Rental Car Insurance

[Mixalot27]

I'm going to be taking a trip to Florida in early Feb. I will be renting a car for 10 days. I have a gold visa card which will cover any damage to the rental car so I don't need the $24.99/day damage waiver insurance. They also offer personal insurance for $4.99/day. Its my understanding that my personal auto insurance will cover me for driving the rental car, so I don't need to buy this for myself.

However here is what I'm not sure about. I will be going with a friend who currently doesn't drive in Calgary here. He has a valid drivers license but has been without a car, and hence without insurance for a while now. I'm wondering if we need to buy the $4.99/day insurance for him so he can drive the rental car? Or will my insurance cover him since I was the one who rented the car in my name? I'm confused about this because I'm pretty sure I can let him drive my personal vehicle in Calgary and he is covered under my insurance. So I'm wondering if the same holds true for a rental car?

I've tried calling my insurance company but haven't really been able to get a straight answer. One person I spoke to said he is covered, another said he is not. It is only $50 so if I'm not able to find an answer I will just pay it to be on the safe side, however I'd rather not pay it if I don't have to. Also in the fine print for the rental car company it says $10.00/day to have a second authorized driver? If I don't need to buy their insurance, do I even need to disclose that their will be a second driver on the car? Could this open me up to any problems?

Any info about this would be appreciated. This is only the second time I have ever rented a car, so I'm not very knowledgeable about how it works.


Edit: I should also mention that my insurance is through ING and I only have basic coverage (no collision), in case that makes a difference.

[Masked Bandit]

Buy the $4.99 coverage and make sure you disclose that both of you will be driving the rental car. If you do not disclose that the other person will be driving as well, there is no coverage extended from your Visa card.

[Speed_69]

I work in insurance and a car rental company so I kinda know both sides.

Just to confirm, ING would not have any coverage for you because you do not have the SEF 27 endorsement on your policy which is 'legal liability for damage to non-owned automobiles endorsement'. In order to have this endorsement, you much have full physical damage cover (Section C - Collision & Comprehensive or All perils) and it is a $25 charge. There is also a $40,000 limit on any one vehicle unless additional coverage is purchased.

As for a second driver, yes you must pay the $10/day. If he/she is not added to the rental contract, they are not consider an 'authorized' driver.

As for using your credit card to cover for damages to the vehicle, read the wordings carefully. Many credit cards offer very minimal coverage and have limitations. You want to confirm you do have adequate coverage before declining the rental companies insurance. I always recommend to customers to purchase the rental company's insurance because it covers basically everything including contents and in the event of a claim, your own personal insurance rates will not go up. And no i'm not a sales agent, so i dont' recommend just to make comission.

[ralliart_girl]

Just wanted to add to the above, the other things is, if you don't have your own collision coverage on your vehicle, most rental companies require you to purchase their damage waiver, so it doesn't appear that you will be able to save on this cost.

[Jlude]

Originally posted by ralliart_girl
Just wanted to add to the above, the other things is, if you don't have your own collision coverage on your vehicle, most rental companies require you to purchase their damage waiver, so it doesn't appear that you will be able to save on this cost.

This is true... I've just inquired about taking a rental down to California and because I have my own insurance (collision) I don't need to get the rental insurance.

[clem24]

Basically remember the coverage is only for you... Even if your credit card covered it, it will only cover it if YOU drive. Anytime you add a driver for a rental, the additional driver needs to pay the additional fee. Didn't you ever watch the Seinfeld episode where George totaled Jerry's rental? It wasn't covered! "What, you base your whole business around letting other people drive your cars!!" :rofl:

[rated_R]

Even if you have insurance coverage on your Visa/MasterCard I still think it is a good idea to get the car rental company's insurance, let's say you decline the insurance b/c you have coverage through your credit card and get into an accident causing damage to the vehicle, you would be responsible for the down time of the vehicle (the time the car spent in the shop to get fixed), most credit card companies would only pay for the damage done to the vehicle and not the downtime for the rental

[aaronck]

With my Mosaic M/C, I had the same question. I upgraded the coverage for $30 per year, giving me total coverage with 0 deductable. Cheaper than the 5-10 per day the company charges

[Mixalot27]

Originally posted by Speed_69
I work in insurance and a car rental company so I kinda know both sides.

Just to confirm, ING would not have any coverage for you because you do not have the SEF 27 endorsement on your policy which is 'legal liability for damage to non-owned automobiles endorsement'. In order to have this endorsement, you much have full physical damage cover (Section C - Collision & Comprehensive or All perils) and it is a $25 charge. There is also a $40,000 limit on any one vehicle unless additional coverage is purchased.

