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Car-rental firms, insurers vary on loss-of-use policies

Los Angeles Times -- Ernie Tamminga was in Tucson recently for a family reunion. While there, he rented a car. And, like all rental-car customers, he was offered insurance by the company, Dollar Rent a Car, in case of an accident.

Tamminga, 69, of Goleta had done his homework. He knew that insurance provided by rental firms, which can run more than $25 a day, is often unnecessary. Coverage you already have for your own vehicle should be sufficient, not to mention extra coverage provided by many credit-card issuers.

But Tamminga was unprepared for the Dollar rep's warning that he may still be on the hook for "loss of use" — that is, the rental-car's losses for having its car out of commission for repairs.

"I'd never heard of that," Tamminga told me. "So I bought their insurance just to be safe."

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Submitted Mar 09, 2012 By: ziyulu

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babyjudy Champion Author Tucson Posts:2,731 Points:561,735 Joined:Sep 2011	Message Posted: Mar 10, 2012 12:21:37 AM Ignore babyjudy Report Abuse Never hurts to know what your card or policy covers. It was nice NOT having a 'gas prices are going up' article.
puinsai808 Champion Author Honolulu Posts:3,544 Points:727,305 Joined:May 2011	Message Posted: Mar 9, 2012 8:04:50 AM Ignore puinsai808 Report Abuse Gas prices?
rbrk02 Champion Author Rhode Island Posts:5,742 Points:817,230 Joined:Jan 2011	Message Posted: Mar 9, 2012 7:38:01 AM Ignore rbrk02 Report Abuse Sounds like suggestive selling. Wonder if any commissions or bonuses are paid on policies sold?
LQQKGAS Champion Author Phoenix Posts:2,669 Points:1,196,015 Joined:Oct 2009	Message Posted: Mar 9, 2012 7:10:24 AM Ignore LQQKGAS Report Abuse Time for truth in advertising for the car companies, this cost should just be included in rental rate. The airlines now have to advertise the fare with all mark-ups, taxes and fees in the price.
qwerty17 Champion Author New Jersey Posts:3,655 Points:1,117,900 Joined:Oct 2009	Message Posted: Mar 9, 2012 6:50:44 AM Ignore qwerty17 Report Abuse don't buy it. your own policy or using a gold/platinum card is sufficient.
cmptrmush Champion Author Detroit Posts:3,615 Points:738,745 Joined:Feb 2011	Message Posted: Mar 9, 2012 4:42:27 AM Ignore cmptrmush Report Abuse This sounds like a sales ploy to make an extra buck.
el_fr Champion Author Massachusetts Posts:3,337 Points:744,700 Joined:Apr 2011	Message Posted: Mar 9, 2012 4:34:33 AM Ignore el_fr Report Abuse Waste of money
mike1881 Champion Author Fayetteville Posts:1,295 Points:564,425 Joined:Feb 2011	Message Posted: Mar 9, 2012 4:27:38 AM Ignore mike1881 Report Abuse Anything to make a dollar. I don't think there are any service related businesses that are truly honest anymore.
wrunner Champion Author Virginia Posts:4,445 Points:1,136,585 Joined:Dec 2009	Message Posted: Mar 9, 2012 2:59:02 AM Ignore wrunner Report Abuse What a RIP OFF!!
Vetteblu Champion Author Denver Posts:2,670 Points:779,845 Joined:Oct 2010	Message Posted: Mar 9, 2012 12:10:05 AM Ignore Vetteblu Report Abuse As greedy as the oil companies now!!
dave27johnson Champion Author Chicago Posts:1,787 Points:408,325 Joined:Feb 2012	Message Posted: Mar 8, 2012 11:22:51 PM Ignore dave27johnson Report Abuse A ploy to raise costs without admitting it. It should be a part of the cost of doing business that is spread across all renters. Should your car rental cost you a little more if the clerk renting you the car has a higher than average salary or just got a new computer? Of course not, even though it was your action that led you to walk up to that person. Likewise, if you have insurance that pays for repairs, you shouldn't have to pay for the number of days the rental company decides to keep the car off the road. If they way they do business isn't profitable enough, then they should raise prices overall rather than waste time talking people into extras they shouldn't need and don't want.
