Rental Car Insurance (No Collision Insurance)

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Kywildcat
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Rental Car Insurance (No Collision Insurance)

Post by Kywildcat » Sun Mar 05, 2017 3:37 pm

I am renting a car for 3 days later this week and was thinking about insurance coverage. I have normally just declined the rental carrier coverage as I figured that between my personal car insurance and credit card (Amex), I would be fine. However, I realized that I might have a hole in my plan now that I dropped collision coverage on my 9yo car earlier this year. From reading through the Amex policy (everyday blue card), it sounds like I'm fine, but just wanted to see if others have been in a similar situation and if their conclusion was any different.

ubermax
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Re: Rental Car Insurance (No Collision Insurance)

Post by ubermax » Sun Mar 05, 2017 5:08 pm

Our personal auto policy doesn't cover "loss of use" (LOU) and so that's all we buy from the rental company ; we have a Visa sapphire card but haven't checked to see if it covers LOU .

HIinvestor
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Re: Rental Car Insurance (No Collision Insurance)

Post by HIinvestor » Sun Mar 05, 2017 5:38 pm

We rent cars using our Chase Sapphire Preferred CCard, which covers Collision Damage and Loss of Use as Primary. See page 2 of the PDF. We never buy the expensive CDW from the car rental companies. This benefit gives us peace of mind and is worth the $95 annual fee, imho.

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jeffyscott
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Re: Rental Car Insurance (No Collision Insurance)

Post by jeffyscott » Sun Mar 05, 2017 6:12 pm

I have no collision coverage on our cars. My understanding is the credit card coverage still works.

Chase Visa Platinum brochure explicitly states: "...if you do not have automobile insurance, you do not have to claim payment from any other source of insurance before receiving coverage..."

It says it's secondary coverage, supplements and applies in excess of any valid and collectible insurance. Coverage up to actual cash value of the vehicle plus valid administrative and loss of use charges. So, if there is no other coverage it pays for the full loss.
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bagelhead
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Re: Rental Car Insurance (No Collision Insurance)

Post by bagelhead » Sun Mar 05, 2017 7:21 pm

What if you have 2 cars and one of them has collision insurance but the other does not? Does your own insurance still cover the rental car?

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grabiner
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Re: Rental Car Insurance (No Collision Insurance)

Post by grabiner » Sun Mar 05, 2017 9:31 pm

bagelhead wrote:What if you have 2 cars and one of them has collision insurance but the other does not? Does your own insurance still cover the rental car?


You'll have to check the terms of the policy. It could say one of several things:

"Collision coverage for a rental car is provided if any insured auto has collision coverage, at the lowest deductible." (This is what mine says, with Amica in Maryland, although it isn't relevant since I have only one car and it has no collision coverage.)

"Collision coverage for a rental car is provided only if all insured autos have collision coverage."

"Collision coverage for a rental car which is a temporary replacement for an insured auto is at the same deductible as the coverage on that auto. Otherwise, collision coverage is provided only if all insured autos have collision coverage."
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TravelGeek
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Re: Rental Car Insurance (No Collision Insurance)

Post by TravelGeek » Sun Mar 05, 2017 10:47 pm

ubermax wrote:Our personal auto policy doesn't cover "loss of use" (LOU) and so that's all we buy from the rental company ; we have a Visa sapphire card but haven't checked to see if it covers LOU .


I think insurance (either via credit card or personal car insurance) generally will cover loss of use if the rental car company provides documentation for said loss of use. Which they generally don't because it means documenting how much use the car could have expected to get during the repair period.

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How much does it typically cost to cover LoU?

HIinvestor
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Re: Rental Car Insurance (No Collision Insurance)

Post by HIinvestor » Mon Mar 06, 2017 2:52 pm

I've never bought insurance from a car rental agency--always figured between credit card and personal auto policies we had things covered. I can't ever recall being asked to buy Loss of Use coverage at a car rental counter. How much do they charge for it anyway? CDW charges are often higher than the quote for renting the car!

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