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Cheapest Flight/Car Rental Option?

What's the best car rental insurance option for someone without any coverage?

  • As is common with city dwellers, I do not own a car, and do not have any car insurance in my name. Specifically, I have no liability coverage. It is my understanding that in the state of California one is required to have liability insurance coverage when driving a car. What are my options for liability coverage of a rental car? I know that services like Zipcar already include insurance; I am talking about more traditional car rentals like Enterprise or AVIS. One option of which I am aware is liability coverage from the rental company, which comes out to about $15 per day (on a side note, are there car rental search engines that can take into account the insurance rates of the providers?). I was wondering if there are other options, like a policy that covers me for a year for a flat rate for all rentals. Or maybe credit cards that provide liability coverage for any rentals charged to the card. Note: the coverage that most credit cards provide is damage to the rental car and not liability insurance.

  • Answer:

    In most states, at least some level of liability insurance is included in the rate. As you alluded to, this is not the case in California. In California, state law specifically allows the rental agency to decline to provide liability insurance to customers. As a result, almost no rental car in California includes liability insurance--leaving you fully responsible for any harm you cause to third parties while driving a rental car. Even a small accident can leave you on the hook for thousands of dollars in property damage and tens of thousands of dollars in bodily injury; a larger accident can increase those numbers tenfold. However, in all other states, some form of liability insurance comes with the car. In all cases, this is only to state minimum requirements, which are generally pretty low and insufficient to properly cover you for anything but the most minor of accidents. (You can Google a list of state minimum liability requirements to see; some states require as little as $10,000 in coverage for bodily injury and $5,000 in coverage for property damage.) And while this won't really affect you, since you have no existing insurance of your own, in most states--Arizona, Maryland, Massachusetts, Michigan, Minnesota, New York, South Carolina, and West Virginia excepted--this coverage is secondary to any you may already have. (There are also some complexities in Colorado and Michigan.) You will also probably have to fight--possibly even in court--to get the rental company to step up and provide that coverage. It's therefore pretty well established that you'll need something to protect you, since you can't rely on what the rental company provides (or doesn't provide) you. So, what can you do? As you mentioned, you can buy liability insurance from the rental company. Typically, this provides you with coverage against third-party claims up to $1 million per accident. That's significantly more than any rental company provides by default and even well exceeds the amount most car-owning Americans carry on their personal car insurance policies. It's also more or less hassle-free--turn the keys over to the rental car company and fill out a few forms; no dealing with endless calls from insurance adjustors and the like. The big downside: as you mentioned, it's pretty costly. (To answer your other question, there are currently no search engines that take into effect the cost of the insurance options. That would involve someone creating a database of every single insurance option available at every single location of every single company--a monumentally unfeasible task, since the costs vary not only by location and company but even by car size and other factors. The best that can be done now is to read the terms and conditions for a test reservation at each location, but even then, it's often not worded very clearly and sometimes isn't even up-to-date.) And also as you mentioned, you can't rely on a credit card to cover you. To my knowledge, there is exactly one card on the face of the earth that covers third-party liability insurance: the American Express Platinum International Dollar Card. This product is not available in the U.S., and you'd need to maintain a residency overseas to qualify for it. Aside from that card, it's pretty much safe to assume that you will not be covered against any third-party liability claims by your card. What does that leave? The best thing to do is to look towards the traditional insurance carriers to help. The problem with this method is that it's such a rare request that very few insurance agents will even know these policies exist, and you may find a lot of dead-ends in your search. Some carriers consider this under their car insurance arm, while other carriers consider it as an extension of a homeowner's or renter's (the apartment kind) insurance policy. Two leads that look somewhat promising are GEICO (which actually describes this type of policy on their website) and AAA. (If you qualify for membership, USAA may offer something similar, too.) You may also want to obtain an umbrella policy to extend your protection against liability claims.

