Renting a car? What your insurance WON'T cover

Posted at 1:47 PM, Dec 07, 2016
and last updated 2016-12-08 09:43:46-05

"Do you want more than just the basic insurance today Mr. Ducey?"

Seems like a tricky way some rental car companies get you to pay for something you may not want. Or do you?

I always turn down rental car insurance. It can get expensive and I have my own insurance.

Then I heard about something called "loss of use." If you're in an accident, rental car companies charge for repair days they can't rent the car. It can be more than $100 a day. 

I'd have to pay it out of pocket because my insurance does not cover that and my credit card rental insurance also wouldn't cover it. I have a Citibank card.  

WalletHub lists them as best in a study of rental car insurance policies and they would cover loss of use.

If they are the primary insurance, but I have my own policy as primary.

So count on credit card coverage if you don't have auto insurance or if it's the primary coverage. American Express offers it for some cardholders at a minimal price.

Before renting:

  • Find out what your insurance company covers and ask about "loss of use."
  • Are you protected if it's a business trip?
  • Call your credit card providers and ask what's covered if you have your own insurance and if you don't.

Then decide if you really need a rental car plan. While their collision policy covers "loss of use," is the risk worth the cost?

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