Hire Car Excess and U.S. Rental Car Companies
Jun 29, 2004, 6:48 pm
#16
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Interestingly, as an update on this, I found on the Alamo website a rate MILES lower than any other source including Hotwire and Travelocity etc for any other company. And far better than using the dozens of discount codes on the FT Avis and Hertz Forums etc.
Like about half those rates. Incredibly it also said on website that CDW was included which is often $US20 a day - which was about what the entire week rental ran me.
I wanted to pay for in advance personal injury cover to others and Alamo advised me when I phoned them at the pick-up location it was NOT possible in Alaska to purchase it - at any price. (Despite 3 different such policies existing on Alamo website.) This all occurred the day we were flying to AK, so what do you do then?!
I emailed Alamo who replied as below telling me in writing that TPI (personal injury) WAS included in the booked rate. I really believe they were wrong, but at least I had something in writing in case of an accident. We drove about 1500 miles - so chances are high of something happening on Alaskan roads.
A final piece of advice. ALWAYS print out and take whatever you see on websites when you book. I lob up at Alamo desk at Fairbanks and girl assures me that CDW was NOT included in the rate. "It NEVER is Sir." Cost was extra she insists.
Show her the web print out (below) and she VERY reluctantly added it into the contract data. Had I not had that I would have been toast for another $US140 or whatever.
-----Original Message-----
From: ozstamps
Sent: Monday, June 14, 2004 11:30 AM
To: [email protected]
Subject: Alamo rental car Insurance
I am renting a car this week from Fairbanks AK.
CDW is included in our rate, so we are covered for anything that occurs to
the vehicle.
HOWEVER, we wanted to take insurance for any damage to other vehicles or
persons, as we have none ourselves as we are Australian.
I phoned Alamo central who advised me there were many such products we could buy.
Your website lists EP, TPI and SLI .. any of which seems to cover us. They
said Fairbanks would sell us the one that suited best.
I just phoned Fairbanks 10 minutes ago and they say they cannot sell any of
these. Girl there said she is the National/Alamo rep .. and she can sell me
a National Personal Accident insurance for $5 a day but not for Alamo. Huh?
We fly out in 10 hours for Fairbanks .. I'd like a policy please just so we
are covered.
Glen Stephens
---------------------------
Dear Mr. ozstamps:
Thank you for your email inquiry. We appreciate the opportunity to address
your concerns.
EP and SLI is not available at this location TPI is already included in your
rental car rate. Only CDW is available but is already included in your rate
as you stated.
Should you need further assistance, please feel free to contact us again.
Sincerely,
XXXXX X
Alamo International Internet
----------------------------------
Rate I got on internet -
Base Rate - Compact (USD)
(1) Weekly Rate ($188.00/wk) $188.00
Rate Code CN
Inclusive Rate Items
Collision Damage Waiver Included
Guaranteed Base Rate
Unlimited Mileage
For information on coverage products, ex:Collision Damage Waiver(CDW) click here
Subtotal $188.00
Like about half those rates. Incredibly it also said on website that CDW was included which is often $US20 a day - which was about what the entire week rental ran me.
I wanted to pay for in advance personal injury cover to others and Alamo advised me when I phoned them at the pick-up location it was NOT possible in Alaska to purchase it - at any price. (Despite 3 different such policies existing on Alamo website.) This all occurred the day we were flying to AK, so what do you do then?!
I emailed Alamo who replied as below telling me in writing that TPI (personal injury) WAS included in the booked rate. I really believe they were wrong, but at least I had something in writing in case of an accident. We drove about 1500 miles - so chances are high of something happening on Alaskan roads.
A final piece of advice. ALWAYS print out and take whatever you see on websites when you book. I lob up at Alamo desk at Fairbanks and girl assures me that CDW was NOT included in the rate. "It NEVER is Sir." Cost was extra she insists.
Show her the web print out (below) and she VERY reluctantly added it into the contract data. Had I not had that I would have been toast for another $US140 or whatever.
