Rental Car Insurance

[bobbie_81348]

We have rented a car in Skagway. We are unsure about taking the extra insurance. Our policy covers us when we rent a car but the agent did say something about not covering "Loss of use" on the car if something happens. Can anyone give us some help on what insurance to take with Avis?

[fti]

We have rented a car in Skagway. We are unsure about taking the extra insurance. Our policy covers us when we rent a car but the agent did say something about not covering "Loss of use" on the car if something happens. Can anyone give us some help on what insurance to take with Avis?

 

Great question!

 

This is a personal "mission" of mine - that people are informed about their own insurance coverage and that they read the rental contracts carefully at the rental desk when they accept the car. You would not believe how many times I asked to DECLINE collision damage waiver or other optional things when the agent in fact indicated ACCEPT on the contract. Fortunately I read what I initialed and signed and no harm done - I changed it before I signed it.

 

First of all, how in the world does the agent (from Avis in Skagway or their central reservation office) have a clue what coverage you have? Did you quote your insurance company and policy number, they put you on hold then they called your company and asked what was covered and came back and explained it? I doubt it! That is the only way they would have known what coverages you already have. Actually they would have had to call (1) your personal auto insurance company, (2) your credit card companies to find out which ones cover you for what (3) your travel insurance company if you have travel insurance.

 

In any case, call your personal auto insurance company to see if they cover you for car rentals and, if so, exactly what they cover - accidents? fire? theft? loss of use? Also call your credit card companies (toll-free number on the back of the card). You MUST use your credit card for all charges (any prepayment if required - rare in the US - as well as at the beginning and end of the rental) in order for that credit card company to cover you.

 

If none of the avenues available to you cover for all the above, many travel insurances cover it. Travel Guard for example has solely a collision damage policy that covers all the above for well less than the car rental companies offer it for.

 

Just do the following:

 

a) check what you are already covered for

b) purchase anything else you need before you travel

c) at the rental counter be sure to read what you are signing - did the agent inadvertently check "accept" rather than "decline" for anything?

 

There are lots of other optional coverages that car rental companies will want you to sign up for - refueling option, personal accident protection, personal effects coverage, and probably 10 other things. A good website to start with is:

 

http://www.ftc.gov/bcp/conline/pubs/autos/carrent.htm

 

And don't forget to check the car when you first get it for any damage (be sure to check under the front bumper - there is almost ALWAYS damage there!), check to see if the fuel tank is indeed full and check that the mileage on the odometer agrees with the mileage on the rental contract (not as big of a problem with most rentals since you get unlimited mileage, but still good to get in that habit).

 

An informed consumer is dangerous! Just last weekend I rented a car in Detroit. $13/day and $34 including all mandatory fees for two days. If I had accepted their collision damage waiver, my cost would have been over $100 total!!

 

John

[bobbie_81348]

Thanks for the info John. I had not thought of several of the things you pointed out (checking for damage in hard to see places). I guess I didn't make myself clear about the Loss of Use. It was my insurance agent that told me our policy didn't cover loss of use when I called to see if we were covered in a rental car. I reserved the car on the internet so I declined all the extras for now. I guess I need something to cover for, loss of use, other than that I think we are ok. I will still check with our charge card company, had forgot about that. Thanks again

[Maddle]

Remarkable to find this thread. Just yesterday my husband called the insurance company to find out about insurance coverage for the Canadian side of the border. Apparently, between our auto policy and credit card, and coverage from the travel insurance we booked for the trip, we should be all set - but the auto policy does NOT cover liability in Canada. Bummer. Any advice? We are considering for the first time just taking the insurance from the rental company because: A - it is just for one day, and B - it is outside of the country for a part of the trip.

 

I only know of one person that rental company insurance paid off - but it really paid off for her. Someone reared her, she called the desk, and basically walked away from the problems. (Of course, who wants to hope they get into an accident so that the cost of their insurance will pay off.)

 

Maddle

[fti]

Thanks for the clarification bobbie_81348. I shouldn't have been so hard on Avis! And yes, I literally get down on my hands and knees every time in the front of the car now to check for damage under the front bumper. One rental company charged me for that one time (covered by insurance) - - but never again.

 

Remarkable to find this thread. Just yesterday my husband called the insurance company to find out about insurance coverage for the Canadian side of the border. Apparently, between our auto policy and credit card, and coverage from the travel insurance we booked for the trip, we should be all set - but the auto policy does NOT cover liability in Canada. Bummer. Any advice? We are considering for the first time just taking the insurance from the rental company because: A - it is just for one day, and B - it is outside of the country for a part of the trip.

