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. There are exceptions, of course. Here's what to know about each. Let's find out. 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.. Travel Smarter! When vacationers rent cars this summer for their adventures, they'll have to decide: Do they want the insurance the company is offering. A few premium credit cards offer primary collision coverage, meaning the card takes full responsibility for the payment. 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. Here’s what you need to know before you shell out for car rental insurance on your next vacation. Big-name companies love to say theirs is the best. personal injury or property damage you cause. 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. What is non-owner car insurance? But coverage on most cards is secondary, meaning the card picks up only what you can’t first recover from your own insurance. This experience is uncommon, but not unique. © 2021 Smarter Travel Media LLC. These excess amounts can sometimes be as much as $8,000. 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. Many drivers have to pay out between $10 – $30 per day for a loss damage waiver. 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? Rental car insurance. It’s a good idea to understand rental car insurance products before you pick up your car. | In general, your individual auto policy will cover you when you drive a rental car. As with many travel extras, if you leave buying car hire excess insurance to the last minute, you could end up paying well over the odds. A sample credit card benefits statement describes coverage as: “Physical damage and/or theft of the covered rental vehicle. If it does cover rentals, you can place a claim on it. Contact your insurance ELP to save money today! So, before you plan on using your own insurance, check its coverage. Unfortunately, says Kissell, "There is no easy way to say whether the cost of car rental agency insurance is 'worth it'. No wonder the agents push it so hard: It’s clearly a lot more profitable than the car rental alone. Consumer advocate Ed Perkins has been writing about travel for more than three decades. That's helpful because it reduces your out-of-pocket expenses. Do you have the right auto insurance coverage? Unfortunately, some rental companies don’t cooperate with credit card issuers in providing this type of documentation in a timely manner. Is it really worth it?” And every year we give our clients the same black and white answer… it depends. Is rental car insurance really worth it? 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. But, rental cars come with the question, “Do I purchase the extra insurance coverage or take my chances?”. We hand-pick everything we recommend and select items through testing and reviews. Car rental services has allowed people to enjoy successful trips without bringing their own cars. Your personal auto insurance extends and covers you while driving a rental the exact same way as if you were driving your car. Taking a waiver agreement out at the rental desk could cost you as much as £150 a week, says Ben. We all know that car repair and maintenance costs a lot. Car hire excess insurance can help you save a lot of money if you ever have to make a claim for damage to your rental car. If you don’t buy CDW, rental companies can charge for more than just fixing the damage. Why is it then important to include hire car insurance in the total package? Note that this typical Visa card’s benefits do not cover diminished value or administrative costs. For most travelers and circumstances, credit card or third-party coverage is sufficient, and primary coverage is a lot better than secondary. But, in some cases, coverage depends on cooperation from the rental company—and it may not be forthcoming, as our reader’s above wasn’t. In that case, you will need to purchase insurance from the truck company. Coverage Options. But is it right for you? At the end of the day, it's all about weighing your risk against your reward." By Bradshaw and Weil Inc. June 28, 2018 August 6th, 2018 Auto Insurance. No other approach—your own insurance, your credit card, or a third-party policy—is as comprehensive or convenient. 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. In many cases, if your regular auto insurance covers collision damage to your insured car, it also covers damage to a short-term rental. You should never get behind the wheel of a car—or lawnmower, for that matter—without liability protection. For info on these editor-selected items, click to visit the seller’s site. Or, if your personal vehicle is in the shop being repaired, the anticipated repair cost may … I took car hire excess insurance with Worldwideinsure.. Typically, a CDW starts at around $30 per day and can go higher. It’s a good idea to understand rental car insurance products before you pick up your car. I recently thought I had complete coverage though a credit card, but when my car suffered a small dent, the car rental company flat-out refused to document that it actually lost income from having the car rental in the shop (which took three weeks to repair a small dent). Insurance. 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. Another gotcha in the above fine print: This card (and many others) pays for loss of use only if verified by the rental company’s log. Born in Evanston, Illinois, Perkins lives in Ashland, Oregon with his wife. They also charge for: Most non-CDW car rental insurance will cover those extras. But it doesn’t need to be expensive if you shop around. 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. He was also the co-author of the annual "Best Travel Deals" series from Consumers Union. It all sounded great until I submitted my claim. Insurance. “Loss of use,” meaning the potential revenue lost while the car is out of service being fixed, even if the company had lots of other cars available. 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. These days, most credit cards provide “free” collision coverage for car rentals, provided you use the card to secure the rental. Your personal auto coverage does not cover vehicles like moving trucks. Unfortunately, I didn’t have “rental reimbursement” insurance so my insurance company will not provide me with a rental car. The rental company may charge a deposit on your debit card and then refund the money when you return the car in good condition. Car rental companies in most countries are required by law to include liability insurance. Car Rental Insurance Cost. If you don't have a card which offers rental insurance, then I would definitely get the insurance offered by the car rental company. You may wonder if it’s worthwhile to buy car rental insurance coverage offered by the rental car company. Things you buy may earn us a commission. Some products are sent to us free of charge with no incentive to offer a favorable review. Most car rental insurance policies carry personal effects coverage, which covers any personal items damaged in a collision or stolen from the rental car. Excess charges are way higher than you expect. No matter how often I cover the problems that come with collision damage under car rental insurance, consumers continue to share their frustrations. More premium credit cards are likely to cover collision or loss damage to the rental car similar to what car rental company insurance offers. Similarly, many credit cards also cover rental cars. It sometimes costs even more than the base car rental rate. Be the first to discover secret destinations, travel hacks, and more. 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 nationally recognized reporter, writer, and consumer advocate, Ed Perkins focuses on how travelers can find the best deals and avoid scams. You don’t need it. The additional coverage will also help you avoid the hassle of filing a claim in a foreign country. How does gap insurance work? But we can all agree that insurance premiums are out of control! If you rent a car through one of the big online travel agencies (OTA) such as Expedia or Priceline, the agency normally offers you the option to buy collision coverage for around $10 a day. No Comments . By proceeding, you agree to our Privacy Policy and Terms of Use. All items are in stock and prices are accurate at the time of publication. Car rental companies in most countries are required by law to include liability insurance. So the car hire firms try to persuade you into buying super CDW insurance to cover this first £500-£1,000. | Administrative fees associated with the claims process. 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. The cost is a lot less than the rental company’s CDW, but, as with credit card coverage, if you damage the car, you have to pay up front and claim later. Shop around to find the cheapest deal and avoid buying insurance directly from your rental company. All Rights Reserved. You could be saving hundreds! If you’re unwilling to accept any risk at all, you might want to buy that overpriced CDW. Gap insurance is not coverage for your brand-new khakis. Still, your best bet is to make sure you’re covered 24/7 with your own insurance so you can forget about the rental company’s overpriced insurance. 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? That's usually because the optional collision … The short answer: Sometimes. You can cover your major damage responsibility by relying on your own insurance, a credit card with insurance, or a third-party policy. Wonder the agents push it so hard: it ’ s site it 's all about weighing your risk your. 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