Idiots Guide to US Car Insurance?

I'm keep getting asked "what is Collision Damage Waiver" and "Super Collision Damage Waiver" etc etc. and wondered as a result if there is such a thing as a web page that actually explains all the terms that (particularly)the US car hire firms come out with? Anyone know of such a page/site?

[mcmbenjamin]

A 'scam.' Well it is a profit taking program for the company and provides cover for people that would not otherwise. Also (normally) you would not have to report an auto accident to your personal car insurance company if you pay for the damage yourself or anyother way. The cover from the car rental company fills this gap.

Personally I have a amendment to my personal car insurance that extendeds my cover to rental cars (under retail value of ~$60,000 IIRC). Also my employer has a policy for when I rent for business and my AmEx covers me.

Do you need to buy the policy from the car rental company? Thats your call but ask yourself if you and all other drivers are covered otherwise and if you are and a claim was submitted to your cover source, would that increase your rates?

It was more of a simple "is there a web site or page that explains it all" that I can point people at, question really.

[Decker]

Typing CDW LDW EXPLAINED into Google has this as the first entry.

failing that - it should be explained clearly on the rental jacket that comes with the contract.

When I first travelled to the US, the only insurance 'recommended' (for which read mandatory) was CDW and of course it cost the traditional arm and leg on top of what you'd already bought here. How things move and how quickly - CDW is still there of course, but now there's a whole raft of other acronyms to describe the extra money milked from us. And then there are taxes on top.... I'm really pleased we can now buy the whole package over here, at least you know what the final figure is going to be - but even so, they do try and sting you for extras you don't want or need. My last trip - in May - we'd got a luxury category car (which isn't really) - when we picked the car up, the guy tried to sell us an upgrade, as they do, as we only had a 'basic' car! Hell no thanks. And when we got in the car, it had everything we wanted - a/c, decent stereo, power steering, electric everything.... the only thing it didn't have was sat nat - and we'd also been asked if we wanted to upgrade to that as well...such a scam....

How do people here feel about returning the car empty/full of gas? I think it's better to be able to return it empty - purely because most will wait until the last minute to fill it up, and, withouth exception, all the stations nearest to the car rental places charge top whack.

Originally posted by catsilversword

How do people here feel about returning the car empty/full of gas? I think it's better to be able to return it empty - purely because most will wait until the last minute to fill it up, and, withouth exception, all the stations nearest to the car rental places charge top whack.

I noticed that in the UK recently you can now prebuy your tank of "Gas" at quite a reasonable (for the UK)price per litre. What they don't tell you in the glossy advert is that is exactly what you are buying... A TANK of gas, even if you return the car half full. Also they don't tell you what size gas tank your car has.
Yet another Car rental scam to add to the list.... I however am very very daring when it comes to driving long distances with the "Empty" light on.[}:)] I'll probably take my own petrol can next time, and run the car till it dies, then put just enough in to get me to the rental office.

On the tank of gas point, most US rental firms will charge you an arm and a leg per litre of gas if you don't return it full. Hertz certainly do, and the mark-up if they have to refill the tank is ridiculously over the top.

Originally posted by PVGSLF

Originally posted by catsilversword

How do people here feel about returning the car empty/full of gas? I think it's better to be able to return it empty - purely because most will wait until the last minute to fill it up, and, withouth exception, all the stations nearest to the car rental places charge top whack.

I noticed that in the UK recently you can now prebuy your tank of "Gas" at quite a reasonable (for the UK)price per litre. What they don't tell you in the glossy advert is that is exactly what you are buying... A TANK of gas, even if you return the car half full. Also they don't tell you what size gas tank your car has.
Yet another Car rental scam to add to the list.... I however am very very daring when it comes to driving long distances with the "Empty" light on.[}:)] I'll probably take my own petrol can next time, and run the car till it dies, then put just enough in to get me to the rental office.

