Car Insurance Savings I'd Forgotten

chisueOctober 15, 2011

This week I was talking to an insurance agent about possibly changing our carrier. I asked about coverage on rental cars to be sure we could decline extra coverage while we are on vacation. The agent said we were covered onthe rental, then asked how long we would be away. (Two months.)

Our premium works out to about $50/month. She said we could suspend all but basic coverage while we are away, making our premium for those two months about $9/month. I *knew* that -- but had forgotten all about it for years.

Hmm...now I wonder how that works? If we cut the coverage...how are we covered on the rental car?

I don't know if we will switch companies. The price is about the same with each of these two -- comparing apples and apples. I guess Risk is Risk, doesn't matter who is insuring you against it.

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feedingfrenzy

Very likely your credit card company will cover accidents involving your rental car, provided that you used the CC to pay for the rental. You can probably find this info onlne by googling for your CC company's website or by calling them

If not, you can purchase coverage from the rental car company, but it would be very expensive for the amount of time you'll be driving.

    Bookmark   October 15, 2011 at 6:22PM
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silvercomet1

Read all the fine print on the credit card insurance coverage before you rely on it - I've seen some that won't cover rentals that last for more than 30 days. I don't know why (I would think a rental is a rental), but I've seen that limitation on more than one credit card. Also, a lot of them will only pay after you file a claim with your regular insurance company. The coverage through your credit card can be handy, but it's worth reading the fine print, especially since you'll be renting for a long time.

    Bookmark   October 16, 2011 at 12:04AM
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two25acres

Unless there's 2 cars on this policy and one remains with full coverage you will not have coverage on the rental. When we suspend coverage we are taking you down to the comprehensive portion of the policy. Comprehensive covers fire, theft, usually glass, flying objects and live animals. You still need to have liability and collision. Car rental companies have gotten very aggressive with comprehensive and collision claims for damages whether you did it or someone else did it.

    Bookmark   October 17, 2011 at 10:35AM
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chisue

Ah-hah! That's what I thought. We'll keep the full coverage -- not save $100 and be out thousands if the rental car is damaged!

DH called our CC company. They 'didn't think' we'd need two separate contracts to be covered for two months. WHA? They said to ask the rental car agent. Double WHA?

    Bookmark   October 18, 2011 at 3:54PM
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feedingfrenzy

You should be able to get the rental car company to write up two separate contracts. I can assure you that we have done this. We have collected from Visa on two different incidents involving rental cars, one for over 4k, which was on a car we rented for six weeks.

Silvercoment is also correct about the need to file a claim with your own insurance company before you present it to the CC company.

    Bookmark   October 21, 2011 at 3:56PM
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