The_DR Champion Author New Jersey Posts:2,785 Points:585,065 Joined:Aug 2011	Message Posted: Mar 8, 2012 11:22:13 PM Ignore The_DR Report Abuse Rip off
BearGolfn Champion Author Twin Cities Posts:2,214 Points:549,645 Joined:May 2011	Message Posted: Mar 8, 2012 11:22:07 PM Ignore BearGolfn Report Abuse interesting
RENEGADEGAS Champion Author Missouri Posts:14,912 Points:1,591,225 Joined:Jul 2008	Message Posted: Mar 8, 2012 11:19:08 PM Ignore RENEGADEGAS Report Abuse This is a story about insurance, has nothing to do with the forum.
1178richmond Champion Author New Jersey Posts:2,891 Points:797,300 Joined:Feb 2011	Message Posted: Mar 8, 2012 11:18:09 PM Ignore 1178richmond Report Abuse ok
REVLAW Champion Author San Antonio Posts:10,435 Points:2,007,245 Joined:Jul 2007	Message Posted: Mar 8, 2012 11:17:38 PM Ignore REVLAW Report Abuse Hardly worth the read. Questionable article for this particular forum.
DirtDauber Champion Author San Antonio Posts:6,781 Points:1,627,460 Joined:Nov 2005	Message Posted: Mar 8, 2012 11:14:16 PM Ignore DirtDauber Report Abuse One of the reasons that I don't rent automobiles.
rumbleseat Champion Author Winnipeg Posts:22,926 Points:3,530,310 Joined:Oct 2002	Message Posted: Mar 8, 2012 11:13:39 PM Ignore rumbleseat Report Abuse As a retired insurance broker, I can tell you that loss-of-use coverage is no scam. If you have an accident with a rented car, why should they be out the revenue possible while the car is repaired, and possibly from a replacement vehicle they have to provide you? If I rent a car, I purchase a short-term non-owned vehicle policy, which goes far beyond basic coverages and what credit cards may offer. I get $5,000,000 liability/uninsured/underinsured coverage. I get $50 deductible on ALL loss or damage that may occur. I get loss-of-use coverage to pay for the down-time of a damaged vehicle, AND I also get replacement vehicle coverage to pay in the event I still need a rental and the agency gives me another car. I can purchase such a policy before I make my trip, and it is valid in any province in Canada or state in the US. I also have full injury protection that goes with me in ANY vehicle I own, rent, or borrow, anywhere in US or Canada. If you don't have such a policy available, it is wise to consider protecting yourself as best you can. Credit card coverage typically offers no liability coverage. Your own car insurance usually offers liability (read your policy, these things vary from state to state and company to company) only as second pay and usually not if you are carrying the minimum coverage. Typically neither covers loss-of-use or replacement rental vehicle.
2bigtanks All-Star Author Akron Posts:772 Points:371,610 Joined:Jun 2011	Message Posted: Mar 8, 2012 11:12:37 PM Ignore 2bigtanks Report Abuse Sort of old news.
DEG Champion Author Las Vegas Posts:17,625 Points:3,495,680 Joined:Jul 2003	Message Posted: Mar 8, 2012 11:10:25 PM Ignore DEG Report Abuse Sounds like Dollar is becoming a shady operator.
Bruno44 Champion Author Texas Posts:7,075 Points:1,768,195 Joined:Sep 2007	Message Posted: Mar 8, 2012 11:08:59 PM Ignore Bruno44 Report Abuse Check the contract you sign!
us412 Champion Author Arkansas Posts:22,823 Points:2,417,230 Joined:Apr 2006	Message Posted: Mar 8, 2012 11:08:11 PM Ignore us412 Report Abuse That's your liability when you choose this line of work.
hybridaholic Champion Author Appleton Posts:8,365 Points:1,556,565 Joined:Dec 2008	Message Posted: Mar 8, 2012 11:07:37 PM Ignore hybridaholic Report Abuse Rules from the Airline industry.
srchr Champion Author San Jose Posts:7,254 Points:1,620,050 Joined:Apr 2008	Message Posted: Mar 8, 2012 11:06:19 PM Ignore srchr Report Abuse better check your policy
Bill100 Champion Author Grand Rapids Posts:41,490 Points:1,162,845 Joined:Jan 2010	Message Posted: Mar 8, 2012 11:06:03 PM Ignore Bill100 Report Abuse It's a cost of doing business. The quoted rental price should be adjusted downward if they intend to charge separately for this.
