All items are in stock and prices are accurate at the time of publication. Is it really worth it?” And every year we give our clients the same black and white answer… it depends. At the car rental counter, when asked if they want insurance for their rental car, many travelers say "no." Car rental services has allowed people to enjoy successful trips without bringing their own cars. Fewer insurance companies cover their customers who rent cars internationally, so, again, contact your company to find out your policy provisions. Gap insurance is not coverage for your brand-new khakis. It’s a good idea to understand rental car insurance products before you pick up your car. Excess charges are way higher than you expect. 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 is it right for you? 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. This means you would have to pay for any damage up to the value of £1,000. © 2021 Smarter Travel Media LLC. Your personal auto insurance extends and covers you while driving a rental the exact same way as if you were driving your car. 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. 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. A nationally recognized reporter, writer, and consumer advocate, Ed Perkins focuses on how travelers can find the best deals and avoid scams. This experience is uncommon, but not unique. 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? 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. Unfortunately, says Kissell, "There is no easy way to say whether the cost of car rental agency insurance is 'worth it'. 7 Minute Read The founding editor of the Consumer Reports Travel Letter, he continues to inform travelers and fight consumer abuse every day at SmarterTravel. Lots of travelers successfully rely on lower-cost alternatives to CDW without encountering any problems, sure. Some products are sent to us free of charge with no incentive to offer a favorable review. Advertisement . 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. Administrative fees associated with the claims process. Many drivers have to pay out between $10 – $30 per day for a loss damage waiver. 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.. 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. These excess amounts can sometimes be as much as $8,000. You should never get behind the wheel of a car—or lawnmower, for that matter—without liability protection. 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 … 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. 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? Reasonable and customary towing charges related to a covered loss to take the vehicle to the nearest qualified repair facility.”. “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. | 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. Born in Evanston, Illinois, Perkins lives in Ashland, Oregon with his wife. If you don’t buy CDW, rental companies can charge for more than just fixing the damage. 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. These days, most credit cards provide “free” collision coverage for car rentals, provided you use the card to secure the rental. 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. Major Credit Cards - Many credit card companies, such as American Express, offer secondary Collision Insurance, that means that if you have a primary policy such as Personal Auto, the AMEX insurance only kicks in after the limits of your Personal Auto have expired. That coverage is provided by a third-party insurance company such as Allianz. If you want that full flexibility and peace of mind, pay for CDW. Some credit cards offer insurance when you rent a car using your card that covers the rental car if you’re in an accident or if the rental car is stolen or damaged. 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. “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. But always check with your insurance company before you pick up your rental car to be sure. Insurance. Occasionally, however, your own insurance, credit card, or third-party policy may not cover an unusual charge a rental company might impose. | 6 Minute Read By proceeding, you agree to our Privacy Policy and Terms of Use. 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. 1. Typically, a CDW starts at around $30 per day and can go higher. If you hire a car, excess insurance could save you a lot of money. Here's my story. It sometimes costs even more than the base car rental rate. 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 . Okay, I'm ready to compare. Here are some tips that can help you save some money on insurance. Here's what to know about each. How does gap insurance work? More premium credit cards are likely to cover collision or loss damage to the rental car similar to what car rental company insurance offers. Sign up for our free newsletter. Consumer advocate Ed Perkins has been writing about travel for more than three decades. 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. Or, if your personal vehicle is in the shop being repaired, the anticipated repair cost may … The additional coverage will also help you avoid the hassle of filing a claim in a foreign country. Our guide will explain the 4 main reasons why car rental excess insurance is worth it. Editor’s note: This is a recurring post, regularly updated with new information.. 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. Hire car companies can apply a £1,000 excess while you are renting a vehicle. Here’s what you need to know before you shell out for car rental insurance on your next vacation. You can also buy collision coverage independently: Bonzah, for example, sells coverage at around $9 per day. There are exceptions, of course. I took car hire excess insurance with Worldwideinsure.. 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