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RENTAL CARS -
The Insurance Question (continued)
d. Since adequate coverage is often already available from your own auto insurer and/or your credit card company, many people do not buy the Collision Damage Waiver and save a considerable amount of money. But it is important to remember, no matter what kind of coverage you have, always inspect the vehicle thoroughly for damage before you leave the rental car lot, and also make sure everything works on the car. And make sure any prior damage is noted on the rental agreement. Also, when you return the car and the rental company indicates that there is damage, do not hesitate to tell them that you do not feel you are responsible for the damage, if indeed that is the case. Items like windshields sometimes just crack on their own without any known impact, and rental car companies often will not pursue a claim for items like this.
2. Personal Accident Insurance or “PAI.” This insurance, usually less than $5 per day, will generally pay a death benefit and a portion of your medical expenses if you are in an accident. While, if an accident occurs, it’s great to have a lot of coverage, you probably already have this coverage in the form of your own medical insurance and own life insurance. For most people, this is an unnecessary expense.
3. Personal Effects Coverage (“PEC”) or Personal Effects Protection (“PEP”). This coverage generally costs less than $5 per day and covers your luggage for any damage. It may also cover for loss or theft. Deductibles may or may not apply. If you already have homeowner’s protection, this loss is probably already covered, although you may have a deductible. Check with your insurance company.
4. Coverage when you are renting a vehicle out of the country. When you plan on renting or driving a rental car outside the United States (even if the vehicle was rented within the United States), make sure you check to see what coverage for losses applies. Often, your own coverage from your auto policy or health policy may have many exceptions for international coverage. Coverage available from credit cards may also have significant exceptions. Make sure you check. And even if you purchase coverage from the rental car company, make sure it will still be good if you drive in another country (even if they allow you to drive the car in another country). For instance, coverage purchased from a rental company on a car rented in Arizona, may not be in effect if the car is driven in Mexico. Or coverage purchased on a car rented in Germany may not be any good if the car is driven in Poland. Make sure you check so you do not have any surprises.
The rental car business is famous for tacking on extra fees. Before you sign the rental agreement, make sure you understand all charges that will be applied to your rental, as well as all terms and conditions of the rental. And make sure you have all necessary paperwork when you leave the rental counter. Remember, if you have a problem on the road, your rental agreement also serves as your vehicle registration.
1. Fuel charges from rental companies can be quite expensive. Often, the rental company will offer to sell you a tank of gasoline for a “discounted” cost, which may be about the market cost or somewhat higher. If you buy this gas, you do not need to refill the tank when you return the vehicle. However, if you return the vehicle with anything other than an empty tank, you will lose the cost of the fuel in the tank. If you do not buy the “prepaid” fuel then make sure to fill up the tank right before you return the vehicle (but try to avoid gas stations near the airport because they are generally much higher priced). Should you return the vehicle with less than a full tank the rental company will charge you to fill up the tank at per gallon prices significantly greater than at the pump. And before you leave the rental lot with the car, make sure they gave you the full tank that they promised, or you will end up paying.
2. Mileage fees. Some rentals provide for unlimited miles driven and some have
a mileage restriction. If you go over the allotted number of miles the per mile
fee can be very high. When comparing rental deals, make sure to factor in this cost
if mileage is not unlimited. Often, if your deal does have a mileage limitation,
the rental car company will change the rental to unlimited miles if you ask when
you are making the reservation, or before you sign the rental agreement at check-
3. Additional driver fees. Many rental car companies will not charge an additional fee if you specify that you want an additional driver to be authorized to drive the vehicle. But some will. Make sure you understand if there will be a charge. In any case, if you plan on having someone else drive the car during the trip, make sure you tell the rental company up front and have the named driver incorporated into the rental agreement. If not, and you have an accident, all sorts of bad repercussions may occur. The same goes for underage drivers, which many rental companies define as anyone under 25.
4. Out-
5. Additional equipment. If you are also renting additional equipment from the rental company, such as car seats, ski racks, etc. understand any charges that apply. And make sure you reserve this equipment at the same time you reserve your car.
6. Deposits and refundable charges. Understand if you will be charged either a deposit or a refundable charge up front when you rent the vehicle. While you will get this charge back when you return the vehicle, it will tie up available credit on your credit card until you return the vehicle. In any case, make sure you get this deposit/charge back (probably as a credit to your final bill) when you return the car. And make sure you understand the company’s refund and cancellation policies.
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