That's usually because the optional collision … For info on these editor-selected items, click to visit the seller’s site. These excess amounts can sometimes be as much as $8,000. Most car rental insurance policies carry personal effects coverage, which covers any personal items damaged in a collision or stolen from the rental car. At the end of the day, it's all about weighing your risk against your reward." Okay, I'm ready to compare. At the car rental counter, when asked if they want insurance for their rental car, many travelers say "no." Perkins was founding editor of Consumer Reports Travel Letter, one of the country's most influential travel publications, from which he retired in 1998. A reader recently emailed me: “I’m interested in finding a complete bumper-to-bumper, ‘drop off the keys at the counter’ car rental coverage when I travel. If you’re unwilling to accept any risk at all, you might want to buy that overpriced CDW. No need to cave in to that classic, fear-driven sales pitch at the rental counter. Perkins' advice for business travelers is featured on MyBusinessTravel.com, a website devoted to helping small business and self-employed professional travelers find the best value for their travel dollars. | Given the relatively low cost of personal effects coverage offered by rental car insurance, which averages about $2 a day, the additional insurance is worth it. Advertisement . No matter how often I cover the problems that come with collision damage under car rental insurance, consumers continue to share their frustrations. A few premium credit cards offer primary collision coverage, meaning the card takes full responsibility for the payment. I took car hire excess insurance with Worldwideinsure.. Is it really worth it?” And every year we give our clients the same black and white answer… it depends. So, before you plan on using your own insurance, check its coverage. However, credit cards don’t usually cover you for liability i.e. Every summer as travel starts to increase we are met with the question, “Should I buy the rental companies insurance plan when I rent a car? The short answer: Sometimes. Car Rental Insurance Cost. A loss damage waiver – also called a collision damage waiver – is a product offered by car rental companies to auto renters. And you still have to pay the rental company up front, then file for reimbursement from your card issuer. We asked experts whether a collision damage waiver is worth paying for. Ireland: 6-Nt, Upscale Trip w/Air, Castle... Lowest Cruise Rate: 7-Night Alaska Cruise... Round-Trip Business Class Flights to Europe, Car Rental Hidden Fees (and How to Avoid Them), No Credit Card? Renting a Car with a Debit Card Just Got Easier, Renting a Car Under Age 25 Is Possible, But Pricey, Travel Insurance Coverage: 13 Things Your Policy Won’t Cover, This One Trick Could Save You Hundreds on Cheap Car Rentals, 10 Clever Car Rental Hacks That’ll Save You Money. We all know that car repair and maintenance costs a lot. It's a type of car insurance to cover your loan if the car gets totaled. Is car insurance worth it? After all, if you’re using the rental to go on vacation, you may already have a budget for your trip, and the extra cost associated with rental car coverage may seem unnecessary. But you don’t buy that from a car rental company: It usually comes with household, homeowner, or tenant insurance, and it covers far more than a car rental. Rental car insurance. But otherwise, no matter how banged up the car could be, you’re off the hook: Just turn it in and be on your way. Protection for the car rental companies. Note that this typical Visa card’s benefits do not cover diminished value or administrative costs. You don’t want to have to pay thousands of dollars for this summer’s rental car if it’s damaged or stolen—just because you didn’t spring for the extra coverage! Car rental services has allowed people to enjoy successful trips without bringing their own cars. We hand-pick everything we recommend and select items through testing and reviews. Well, it's a type of insurance for people who don't own a car, but still find themselves driving a lot, for whatever reason. Rental cars have become a staple of the great American vacation. The takeaway from all this: No alternative source of collision damage coverage—your auto insurance, your credit card, or a third party—completely isolates you from risk. It has been updated to reflect the most current information. If you can pay the initial rental fee with a debit card, you’ll still need to provide a credit card to cover a possible damage claim, which would be filed before you can leave the return counter. I am not a risk taker so when I hire motor vehicles, especially in Portugal, I purchase the top up insurance cover to eliminate the excess in case of an incident.. FREE livestream to kickoff your money reset! You could be saving hundreds! It all sounded great until I submitted my claim. I was left with responsibility.”. All rights reserved. Sign up for our free newsletter. © 2021 Smarter Travel Media LLC. You don’t need it. Your credit card may cover some little added extras like administration fees and loss of use fees, so it’s worth investigating. Still, you must typically pay your policy’s deductible, and any claims may cause your rates to go up. When you buy a CDW, the rental company surrenders its rights to charge you for damage to a car rental—with a few exceptions, such as tire damage or gross negligence. It isn't an insurance policy exactly. In that case, you will need to purchase insurance from the truck company. Your car rental company will offer you the chance to purchase damage waivers (the collision damage waiver, for example), theft protection, personal accident insurance and optional coverage when you pick up the car. Hire car companies can apply a £1,000 excess while you are renting a vehicle. 