Author Topic: Decline optional CLDW when renting cars?  (Read 1765 times)

ObviouslyNotAGolfer

  • Pencil Stache
  • ****
  • Posts: 518
Decline optional CLDW when renting cars?
« on: August 05, 2021, 02:33:00 PM »
I have been renting cars regularly for over 25 years, for both personal (vacation-road trip, etc.) and business purposes. I have always declined their optional coverage because my personal auto policy contains comp/collision. I also use a credit card with coverage for the deductible/minor damage.

As I've gained status in frequent renter programs, I've been upgraded to higher-end vehicles, recently an Audi Q7.

I called Geico again to ask whether I have the same coverage on a high-value rental car as with my own car, and they confirmed that I do. I told him to please forward me the policy and highlight where this is stated so that I can look at it (and possibly have my lawyer look at it). He was having trouble finding this!


I know how this will likely play out if I'm involved in an accident (have not been in an accident in 29 years!) and the car is badly damaged:

1.) Rental car company will come after me with both barrels telling me to pay them $80,000 yesterday, or else.

2.) Geico will tell me, "Oh, the agent you spoke to on the phone shouldn't have told you that (you are covered).." This always happens to me: One bureaucrat tells me one thing, then another one (after I've wasted a huge amount of effort on something) tells me something completely contradictory.

3.) Geico will find some way to not pay the claim and I'll be on the hook for the 80,000$

Anyway, do you decline optional rental car coverage and rely on your own policy? What would you do for a higher value vehicle?



« Last Edit: August 05, 2021, 02:35:22 PM by ObviouslyNotAGolfer »

ObviouslyNotAGolfer

  • Pencil Stache
  • ****
  • Posts: 518
Re: Decline optional CLDW when renting cars?
« Reply #1 on: August 05, 2021, 03:04:55 PM »
OK, I don't mean to bash Geico here; I have never had a problem with them. I have had issues with other insurance companies...

Anyway, I called back and grilled them politely about all this stuff, and the operator sent me my policy and highlighted sections on rental car coverage. They confirmed again that my comp/collision coverages extend to the rental, no matter the value of the rental.

They do, however have a "prohibited car list", so no Lamborghinis for me! (Too bad, I've always dreamt of driving a Countach)

In any case, I think declining the CLDW will be the right decision here. In Europe it is sometimes a different story!

lutorm

  • Pencil Stache
  • ****
  • Posts: 831
  • Location: About the middle of Sweden
Re: Decline optional CLDW when renting cars?
« Reply #2 on: August 05, 2021, 03:53:31 PM »
Note that there is also usually rental car coverage through your credit card, so that's another avenue if your insurance company somehow wiggles out of it.

gooki

  • Magnum Stache
  • ******
  • Posts: 2917
  • Location: NZ
    • My FIRE journal
Re: Decline optional CLDW when renting cars?
« Reply #3 on: August 05, 2021, 04:14:26 PM »
Wow.

Here in NZ all rental cars come with insurance with a maximum $2,000 excess as part of the advertised price.

Any additional insurance you buy just covers the $2000 excess, so a driver can never be on the hook for $80,000.

dodojojo

  • Pencil Stache
  • ****
  • Posts: 806
Re: Decline optional CLDW when renting cars?
« Reply #4 on: August 05, 2021, 05:18:43 PM »
I don't own a car so when I rent, I buy both the CLDW and liability insurance.  And yeah, the insurance invariably costs just as much or more than the car.  I used to wing it with credit card insurance and only buy liability.  But I read a post here on MMM about the nightmare of dealing with rental car accident even though the driver had either their own auto or credit card coverage.  My brother also works in auto insurance and he also buys the CLDW coverage even though he has his own auto insurance.  He didn't go into details but he advised buying the CLDW coverage.

Sometimes I debate going back to just relying on the credit card insurance but the peace of mind of having the CLDW coverage is worth it.  The last time I didn't buy it, I scraped the bottom of the bumper and I spent the entire trip wondering if I was going to get dinged big time. Like the rental car company would charge some ridiculous rate to fix it.  I even went to an auto store to see if I could something to fix it up.  An employee mentioned that rental car companies don't usually check for under-carriage damage.  That put my mind at ease for a bit but it was such a dark cloud over my trip--I vowed to buy insurance going forward.  The peace of mind is worth it.  Now, due to the ridiculous cost, I'm always open to being dissuaded...but I gotta hear some pretty convincing stuff.




lhamo

  • Magnum Stache
  • ******
  • Posts: 3091
  • Location: Seattle
Re: Decline optional CLDW when renting cars?
« Reply #5 on: August 05, 2021, 05:31:56 PM »
Amex has an optional program on at least some of its cards where for an extra charge of I think $25 (used to be $20 but they raised it a few years ago) they will provide additional coverage for any rental charged to the card for the duration of the rental up to at least 2 weeks (maybe a month?  Haven't used it for awhile).   I used to use that when we didn't have our own insurance (didn't own a car as expats for over 15 years) as it seemed a pretty good value.