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QUESTION: "What is the BEST car rental insurance option for someone WITHOUT any coverage? " This answer covers the EASIEST and BEST solution for someone without any coverage. Without planning ahead, the Easiest solution may BE the Best solution.EASIEST SOLUTION: Buy ALL THREE major insurance options that most rental car companies offer when you sign their contract: Damage Waiver Sometimes called Physical Damage Waiver, Collision Damage Waiver. Loss Damage Waiver. The waiver puts the responsibility for damage on the rental car itself squarely on the rental car company. (coverage for the rental car itself) Supplemental Liability Coverage Provides you coverage for damage or injury to others for which you are responsible/negligent. (third party coverage) Personal Accident Insurance Provides a limit (low as it may be) of coverage for injuries following an accident with a rental car. (first party benefits) QUESTION Details: "What are my options for LIABILITY COVERAGE of a rental car?" LIABILITY Best Option: Named Non-Owner Auto Policy Most states allow for the purchase of a Named Non-Owner Auto Insurance policy.  A Search for "Named Non-Owner Auto Insurance Quote in YOURSTATE" will yield the players in that arena. (this answer is curiously missing from other posts?) Important Note: A Named Non-Owner Auto Policy issued in the state you live, will provide all the mandatory coverages the state requires. In addition to Liability coverage, this may also include: Personal Injury Protection, Medical Payments and Uninsured Motorist Coverage. LIABILITY Car Rental Company Option: Supplemental Liability Coverage (Rental Car Company Offering) Car Rental companies must provide as part of the rental contract, at least the state minimum liability coverage where you operate the vehicle. These minimum required limits can be very low (IE: $25,000 per person bodily injury, $10,000 property damage liability) Know the limit of coverage that is provided with the "Supplemental Liability" option. Some rental car agreements start this coverage at a lower limit and offer enhanced limits at an additional cost. QUESTION Details: "Or maybe CREDIT CARDS that provide liability coverage for any rentals charged to the card?" CREDIT CARDS: Some Credit Cards provide coverage for physical damage to the rental car itself, or first party medical expense/accident type of coverage, but they generally do not provide Liability Coverage. American Express may provide some of the most generous benefits (especially on their higher end cards where they may provide medical expense and accidental death coverage.) but it is customary that Credit Cards coverage is "excess" (say secondary) over other collectible insurance. Coverage provided by Credit cards can be fraught with exclusions. https://web.aexp-static.com/us/content/pdf/card-benefits/AmericanExpressGreenCard/CRLDI_DOC_CCSG.pdf (excess) https://web.aexp-static.com/us/content/pdf/card-benefits/PlatinumCardfromAmericanExpress/CRLDI_DOC_PLAT.pdf (excess) https://usa.visa.com/support/consumer/card-benefits.html#anchor_2 Bottom line... don't assume. Know the actual coverage your credit card provides. More info on Premium Cards below. NOTE for those WITH an Auto Policy: American Express Offers Premium Rental Benefits on some of their cards with Primary Physical Damage coverage for a flat fee ($19.95) PER rental. https://www295.americanexpress.com/premium/car-rental-insurance-coverage/home.do. QUESTION Details: "I was wondering if there are other options, like a policy that covers me for a year for a flat rate for all rentals." Excellent Question - YES there IS! NAMED NON-OWNER AUTO POLICY: A and it can provide the following coverage parts (This depends on the coverages required and available in your state): Bodily Injury Liability - Provides compensation for injury to others for which you are negligent. Property Damage Liability - Provides compensation for damage to property of others (other cars, structures) for which you are negligent. Uninsured/Underinsured Coverage - Liability coverage in reverse. compensation for you and others in your car if the other vehicle/driver does not have liability insurance, or lower limits of liability insurance. Personal Injury Protection (in some states) - First party benefits for you and others in your car for your medical expenses regardless of who is at fault (sometimes called "no-fault"). NO COMPREHENSIVE OR COLLISION: A Named Non-Owner policy provides coverage for most types of losses EXCEPT for the Physical Damage to the Rental Car itself. NOT ASKED(but provided free of extra fees and charges): "What is the Best Rental Car Insurance Option Overall for someone who doesn't own a car but rents one frequently?" BETTER: A Named Non-Owner Auto Insurance Policy PLUS Purchasing a Damage Waiver. - or - BEST: A Named Non-Owner Auto Insurance Policy PLUS a Credit Card with a Rental Car Physical Damage policy/coverage. (less expensive than option #1 above for frequent car renters) This option is attractive because of the low/no cost of the physical damage piece, but as mentioned above, know your card's terms and conditions. NOTE for people who own a car with a standard Auto Policy: Want peace of mind that the rental car company won't come back on you or your auto insurance for damage to the vehicle? Credit cards that offer primary physical damage coverage are out there.  It will take some research, but here are some sources to find such a card: http://thepointsguy.com/2015/07/credit-cards-that-offer-primary-car-rental-coverage/ http://millionmilesecrets.com/2014/08/18/credit-cards-with-primary-rental-car-insurance/ If you live in and have an Auto Policy in New York State... the rules are a bit different. Here is the straight and skinny on Hope that helps. Excellent Question!

