Travel Insurance / Rental Car Insurance

Toddo

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Jun 28, 2002
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Are there any travel insurance policies that include rental car insurance. I have found a few that will cover the excess but none that cover the actual insurance. I have heard that it it a common thing for travel insurance to cover rental cars also, or has someone been yanking my chain?
 

skiflat

Old n' Crusty
Aug 10, 1999
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My travel insurance provided through American Express used to cover car rental excess, but it doesn't cover car rentals anymore.

I just take all the optional insurance when driving in the USA/Canada
 

Chalkie

A Local
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Jul 1, 2002
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Toddo said:
Are there any travel insurance policies that include rental car insurance. I have found a few that will cover the excess but none that cover the actual insurance. I have heard that it it a common thing for travel insurance to cover rental cars also, or has someone been yanking my chain?

I travel o/s regularly, and rent cars o/s regularly, and I've never heard of a travel insurance policy sold in Australia which will cover rental car insurance.

That said, you are right that there are a few products on the market which will cover the excess and damage to the vehicle, but in my opinion these are only really useful in Australia. When you look at the fine print of these policies, and understand how the rental car business works overseas, they're not much use.

Also, "insurance" that may be offered with a credit card needs to be looked at carefully as there are all sorts of limitations and conditions. I would never rely on credit card "insurance".

US insurance laws vary from State to State. You need to be very careful to ensure that you are covered against all of the eventualities that could arise when renting a car, for example:

1. Damage to the car.

This tends to be addressed in the US by "loss damage waiver" or "collision damage waiver". This isn't insurance - it is paying the car rental company for its agreement not to sue you to recover any damage to the vehicle while in your control.

2. Damage to another person's car.

This requires close attention. LDW or CDW doesn't cover third party property damage. A "liability insurance supplement" may be offered by the car rental company which covers this. Your travel insurance policy may cover this - but read the policy and fine print carefully.

3. Personal injury to yourself.

The cost of medical expenses should be covered by your travel insurance policy. Car rental companies may also offer "personal accident insurance". This is unlikely to be necessary when you are travelling with a comprehensive and good quality travel insurance policy.

4. Personal injury to another person.

Depending on the US state, there may be a compulsory third party scheme in operation. Again, car rental companies may offer "liability insurance supplement" to cover this. Your travel insurance policy may cover this as well - check the fine print carefully.

When I am travelling on business, I only have to get the LDW as my corporate insurance policy covers the rest. But when I am travelling for personal reasons, I always elect to take the CDW/LDW and the Liability Insurance Supplement. Yes, it adds to the cost of the vehicle hire, but when driving in unfamiliar conditions, on the wrong side of the road and possibly in inclement weather conditions (when on a skiing holiday), it pays to be well covered, especially in a country such as the US.
 
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skiflat

Old n' Crusty
Aug 10, 1999
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Chalkie: Excellent post - Cannot fault your facts
biggrin.gif


Yep an extra $25 a day all up to cover pretty much everything in the USA is not much with all things considered
 
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Toddo

One of Us
Jun 28, 2002
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thanks for the help, the extra $25 a day plus the extra $25 a day for being 24 is going to hurt!
 

skiflat

Old n' Crusty
Aug 10, 1999
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Don't quote me on $25 per day that's what I recall paying ROUGHLY!

Better though than a $5000 excess I think!
 

Toddo

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Jun 28, 2002
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AndDee said:
Don't quote me on $25 per day that's what I recall paying ROUGHLY!

Better though than a $5000 excess I think!

ahh i'm a little confused now, is the $25 / just insurance against the excess? or is it insurance for the car. for example if i write off a hire car will i be up for the excess for the car companies insurance, or the whole car?
 
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skiflat

Old n' Crusty
Aug 10, 1999
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Okay in that case
smile.gif


Basically no travel insurance will help you with rental car excess or damage as it's too costly.

In California, if you damage the car your liable for all costs, if it's stolen or written off. You MUST (in my opinion) purchase LDW (Loss Damage Wavier) which ranges from $9 per day to $34 per day depending on the car. This will

"However Hertz offers Loss Damage Waiver (LDW) an optional service, which for an additional daily charge relieves you of all financial responsibility for the loss or damage to the rental car, whether or not you have insurance to cover such damage, provided the car is used in accordance with the terms of the Rental Agreement."

I would also take the following: "LIS provides coverage for you and other authorized operators of your rental vehicle for third party claims. This is around $12.95 per day.

Your final choice is "Personal Accident Insurance / Personal Effects Coverage" Usually this is covered by your travel insurance anyways, but it's $5.95 per day so I take it.

Take all three and then not worry. Your basically "stupid" if you don't take the "LDW"

That help ?
smile.gif


Oh and this is my opinion only, check everything for yourself on the rental car websites!
 
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CarveMan

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Chalkie's post is spot on.

I've never found travel insurance that completely covers a rental car, just the excess on the insurance you get from the Insurance company.

It's a complete PITA as the insurance just about double the cost of the car.
 

Fest

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Chalkie's post is exactly correct. So full of correctness that I will now use his "insurance" in inverted commas to describe credit card "insurance" whenever I'm telling customers about it.

Don't rely on credit card insurance. If you do, get a policy number and emergency contact number. Without it, credit card "insurance" may let you down when you need it most.
 

Toddo

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Jun 28, 2002
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thanks for the help!

looks like this whole hiring a car thing might be a little too exy...
 

skiflat

Old n' Crusty
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Toddo said:
thanks for the help!

looks like this whole hiring a car thing might be a little too exy...

Yes and no, depends on how much driving around you want to do and/or how many transfers via van you would need to pay for.

I am hiring a car for my Kelowna to Silver Star, Silver Star to Big White and then Big White to Kelowna airport trip next week :D:D:D

The 4WD for about 4 weeks was around $1200USD + petrol. This is Jeep Cherokee so one of the nicer cars to rent from this location. You can get much cheaper cars as well

Transfers via basic Ford Vans was going to be around $850+Tips.

This would mean no stopping for shopping, groceries or anything else off the mountain we may want to do! Also waiting around for other people etc etc.

So for me it was a no brainier and went with the 4WD.
 
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Toddo

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Jun 28, 2002
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We are basically flying into san fran and driving up to south lake tahoe and staying there for a couple of weeks, so we still have plenty of resort options using the shuttles etc. Can get a rental to drive up there for under $100, so will probly do that and just rely on public transport.

For the full 2 week trip the car hire was going to cost US$1600 including insurance and under 25 extra ... little too much when we will be based in one area anyway.
 
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