Rental Car Insurance: Sucker Scam, Essential Protection or Luxury Item?
The scene: It’s 10:30PM and your standing at the desk of a rental car desk at the San Francisco airport. Your plane landed 45 minutes ago luggage intact at SFO, a surprisingly stress-free experience. Now MUST be the time to hope in the rental car and check into the hotel to enjoy trendy drinks. For some reason you’re still standing at this flippin’ car rental desk! Secretly, you long for your SUV safely ensconced at Midway Airport parking back in Chicago.
Behind said desk, some 19 year old former babysitter is still the practicing the same art of mediocrity for the rental company’s 4 wheeled babies. Your San Francisco reservations were placed online weeks ago for modest vehicle at a great price. A well practiced sales pitch to up-charge your daily fee seems like a bit much tonight. But, do you actually need the insurance to safely traverse the great interstate beyond SFO? Is rental car insurance designed to protect, separate you from your hard earned cash, or both?
Just try saying “no.” For our diligent and well-coached young clerk, it’s likely not quite enough. She dreams of that employee bonus jelly of the Month membership club and diligently hands you a protection plan form for sign-off in spite of your objections. Do you A) Sign up and pay for rental car insurance that you might already have or B) Stand up for your decision and crush her dreams. Before you make a choice, make sure you’ve done your homework first.
Know your car insurance and credit card policies. If you have car insurance or a credit card, you may well already be covered. Call your insurance company before you rent and ask specifically about Collision Damage Waiver and Liability coverage. Chances are your current auto plan already extends this protection to rental vehicles as well.
Don’t Take My Word For It
Should you pay for rental car insurance?, CNN.com
Risky Business: Should you ever buy rental car insurance?, Slate.com
Ask George: Is Additional Car Rental Insurance Required in Costa Rica?, blog.travelpost.com
Do I need insurance to rent a car? Insurance Information Institute
Are car rental companies double dipping on damage claims?, Elliott.org
Car Rental Insurance (CDW) Ripoffs, RickSteves.com
Beat the car hire insurance trick, anmBlog
Car Rental Insurance: Requirement or Scam?, TravelLogger.net
Your Summer Vacation, Your Rental Car and Your Insurance, personalinsure.about.com
Do you really need car rental insurance?, USAToday.com
Car Rental Agency Tips - Ensuring Your Insurance Policy, CarRentalExpress.com
Tags: Airport Parking, Car Rental Insurance, Midway, SFO
March 13th, 2008 at 9:16 pm
The last time I rented a car in SFO, my car was hit while parked in the parking lot of my hotel. I didn’t get the supplemental coverage and, because of my relatively high deductible for my regular car insurance, I ended up having to shell out $250 to cover what my insurance didn’t.
So, the only advice I have is that if your insurance has a high deductible, spending a little extra on the supplemental insurance may not be a bad wager.
March 14th, 2008 at 6:48 am
@Austin: Bummer. The way I think about it is that, when averaging the dozens of cars I rent every year (say 50 days) the savings in not buying insurance more than makes up for even a 1K hit.
March 20th, 2008 at 7:34 pm
Thanks for the info. I have my gold canopy service from Hertz and I LOVE IT!!!!!!!
March 21st, 2008 at 7:31 pm
I do not reguarly get the supplemental insurance when I rent a car but there were times I regretted it. One was when i got all these scratches over night while staying in Arizona that i guess some kids just keyed my car for no reason at all. If I had gotten the supplemental insurance I would not have had to bother with my own car insurance which was just a hassle. It did not cost me anything but a whole chunk of my time. Such a bummer.
August 11th, 2008 at 6:42 pm
Great report for car renters and the many useful links.