Jeff Ryan

Car Rental Insurance basicsWhenever you get behind the wheel of a rented car, you face two separate kinds of risk: Collision/loss - When you rent a car, you are liable for the value of any damage to or loss/theft of the car you rent during the period it's in your possession. Liability - When you drive any car you are potentially liable for any damage you might do to another person or another person's property (including but not limited to a car.) Of the two, liability is the far greater risk. In this litigious society, killing or severely injuring someone could potentially wipe out your entire asset base—house, investments, the works. With collision, on the other hand, your financial exposure is limited to the value of a car—certainly not trivial, but at least not potentially unlimited.Rental car companies sell insurance or waivers to relieve you of both risks. Both, however, are extremely expensive; buy them only when you have no other option. There are four different types of insurance and insurance-like coverages the companies try to sell to consumers at the rental counters: Loss Damage Waiver (LDW) as low as $9/day Supplemental Liability Insurance (SLI) no more than $15/day Personal Accident and Effects (PAE) as low as $7/day Emergency Sickness Plan (ESP) as low as $5/day Loss Damage Waiver (LDW) as low as $9/dayt's an option that relieves you of financial responsibility if the rental car is damaged or stolen. LDW is highly recommended for the uninsured but even if you own a car and have automobile insurance, you should consider accepting Loss Damage Waiver to better cover yourself. Also known as Collision Damage Waiver (CDW) Alleviates your responsibility for up to the full fair market value of the car if it is damaged, vandalized or stolen during the rental; Alleviates your responsibility for reimbursing the car rental company for any revenue lost during the period that the company is unable to use the car while it is being repaired, or in the event that the car is not recovered due to theft (loss of use). Supplemental Liability Insurance (SLI) no more than $15/daySLI, available at many locations, is excess automobile liability insurance that protects you and all authorized drivers against third-party bodily injury and property-damage claims for which you’re legally liable. When SLI is purchased: Liability protection provided by Budget and the SLI carrier becomes primary, and applies before other liability protection available to you; You probably won't have to call upon your other protection unless the loss exceeds the SLI limit or results from your use of the vehicle in violation of the terms of the rental agreement; Provides a high limit of liability protection that might not otherwise be available to the renter. By accepting SLI, the limit of liability protection available to the renter or authorized driver is $1 million combined single limit; If you are renting in California or Nevada, exclusions and/or limitations of coverage may differ from the SLI described above. Please check with your Budget location for details. Enhanced Supplemental Liability (ESL), also available at participating locations, covers the difference between basic SLI protection up to $2 million per occurrence. Personal Accident and Effects (PAE) as low as $7/dayPAE protects you and your passengers against accident, injury, and loss to personal property. Provides renters and occupants of the rental vehicle with accidental death benefit and coverage for certain medical expenses resulting from an accident; Renters are protected both in and out of the rental vehicle during the entire rental period, and others are covered while occupying the vehicle; Provides protection against loss of, or damage to, certain personal property of the renter and individuals traveling with the renter and being transported in your Budget car. Emergency Sickness Plan (ESP) as low as $5/dayESP provides international renters visiting the U.S. with coverage for medical expenses resulting from sickness. At most locations, other liability protection available to the renter from any source will be primary, and will apply first in the event of an accident. Protects renters possessing a non-U.S. passport against certain medical expenses resulting from sickness occurring during the rental period; Covers other members of the renter's traveling party who also have non-U.S. passports; Purchase of PAE in combination with ESP protects renters who might otherwise have no medical