Rental car insurance for driving in the U.S.

Hi all,

I'll be in the US soon and need to rent a car there for about 10 days. I'd rather not spend the same amount as the rental costs (but it's likely to be more) on insuring the car by purchasing the insurance from the rental car company. Incidentally, I don't own a car here and so I don't have car insurance here.

Orbitz, CheapTickets and Travelocity all have offers of car insurance via AccessAmerica, but this is valid only for US residents (or non US-residents who have resided there for at least 6 months prior to the rental period). This is the same with AIG's international travel insurance. Any ideas on where I can purchase insurance here that'll cover my rental there?

Thanks!

If you use an american express card, you can add the rental insurance benefit for about $20, i believe. It goes into effect when you use your card to pick up the car and is valid for about a month thereafter.

My husband and I recently traveled to the US and had a similar problem. We found two web sites http://www.autoeurope.com/ and http://www.holidayautos.de/v2/buchen/home...0285169720& I hope this helps. We used autoeurope.com and it worked out great.

@nwhalen: Thanks! but would you believe it... AMEX haven't yet processed my global card transfer (I've already called them thrice), and the morons won't send me a replacement card because I don't have a US address any more (that bit's understandable... but they won't even help me transfer my card here).

@darkangel: Thanks - I'll check it out.

If you're going to Chicago I've got a car for you, insurance included.

now, I wish I were going to Chicago ... but I'll be in the DC area.

That is annoying! Do you need a car daily in DC? what about a service like zipcar that you rent hourly/daily - I believe insurance is included, I know there were tons of cars around DC/nova/maryland when I lived there a few years ago:

www.zipcar.com

When you rent a rental car in the US the rental company will offer it to you in your contract, usually about 7 to 10 dollars per day (sometimes less). So there is no need to purchase additional Insurance. Call the company you are renting from and ask them to add this to your rental contract. Alot of them also have a gas insurance - which is usually about 20 to 30 bucks flat rate depending on the vehicle so you don't have to worry about filling it up when you bring it back - that insurance is optional, so if you don't purchase the gas insurance make sure you remember to fill the car up.

If you aren't a US resident you are probably going to have to pay their insurance - unless the car insurance you purchase meets their requirements. You might find this to be difficult and what they will likely stipulate to you is that you will be liable for any damages and you will have pay them directly and then you will have to collect back from your insurance company. This is perfectly legal for them to do so don't be shocked.

The Lufthansa gold credit card costs €95 per annum and includes all the CDW/LDW insurances you might want when hiring a car in North America. It works out cheaper than the rental companies' charges after a few days of renting.

@nwhalen: Note I said the DC area - Actually I'll be in DC/Northern VA for a few days, then down to Richmond, around Central VA and also possibly into Maryland. So... zipcar would be useful for a day but not for the week.

@devilwearsnada: I'm familiar with the insurance options that the rental companies offer in the US (I lived there for a long time before moving here...). It appears that both autoeurope.de and holidayautos.de offer the same type of insurance that the rental companies might offer, for less; but I'm not aware of whether that meets the requirements or not. This is no doubt a trade-off and the worst case is that I purchase insurance there. I'd just rather get something here if I can get it

Maybe I should just chuck the Deutsche Bank Gold mastercard I already have, it offers no such protection... and get the Lufthansa one instead

If you book through any European-based agency, the prices will usually include insurance. Try the usuals like Expedia and Opodo.

I'll try that too. Thanks! Although isn't Expedia based out of the US?

Are you sure about that?? Most gold cards include insurance, this is from the DB website:

QUOTE

</H2>

Yes, but if you go to Expedia.de or Expedia.co.uk, then this is irrelevant.

I just checked and it appears it does cover rental insurance! On the other hand, the card I have isn't the type that lets me keep a minimum balance (although that's really a recipe for disaster, such a provision is better when I make travel purchases) - do you know if that makes a difference?

