How to Save Money

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They ask if you have insurance….they do not require proof that you have insurance. You do sign a line that acknowledges that you do have insurance, and that you decline their insurance. Unfortunately, what the rental companies care about is their cars — in other words, all they care about is the collision portion of auto insurance. They want to make sure that their cars will be repaired. So even if you DO have liability insurance, they don’t really care about that. Because it’s not the liability portion that is going to pay for their damages to their car. It is the collision portion. Here’s how insurance works for rental car companies — they have coverage for their cars. They have a standard deductible – usually $1,000. If you have an accident in one of their cars, they want their deductible from you – nothing more, nothing less. Most insurance companies will cover you for that much if you rent a car,
if you have collision coverage on your car. If not, then you can either purchase the insurance from the rental car company, covering you for their deductible, or it will come out of your pocket. Bottom line, though…if you’re driving a rental car and hit someone and the accident is your fault, all the rental company cares about is that deductible. They don’t care about liability insurance or anything else. Just damage to their car. That’s where their interest stops. This is why they aren’t real concerned about whether or not you have insurance. In your son’s case….even if the person who hit him had taken out the insurance with the rental company, the only thing that would have been paid is the damage to the rental car. It’s the driver’s responsibility to make sure he is properly covered for liability. Unfortunately, there are a lot of uninsured drivers out there in this country, especially in states (like
Wisconsin) that do not have mandatory insurance laws. Now….does your son have an automobile insurance policy? If so, he likely has uninsured motorist coverage….that’s one outlet he would have. KP

Elizabeth Farnsworth <1_nation_under_god@comcast.net> wrote: speaking of car rental places…..is it not their responsibility to make sure a person renting one of their cars has insurance or makes them buy their insurance? My son had this happen and someone
hit him while driving a rental….will the rental place give him copies of all his rental records? no….and he cannot prove anything because his backpack with all important papers including his identity were stolen. Elizabeth Farnsworth

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Original Message
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From: Karen Pierce To: Budget101_@yahoogroups.com Sent: Thursday, January 31, 2008 5:16 AM Subject: Re: Budget101.com : Re:How to Save Money
What the rental car companies want to charge you for is their deductible with their insurance company. If their deductible is $1,000, which isn’t at all unusual, that is what they will charge you, unless you pay for their insurance — which is outrageous in cost, especially since all you are doing is buying coverage for their deductible.

Check with your auto insurance carrier — most of them treat rental cars as “temporary replacement vehicles” and cover you for damage to rental cars, up to $1,000.

KP

Thomas & Tracy Harris <tkwh1970@hughes.net> wrote:
shoot, must be something with Chicago area, I got a letter a couple of weeks ago that I,

Karen PierceBrookfield, WI

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