As for a second driver, yes you must pay the $10/day. If he/she is not added to the rental contract, they are not consider an 'authorized' driver.

As for using your credit card to cover for damages to the vehicle, read the wordings carefully. Many credit cards offer very minimal coverage and have limitations. You want to confirm you do have adequate coverage before declining the rental companies insurance. I always recommend to customers to purchase the rental company's insurance because it covers basically everything including contents and in the event of a claim, your own personal insurance rates will not go up. And no i'm not a sales agent, so i dont' recommend just to make comission.

Thanks for your input. I understand my ING insure wouln't cover the rental car since I don't have collision. However its my understanding that it will cover me for damage/injury to another car or person should I get in an accident which is my fault.

As for the credit card coverage, I have read through the contract and I didn't find many restrictions on it. It is only good up to $45 000 and a few such things.



Originally posted by ralliart_girl
Just wanted to add to the above, the other things is, if you don't have your own collision coverage on your vehicle, most rental companies require you to purchase their damage waiver, so it doesn't appear that you will be able to save on this cost.

Yes it says right on the rental car page that you must show proof of insurance if you decline the damage waiver. However I thought I would be able to just show my credit card contract. I might be wrong about this though?


Originally posted by rated_R
Even if you have insurance coverage on your Visa/MasterCard I still think it is a good idea to get the car rental company's insurance, let's say you decline the insurance b/c you have coverage through your credit card and get into an accident causing damage to the vehicle, you would be responsible for the down time of the vehicle (the time the car spent in the shop to get fixed), most credit card companies would only pay for the damage done to the vehicle and not the downtime for the rental

Interesting about the down time, thats something that didn't occur to me.

[Mixalot27]

Originally posted by clem24
Basically remember the coverage is only for you... Even if your credit card covered it, it will only cover it if YOU drive. Anytime you add a driver for a rental, the additional driver needs to pay the additional fee. Didn't you ever watch the Seinfeld episode where George totaled Jerry's rental? It wasn't covered! "What, you base your whole business around letting other people drive your cars!!" :rofl:

Lol Clem I thought I had seen every Seinfeld episode but I don't remember that one at the moment. Absolutely true though as I just found out.

UPDATE: I called Visa and made the guy basically go through the car rental coverage part of the contract line by line with me. He must of loved me. lol Anyway here is the deal:

The coverage only covers the cardholder (me) as driver.

The coverage applies to the replacement of the car as well as down time, to a max of $45 000.

I need to bring the part of my VISA contract which is called the "Auto rental collision/loss damage Certificate of Insurance" to show to the car rental place. Upon showing them that as well as my Gold Visa, they should allow me to opt out of the Collision Damage waiver, If I so choose.


So basically now I have to decide if I want to pay $150 for the rental and do all of the driving myself, or pay $450 so we can both drive.

Thanks for the responses everybody, it helped me to know what questions to ask VISA. Now I think I understand whats up.

[Speed_69]

Anyone know if any Mastercards have car rental coverage?
I have a couple but have never looked into it.

[trieuth]

most gold and platinum cards have coverage just check to make sure though

[CRXguy]

Originally posted by Speed_69
Anyone know if any Mastercards have car rental coverage?
I have a couple but have never looked into it.

I pay $29/year for the coverage on my BMO Mastercard.

[rayquan]

Originally posted by Mixalot27



The coverage only covers the cardholder (me) as driver.

The coverage applies to the replacement of the car as well as down time, to a max of $45 000.



Does it imply that even though you add an additional person as the 2nd driver (paying extra), the credit card won't cover the insurance if the other person (non card holder) was driving at the time of the accident?

[Thaco]

Originally posted by rayquan


Does it imply that even though you add an additional person as the 2nd driver (paying extra), the credit card won't cover the insurance if the other person (non card holder) was driving at the time of the accident?

I have a CIBC platinum visa and they said they'll cover anybody that is listed on the rental agreement.

[Quizzes]

The coverage that car rental companies offer is NOT insurance. It's simply a WAIVER if any damages occur during your rental period. Basically, if you don't purchase the collision coverage, you're responsible for the total amount of the damage. So, if your Gold Visa covers up to $45K, and if the value of the vehicle is under $45K (most economies to fullsize cars are under that amount), then you should be OK.

