Car Rental

[artistache]

I have cheap car rental (for travel to visit family several times a year) figured out.  But we never pay for insurance, which we don't have bc we don't own a car, and it makes me nervous.  I have some protections through my Visa, but I've heard that the best car rental credit card related insurance is with an American Express.  Is this true? If so, do you think it's worth it financially?  I assume there are annual fees involved with the card.

[mustachecat]

You know, I've never compared the Visa and Amex plans, but it's definitely available on my regular old Blue Cash Back card, which doesn't have any annual fees.

[TLV]

IIRC the Visa/AmEx insurance only covers damage to the rental car - I think it's a very bad idea (and possibly illegal) to drive a rental car without liability insurance (either your own policy or buying the rental company's).

Even if you don't own a car and thus don't have any regular personal auto insurance—or if your regular auto insurance doesn't extend to rented cars—you can easily cover yourself. Many insurance companies sell "non-owner" automobile policies. They cover you not only when you rent cars, but also if you borrow a car from someone. Policies generally cover you for a fixed term, not per-rental.

Credit cards, on the other hand, do not cover liability. If your regular insurance doesn't cover rental cars, or you don't have regular insurance—and you don't buy a non-owner policy—you have no alternative but to buy daily-rate liability coverage from the rental company. Even paying gouge rates is far better than facing unlimited risks without liability insurance.

Source

[Wendyimhome]

The reputable companies are supposed to call the card services provider and check.  If the coverage is good enough for the rental agency you are probably fine --  from a 3d party liability standpoint.  You need to determine, however, whether your card provider's insurance also provides first party coverage (i.e. collision and comprehensive) so that you don't have to pay for damages done to the rental car.  Liability insurance only protects the driver of another car that you might hit.

[slugsworth]

Not having had a car for several years, this is a thing for me.  I've called VISA and never gotten a clear - yes this coverage will substitute for primary coverage, from what I can tell it is supplementary coverage.  I've never seen anything definitive about AMEX or discover.

I've considered getting non-owner auto insurance. If you google "non-owner auto insurance" you'll find information on it. I was actually going to do some more research on it. . . I'll repost if I learn anything helpful.  The last time I checked it was more expensive than it should have been. 

On a related note, there are two groups that offers liability coverage in case you are at fault, while on your bike (spoke insurance and better world).

[artistache]

Thanks, everyone--I didn't realize credit cards covered only the driver.  I'll look into an umbrella policy but my sense is it's going to be cheaper just to pay for the insurance when I rent.

[slugsworth]

this is a bit late, but just as a follow up, my home owners company offered a really expensive option, but I found this: http://www.geico.com/information/publications/newsletter/2011/rental-car-insurance/

and think it might be a good option for those of us w/o cars but who need coverage.

[artistache]

Just noticed this option: https://www295.americanexpress.com/premium/car-rental-insurance-coverage/home.do?pcrid=17523709145&pmt=e&kw=amex%20car%20rental%20coverage&extlink=ps-cardserv-srme37cf6&gclid=CIe39YPn5rMCFa59Ogod9GgAEQ

This is the best solution I've found, since I don't mind having a credit card just for holiday-times car rental.  Also recently discovered the Costco car rental savings.

[Captain and Mrs Slow]

Regarding this it's important to understand how all this works (I researched it for my own info). When you decline the insurance option (in America it's insurance in Europe it's a zero deductible) you are agree to PREFUND the full cost of replacing the vechile with the difference being refunded after they determine the full cost.

So say for example you rent a $20,000 car and have an accident (whose fault isn't important) and the car is towed away. You report it and the fist thing they do is charge (not block) $20,000 to your card. Latter, and I would imagine much later after all the insurance is sorted out they refund the difference.

So the real question is do you mind being on the hook for the full value of the car?

Now like you I don't like paying 25 bucks a day for the insurance so I have two options. One is I rent it with a low limit card (vs my Wife's work Amex) and secondly I look for alternatives. For our trip to Florida this year I rented though airportrentalcars.com got a great price and insurance for 10 bucks a day!!!!

While saving money is important you don't want to be penny wise and pound foolish.