 

I only know of one person that rental company insurance paid off - but it really paid off for her. Someone reared her, she called the desk, and basically walked away from the problems. (Of course, who wants to hope they get into an accident so that the cost of their insurance will pay off.)

 

Maddle

 

In 15-20 years of using my credit card to cover collision and loss waiver, I have had 3 claims. Two were paid very promptly (just a little paperwork). One was denied but long story short it was for a 1/4" scratch on a car that was almost for sure there beforehand. I contested the charge through AmEx as frivolous and they reversed it.

 

Regarding liability insurance, do you own a house? Do you own a car? If so, do you have an umbrella liability policy? If you own a house or a car, you should have an umbrella liability policy - someone could trip on a sidewalk in front of your house and sue you, or your personal auto insurance policy certainly does not cover you for liability amounts that someone could sue you for hitting them. I have an umbrella liability policy for $2 million that costs under $200/year. That covers lots of things, including liability for things like car accidents. You can probably buy an umbrella policy before your trip that will cover you. Avis will charge you $12-$20 for a one-day policy - very expensive compared to what I pay for a year!

 

You can also do an internet search for liability insurance policies. I know someone who purchased a short-term policy specifically because of renting a car but I have no idea what she paid.

 

John

[Frequent Floater]

I had thought about a rental car in Skagway too. After speaking with another cruiser that had done so I changed my mind.

The "loss of use" was something that actually happended to them.

Since there is alot of road construction, the car ended up with lots tar from road repair and a broken front window. The window could not be repaired in Skagway so had to ferry to another town for repair. The ferry for autos only goes in and out once a week. Basically the car was out of service for 2 weeks by the time it got back to the Avis lot in Skagway. IF the car can't be repaired locally it can be a nightmare. So ask your personal rep about that..

[jacksan1]

I have an umbrella liability policy for $2 million that costs under $200/year. That covers lots of things, including liability for things like car accidents. You can probably buy an umbrella policy before your trip that will cover you. Avis will charge you $12-$20 for a one-day policy - very expensive compared to what I pay for a year!

 

I heartily agree with you, John, about the wisdom of an umbrella policy. Basically, with this kind of policy, whatever is not explicitly excluded is covered. Car rentals all over the world are covered by our umbrella policy. Since my wife and I travel abroad frequently, it truly is a "cheap insurance" by every sense of the words.

[qiangf2]

Great question!

 

This is a personal "mission" of mine - that people are informed about their own insurance coverage and that they read the rental contracts carefully at the rental desk when they accept the car. You would not believe how many times I asked to DECLINE collision damage waiver or other optional things when the agent in fact indicated ACCEPT on the contract. Fortunately I read what I initialed and signed and no harm done - I changed it before I signed it.

 

First of all, how in the world does the agent (from Avis in Skagway or their central reservation office) have a clue what coverage you have? Did you quote your insurance company and policy number, they put you on hold then they called your company and asked what was covered and came back and explained it? I doubt it! That is the only way they would have known what coverages you already have. Actually they would have had to call (1) your personal auto insurance company, (2) your credit card companies to find out which ones cover you for what (3) your travel insurance company if you have travel insurance.

 

In any case, call your personal auto insurance company to see if they cover you for car rentals and, if so, exactly what they cover - accidents? fire? theft? loss of use? Also call your credit card companies (toll-free number on the back of the card). You MUST use your credit card for all charges (any prepayment if required - rare in the US - as well as at the beginning and end of the rental) in order for that credit card company to cover you.

 

If none of the avenues available to you cover for all the above, many travel insurances cover it. Travel Guard for example has solely a collision damage policy that covers all the above for well less than the car rental companies offer it for.

 

Just do the following:

 

a) check what you are already covered for

b) purchase anything else you need before you travel

c) at the rental counter be sure to read what you are signing - did the agent inadvertently check "accept" rather than "decline" for anything?

 

There are lots of other optional coverages that car rental companies will want you to sign up for - refueling option, personal accident protection, personal effects coverage, and probably 10 other things. A good website to start with is:

 

http://www.ftc.gov/bcp/conline/pubs/autos/carrent.htm

 

And don't forget to check the car when you first get it for any damage (be sure to check under the front bumper - there is almost ALWAYS damage there!), check to see if the fuel tank is indeed full and check that the mileage on the odometer agrees with the mileage on the rental contract (not as big of a problem with most rentals since you get unlimited mileage, but still good to get in that habit).

 

An informed consumer is dangerous! Just last weekend I rented a car in Detroit. $13/day and $34 including all mandatory fees for two days. If I had accepted their collision damage waiver, my cost would have been over $100 total!!