All rental cars have insurance (third party liability) but might differ from state to state. I know when renting in California, third party liability must be purchased. Not sure about Florida though. Might be beneficial to call the Florida rental company and ask if their cars have third party liability. They should.

As for the additional driver, he must be added on in order for him to be an authorized driver.

[koopkoop2]

Originally posted by Quizzes
The coverage that car rental companies offer is NOT insurance. It's simply a WAIVER if any damages occur during your rental period. Basically, if you don't purchase the collision coverage, you're responsible for the total amount of the damage. So, if your Gold Visa covers up to $45K, and if the value of the vehicle is under $45K (most economies to fullsize cars are under that amount), then you should be OK.

All rental cars have insurance (third party liability) but might differ from state to state. I know when renting in California, third party liability must be purchased. Not sure about Florida though. Might be beneficial to call the Florida rental company and ask if their cars have third party liability. They should.

As for the additional driver, he must be added on in order for him to be an authorized driver.

Yeah, based on my research. I found out pretty much what you're saying.

Damage to the rental car: Not covered unless you accept the Loss Damage Waiver or it's covered by your credit card.

Damage to everything except the rental car: Covered by the rental car's insurance which is INCLUDED in your rental cost. Adding additional drivers is basically paying to have them added to this policy.

[Mixalot27]

OK so I got the actual VISA contract in the mail and it seems to read differently than the guy explained it to me:

Who is eligible for coverage:

Insured Persons as defined

"Insured Person" means: (1) You the Cardholder, who presents himself in person at the Rental Agency, signs the rental contract, declines the Rental Agency's CDW or its equivilant and takes possession of the rental vehicle and who complies with the terms of this Policy. (2) Any other person who drives the same rental vehicle with your permission whether or not such person has been listed on the rental vehicle contract or has been identified to the Rental Agency at the time of making the rental, however, you and all drivers must otherwise qualify under and follow the terms of the rental contract and must be legally licensed and permitted to drive the rental vehicle under the laws of the jurisdiction in which the rental vehicle shall be used.


So it sounds like it will cover other people to drive the car as long as they have my permission.

I'm still confused about the Third Party Liability part though. I left a message for my insurance broker to see if he can tell me if my personal auto policy covers me for this or if I need the Rental Agency's insurance. When I made the reservation for the car on Expedia, it said the insurance is $4/day extra and optional. So its no big deal if have to pay it since its only $4/day. My next question if I have to buy it is if its only good for me? Or will it cover my friend to? Or do I need to disclose him as an extra driver and pay the extra $10/day to have him covered too?

[Mixalot27]

Heres what it says about third party liability on the dollar rent a car site:

B. Third Party Liability Claims: Unless otherwise required by applicable law, a renter and/or any additional authorized driver (and the respective insurance company of each) is primarily responsible for all third party claims of personal injury, including death, and property damage caused or arising from the use and operation of the DOLLAR vehicle during the rental. (To the extent DOLLAR is required to provide coverage, in spite of the terms of the rental agreement, it shall only be in an amount necessary to satisfy the minimum financial responsibility limits required by applicable law.)

C. Uninsured and Underinsured Motorist Coverage: Where permitted by law, DOLLAR does not provide uninsured and underinsured motorist coverage. In those states or provinces where DOLLAR must provide such coverage, DOLLAR will only provide such coverage up to the minimum limits required by law. In some U.S. locations, DOLLAR offers the option to purchase Uninsured and Underinsured Motorist Protection ("UMP"). Please refer to the Optional Protection Package below for an explanation of this coverage.


I just got a message from my broker saying the following:

Hi Craig - Do not buy insurance from the car rental facility - Your policy either does or can be amended easily. I will have your broker check and contact you.

Cheers


I will let you know what happens when they get back to me.

[Quizzes]

Originally posted by Mixalot27
(2) Any other person who drives the same rental vehicle with your permission whether or not such person has been listed on the rental vehicle contract or has been identified to the Rental Agency at the time of making the rental, however, you and all drivers must otherwise qualify under and follow the terms of the rental contract and must be legally licensed and permitted to drive the rental vehicle under the laws of the jurisdiction in which the rental vehicle shall be used.
So it sounds like it will cover other people to drive the car as long as they have my permission.
This pretty much means that you MUST identify the additional driver to the rental company, by paying that extra $10/day. You can't let just anybody off the street drive their rental car because the they were not notified and they can have a case to void your insurance coverage should that "unauthorized driver" incur damages during the rental.
By the sound of it, you and your friend have that collision coverage through Visa should damages occur to the rental. So, just pay that extra $10/day and decline the CDW or LDW from the Rental Company.