-----Original Message-----
From: ozstamps
Sent: Monday, June 14, 2004 11:30 AM
To: [email protected]
Subject: Alamo rental car Insurance
I am renting a car this week from Fairbanks AK.
CDW is included in our rate, so we are covered for anything that occurs to
the vehicle.
HOWEVER, we wanted to take insurance for any damage to other vehicles or
persons, as we have none ourselves as we are Australian.
I phoned Alamo central who advised me there were many such products we could buy.
Your website lists EP, TPI and SLI .. any of which seems to cover us. They
said Fairbanks would sell us the one that suited best.
I just phoned Fairbanks 10 minutes ago and they say they cannot sell any of
these. Girl there said she is the National/Alamo rep .. and she can sell me
a National Personal Accident insurance for $5 a day but not for Alamo. Huh?
We fly out in 10 hours for Fairbanks .. I'd like a policy please just so we
are covered.
Glen Stephens
---------------------------
Dear Mr. ozstamps:
Thank you for your email inquiry. We appreciate the opportunity to address
your concerns.
EP and SLI is not available at this location TPI is already included in your
rental car rate. Only CDW is available but is already included in your rate
as you stated.
Should you need further assistance, please feel free to contact us again.
Sincerely,
XXXXX X
Alamo International Internet
----------------------------------
Rate I got on internet -
Base Rate - Compact (USD)
(1) Weekly Rate ($188.00/wk) $188.00
Rate Code CN
Inclusive Rate Items
Collision Damage Waiver Included
Guaranteed Base Rate
Unlimited Mileage
For information on coverage products, ex:Collision Damage Waiver(CDW) click here
Subtotal $188.00
Jul 3, 2004, 6:51 am
#17
Join Date: Sep 1999
Location: too far from the airport
Posts: 3,298
Glen, it could be that AK is one of the few states that makes it compulsory for car hire agencies to provide a minimum amount of liability insurance, and that might be why they're not allowed to sell it on the side. OTOH, it could be that you received written misinformation from one of the many poorly paid, poorly informed car hire reps. I've been trying to find out the same info for years, and I've decided that the only way to be sure is to receive it in writing from the office of the insurance commissioner in each state you are going to rent (haven't started yet on this project; it's gonna take a while).
Jul 3, 2004, 2:30 pm
#18
Join Date: Mar 2004
Location: SYD NSW AU
Posts: 118
Originally Posted by QFAA
Hello All!
Having some trouble quite comprehending the Australian insurance term "excess" as it relates to hiring cars in the U.S.
The Americans simply don't seem to get the term -- and their system centres on a damage waiver and liability system, rather than an excess system as in Australia.
------------------
Glen,
QFAA
Having some trouble quite comprehending the Australian insurance term "excess" as it relates to hiring cars in the U.S.
The Americans simply don't seem to get the term -- and their system centres on a damage waiver and liability system, rather than an excess system as in Australia.
------------------
Glen,
QFAA
If you are NOT hunting points for the hire, have a look at Australian based tourism oprators such as Driveaway Holidays - on their US hires virtually everything is included and their is NO excess on US vehicles. The only extra that you are likely to strike is personal injury cover and this is waived if you have some decent travel insurance anyway. They even cover Airport charges - some of which can be very high in the US.
Tony Bailey
Jul 3, 2004, 8:41 pm
#19
FlyerTalk Evangelist
Join Date: Apr 2002
Location: SYD
Programs: QF WP/LTG | UA P
Posts: 13,530
Recently rented from Avis in ANC and Thifty in SEA. Not sure what was and what was not covered with the ANZ Gold card insurance so I said to the staff "I want insurance to minimise my liability for damage to this rental car and to also to any person or property from the rental car". This meant an extra $11 or so for one and another $20 or so for the other. Total was expensive, but necessary IMHO.
Jul 5, 2004, 7:51 am
#20
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Join Date: Jun 2000
Location: Sunny SYDNEY!
