts?
Jun 28, 2011 | 12:31 pm
#2
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It's been covered quite a few times in the past, but it could come to this.
Non additional driver is in an accident
Your insurance doesn't cover them because they are not authorized to drive the car
You end paying out of pocket for the damages.
It is also possible the rental car company wants to do the same records check or whatever on anybody who is driving the car, not just the person renting it.
Non additional driver is in an accident
Your insurance doesn't cover them because they are not authorized to drive the car
You end paying out of pocket for the damages.
It is also possible the rental car company wants to do the same records check or whatever on anybody who is driving the car, not just the person renting it.
Jun 28, 2011 | 12:33 pm
#3
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I'm quite the nazi when it comes to letting others drive my rental cars, but I rely on rental company and credit card insurances, and both are void if I let someone else to drive. If I were you I would read the terms of your auto insurance to see if there was any language that implied that the coverage could be void in such cases.
Jun 28, 2011 | 1:36 pm
#4
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I would also point out that license-related driving citations (like red light cameras, speeding cameras) are not issued to the driver, but to the name on the car registration. Hertz will come after the lessee (whosever name is on the contract) regardless of who was driving the car, and they will also add a processing charge of their own.
I've been on projects where the team shared rental cars and where this became a contentious subject.
I've been on projects where the team shared rental cars and where this became a contentious subject.
Jun 28, 2011 | 1:55 pm
#5
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There are a couple to times when it generally doesn't matter. For Hertz anyway, any rental for business means you can let a coworker drive the car and they don't have to be listed. Your spouse or domestic partner does not need to be listed when you rent the car either, at least when you're Gold.
Other scenarios require the person to be on the contract. In some cases that also costs extra. So that is the other part of the equation if the unauthorized driver is in an accident.
This is a problem from an insurance standpoint whether you buy the Hertz insurance or not. In your specific scenario, it's quite possible your dad (or others in your family) would not have any coverage on the car should he damage it. He is not the renter, not on the contract. Who would he go back to if damaged? Whose insurance? Nobody. Not his contract, so not his credit card. Not his contract and not his car, so why would his car insurance pay? You weren't driving, so not your credit card. You weren't driving and it's not your car, so why would your insurance pay?
Get the picture?
Useful things in this instance are a) add drivers to the rental the official way if necessary and b) possibly, something like Amex Premium rental car coverage, which covers damage to the rental car, as the primary coverage (so , even for additional drivers. It only costs $20-25 per rental unlike the pricey Hertz LDW. Because even if an authorized driver, you might still have an insurance issue.
It's something worth asking an insurance agent about at the very least, how the coverage would work in these situations, if you don't want to simply mitigate the liability.
Other scenarios require the person to be on the contract. In some cases that also costs extra. So that is the other part of the equation if the unauthorized driver is in an accident.
This is a problem from an insurance standpoint whether you buy the Hertz insurance or not. In your specific scenario, it's quite possible your dad (or others in your family) would not have any coverage on the car should he damage it. He is not the renter, not on the contract. Who would he go back to if damaged? Whose insurance? Nobody. Not his contract, so not his credit card. Not his contract and not his car, so why would his car insurance pay? You weren't driving, so not your credit card. You weren't driving and it's not your car, so why would your insurance pay?
Get the picture?
Useful things in this instance are a) add drivers to the rental the official way if necessary and b) possibly, something like Amex Premium rental car coverage, which covers damage to the rental car, as the primary coverage (so , even for additional drivers. It only costs $20-25 per rental unlike the pricey Hertz LDW. Because even if an authorized driver, you might still have an insurance issue.
It's something worth asking an insurance agent about at the very least, how the coverage would work in these situations, if you don't want to simply mitigate the liability.
Jun 29, 2011 | 7:49 am
#7
Join Date: Mar 2011
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Although this was touched on... If someone who is not on the contract is pulled over, there is the possibility that the person would be arrested for GTA.
If you're in the car then this would not be likely, but say your father/Father in law were driving and pulled over. The cop looks at teh liscense, the contract and see the names don't match. Not only would a ticket be forthcoming, but the cop has no way of knowing the car isn't stolen. Big time issues could ensue.
