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As others have mentioned, it's about profits. But if I'm not using my own personal insurance, I use the premium Amex rental insurance, which gives you something like $50k worth of collision for a rental (up to 40 days for a single rental) for a total of between $19.99-$29.99. Liability isn't covered with the Amex option, so that's something to consider.
Most people don't rent a car for a month. You don't need to pay extra for insurance to see that renting a car for a month is ridiculous option.
You'd be lucky to find one for $50/day, that's $1500/mth...JUST FOR THE CAR. Most would be closer to $3K.
So insurance is just one of your many expenses when you're renting a car. Consider it part of the vacation cost.
Meantime - i rent often - and, um, I can confirm, that yep, people in rentals do tend to NOT take the same care as they would with their own vehicle. Nor do they always confess their "crimes." Rental insurance works both ways.
I have a relative that rented in Seattle for 8 weeks, it was $3200 for a nice Camry but they had a corporate discount code. It was cheaper to rent than ship a car out/back.
That seems to be the standard line because they need to "sell" it, so make people see the "chance" they are taking and, in their impatience, they wont take the time to think about, they sign up for the insurance and pay the fee.
......
Bottom line is that driving is a risk. You have insurance to protect you. Might as well use it as your driving anyway, whether in a rental or your own.
Yet you, yourself got the insurance.....
You seem to denigrate the idea of getting the rental insurance, and infer that people are talked into paying for something that's not beneficial, when you got the insurance, benefitted from it and were able to completely walk away from a rental accident where you may have totaled the car -- and did cost the company loss of use. So I guess rental car insurance wasn't so ill-advised after all, was it?
Quote:
Originally Posted by marlinfshr
I remember one time I splurged, years ago, and got the insurance as I was unclear whether I was covered or not. Hit a deer on the eastern Shore of VA .....
......destroyed right side of front. .......and hit one of those concrete posts that stop idiots like me from plowing into the store. Yep, destroyed the other drivers side. Rental company sent a flatbed with another car on it and we did a swap. Never heard from them about it as all was good......
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,550 posts, read 81,103,317 times
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Most of us have 2-3 cars and can get by while one is being repaired, or will have rentals as part of their insurance plan. The difference with rental cars is that besides the cost of repairs, they are without the ability to rent that vehicle. With the shortage of part and labor it takes a lot more time for crash repairs now, and every day they are losing the rent revenue. For their insurance to cover that loss is very expensive and of course will be passed along to the renters. This is why our insurance agent is now recommending that we get the rental company's insurance, ours covers the damage but not "loss of use." The full coverage can double the daily cost of a rental car but it's well worth it, to not have to worry about a big out-of-pocket expense if you get into an accident.
Most of us have 2-3 cars and can get by while one is being repaired, or will have rentals as part of their insurance plan. The difference with rental cars is that besides the cost of repairs, they are without the ability to rent that vehicle. With the shortage of part and labor it takes a lot more time for crash repairs now, and every day they are losing the rent revenue. For their insurance to cover that loss is very expensive and of course will be passed along to the renters. This is why our insurance agent is now recommending that we get the rental company's insurance, ours covers the damage but not "loss of use." The full coverage can double the daily cost of a rental car but it's well worth it, to not have to worry about a big out-of-pocket expense if you get into an accident.
And I think that is absurd. In order to avoid one small risk, you dramatically increase the price of the rental by buying an insurance that you shouldn't have to buy. People need to wake up. There are many risks in life and there are risks far more significant than the one you have described. On a trip to Spain about eight years ago, I came within a couple of feet of being run down by a speeding car. That's a real risk.....
No one is ever going to talk me into car rental insurance on the off chance that the vehicle will be damaged in an accident and I might have to pay "for loss of use" while it was repaired.
Geez....to even think that paying for my own insurance on my car and having a credit card that pays for the deductible portion of expenses is somehow "not enough".
If someone wants the insurance so that an accident in the rental is not counted against their own insurance, I understand that perfectly.
That rental insurance is a pittance compared to and cheaper than the three years of premium increase the person would be charged.
Clearly -- even though odds are they won't have a rental accident -- they don't want to take even that little chance.
Except it might still be counted against your insurance. Rental "insurance" is a damage waiver. If you damage the rental car or it gets stolen, it covers that. If you aren't paying attention though and rear-end another car it's your insurance that covers the damages to the other car.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,550 posts, read 81,103,317 times
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Quote:
Originally Posted by CityDealsLynn
I've often wondered the same thing. It seems like rental car insurance is just another way for companies to pad their profits. They play on our worries, charging high fees for something that might not even be necessary. I've never opted for it myself; my regular car insurance should cover me when I'm driving a rental, right? It's frustrating how they can get away with charging so much for something that feels like it should be included.
Your regular insurance will cover all but loss of use, and that adds up fast. For one person posting to a local group, a rental car company was charging for “loss of use” at $112 per day, the rental car was only $38 a day. Yes, it's definitely a way for them to make money but I prefer not to leave it to chance.
Your regular insurance will cover all but loss of use, and that adds up fast. For one person posting to a local group, a rental car company was charging for “loss of use” at $112 per day, the rental car was only $38 a day. Yes, it's definitely a way for them to make money but I prefer not to leave it to chance.
Absolutely! Plus, remember at those loss of use rates, the rental company is in no hurry to press their preferred body shop (that they do business with on a constant basis) to finish the work in a timely fashion that will save the customer money.
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