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Posts: 32,330
Originally Posted by Tonymercury
Glen,
If you are NOT hunting points for the hire, have a look at Australian based tourism operators such as Driveaway Holidays - on their US hires virtually everything is included and their is NO excess on US vehicles. The only extra that you are likely to strike is personal injury cover and this is waived if you have some decent travel insurance anyway. They even cover Airport charges - some of which can be very high in the US.
Tony Bailey
If you are NOT hunting points for the hire, have a look at Australian based tourism operators such as Driveaway Holidays - on their US hires virtually everything is included and their is NO excess on US vehicles. The only extra that you are likely to strike is personal injury cover and this is waived if you have some decent travel insurance anyway. They even cover Airport charges - some of which can be very high in the US.
Tony Bailey
And bear in mind the airline "points" you get from US rentals are patheric - 50 or 100 in many cases and they literally CHARGE YOU for opting and getting them too.
The weekly rates are up-front pretty much what I paid after a lot of research and 3rd party liability and CDW seems to be included. Airport fee is USUALLY around 10% I have found. And state taxes also run near 10% in many cases. All are included in their rate.
This is what they say about insurance:
Non Waivable Excess - All rentals include Collision Damage Waiver Insurance (CDW), Third Party Liability and Theft Protection (TP). An Insurance Excess is applicable in the event of any accident or theft to the rental vehicle, regardless of fault. The Excess amount varies between countries and car group.
The additional insurance offered by the car rental company is optional. Many travellers have Travel Insurance to cover the Excess applied in the event of an accident or theft. Some insurance companies may not cover the Excess unless you also take out the Excess Reduction Insurance offered by the car rental company.
Please check the conditions on your Travel Insurance policy. Note: Lost Keys, damage to glass (incl. side mirrors), tyres, underside and roof of the vehicle are NOT covered by the insurance included in your rental.
USA rentals - No excess is levied, except when renting in New York State where an excess of USD 100 applies. In Canada, an excess is not levied with Alamo and Hertz & Avis’ excess depends on the collection depot.
Excess Reduction Insurance or Super CDW / TP - If you wish to upgrade your vehicle insurance or reduce your obligation for the Excess, you can purchase
Super CDW / TP cover directly with the car rental company at an additional cost. When signed for, these are non-refundable. If you are sure you are
adequately covered by your Travel Insurance you can DECLINE this additional cover on the RA. Please make this clear to the Rental Agent.
PAI / PEB (Personal Accident / Personal Effects & Baggage) Insurance - If you have already taken out Travel Insurance that provides adequate cover, you may DECLINE these items on your RA.
Jul 5, 2004, 3:49 pm
#22
Join Date: Jan 1999
Location: YYZ
Posts: 1,154
Here's a very simply primer on rental car insurance in the US:
http://www.iii.org/individuals/auto/a/rentalcar/
(from an industry body).
All rental companies are required by law to provide the minimum liability amount in the state they provide the rental. (40 of 51 states). The other 9 don't require liability insurance... ya feelin' lucky?
Here is a list of the minimum limits by state:
http://www.iii.org/individuals/auto/a/canidrive/
Your gold/plat card "excess" coverage should cover you for the physical damage to the rental car, but I would recommend buying additional liability coverage whenever you rent in the U.S. ....
http://www.iii.org/individuals/auto/a/rentalcar/
(from an industry body).
All rental companies are required by law to provide the minimum liability amount in the state they provide the rental. (40 of 51 states). The other 9 don't require liability insurance... ya feelin' lucky?
Here is a list of the minimum limits by state:
http://www.iii.org/individuals/auto/a/canidrive/
Your gold/plat card "excess" coverage should cover you for the physical damage to the rental car, but I would recommend buying additional liability coverage whenever you rent in the U.S. ....