 

John

 

John, this is a great write-up! I am alway confused by the terms of insurance policy. This definitely helps a lot

[fti]

John, this is a great write-up! I am alway confused by the terms of insurance policy. This definitely helps a lot

 

I have been tried more than once to be scammed by car rental companies and at least two friends have accepted optional coverages without fully reading what they were signing. It irks me.

 

Two more things -

 

(1) whatever comes out of the mouth of a car rental agent is for a purpose, not just for small talk. Example: "What kind of car do you drive at home?" sounds like a question for pleasantries. No - if you drive a Lincoln at home and are renting a Dodge Neon from them, you will be certain to get some pressure to upgrade - for a fee of course!

 

(2) you will often be asked to upgrade - for a fee. What they don't tell you is that they are going to give you that larger car anyway for no additional charge since they don't have any of the smaller cars left that you reserved. If you really want to upgrade anyway, but don't want to pay for it, say, "Let me see the keys of the car I will get if I do not upgrade and let me see the keys of the car I will get if I do upgrade." Don't let them rely on a "chart" - you need to see the keys then look at the keytag which describes the make and model of each car.

 

At Enterprise in Anchorage three weeks ago I booked a compact. They wanted to upgrade me (for a fee) to an intermediate. I declined. The next person in the door less than 5 minutes later ended up getting the intermediate for free since she also reserved a compact but I got the last one. I don't know for sure if she paid for the upgrade. In this case I think Enterprise (off-airport location) was honest in saying that they didn't have any compacts left and gave it to her for no additional charge. But perhaps it was because I was there and was told that the only compact they had was coming from the airport for me (funny that I took a taxi from the airport and they had to send someone to the airport to get the car - but I would not have avoided the hefty airport charges if I picked up at the airport).

[minus]

I just added Premium Car Rental Protection to my American Express card. It seems like a great service that will give me peace of mind in turning down the car rental agencies overpriced insurance.

 

There is no charge to enroll and you will only be billed a FLAT RATE of $24.95 ($17.95 for CA residents) for the ENTIRE rental (up to 42 consecutive days) each time you use your enrolled card to pay for the rental.

 

It gives you primary coverage for damage or theft of a rental car, accidental death or dismemberment, medical expenses and personal property for you and your passenger.

 

I called AMEX and was informed that it also covers LOSS OF USE.

 

Well worth it if you're renting a car for more than a day, I think!

[wolfie11]

I travel fairly frequently on business and since I'm coming all the way from Alaska I try to take a few days extra to sightsee. I usually rent a car. I talked to my State Farm agent and put a rental car rider on my insurance for around $25. This covers everything with the rental car including loss of use.

 

In Skagway (although it applies anywhere), always check for even the tiniest windshield chip and make them write it down. You will get charged for a windshield repair or replacement if they find one after you leave!

[minus]

Another good thing about adding the premier rental insurance to your AMEX card is that it is primary insurance so your regular car insurance doesn't have to be involved (unless you hit someone and need liability insurance) so your rates don't go up.

[vbmom87]

I had thought about a rental car in Skagway too. After speaking with another cruiser that had done so I changed my mind.

The "loss of use" was something that actually happended to them.

Since there is alot of road construction, the car ended up with lots tar from road repair and a broken front window. The window could not be repaired in Skagway so had to ferry to another town for repair. The ferry for autos only goes in and out once a week. Basically the car was out of service for 2 weeks by the time it got back to the Avis lot in Skagway. IF the car can't be repaired locally it can be a nightmare. So ask your personal rep about that..

 

Our Chilkoot bus driver told us about this very problem with car rentals in the smaller towns.

[Putterdude]

I travel fairly frequently on business and since I'm coming all the way from Alaska I try to take a few days extra to sightsee. I usually rent a car. I talked to my State Farm agent and put a rental car rider on my insurance for around $25. This covers everything with the rental car including loss of use.

 

In Skagway (although it applies anywhere), always check for even the tiniest windshield chip and make them write it down. You will get charged for a windshield repair or replacement if they find one after you leave!

 

I have had the experience in northern British Columbia and in the Yukon where I have been unable to get glass coverage period...full stop. I have also found over the years of renting cars that some companies and some agencies are far more agressive about minor damage and scratches then others, dare I say that I have found Alamo right up on the top in that department. But do agree, do the walk around and get everything but everthing on the sign out sheet.

[MercedMike]

We have rented a car in Skagway. We are unsure about taking the extra insurance. Our policy covers us when we rent a car but the agent did say something about not covering "Loss of use" on the car if something happens. Can anyone give us some help on what insurance to take with Avis?

 

Rental car insurance from the company is a huge ripoff!!

