Thrifty salesperson at IAD: No Liability Insurance included (?!)
Jan 27, 2016, 2:21 pm
#1
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Thrifty salesperson at IAD: No Liability Insurance included (?!)
I rented a car from Thrifty at IAD back in October (reserved and paid online), and when I got there the salesman went through the whole insurance spiel. He claimed that Thrifty does not provide liability insurance of any kind, and that I'd have to pay an extra $12 a day for it. I seemed to recall that it was mandatory for car rental places to provide state minimum liability insurance. I'm covered on CDW through my Visa Explorer card.
Long story short, after 5 minutes back and forth (with him at some point claiming that I could get fined by police by not having liability insurance while driving the rental), I signed the paperwork and declined all insurance.
My question is, was he correct in saying that Thrifty doesn't include any type of liability coverage in VA, or was it a horrible sales tactic? I'm going through IAD again in a week and want to know whether I should snag insurance or not. I'd also like to avoid Thrifty, but their cars are so much cheaper, it's going to be tricky!
Long story short, after 5 minutes back and forth (with him at some point claiming that I could get fined by police by not having liability insurance while driving the rental), I signed the paperwork and declined all insurance.
My question is, was he correct in saying that Thrifty doesn't include any type of liability coverage in VA, or was it a horrible sales tactic? I'm going through IAD again in a week and want to know whether I should snag insurance or not. I'd also like to avoid Thrifty, but their cars are so much cheaper, it's going to be tricky!
Jan 27, 2016, 4:17 pm
#3
Join Date: Dec 2001
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Vehicle owners aren't required to have insurance to register cars in Virginia if they pay a $500 uninsured motor vehicle fee to the Virginia Department of Motor Vehicles.
But in Virginia (and most other US states) the real issue isn't whether or not the rental car company has liability insurance, but understanding that even if they do, it *doesn't cover your liability*.
But in Virginia (and most other US states) the real issue isn't whether or not the rental car company has liability insurance, but understanding that even if they do, it *doesn't cover your liability*.
Jan 27, 2016, 4:22 pm
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Here's what Hertz has to say about liability insurance in various states. I assume -- but do not know -- that Hertz only provides what it is required by law to provide, and that Thrifty's coverage would mirror Hertz's.
https://www.hertz.com/rentacar/reser...ES&EOAG=MSPT11
That said, I would never rely on the paltry state-minimum coverage even in those few states where the coverage is primary. If you rent cars with any frequency and do not own a car, look into the cost of a non-owned-auto liability policy. (Mine is issued by The Travelers.)
Here's what Hertz has to say about liability insurance in various states. I assume -- but do not know -- that Hertz only provides what it is required by law to provide, and that Thrifty's coverage would mirror Hertz's.
https://www.hertz.com/rentacar/reser...ES&EOAG=MSPT11
That said, I would never rely on the paltry state-minimum coverage even in those few states where the coverage is primary. If you rent cars with any frequency and do not own a car, look into the cost of a non-owned-auto liability policy. (Mine is issued by The Travelers.)
Jan 28, 2016, 10:31 am
#5
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Vehicle owners aren't required to have insurance to register cars in Virginia if they pay a $500 uninsured motor vehicle fee to the Virginia Department of Motor Vehicles.
But in Virginia (and most other US states) the real issue isn't whether or not the rental car company has liability insurance, but understanding that even if they do, it *doesn't cover your liability*.
But in Virginia (and most other US states) the real issue isn't whether or not the rental car company has liability insurance, but understanding that even if they do, it *doesn't cover your liability*.
I've understood that Thrifty covers their cars, but they may then sue the driver to get the money back if an accident occurs. But that seems like more of a scare tactic to sell more insurance. Here's what Hertz has to say about liability insurance in various states. I assume -- but do not know -- that Hertz only provides what it is required by law to provide, and that Thrifty's coverage would mirror Hertz's.
https://www.hertz.com/rentacar/reser...ES&EOAG=MSPT11
That said, I would never rely on the paltry state-minimum coverage even in those few states where the coverage is primary. If you rent cars with any frequency and do not own a car, look into the cost of a non-owned-auto liability policy. (Mine is issued by The Travelers.)