Jul 7, 2004, 7:37 am
#23
Join Date: Sep 1999
Location: too far from the airport
Posts: 3,298
Scoop, these links are very interesting. It's my understanding that in California, car rental agencies were exempted from providing even the minimum liability coverage (at least around 1995-1998). That's not an issue for most US-based drivers (except for most Manhattan residents) because their own car insurance policy will apply when driving a rental car. However, if you don't have driving insurance (either on your car or as a separate non-owner insurance), and decide not to buy the SLI provided by the car rental agency, you might be responsible for the liability cost. In most cases, rental agencies require you to provide information about your car/driving insurance company. If you can't (because you don't have one) they can refuse to rent you a car. Now, I've never found myself in such a situation because I usually was covered by my own car insurance (or by the non-owner insurance, in one instance), so it could be that it's just a strong-arm tactic to force non-US travelers to pay their inflated SLI charges. So which is it: the III.com assertion that rental companies have to provide the minimum required in each state (which is, admittedly, usually pretty low), or what the rental companies reps say, that no liability insurance is included whatsoever, no even the minimum required by law?
Jul 7, 2004, 3:53 pm
#24
Join Date: Jan 1999
Location: YYZ
Posts: 1,154
Originally Posted by honu
So which is it: the III.com assertion that rental companies have to provide the minimum required in each state (which is, admittedly, usually pretty low), or what the rental companies reps say, that no liability insurance is included whatsoever, no even the minimum required by law?
Avis is protected regardless (because if you cause damages, of say, $1,000,000 and only took the minimum limits, the third party can claim against Avis for the difference (after your financial resources were exhausted). All that money you pay in "insurance" gets sent off to support their captive insurer.
Sep 8, 2004, 3:50 pm
#25
Join Date: Jan 2003
Location: Newcastle, NSW, Australia
Posts: 114
Originally Posted by honu
If you go to the US for a while (say, a month or longer) and you happen to have a US-issued driver's license (I still do for a while), you might be able to get a "carless" insurance from certain insurance companies (I did that at the end of last year). The coverage is not nearly as good as with the car-hire company SLI, but the cost is considerably lower (<$1/day vs. $10/11). But I'm pretty sure this type of insurance requires a US-issued DL, so it's kind of a mute point for most folks on this forum...
Sep 9, 2004, 12:34 am
#26
Join Date: Sep 1999
Location: too far from the airport
Posts: 3,298
Ok, it's called non-owner insurance, and it's usually reserved for people who drive w/out compulsory insurance and have a history of accidents, so the courts force them to take out some form of liability ins.
Here's what I did. We sold our car before moving to Oz, but we still had a bit more time in the US to go visit friends and family (3-4 weeks) during which we rented cars. So, right before cancelling my insurance, I contacted AIG (our insurer) to get a non-owner policy. They wrote me one out of a subsidiary agency. You might want to check with AIG, or with your last US insurer. The magic words are: non-owner's insurance. They should be able to help you once you mention that. You might have to send in additional info, including driver's records and such. In my case, they required a minimum 6-month contract, but I was allowed to cancel when I no longer needed the service, and I got a prorated refund (minus a small cancellation fee). For anything longer than 2-3 weeks, it might be worth the trouble.
I don't know if any insurance agency will offer such a policy to non-US residents, but if you can claim to be dual resident (I could at the time; a bit more iffy now), it should be no prob. The fees are a bit higher than you would expect for similar liability coverage, and that's because the majority of people who are forced to take this insurance are so accident-prone. Nonetheless, it beats having to pay the outrageous fees that car hire agencies offer. Good luck on your upcoming trip!
Here's what I did. We sold our car before moving to Oz, but we still had a bit more time in the US to go visit friends and family (3-4 weeks) during which we rented cars. So, right before cancelling my insurance, I contacted AIG (our insurer) to get a non-owner policy. They wrote me one out of a subsidiary agency. You might want to check with AIG, or with your last US insurer. The magic words are: non-owner's insurance. They should be able to help you once you mention that. You might have to send in additional info, including driver's records and such. In my case, they required a minimum 6-month contract, but I was allowed to cancel when I no longer needed the service, and I got a prorated refund (minus a small cancellation fee). For anything longer than 2-3 weeks, it might be worth the trouble.