Do you also know if Rechtsschutzversicherung is the same as LDW or CDW? thanks!

The fact that you have insurance or not is irrelevant to the rental agency. They are insured under state law so that you can legally drive them without purchasing their insurance, however, that means that if you get in an accident then you are liable for the damages. If you purchase insurance in Germany and they say they will cover you, than that's not a problem. Usually insurance payments are made directly to the renter anyways, as the rental agency has already charged your credit card for the damage. If you take the CDW from the Agency itself, all of this is avoided (including loss of use charges) which most insurance companies will not pay for. This is the amount the rental agency losses while the car is being repaired (you'd be responsible for that as well) Get the CDW and Liability from the agency and avoid the whole mess...just my advice.

Yep. I understand that.


That's what I'd like to have ideally - What I'm NOT certain of, is whether the insurance covered by the gold credit card (or the insurance provided by the partner insurance companies of expedia/ebookers.com, etc.) provides this assurance.


Yes, I understand that too. However, *if* the rental car insurance provided by my credit-card protects me, then doesn't the card company absorb the payment even though it appears as a charge on my card? Of course, I'm sure I'll have to talk to the card company and explain the situation. I'm also aware that it depends on the exact nature of the coverage provided by the card and who's at fault, etc.


Agreed. I've already considered this as a *last* recourse. Thanks.

tennis player - You're getting alot of good advice on here in some cases. However, don't forget they have the right to refuse to accept your insurance unless it is issued by the state you are renting Also, the fact you are taking it into different states may also be a problem, so make sure you are covered in the event that you do that and make sure the rental agency allows you to do this. Make sure you also tell them you will be. I realize these states are all close together, but they have different laws and if you look through the fine print of your rental contract you may see it specifically states you cannot take it across the state line you rented it in or your contract is void. In some cases they will consider the car stolen should you do this. Alot of agencies have trackers like Lo-Jack in their vehicles and they will know if you do it. You can also make arrangements with the rental agency to take it into different states it just might cost you a little more.

You might want to contact the local AAA in the state you're going to. They can probably write you a short policy to cover you in which case it will be good in all of those states and your rental agency will accept it.

I was a licensed underwriter in the US, and before that a licensed sales person - licensed for 48 states. Trust me on this one mmmk.

Thanks. I appreciate it! As I mentioned before, I've rented cars in the US when I lived in VA, so I do know to inform them that I'll be travelling out of state. Incidentally, Washington *Dulles* is in the state of Virginia, and when renting in VA, travelling to DC and MD is added when you tell the renting agency that you intend to go to DC - Presumably because the beltway goes through all three areas.

I wasn't aware of the AAA being able to write me a short term policy, so I'll check that out too - I'd prefer to pay in USD there than in Euro or GBP here given the current exchange rate However, I'm not sure if most short term insurances in the US require you to be resident in the US as well... this was the initial problem with just getting the rental insurance offered by AIG or AccessAmerica in partnership with Orbitz/ CheapTickets, etc. I was also not aware that the rental agencies have the right to refuse external insurance unless it comes from the state, but I'm presuming that agencies like Hertz or Avis or Budget, which operate internationally, have a lot of travellers who already come insured.

I do miss a good south park episode every now and then... the German dubbed versions just don't do it for me

You can catch them on http://www11.alluc.org/alluc/tv-shows.html you don't have to download anything. South Park jokes aside what I said was serious

HI Tennis - sorry didn't see this when I responded to your last post about south park.

They can refuse any insurance they do not feel meets their requirements. For Instance, you have a policy that covers liability and your own medical, but your policy does not pay for Comprehensive or Collision then you're policy is no good to them because they want the car covered. They don't care about you - which is unfortunate. They will also want to see that you have adequate liability limits in case you harm someone or someones property while you are driving their car - things will get sticky for them because they can be sued right along with you. So if you have the minimum like 15/30 that isn't going satisfy them.

