So, you're going on a trip.
You want to know if you need to purchase the rental car agency's insurance. You have comprehensive and collision coverage on your vehicle, so the coverage should extend over, right?
The answer is yes, BUT there is a catch!
Turns out, your car IS covered, but loss of use is NOT which means, you could possibly be stuck paying for the days that you cause the rental car to be out of commission.
Translation: YOU PAY FOR THE DAYS THE CAR HAS TO BE IN THE SHOP!
Don't believe us because the financial guy who writes a lot of books says you don't need to purchase rental car insurance? We polled a large group of insurance agents to find out what they've SEEN in rental car claims situations.
Here are a few of their comments:
"Charged almost 3k for a scratch. They charge for even the time vehicle "will be out of service""
"It happened to me. It was a mess and ruined my vacation. I was even an insurance agent while it happened 😬🤣"
"I worked for Enterprise before Insurance.. some credit cards will cover loss of use.. AMEX is a good bet (call customer service of card), it has to be deposit hold card and payment card.. I worked in escalations 😁"
"Over the years I have had several clients that the policy paid to get a replacement Rental but the Rental company charged for their Loss of Use while their damaged car was out of service no longer part of the operational fleet. I’d say on average the clients that have shared these stories, I’d say like above; I’ve seen approx. $2500-$3000. I would say I’ve seen some carriers that have by endorsement or otherwise, covered the Loss of Use. Carrier specific."
"Yes had a customer who had their credit card hit for over $3,500 after an accident in a rental car when they wrecked it for diminished value and admin fees and a few other charges. I always recommend buying it from the rental company."
"Oh yes. One example was the rental car got the window smashed out. $2800 bill for the client who had no loss of use and didn’t purchase coverage."
Bottom line, you need to know YOUR policy. Does it cover loss of use, diminished value, or administration fees? If so, are you willing to fight if the rental car company comes after you and tries to make you pay? Is there an easier option (that won't make your insurance premium go up should you have an accident) like backup coverage through your credit card? Be sure to use THAT card to rent your car. Knowing the answer to all of these questions should help you make the right decision for you. If you need a little guidance, feel free to reach out. We're happy to chat a little more about it.
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