Villanelle

  • Walrus Stache
  • *******
  • Posts: 6651
Re: Decline optional CLDW when renting cars?
« Reply #6 on: August 06, 2021, 10:14:45 AM »
Amex has an optional program on at least some of its cards where for an extra charge of I think $25 (used to be $20 but they raised it a few years ago) they will provide additional coverage for any rental charged to the card for the duration of the rental up to at least 2 weeks (maybe a month?  Haven't used it for awhile).   I used to use that when we didn't have our own insurance (didn't own a car as expats for over 15 years) as it seemed a pretty good value.

Interesting.  I'm going to mentally file this for the next time I rent a car.  How did you activate the coverage? (Since you have to pay for it, I assume it's not automatic when you use your Amex to pay for the rental.) 

Wolfpack Mustachian

  • Handlebar Stache
  • *****
  • Posts: 1866
Re: Decline optional CLDW when renting cars?
« Reply #7 on: August 06, 2021, 10:27:33 AM »
I'm curious about answers on this one. I've always declined but also always had a nagging concern in the back of my mind wondering if something did happen if I would magically fall through the cracks with my insurance and be on the hook for thousands.

lhamo

  • Magnum Stache
  • ******
  • Posts: 3091
  • Location: Seattle
Re: Decline optional CLDW when renting cars?
« Reply #8 on: August 06, 2021, 10:57:33 AM »
Here are the details -- IIRC you enroll first and then it activates (including charging the extra fee) when you actually rent the car using the card.

https://feeservices.americanexpress.com/premium/car-rental-insurance-coverage/home.do

ObviouslyNotAGolfer

  • Pencil Stache
  • ****
  • Posts: 518
Re: Decline optional CLDW when renting cars?
« Reply #9 on: August 06, 2021, 11:43:09 AM »
In case the car is totaled, I wonder whether there will be a huge discrepancy in what your own personal policy will pay vs. what the rental car company expects to get back from the car. Is there some stipulation on page 153,589,578,389 of the rental contract, in 0.5 point type, stating that you agree to pay for the full new MSRP, plus taxes, licensing, registration, emission checks to the year 2065, destination charges, fees, penalties, loss of use, etc. etc, etc?? This could leave you holding the bag for tens of thousands of dollars. As someone stated, this is not a problem in all countries!!
« Last Edit: August 06, 2021, 11:51:00 AM by ObviouslyNotAGolfer »

scottish

  • Magnum Stache
  • ******
  • Posts: 2716
  • Location: Ottawa
Re: Decline optional CLDW when renting cars?
« Reply #10 on: August 07, 2021, 05:11:39 PM »
I don't pay for any of the CDW/LDW insurance.   It's grossly overpriced.

I've seen some minor bodywork damage go completely ignored by rental car companies.   IIRC one Ford escort I rented at Gatwick had a creased rear fender and they were completely blasé about it.

When I travel on business, the insurance is included in the corporate rate.   I have a rider on my personal auto insurance for personal rentals.

I don't rent premium cars either.    The biggest upgrade I had was when my full size was unavailable they gave me a compact SUV, a Kia sportage...

SunnyDays

  • Magnum Stache
  • ******
  • Posts: 3489
Re: Decline optional CLDW when renting cars?
« Reply #11 on: August 07, 2021, 06:01:41 PM »
I currently have a rental due to an accident, and they offered me insurance at $12/day.  I knew I needed the car for at least a month (it’s turning out to be closer to 2), so I declined and got it through my insurance company for $75/month.  After going through all the hassle associated with my own car, I had no interest in repeating it with theirs.  The peace of mind is well worth the cost.

Duke03

  • Bristles
  • ***
  • Posts: 468
Re: Decline optional CLDW when renting cars?
« Reply #12 on: August 07, 2021, 08:49:30 PM »
Just get a credit card that has primary rental coverage built in and becomes active any time you use that card to rent a car.  There are plenty that have this just research it.  Be careful because for every credit card that offers primary there are two cards that offer secondary coverage and only kick in after your auto insurance has been maxed.  Chase sapphire Reserve is one that has free primary coverage....

wageslave23

  • Handlebar Stache
  • *****
  • Posts: 1752
  • Location: Midwest
Re: Decline optional CLDW when renting cars?
« Reply #13 on: August 11, 2021, 01:13:55 PM »
Just get a credit card that has primary rental coverage built in and becomes active any time you use that card to rent a car.  There are plenty that have this just research it.  Be careful because for every credit card that offers primary there are two cards that offer secondary coverage and only kick in after your auto insurance has been maxed.  Chase sapphire Reserve is one that has free primary coverage....

why would it matter if its primary or secondary?  Either way, you aren't paying.

ketchup

  • Magnum Stache
  • ******
  • Posts: 4323
  • Age: 33
Re: Decline optional CLDW when renting cars?
« Reply #14 on: August 12, 2021, 12:24:37 PM »
I've seen some minor bodywork damage go completely ignored by rental car companies.   IIRC one Ford escort I rented at Gatwick had a creased rear fender and they were completely blasé about it.
Just jumping in to second this.  I returned a Corolla to Hertz with the front bumper nearly falling off (I bottomed out on a dirt road, knocking it partially off, and I badly "popped it back into place").  Wife once ran over a pile of bricks in the middle of the road that fell off a truck right in front of her, badly fucking up the wheel well of her rental car from Enterprise.  They flat out did not care on either occasion.

 

Wow, a phone plan for fifteen bucks!