Ultimately, if you choose not to follow the procedures we could come up with a million what-ifs that would be bad for you. How likely each scenario might be is debatable, so it is really a function of how risk-adverse you are...
If you're in the car then this would not be likely, but say your father/Father in law were driving and pulled over. The cop looks at teh liscense, the contract and see the names don't match. Not only would a ticket be forthcoming, but the cop has no way of knowing the car isn't stolen. Big time issues could ensue.
Ultimately, if you choose not to follow the procedures we could come up with a million what-ifs that would be bad for you. How likely each scenario might be is debatable, so it is really a function of how risk-adverse you are...
Jun 29, 2011 | 8:22 am
#8
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From a claims adjuster's perspective
I was a claims adjuster for 18 years, so this is simply my experience speaking. I can tell you that it would likely go as follows:
As a general rule, insurance follows the car. Therefore, the limits that Hertz has to buy on each of their vehicles will follow, and cover you for THIRD PARTY LIABILITY AND PROPERTY DAMAGE. Note that, especially in the U.S. (not so much in Canada, and I'm not certain in Europe and RTW), you will likely get sued for more than the limits of the Hertz policy, so you need to ensure that you are covered elsewhere. Most insurers will allow you to add non-owned automobiles that you rent short term for a very nominal fee. Check with your broker or agent.
When the collision happens:
1. If you are not at fault, there should be no issue.
2. If you are at fault, the following will occur:
a. Hertz and/or their insurer will negotiate and settle with the third party for the property damage to their vehicle (no-fault pd jurisdictions excepted).
b. Hertz and/or their insurer will negotiate and settle with the third party for any bodily injury claims (no-fault PIP/Accident Benefits jurisdictions excepted).
c. Hertz will negotiate and settle with any passengers in your vehicle for their injury claims (no-fault PIP/Accident Benefits jurisdictions excepted).
Now, after that occurs:
1. If another driver is not listed, you will be in violation of the contract. Hertz would then have a contractural action against you for any and all damages paid.
2. Hertz could also say that, as you were in violation of the contract, injuries you sustained as a passenger are non-compensable. This is dependent on the jurisdiction that you are in.
The long and short is to make sure you use a credit card that provides coverage, or that you have coverage through your home or work auto policy. I know many people that rent vehicles that have an agreement with their employer to pay the $300 (or whatever) annual fee on their gold card in lieu of taking the extra insurance.
Your mileage may vary. I am again only speaking from experience.
As a general rule, insurance follows the car. Therefore, the limits that Hertz has to buy on each of their vehicles will follow, and cover you for THIRD PARTY LIABILITY AND PROPERTY DAMAGE. Note that, especially in the U.S. (not so much in Canada, and I'm not certain in Europe and RTW), you will likely get sued for more than the limits of the Hertz policy, so you need to ensure that you are covered elsewhere. Most insurers will allow you to add non-owned automobiles that you rent short term for a very nominal fee. Check with your broker or agent.
When the collision happens:
1. If you are not at fault, there should be no issue.
2. If you are at fault, the following will occur:
a. Hertz and/or their insurer will negotiate and settle with the third party for the property damage to their vehicle (no-fault pd jurisdictions excepted).
b. Hertz and/or their insurer will negotiate and settle with the third party for any bodily injury claims (no-fault PIP/Accident Benefits jurisdictions excepted).
c. Hertz will negotiate and settle with any passengers in your vehicle for their injury claims (no-fault PIP/Accident Benefits jurisdictions excepted).
Now, after that occurs:
1. If another driver is not listed, you will be in violation of the contract. Hertz would then have a contractural action against you for any and all damages paid.
2. Hertz could also say that, as you were in violation of the contract, injuries you sustained as a passenger are non-compensable. This is dependent on the jurisdiction that you are in.
The long and short is to make sure you use a credit card that provides coverage, or that you have coverage through your home or work auto policy. I know many people that rent vehicles that have an agreement with their employer to pay the $300 (or whatever) annual fee on their gold card in lieu of taking the extra insurance.
Your mileage may vary. I am again only speaking from experience.