coverage available to them while in the U.S. against medical expenses that result either from accident or sickness. Suggested links: http://www.huffingtonpost.com/george-hobica/everything-you-need-to-kn_b_3577103.html http://www.consumeraffairs.com/travel/carrent_ins.html https://www.budget.com/budgetWeb/html/en/smartservices/protectionsCountOn.html http://traveltips.usatoday.com/differences-between-basic-fullcoverage-car-rental-insurance-enterprise-100592.html http://www.smartertravel.com/travel-advice/what-rental-car-insurance-do-need.html?id=2461122 Differences between Basic & Full-Coverage Car Rental Insurance at Enterprise Supplemental Liability ProtectionThe supplemental liability protection insurance plan covers the renter and any other authorized driver up to a $1 million limit for liability claims from a third party. Enterprise provides third party liability coverage to its minimum financial limit and then Empire Fire and Marine Insurance Company covers the renter up to the $1 million limit. Like all other Enterprise insurance offerings, supplemental liability protection is not required and is charged by the day, with prices varying by location.Damage WaiverThe damage waiver offered by Enterprise is not considered insurance. The waiver allows Enterprise to reduce or waive any fees associated with the loss or damage to the rental car while in the renter's possession. The damage waiver is not required to rent a car and may overlap with a renter's existing insurance plan. The cost of the damage waiver varies based on the type of vehicle rented and the rental location.Personal Accident Insurance (Not needed if you have basic health insurance in the US - check with your insurance provider)At the time of publication, Enterprise offers renters the option of purchasing personal accident insurance. This insurance provides coverage for accidental medical expenses, accidental death and the ambulance expenses for the renter and all passengers. The benefits are paid out in addition to any other insurance coverage held by the vehicle renter and underwritten by either Empire Fire And Marine Insurance Company or Empire Indemnity Insurance Company, notes the Enterprise website. The price of the insurance policy is charged as a daily rate and varies by location.Personal Effects Coverage (Not needed if you have basic health insurance in the US - check with your insurance provider)For travelers renting an Enterprise vehicle at an airport location, personal effects coverage is included with the personal liability insurance plan. The coverage protects the rental car driver, any other authorized drivers and all immediate family members traveling in the vehicle against risks associated with loss or damage of personal effects.Additional ConsiderationsDrivers renting a vehicle may not need to purchase Enterprise's insurance options to be fully covered by insurance. Most comprehensive auto insurance plans and select credit card companies cover rental car damage, though drivers should contact their insurance or credit card company before making a decision.

Anurag Dwivedi

I basically do something like this when I am in SF, Melisa Radin at http://MitchellandMitchell.Com helped me out getting a car less insurance. Those are actually very hard to find. THe only thing you need to do then is renting the car with a good credit card, or even better with AmEx (they have a special rental car insurance program that might make sense) The upside: It works and is a hell lot cheaper than rental car comany offered insurance. The downside: You always get the annoying upsell attempts at the rental car counter, some even demanded that I show them proof of insurance. That "customer service" cost Fox Rent A Car my business (And I spent 15K+ over several years on them). These days I am using Zip car in SF and skip the rental altogether.

Martin Wawrusch

Try out http://smartlease.me. It's similar to Enterprise but instead of renting the car, you're leasing it (short term). This way you can get your own insurance with any insurance company which usually ranges between $50 to $115 /Mo depending on your age and driving history. Smart Lease is the most affordable option for you but the only problem is that you have to rent the car for at least 3 Months. Their rates (before taxes and insurance) are usually in the 400 range and they have mainly 2009 cars with low mileage. Several of my friends have rented from them during their internships and they were super happy with everything.

