Car rental

[Sunnydayz]

Hi, we've booked carrabien beach hotel and looking to rent a car for 1 week of our stay. Am I better doing this through disney when we arrive or through a rental company prior to our holiday?

 

[G00fyDad]

Rental cars are always cheapest 30-60 days in advance. We've found budget and Alamo to be the cheapest decent ones. Case in point, we have a full size for 10 days in august for $231. Several months ago that price was more like $500. And closer to the time, the price will shoot up again.

Don't bother with the rental insurance. If you must, get a AmEx. They have an add on insurance rental product for $20 a rental period for which you can sign up and which covers most of what the rental car companies would charge.

By not getting the insurance you may be saving yourself money in the short term, but if you have an accident the company will charge you a daily rental rate for the vehicle until it is fixed which could be a month or so.

 

[BrianV]

By not getting the insurance you may be saving yourself money in the short term, but if you have an accident the company will charge you a daily rental rate for the vehicle until it is fixed which could be a month or so.

You just have to balance out the risks. If you have your own auto insurance, you are likely covered for liability which is where the truly expensive things (hit a person, etc). Everything else is relatively small potatos. (Less than 50k)

Then your own auto insurance again may cover some of the auto damage to your car and the other car.

Finally, in some cases the credit card may cover some auto damage. We use an Amex and they have an added on option to make the credit card coverage primary, not secondary to your own insurance. You pay a very small fee for this option.

You are correct, depending on the accident they might try to stick you with one or more of several fees. Reports are mixed in how often this successfully takes place, but an internet review shows that typically it is 700 or 800$. Now I estimate that we've saved at least 5 thousand $ over 25 years of not paying those fees.

So I would characterize it differently. You might save short term if you pay the rental insurance fees AND get into an accident. But in the long term you will save by not paying those fees.

 

[G00fyDad]

You just have to balance out the risks. If you have your own auto insurance, you are likely covered for liability which is where the truly expensive things (hit a person, etc). Everything else is relatively small potatos. (Less than 50k)

Then your own auto insurance again may cover some of the auto damage to your car and the other car.

Finally, in some cases the credit card may cover some auto damage. We use an Amex and they have an added on option to make the credit card coverage primary, not secondary to your own insurance. You pay a very small fee for this option.

You are correct, depending on the accident they might try to stick you with one or more of several fees. Reports are mixed in how often this successfully takes place, but an internet review shows that typically it is 700 or 800$. Now I estimate that we've saved at least 5 thousand $ over 25 years of not paying those fees.

So I would characterize it differently. You might save short term if you pay the rental insurance fees AND get into an accident. But in the long term you will save by not paying those fees.

I agree, but I don't want to take that chance. You're right that your own insurance will cover nearly everything. However, the daily fees the places charge you add up and are not covered by your personal insurance. This is a fee that is clearly written into the contract you sign in the rental agreement. It allows the company to charge your card for daily rental fees that they would otherwise miss out on since the car is wrecked. Regardless of who is at fault in the accident. These fees are not usually the full amount of the rental you originally signed for and are typically much less, but the hit on your wallet is pretty extreme. It is a scam the companies use to make sure you take their insurance. It works for me since I do not feel like paying another $2k or $3k for this fee. I'll take their $100 - $150 insurance.

 

[englanddg]

In addition, you want to check with your insurance agent. Not all insurance policies cover rental vehicles. If you have Comp and Collision then, generally, the rental car endorsement is added by default. However, if you have cheaper state minimum liability only insurance, it may not offer much more than, well, liability! It really all depends on your policy. Even if you have insurance through a reputable company.

Do not take advice from the internet on your auto insurance. Call your company / agent and ask them directly if you have this coverage, or if you are so inclined you can read your plan documents. It will also be listed in them. But, in any case, confirm this before you make the decision to waive the third party coverage offered by the rental company.

Also, your CC company may provide gap insurance, and that is certainly worth looking into. It's not just Amex (though, Amex has the best, imho). Be sure you use THAT CARD to pay for the rental though (that's normally a provision to activate the Gap coverage).