But yeah, I just found out that I'll be able to rent a car as a non-U.S. resident (since I actually live overseas), which will get me extended liability and CDW essentially for free. It's ridiculous how rental companies screw U.S. residents, but for once it's good to not live in the states.
Jan 28, 2016, 4:41 pm
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"It's ridiculous how rental companies screw U.S. residents, but for once it's good to not live in the states."
It's not quite that simple. Most U.S. residents who rent cars also own cars, and their personal auto insurance policies typically provide liability coverage when they rent. Those residents who do not own cars but rent frequently can buy a non-owned-auto policy, or purchase million-dollar liability coverage directly from the rental company at a daily rate.
"It's ridiculous how rental companies screw U.S. residents, but for once it's good to not live in the states."
It's not quite that simple. Most U.S. residents who rent cars also own cars, and their personal auto insurance policies typically provide liability coverage when they rent. Those residents who do not own cars but rent frequently can buy a non-owned-auto policy, or purchase million-dollar liability coverage directly from the rental company at a daily rate.
Jan 28, 2016, 6:56 pm
#7
Join Date: Dec 2001
Posts: 1,617
See, this is what doesn't make sense to me. How would a car's liability insurance not cover the driver?
Does it only cover the car if it's driving autonomously? I've understood that Thrifty covers their cars, but they may then sue the driver to get the money back if an accident occurs. But that seems like more of a scare tactic to sell more insurance.
Does it only cover the car if it's driving autonomously?
I've understood that Thrifty covers their cars, but they may then sue the driver to get the money back if an accident occurs. But that seems like more of a scare tactic to sell more insurance.Just because a liability policy "coverage" of some sort exists that pays out when you as the driver cause bodily injury or property damage, doesn't mean *you* are the insured.
Jan 29, 2016, 1:04 am
#8
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"It's ridiculous how rental companies screw U.S. residents, but for once it's good to not live in the states."
It's not quite that simple. Most U.S. residents who rent cars also own cars, and their personal auto insurance policies typically provide liability coverage when they rent. Those residents who do not own cars but rent frequently can buy a non-owned-auto policy, or purchase million-dollar liability coverage directly from the rental company at a daily rate.
"It's ridiculous how rental companies screw U.S. residents, but for once it's good to not live in the states."
It's not quite that simple. Most U.S. residents who rent cars also own cars, and their personal auto insurance policies typically provide liability coverage when they rent. Those residents who do not own cars but rent frequently can buy a non-owned-auto policy, or purchase million-dollar liability coverage directly from the rental company at a daily rate.
A quick example would be rentals in California and Texas. Rental car companies might be the insured policyholder on some sort of liability policies as owners of vehicles, but most explicitly state automobile Liability and Property Damage Protection is not included in their rental rates.
Just because a liability policy "coverage" of some sort exists that pays out when you as the driver cause bodily injury or property damage, doesn't mean *you* are the insured.
Just because a liability policy "coverage" of some sort exists that pays out when you as the driver cause bodily injury or property damage, doesn't mean *you* are the insured.
Jan 30, 2016, 7:19 pm
#9
Join Date: Jul 2015
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Insurance is NEVER free from them. A lot of times if it's short term (not more than a few days to a week), your personal insurance will cover it, they'll just need to make a photocopy of your insurance card.
A lot of times, I've went on weekend trips, fly into the airport, wasn't asked about insurance, and find that once I've returned the car, they charged me for insurance without asking me first, not asking me if I had my own insurance that would cover it. It's taken several days to get them to refund the charge, so make sure you bring that up with them if they don't first.
A lot of times, I've went on weekend trips, fly into the airport, wasn't asked about insurance, and find that once I've returned the car, they charged me for insurance without asking me first, not asking me if I had my own insurance that would cover it. It's taken several days to get them to refund the charge, so make sure you bring that up with them if they don't first.