I don't know if any insurance agency will offer such a policy to non-US residents, but if you can claim to be dual resident (I could at the time; a bit more iffy now), it should be no prob. The fees are a bit higher than you would expect for similar liability coverage, and that's because the majority of people who are forced to take this insurance are so accident-prone. Nonetheless, it beats having to pay the outrageous fees that car hire agencies offer. Good luck on your upcoming trip!
Last edited by honu; Sep 9, 2004 at 12:42 am
Mar 6, 2005, 10:15 am
#27
FlyerTalk Evangelist
Join Date: Jun 2000
Location: Sunny SYDNEY!
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Out of interest, I fly to Atlanta from Madrid in a week or so, and we will rent a car to drive thru North and South Carolina.
On http://www.driveaway.com.au I get for 4 days a $A348 all up price which it says covers - and its clearly an Alamo car as it says so!:
YOUR RENTAL FROM ALAMO RENT A CAR INCLUDES
* Local tax as of booking date 07-Mar-2005
* Unlimited kilometres.
* Rental includes Collision Damage coverage which limits potential vehicle damage liability to an excess of approximately ZERO.
* Rental includes Theft Protection for the vehicle which limits potential vehicle damage liability to an excess of approximately ZERO.
* Third Party Liability Insurance for injuries or damages to persons or things outside the vehicle.
* Extended Liability Protection
* Sales Tax.
* State Taxes.
* Airport fee where applicable.
* Vehicle Licensing Fee.
* 24 Hour Roadside Assistance.
RENTAL DOES NOT INCLUDE
* Insurance for personal injuries / damage to drivers and passengers, optional coverage may be offered locally for an additional fee.
* Petrol: In order to avoid refuelling charges, client is advised to return the vehicle with a full fuel tank and to retain copies of petrol receipts.
* Local toll, highway fees or travel stickers which may be required by local authorities.
* Additional supplier levied charges may apply.
Go to alamo website and choose same Chevvy Cavalier for same 4 days, same ATL collect and drop, and tick insurance and I get $A423.51 all up. Or about $A80 difference.
I am not sure if the ANZ Gold Visa card cover extends to:
* Insurance for personal injuries / damage to drivers and passengers, optional coverage may be offered locally for an additional fee.
Does anyone know? I imagine so, but that one is worth being sure of!
On http://www.driveaway.com.au I get for 4 days a $A348 all up price which it says covers - and its clearly an Alamo car as it says so!:
YOUR RENTAL FROM ALAMO RENT A CAR INCLUDES
* Local tax as of booking date 07-Mar-2005
* Unlimited kilometres.
* Rental includes Collision Damage coverage which limits potential vehicle damage liability to an excess of approximately ZERO.
* Rental includes Theft Protection for the vehicle which limits potential vehicle damage liability to an excess of approximately ZERO.
* Third Party Liability Insurance for injuries or damages to persons or things outside the vehicle.
* Extended Liability Protection
* Sales Tax.
* State Taxes.
* Airport fee where applicable.
* Vehicle Licensing Fee.
* 24 Hour Roadside Assistance.
RENTAL DOES NOT INCLUDE
* Insurance for personal injuries / damage to drivers and passengers, optional coverage may be offered locally for an additional fee.
* Petrol: In order to avoid refuelling charges, client is advised to return the vehicle with a full fuel tank and to retain copies of petrol receipts.
* Local toll, highway fees or travel stickers which may be required by local authorities.
* Additional supplier levied charges may apply.
Go to alamo website and choose same Chevvy Cavalier for same 4 days, same ATL collect and drop, and tick insurance and I get $A423.51 all up. Or about $A80 difference.
I am not sure if the ANZ Gold Visa card cover extends to:
* Insurance for personal injuries / damage to drivers and passengers, optional coverage may be offered locally for an additional fee.
Does anyone know? I imagine so, but that one is worth being sure of!