 

John's post above covers the subject perfectly.

 

EXCEPT --

 

It has been my personal experience that the rental car companies can make such a big deal out of a small scratch or some other minor incident and be soooo nasty about it, that I have finally decided that for the $25 or so they charge, it is much easier to accept their insurance than go through the tremendous hassle they make.

 

Sure, I am getting ripped off. But it is a small price to pay for some peace of mind, especially if I have paid thousands for the trip.

 

YMMV.

[vivian02]

There is some pretty good information here and I see some observations that might need futher investigation. I have rented cars in Europe and Alaska (Anchourage, Skagway) and never had to purchase extra insurance.

Note: Form the reader who mentioned the name of an Insurance company. If you purchased the Insurance (loss of use) what makes you think the Insurance company would cover everything if you had an accident? "Read the policy"....there are so many loop holes it is to the advanage of the Insurance Company (believe me). Take note: I believe if you read the insurance coverage of most major credit cards "When outside the United States (including Canada) your creditcar will become your Primary coverage when renting a car, your Insurance Company becomes the secondary Insurer. This is how it is done in Europe.

I like to give folks this information for the fact that in many cases when you rent that rental car you are in most cases already covered if you do your homework. Make sure when you go up to the rental desk in Skagway you can show proof of your car insurance and company and have a major credit car with a low balance. If you are at the top of your credit limit on the credit card most likely the rental card company will request another card. Tim

[wolfie11]

I have full coverage on my own car, which also covers damage to a rental car, but not the "loss of use". I have a rider on my regular insurance that covers the rental and the "loss of use." I put all car rentals on my airlines credit card, which also covers rentals, but I consider this a backup.

 

If I'm not covered with all the above and still need to purchase the overpriced insurance offered by the rentals, I'll give up renting cars. Granted, if you are renting in a foreign country, you need to check with the insurance companies/credit card company and see exactly what your liabilities are.

[vivian02]

Wolfie11,

In my opinion you are probably alright. If your insurance company has added a waiver for insurance on the rental car then here is the question to put to your insurance agent. (Note: most people like the term "YOUR COVERED" but are you?" If I were to get in an accident with a moose that stepped out in front of my rental car outside of Carcross, Yukon would I still be covered? I would bet your insurance company would not give you a clear answer on this one. Remember.....using that Credit Card will possibly give you the coverage you need when crossing into Canada. Just maybe we will hear from someone who has had a finder binder on the Canadian side. Another thing to think about that would open up a whole new bucket of worms would be "Roadside Assistance". Be sure your rental car has a spare tire in the trunk before leaving Skagway. Tim

[BRDbabies]

We have a complete horror story involving rental car insurance...long story short, we declined the car sompany insurance, double checked with our own provider and credit card providers...they all said you are covered, no worries about a thing...then we get run over and dragged for approx a kilometer by a logging truck, (luckily walked away) and ended up paying for a BRAND NEW (it had 26 kilometers on it when we rented it) car, which is now flattened in some wrecking yard and shipped to Khazakstan for scrap metal!!!!!!!!!! I am the proud owner of my first ever brand new car which I drove for less than 48 hours and will be paying for for the next five or so years!!!! Not to mention the legal fees paid to fight this in court.

 

Moral of my story, I do not care how much they charge me I am buying what the car rental company sells me!

 

Just my story, thought I would share. Couble check all coverage then check it again three more times then take the car companies stuff!

[kenish]

Moral of my story, I do not care how much they charge me I am buying what the car rental company sells me!

 

Just my story, thought I would share. Couble check all coverage then check it again three more times then take the car companies stuff!

 

Wow! That stinks, but at least nobody was hurt. I've also hear horror stories (in the US, not Canada) about renters who purchased insurance when they rented and were not very well covered after an accident. Here in the States, the rental insurance is often a cozy little moneymaker that still leaves the customer pretty naked.

[vivian02]

BRDbabies....thanks for the story. Its like I said earlier there are those who will let you think not to worry because you are covered! On the other hand once something happens and a claim is filed thats when you find out your coverage is only for liability not full collision for the car you are driving. Sounds like to me the logging truck wasn't carrying a full load logs or was it? For those driving from Skagway to Emerald Lake.... I don't remember seeing any logging trucks. Tim

[BRDbabies]

Oh it most certainly was carrying a full load of logs, and he did not even know we were under his trailer until he was flagged over by an oncoming vehicle...think LARGE truck and little chevy cobalt...not good, but we were alive so I guess the 14 000 it cost for the car and another 6000 it cost to try to fight it is a small price to pay.

 

Good luck to anyone who is renting, hopefully you never have to try out those insurance policies.