Feb 23, 2019, 12:07 am
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“Liability and Property Damage Protection is not included in their rental rates” but any state-mandated liability insurance required of the registered car owner is included with the rental car’s use.
Liability insurance up to any minimum state limits is usually included automatically in the rental cost in most US states. And there is a reason rental car companies sell additional/supplemental liability insurance using words like “additional”, “supplemental” or branded proper nouns in trying to sell some liability insurance coverage for the amounts above the state-mandated amounts of included coverage.
Here is an Illinois example of how this works:
http://illinoiscourts.gov/Opinions/S...015/118058.pdf
And I picked this rather extreme example (albeit from Illinois and not Virginia) for multiple reasons, as the rental car company was still liable for the state minimum insurance coverage amounts for liability incurred by the driver’s accident with the rental vehicle — even when the driver was not an authorized driver of the rental vehicle.
Last edited by GUWonder; Feb 23, 2019 at 7:43 am
Feb 23, 2019, 9:18 am
#11
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This is an old thread, but IIRC from the terms (Hertz at least) they say they will provide state minimum liability insurance but reserve the right to go after the renter to pay them back whatever the cost of liability was to them.
So essentially one does not have insurance provided by the rental agency. Some others might not have the clause of going after the renter to recuperate all the costs but Hertz sure does.
So essentially one does not have insurance provided by the rental agency. Some others might not have the clause of going after the renter to recuperate all the costs but Hertz sure does.
Feb 23, 2019, 9:04 pm
#12
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This is an old thread, but IIRC from the terms (Hertz at least) they say they will provide state minimum liability insurance but reserve the right to go after the renter to pay them back whatever the cost of liability was to them.
So essentially one does not have insurance provided by the rental agency. Some others might not have the clause of going after the renter to recuperate all the costs but Hertz sure does.
So essentially one does not have insurance provided by the rental agency. Some others might not have the clause of going after the renter to recuperate all the costs but Hertz sure does.
Feb 23, 2019, 10:33 pm
#13
Join Date: Jan 2016
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Directly from Hertz T&C (some states excluded): "Hertz' liability protection is secondary to any other insurance coverage available to you. If you do not have liability insurance and/or the limits of liability of the insurance coverage available to you are not sufficient to cover claims by others against you, and Hertz, as the vehicle owner, provides liability protection due to an accident, you will indemnify Hertz for any and all payments made."
Feb 24, 2019, 9:41 am
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Directly from Hertz T&C (some states excluded): "Hertz' liability protection is secondary to any other insurance coverage available to you. If you do not have liability insurance and/or the limits of liability of the insurance coverage available to you are not sufficient to cover claims by others against you, and Hertz, as the vehicle owner, provides liability protection due to an accident, you will indemnify Hertz for any and all payments made."
Feb 24, 2019, 9:55 am
#15
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That Hertz indemnity claim may be materially meaningless to renters without liability insurance when the amount of claimed damages/injury from the other parties to an accident is at or below the state minimum amounts mandated by law and applicable to rental car owners. Also, there is a reason why the supplemental liability insurance sold as an optional product by Hertz too is not labeled merely as “liability insurance” in most states in the US. State insurance commissioners’ offices and those who’ve worked as lawyers for or against Hertz know that not everything claimed in corporate terms and conditions is enforceable in all jurisdictions of relevance.
"If renting in Maryland, Massachusetts, Michigan, New York, South Carolina, Virginia, or West Virginia:
Upon signing the Rental Agreement, Hertz provides primary liability protection. However, such protection is generally no more than the minimum limits required by individual state law. See Financial Responsibility Limits by State."
Presumably, state law in those seven states requires rental-car companies to provide primary liability coverage -- with no right of indemnification -- to persons renting in those states. Do you have any reason to believe that Hertz would not be indemnified for rentals commencing in other states?