If you go with a larger chain like Hertz or Avis you're going to get better service as an international customer anyway. If you are going to use insurance through your credit card make sure you bring a copy of the policy with you showing its limits and what kind of claims it covers (Comprehensive - You get a broken window or a scratch on the hood, Collision- You hit someone or they hit you, Liability- some companies will say they will pay up to a certain amount per claim or per person involved in the accident.) This has to be spelled out very clearly or you run the risk of it not being accepted.

In California AAA offers Insurance for people driving into Canada and Mexico. You don't have to be a resident, or you didn't when I sold it. In any event, before you buy a policy - call the rental company and ask them if they will accept it.

Good luck, and have fun in the states.

Thanks I looked up the AAA website and so far all I could find was short term insurance for foreign drivers who have their own vehicles. Nothing yet about rental vehicles. They didn't even mention whether short term insurance requires you to be a resident. As far as I can tell, most insurance companies in the US will not provide insurance unless one is a resident, which I'm not.

Any insights about that? Per chance, any link to where I can find short-term rental insurance on the AAA website or do I have to call them up?

My credit card covers liability insurance but not collision. On the other hand Expedia, holidayautos.de and ebookers.com state that they cover liability and collision.

EDIT: Actually, I double checked and both holidayautos.de and Ebookers.com offer comprehensive coverage. From what I understood about comprehensive coverage when I had it for my own car in the US, comprehensive offers collision + liability?

Do you mean a resident of california? I mean a resident of the US.


Thanks I'm looking forward to going back

The AAA (automobile club) has two basic requirements for car insurance policies. 1) you have to be a member which costs about $45 a year I think for basic coverage - don't remember since mine gets charged to my credit card automatically. 2) You must have a valid drivers license in the state the policy is being issued. In order to have a valid driver's license in a state, you must be a resident and be able to prove it by providing the Department of Motor Vehicles (California) official proof off their list like utility bill. They also typically like to see that you had a good driving record and no at fault claims with another company for a year or 2. The underwriting department only likes low-risk drivers.

You can buy a policy to cover you as a driver and not a car. All my family has AAA auto insurance. Not the cheapest but great service and since we have been insured with them for so many years we get a "Dividend" discount. When my dad sold his 2 cars and did not have a car till he decided on his next purchase he had AAA cover him as a driver. Not expensive - something like $300 odd dollars for FULL Coverage for a year.

You can buy policies to drive YOUR car into Mexico and Canada but those policies are typically offered for current customers who are not covered by their normal AAA policy in the US once they drive 30 / 50 miles past the border line (or what ever the official mileage is).

The best thing for you to do is probably buy the car insurance through the rental company. Peace of mind. You will know you are COVERED and they will handle all damages to other party and your rental. You won't have to worry about it.

American credit cards do offer insurance on rentals like American Express Platinum but I'm not sure about the international implications. I currently rent a car in Germany until we buy or lease one. I charge the rental on my Platinum card but also buy Sixt's insurance. Just peace of mind.

OK. That's good to know. Since I'm not a resident of the US or a state in the US, and have turned in my US driving license for a German one since coming here, AAA will probably not insure me when I rent a car there. Nor will most other insurance companies based out of the US.


I worked out the insurance costs - the rental is about $180. The insurance is about $400!! - While that may give me peace of mind (I have no disagreements with that) I'm just looking to see if I can find something a little more affordable and reasonable.

I wonder if someone has had a bad experience with the rental insurance provided via Expedia or Ebookers.com - they claim to provide comprehensive and liability coverage.

Wow, that's expensive rental insurance. Try credit card coverage but call and ask about any fine print. I have only had experience with Expedia for hotel rooms and I once had the hotel I was staying at booked - Orange Bowl (Miami) whole city was booked. Hotels will give preference to their reservations versus online discount websites. I was told I needed to discuss the overbooking with Expedia. In the end, I was able to get a room but I now only book through hotel websites.

Good luck.