Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Rental Car Insurance Coverage, Redux
Old 01-11-2010, 05:30 PM   #1
Full time employment: Posting here.
 
Join Date: Sep 2009
Posts: 739
Rental Car Insurance Coverage, Redux

I flipped a coin whether to post this here or in travel, not a good fit either place really.

I saw one thread discussing a similar question but this aspect is much different.

We will be selling our only car in February to my daughter. So for 2-3 months I will have no car, and no car insurance.

I called my insurance company and asked about keeping the liability for use on rental cars during a road trip and the agent said, no way to do that.

One of the drivers will be a German exchange student that we are driving to Missouri, so quite a drive, and so paranoia kicked in as to what would happen if a major accident occurred while he was driving.

Would the rental company find some loop hole, some way (e.g. foreign license)? Guess the question is how legally binding are the rental car insurance policies? My worry is that at the car rental counter the person (clueless probably) will swear that the coverage is valid. But how do I know it really is?

Anyone ever encounter this or see related articles? Is my only recourse a state-by-state call to their insurance commissioners?
__________________

__________________
Zero is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-12-2010, 08:01 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
 
Join Date: Feb 2006
Location: Washington, DC
Posts: 8,646
Can't you just shop around for decent rates on insurance from the rental car companies? By the way, does your regular insurance cover some random stranger who you let drive a rental car?
__________________

__________________
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Old 01-12-2010, 08:28 AM   #3
Recycles dryer sheets
 
Join Date: Sep 2005
Posts: 101
I have seen this issue before.

Some people recommend to buy a junker and insure it for liability so you will be covered on a rental car.
__________________
burch64 is offline   Reply With Quote
Old 01-12-2010, 08:32 AM   #4
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
I imagine you'll be fine with the rental car co's insurance, or with your credit card co's insurance, as long as you register all drivers with the car company.

But if you're really worried, can you just loan your daughter the car in feb and sell it 3 months later, keeping it insured in the mean time? Maybe she could even reimburse you for part of the insurance, since she'll be covered by it in the interim.
__________________
Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 01-12-2010, 08:34 AM   #5
Full time employment: Posting here.
 
Join Date: Oct 2007
Location: New York
Posts: 898
I'm sure you could also download the insurance details from the rental co's website, or have them send them to you.

I asked for a copy of Visa's rental car insurance details before renting internationally, having similar concerns (I don't have a car or insurance)
__________________
Money's just something you need in case you don't die tomorrow.
Maurice is offline   Reply With Quote
Old 01-12-2010, 09:00 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Los Angeles area
Posts: 1,432
Quote:
Originally Posted by burch64 View Post
I have seen this issue before.

Some people recommend to buy a junker and insure it for liability so you will be covered on a rental car.
I have gone long periods without owning a vehicle, and have had non-owners liability-only insurance policies from AAA.
__________________
learn, work, save, invest, fire
CyclingInvestor is offline   Reply With Quote
Old 01-12-2010, 10:41 AM   #7
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,619
Quote:
Originally Posted by Zero View Post
One of the drivers will be a German exchange student that we are driving to Missouri, so quite a drive, and so paranoia kicked in as to what would happen if a major accident occurred while he was driving.
Would the rental company find some loop hole, some way (e.g. foreign license)? Guess the question is how legally binding are the rental car insurance policies? My worry is that at the car rental counter the person (clueless probably) will swear that the coverage is valid. But how do I know it really is?
Anyone ever encounter this or see related articles? Is my only recourse a state-by-state call to their insurance commissioners?
Are you overcomplicating this? You're already saving a ton of money by not having auto insurance.

Additional drivers of a rental car have to present their driver's license at the rental counter just as you, the renter, have to do. If the rental car company decides to add him as an additional driver then that's their insurance risk.

You could call the rental-car company and ask about their policies as well as the cost of their insurance (collision damage waiver, liability) that they'd sell you. Then you could decide who's offering the best deal. Even at $20/day you might still be ahead of the annual expense of a liability policy from a national car insurance company.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 01-12-2010, 11:56 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Since liability to others, rather than damage to the car you are renting, is the issue, I'd:

1. Look at a policy such as CyclingInvestor mentions above.

2. Check with your umbrella policy provider (again because it's liability to others you need to be worried about) to be sure that whatever the rental car company insurance provides meets their requirements.

Or both........
__________________

__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
NCUA insurance coverage question SecondCor521 FIRE and Money 9 04-04-2008 01:13 PM
Double Coverage Health Insurance mark500 Health and Early Retirement 3 02-04-2008 03:07 AM
Which insurance to buy for rental car? Olav23 FIRE and Money 8 10-31-2007 09:06 PM
Rental car accident REWahoo Other topics 24 07-30-2007 10:31 PM
Rental Car Insurance TromboneAl Other topics 11 03-19-2007 02:38 PM

 

 
All times are GMT -6. The time now is 02:31 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.