6 Minute Read Or, if your personal vehicle is in the shop being repaired, the anticipated repair cost may … Let's take a look and see if you need it. Editor’s note: This story was originally published in 2017. That means signing a credit card bill for hundreds or even thousands of dollars when you return the damaged car, and not knowing if you’ll get that money back. But coverage on most cards is secondary, meaning the card picks up only what you can’t first recover from your own insurance. Valid loss-of-use charges assessed by the rental company while the damaged vehicle is being repaired and is not available for use, as substantiated in the company’s fleet utilization log. If you don’t buy CDW, rental companies can charge for more than just fixing the damage. personal injury or property damage you cause. It sometimes costs even more than the base car rental rate. Many drivers have to pay out between $10 – $30 per day for a loss damage waiver. ©2021 Lampo Licensing, LLC. Car rental companies in most countries are required by law to include liability insurance. For most travelers and circumstances, credit card or third-party coverage is sufficient, and primary coverage is a lot better than secondary. (CDW terms and conditions vary by car rental company, so you’ll want to read them carefully before committing.) Do you have the right auto insurance coverage? Towing charges, if you are unable to drive the car back to the return station. Kusmider's case highlights an age-old consumer question: Is rental car insurance worth it? Insurance. Here’s what you need to know before you shell out for car rental insurance on your next vacation. Car rental excess insurance is a type of insurance policy that will cover the excess charged by rental companies if the car is damaged or stolen. When renting a car, is purchasing additional insurance worth the extra money, or is it just a cash grab on the part of the rental companies? Most companies offer these coverage options: Collision/Loss Damage Waiver – Costing as much as $20 a day, this covers theft or damage to the rental vehicle in a collision. In many cases, if your regular auto insurance covers collision damage to your insured car, it also covers damage to a short-term rental. But in all of those cases you have to pay a damage claim up front, then recover as much as you can (all of it, you hope) by filing a claim afterward. Fewer insurance companies cover their customers who rent cars internationally, so, again, contact your company to find out your policy provisions. Our guide will explain the 4 main reasons why car rental excess insurance is worth it. That's helpful because it reduces your out-of-pocket expenses. Unfortunately, says Kissell, "There is no easy way to say whether the cost of car rental agency insurance is 'worth it'. When on vacation the peace of mind alone that you won't be stuck with a $25k bill should you get into a serious accidental, is worth it. Most companies offer these coverage options: If you decide not to purchase the extra coverage from the rental company, there are a few things you should be aware of: Renting a car outside the U.S. brings its own challenges. All items are in stock and prices are accurate at the time of publication. Be the first to discover secret destinations, travel hacks, and more. If you hire a car, excess insurance could save you a lot of money. “Diminished value,” or the potential loss of the car’s resale value (because of your damage) when the rental company disposes of it, usually within two years. The additional coverage will also help you avoid the hassle of filing a claim in a foreign country. Car rental companies in most countries are required by law to include liability insurance. You'll have peace of mind while on the road, and what's more, if something happens including theft, loss, physical and material damages to other parties, then you'll … But it doesn’t need to be expensive if you shop around. Does my insurance cover rental cars? Some products are sent to us free of charge with no incentive to offer a favorable review. Contact your insurance ELP to save money today! They also charge for: Most non-CDW car rental insurance will cover those extras. It’s a good idea to understand rental car insurance products before you pick up your car. In the U.S., required coverage can be ludicrously small (usually only the minimum required by the state)—it’s usually much better in Europe. Perkins' travel expertise has led to frequent television appearances, including ABC's "Good Morning America" and "This Week with David Brinkley," "The CBS Evening News with Dan Rather," CNN, and numerous local TV and radio stations. All Rights Reserved. Shop around to find the cheapest deal and avoid buying insurance directly from your rental company. In general, your individual auto policy will cover you when you drive a rental car. Car rental insurance policies can also include personal accident insurance, which covers medical costs for you and any passengers due to injuries sustained in an accident with your rental car. But always check with your insurance company before you pick up your rental car to be sure. The rental company may charge a deposit on your debit card and then refund the money when you return the car in good condition. Here's what to know about each. Administrative fees associated with the claims process. That’s why many rental companies won’t accept rentals via debit card, or a credit card with a small limit. More people opt to buy the extra coverage when traveling abroad because of the increased risk of accidents due to different driving conditions and traffic laws. This means you would have to pay for any damage up to the value of £1,000. When factoring in the cost of car rental insurance, each company and the amount of coverage you get will vary, however, one thing is for sure, it isn’t cheap. But this coverage is generally limited to driving in the U.S. and maybe Canada, and won’t cover car rentals in Mexico, Europe, or anywhere else. Insurance. If you do not have Personal Auto Insurance purchasing the CDW and Liability insurance from the car rental companies is a good idea. That coverage is provided by a third-party insurance company such as Allianz. Born in Evanston, Illinois, Perkins lives in Ashland, Oregon with his wife. You may wonder if it’s worthwhile to buy car rental insurance coverage offered by the rental car company. If you don't have other car insurance coverage / protection from other sources such as your credit card or your own insurance policy in own car, then for a small price to pay for a rental car insurance, it should still be worth it. If you want that full flexibility and peace of mind, pay for CDW. 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