Before you get the damage waiver and liability waiver insurance coverage for that rental car from Enterprise or Avis or Dollar or Budget or whomever, check to see that you don’t already have that type of insurance for rental cars. Most auto insurance companies will cover rentals car if you are the driver at the time of an incident. If your auto insurance doesn’t already cover you, then oftentimes the credit card you use will offer auto insurance for free or for a cheaper price than the rental company (here’s an article on American Express’ car rental insurance program).
So, check your primary car insurance or your credit card first, then consider paying extra for the rental car insurance form the rental car company itself.
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[...] Daily Money Hacks, the car rental insurance scam is [...]
I used to work for erac and now I sell Home and Auto insurance. There are many factors to decide whether or not you need the “Collision Damage Waiver.”
1) If something happens the rental company will collect your deductible from you. Whether it be $100, $250, $500, and even $1000. This will show up as a claim and increase your insurance rates. Do you want to pay for a car you will never drive again?
2) The renter is responsible for the condition of the vehicle. This includes hail, or even a rock hitting the windshield on the highway.
3) Most of the credit cards are secondary and will only pay what is left after your insurance pays. Therefore you still pay your deductible. Also the card must be used as deposit AND payment or typically the card company won’t pay anything.
4) Where I live the “CDW” is $13.99 a day. So figure it out yourself if it is worth it. If you are going to have the car for a weekend then go ahead and get it. Anything over a week I typically didn’t recommend it.
5) If the something happens to the car. YOU will pay. Trust me.
6) When you pick up the car PAY ATTENTION during the vehicle inspection. Make sure every little thing is on the contract. This is the best way to protect yourself. Surprisingly most customers would just not look and initial the contract.
[...] Jim from Daily Money Hack suggests that we Don’t Get Rental Car Insurance and explains why. [...]
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