I'm still confused about the Third Party Liability part though. I left a message for my insurance broker to see if he can tell me if my personal auto policy covers me for this or if I need the Rental Agency's insurance. When I made the reservation for the car on Expedia, it said the insurance is $4/day extra and optional. So its no big deal if have to pay it since its only $4/day. My next question if I have to buy it is if its only good for me? Or will it cover my friend to? Or do I need to disclose him as an extra driver and pay the extra $10/day to have him covered too?
Third Party Liability means that should you happen to rear-end somebody, or whatever, that the rental company will have to pay for claims made by the other party. If you're lucky and not damage the rental, even though you rear-ended them, then you don't have to pay a thing. You're only liable to pay for damages to the rental vehicle, NOT the other car that you hit. Unless you were driving illegally or under the influence... then that's another story.

I don't know what this $4/day optional insurance is... I'm guessing it's for medical/travel insurance or whatever. Again, your Visa or employer should cover you for that as well. If it's optional, then it's not mandatory. I don't think it's THE INSURANCE you're wondering about.
If it gives you a better peace of mind knowing it's only $4/day more, then by all means. Research what that $4 covers though.

[Mixalot27]

Originally posted by Quizzes

This pretty much means that you MUST identify the additional driver to the rental company, by paying that extra $10/day. You can't let just anybody off the street drive their rental car because the they were not notified and they can have a case to void your insurance coverage should that "unauthorized driver" incur damages during the rental.
By the sound of it, you and your friend have that collision coverage through Visa should damages occur to the rental. So, just pay that extra $10/day and decline the CDW or LDW from the Rental Company.

Seems to be just the opposite to me, It covers the car regardless of whether or not we disclose of pay for the additional driver. At least thats how I read it, but I could be wrong.

[Quizzes]

Originally posted by Mixalot27
however, you and all drivers must otherwise qualify under and follow the terms of the rental contract and must be legally licensed and permitted to drive the rental vehicle under the laws of the jurisdiction in which the rental vehicle shall be used.

If you read the rental contract, they'll probably have a fine-print somewhere stating that only authorized drivers on the contract are allowed to drive the car. I believe this rental contract can override your Visa policy should a claim be made.

[Mixalot27]

Originally posted by Quizzes

If you read the rental contract, they'll probably have a fine-print somewhere stating that only authorized drivers on the contract are allowed to drive the car. I believe this rental contract can override your Visa policy should a claim be made.

I understand what your saying. I was interpreting it that any driver must follow the terms of the rental contract OTHER than the "authorized driver" term. For example they must have a driver's license, be over 21yrs of age, etc. But you may well be right. I could use some clarification on that point, the way it is worded is confusing.

If what your saying is correct why would they even include this part of the statement:

(2) Any other person who drives the same rental vehicle with your permission whether or not such person has been listed on the rental vehicle contract or has been identified to the Rental Agency at the time of making the rental

This statement would be pointless since you would indeed need to disclose and pay for the additional driver to the Rental Agency. Thats the part I don't understand.

[koopkoop2]

Originally posted by Mixalot27


I understand what your saying. I was interpreting it that any driver must follow the terms of the rental contract OTHER than the "authorized driver" term. For example they must have a driver's license, be over 21yrs of age, etc. But you may well be right. I could use some clarification on that point, the way it is worded is confusing.

I agree with your interpretation as well.

From what I’ve read, the additional driver is covered by Visa even though he’s not listed on the rental contract. However, the additional driver MUST respect all the terms of the rental contract even though he’s not actually on it.

[Quizzes]

I see your point.
By the sounds of it, Visa has that in their policy, so if anything should happen with the additional driver, then at least you have a legal document saying so and Visa will eat up the cost.
It's a fine line though... Maybe best to ask the rental agent when you pick up the car. Give them a hypothetical situation ("say, another person were to drive this car, but he's not listed in the rental contract") and see what they say. I'm sure they'll bring up the $10/day charge.

[Thaco]

Originally posted by Quizzes
I see your point.
By the sounds of it, Visa has that in their policy, so if anything should happen with the additional driver, then at least you have a legal document saying so and Visa will eat up the cost.
It's a fine line though... Maybe best to ask the rental agent when you pick up the car. Give them a hypothetical situation ("say, another person were to drive this car, but he's not listed in the rental contract") and see what they say. I'm sure they'll bring up the $10/day charge. of course the rental company will convince you to pay the $10 a day, it's $10 a day!