Where, unless you picked it up empty, they'll sting you for the difference between the amount in the tank when you picked it up and the amount in the tank when you arrive at the rental drop off. Not sure how they work this out, but it's a sting, as not only is the displayed per litre rate higher than the nearest petrol station but they then add VAT @ 17.5% on top. I got caught by this on a one way hire to Heathrow at Easter, where I couldn't find a petrol station near the rental return row. I know there are some around the terminals (never quite sure why...) but the routeplanner took us around the airport.

In the US I always use the prepaid tank option so I can return it empty if needed and save the hassle of a last minute search for a petrol station that demands "cash upfront" or wants to take my credit card and family hostage whilst I work out how much petrol I actually want to pump.

Paul

Originally posted by catsilversword
My last trip - in May - we'd got a luxury category car (which isn't really) - when we picked the car up, the guy tried to sell us an upgrade, as they do, as we only had a 'basic' car! Hell no thanks. And when we got in the car, it had everything we wanted - a/c, decent stereo, power steering, electric everything.... the only thing it didn't have was sat nat - and we'd also been asked if we wanted to upgrade to that as well...such a scam....

Not sure I'd class that as a scam, just blatant selling. That's other advantage of buying here and upfront; you just say no thanks. In my mind a scam is skimming extra off you when you aren't aware - the VAT on the per litre charge I mentioned in another post, and Ryanair's "Airport Taxes" which I read are "Airport Taxes plus a bit for us".

I've always had a soft spot for Dollar since our first trip to LA when they didn't have the car we'd booked but would we like a free upgrade to a shiny new just delivered Sebring convertible for your drive up Highway 1 ?

Paul

on the gas point

i know recently, that some people when having to return FULL, that they are now being asked when dropping the car off, for their receipt to prove its just been filled.

Now you might think, well, just show the receipt then.

But imagine you're late for your flight, you have kids and lots of luggage, you see the shuttle getting ready to depart for the airport - then you have to dig around for that little piece of paper, which you may have lost, cant find or indeed didn't get one.!

""... on the gas point

[ChuckC]

The lowest cost option for insurance is to check with your insurance carrier/agent before you rent: if you have existing coverage you don't need to buy more unless your coverage doesn't include "rented or hired" autos or excludes coverage outside your country of residence. On the other hand, and as Benjamin was alluding to above, if you have a poor driving record or your existing insurance is already surcharged due to where you live, what you drive or how you've mangled your driving record, then the CDW is probably money well spent.

Return all rental vehicles with a full tank of gas. Doing anything else will always cost you a great deal more money.

Regards,
Chuck-

Originally posted by vizbiz
"... on the gas point

i know recently, that some people when having to return FULL, that they are now being asked when dropping the car off, for their receipt to prove its just been filled.

Now you might think, well, just show the receipt then.

But imagine you're late for your flight, you have kids and lots of luggage, you see the shuttle getting ready to depart for the airport - then you have to dig around for that little piece of paper, which you may have lost, cant find or indeed didn't get one.!..."

I may be missing something here, but can't they turn the ignition on and simply look at the fuel gauge....?[?]

you would thinks so!![:(]

but recently at LAS, Dollar and Alamo have both been known to ask for receipt - you have to kick up a big fuss and go to the office to sort the problem IF they let you off.

Its just a rental rip-off..... [:(!] so just in case dont lose that receipt when flying out of LAS. Would assume however that more classy rental co. such as Hertz do not operate this practice.

On another point - we have Amex yearly insurance covering us for rental cars in US. The only company who insists to see a copy of the actual insurance, is Alamo!!

[Decker]

Chuck

It's very unusual for UK policies to cover this. Also unlike in the US most credit cards DON'T provide cover. In the US Gold Amex does - in the UK you need to be Platinum and until recently Centurion to get full cover. Now with the Amex reshuffle Platinum has better car hire cover than Centurion.

Most of the "Gold" cards in the US will provide coverage- I know when I was in the UK with my dad last year, his Discover Gold card covered our UK rental car.

There really is so many terms- and even when we go to the UK there's an odd amount of terms that we don't know.

Maybe we should try and come up with a guide, like the tier point guide, and have pete publish it on v-Flyer.