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Mandatory car rental insurance?

February 8, 2007

Car rental insiders know that in a business with razor-thin margins, the only way to make anything resembling a profit is to persuade customers to buy “extras” like upgrades or optional insurance.

Or maybe not-so-optional insurance.

Here’s a new case where a hapless renter gets socked with an “optional” car rental insurance bill.

An isolated incident? Hardly.

Here’s another one. And another. And another.

How pervasive is the upsell problem? I spoke with a former car rental employee, and the answers are … revealing.

My advice?

Carry evidence of your car insurance with you when you rent. Check the fine print on your rental agreement to make sure that your insurance is valid with the class of car you’re renting. And double-check with your credit card, if you’re relying on its coverage, to ensure that your rental company will allow it.

If you do your due diligence, you can resist the hard-sell at the counter. Never be afraid to ask for a supervisor if things get out of hand, as they often do.

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

4 comments

  • http://blogjordan.com/ Dean Peters

    One other thing to note – be ready to have your deductible held hostage even if you’re in an accident that’s not your fault.

    A few years back I rented from Enterprise – noting that my auto insurance, credit card and auto club all covered accidents – as I declined the rental insurance. I was asked for the amount of my deductible on my auto insurance.

    The next day while in the rental, an individual decided to turn left across three lanes oncoming traffic, I being the unfortunate schlub in lane 3, was denied right-of-way and we collided.

    Even though the police officer – and oh yes, I refused to move off the road until an officer got there as it was not my vehicle – cited the other driver, Enterprise held my deductible until they could get the other individual’s insurance company to pay.

    It was almost 2 months until I got “my money” back in the form of a check. Of course, no interest was applied for this little loan.

  • http://www.aloveofbooks.com Lara Black

    I have to reply to this comment, even though it is several months later.

    I am a former Enterprise Rent-a-car employee. Yes, your deductible was taken for an accident that wasn’t your fault. But guess what?

    YOU are the party responsible for the car YOU rent. Yes they held your deductible “hostage” until they got paid by the other party’s insurance. What would have happened if the at-fault part was uninsured? You got it! YOU and YOUR insurance would have been responsible for the repairs to the car YOU rented.

    Don’t want to give up your deductible? Really simple solution: Take the damage waiver. Then you don’t have to even go through your insurance to repair the rental car, regardless of who is at fault in an accident.

    Taking the damage waiver makes a lot of sense, particularly when the total cost of the damage waiver is going to be less than your deductible. Example, say DW = $9.00 per day, times 5 days of rental, Total = $45.00. That’s really cheap for peace of mind that you’re not going to end up paying out a $500 deductible because of an uninsured motorist who hit your rental. Nothing happens? Still really cheap for peace of mind.

  • Jack Bauer

    To Lara:

    Now I have to reply to YOU: Are YOU really sure that the Damage Waiver will ward off the deductible? Because I got the DW when I rented a car, and my card was charged anyway…Or is it that YOU get a cut from these very profitable fees customers pay for rentals? hmmmmm?

  • http://www.carhireexcess.ie/ Car Hire Insurance

    You are right. You must carry proofs of your car insurance when you lease. Also there is a great need of checking the credit card. You posted beneficial information. It would be beneficial for the people.

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