Baker Humadi

The $15 a day coverage you are mentioning about covers both damage to rental car and liability coverage most likely. I let my credit card cover the damage to their car and buy the liability coverage which is typically $3-$4 the last time I rented a car. Although rental car companies try to upsell you on the insurance which is highly profitable for them if you have a good credit card you should be fine. Beware of your credit card terms though, in some cases they have excluded certain states or countries. For example, I rented in Italy and I know American Express card had Italy excluded

Manas Manas

Legally in the United States you are bound to have a liability insurance with you while you are driving the car. Now typically when you borrow a car from someone or you are taking a fleet car, you will need a liability at least.Buying a liability from fleet car companies like HERTZ, ALAMO, etc is very very very costly if you are planning anything over 5 days (Typically $13 a day atleast). So your only option is to have a NAMED NON-OWNER LIABILITY insurance from outside.Though on the internet that looks simple and you find a lot of post of companies giving you insurance like this… almost all ask for a person with a car.So if you are a student with no car of your own and planning to take a fleet car for a long period, you are stuck.GEICO is the only company in my research that can help you out.Call GEICO and ask them for a NAMED non-owner LIABILITY insurance. Its a 10 mins job if you do it the right way**. You can not get FULL COLLISION insurance from anyone but the fleet car people ( full insurance cost atleast $25 a day or more).** I have had experience with the wrong way.1. Call them and ask for a “NAMED NON-OWNER INSURANCE”.2. If asked why you need it, tell that “ I will be driving the company car OCCASIONALLY during my internship and I want a liability insurance for that“.If you dont not mention “OCCASIONALLY” or happen to say “I will be driving a fleet car for sometime”, then they wont give you insurance and mark you a risky customer on your SSN.3. Asked How many months you need it for say : “I will need it for atleast 6 months “.** If you say less than 6 months, you will again be marked as a risky customer4. Asked If you will pay one time for 6 months or monthly, take the monthly option as you can cancel in between and you will only pay for the months used.Do/Say nothing more than whats mentioned. These insurance sales guys have some wierd system of keeping some record on you.. so once you mention some detail and they interpret you as a risky customer.. they wont listen to you no matter who you call in that company as they all link you to the same SSN.

Anupam Mahapatra

It has come into sight that there are several organizations that deliver some outstanding services for car rental insurance, without any coverage. All such insurances can be widely found, if one goes through various online websites that deliver some stunning services for car rental insurance without any coverage, whereas, before having the services of such organizations, must check, whether these organizations deliver some satisfactory services for insurance purpose. For more information, you may consult with some experts, who have some adequate knowledge regarding all such aspects.

Shaun Beard

If you   have car insurance, the type of coverage you bought, along with its   deductibles, usually applies to rental cars as well. I had a friend and he   was facing the same problem then I told him about this   http://www.cardetective.com/insurance.html website. My friend visited this   website and now he is tension free because he got all the answer through this   website.  Assume that you have   purchased collision coverage; it will cover damage you cause to any car that   you are driving. However, many auto insurance policies say that your   collision insurance is “excess” to any other coverage. Don’t forget that your   own collision insurance requires you to pay a deductible before the insurance   company picks up the tab.

David Bloom

I’ve had experience with the smaller regional carriers and the bigger carriers they are all the same. shop with an independent broker they can check rates with multiple carriers as well as the smaller companies, they will charge a one time broker fee, and in my experience it was worth it. at the same time, check to see if you are getting all the discounts that you can qualify for like good driver discount, multi policy discount, multi car discount, discounts for taking a defensive driver course. if you decide to take traffic school for an insurance discount, then search for traffic school answers 2014, where you’ll find a reviewer of the final exam and a review of an online traffic school. You’ll also find a referral code on the site. http://getthecheapautoinsurance.blogspot.com/

Ravee Ramphai

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