Krykson All-Star Author Chicago Posts:840 Points:247,285 Joined:Jul 2006	Message Posted: Mar 8, 2012 11:05:26 PM Ignore Krykson Report Abuse Really?
lonewolfhead Champion Author Texas Posts:1,651 Points:561,990 Joined:Aug 2011	Message Posted: Mar 8, 2012 11:05:18 PM Ignore lonewolfhead Report Abuse Most of the time you don't need their insurance if you have full coverage on your own vehicle or use a credit card
LuthierKS Champion Author Wichita Posts:3,747 Points:729,930 Joined:Apr 2011	Message Posted: Mar 8, 2012 11:04:31 PM Ignore LuthierKS Report Abuse Read the contract.
Ron77095 Champion Author Houston Posts:3,060 Points:602,675 Joined:Sep 2011	Message Posted: Mar 8, 2012 11:03:49 PM Ignore Ron77095 Report Abuse Decisions.
DTrainCanada Champion Author Saskatoon Posts:1,848 Points:1,420,700 Joined:Aug 2005	Message Posted: Mar 8, 2012 11:03:28 PM Ignore DTrainCanada Report Abuse Cash grab ...
MacDad614 Champion Author Atlanta Posts:3,032 Points:1,176,810 Joined:Aug 2008	Message Posted: Mar 8, 2012 10:59:39 PM Ignore MacDad614 Report Abuse Really? Buy insurance from the rental company? Really?
pyndasky Champion Author Maryland Posts:10,000 Points:1,781,805 Joined:May 2008	Message Posted: Mar 8, 2012 10:57:06 PM Ignore pyndasky Report Abuse such a scam!!!
boborobot All-Star Author Michigan Posts:501 Points:417,550 Joined:Dec 2011	Message Posted: Mar 8, 2012 10:56:04 PM Ignore boborobot Report Abuse Another consumer rip off [Edited by: boborobot at 3/9/2012 12:56:44 AM EST]
edgarCA Champion Author Oakland Posts:1,581 Points:241,770 Joined:Jun 2009	Message Posted: Mar 8, 2012 10:54:12 PM Ignore edgarCA Report Abuse ok.
Z06KY Champion Author Louisville Posts:5,145 Points:905,715 Joined:Nov 2010	Message Posted: Mar 8, 2012 10:53:40 PM Ignore Z06KY Report Abuse Good to know information. Thanksz iyulu
Road-Runner Champion Author Denver Posts:7,046 Points:1,905,165 Joined:May 2004	Message Posted: Mar 8, 2012 10:50:49 PM Ignore Road-Runner Report Abuse This racket is getting to be just as bad as hospitals and medical "insurance"!
themaninthehat Champion Author New Orleans Posts:1,824 Points:472,265 Joined:Feb 2011	Message Posted: Mar 8, 2012 10:49:26 PM Ignore themaninthehat Report Abuse We now live in Cheney's Potterville vision where business can makeup or change the rules on the spot. Habius Corpus and due process have been eradicated.
onegiraffeAL Champion Author Alabama Posts:1,015 Points:429,175 Joined:Jan 2010	Message Posted: Mar 8, 2012 10:46:26 PM Ignore onegiraffeAL Report Abuse ok
Bruno44 Champion Author Texas Posts:7,075 Points:1,768,195 Joined:Sep 2007	Message Posted: Mar 8, 2012 10:46:12 PM Ignore Bruno44 Report Abuse Many people have not been aware of the loss of use charges. Even a small dent can put a rental out of use until the repair is made, thus the customer is on the hook for large amounts. I prefer to take the rental insurance, thus when I take the rental back even with a scratch or ding I don't have to worry about the extra charges. I don't like it, but one rental I returned had been scraped in a parking lot, and without the rental insurance, I would have been stuck with very large charges.
kosciak Champion Author Hartford Posts:1,106 Points:534,275 Joined:Aug 2011	Message Posted: Mar 8, 2012 10:45:25 PM Ignore kosciak Report Abuse dont pay
LostToo Champion Author Illinois Posts:4,392 Points:975,315 Joined:May 2009	Message Posted: Mar 8, 2012 10:43:17 PM Ignore LostToo Report Abuse It came in handy when I rented a car for the first time last year. I didn't have insurance of my own and it made me feel good on my trip to have it.
TBONE3 Champion Author Pennsylvania Posts:8,746 Points:1,976,650 Joined:Mar 2005	Message Posted: Mar 8, 2012 10:41:26 PM Ignore TBONE3 Report Abuse Very interesting article. It is something I never considered when I was traveling so much in my job. Must be something they just found out they could hook you with the past few years. And to think National is one of them! I really liked dealing with National.
VBmaniac Rookie Author San Francisco Posts:70 Points:68,970 Joined:Jun 2004	Message Posted: Mar 8, 2012 10:40:49 PM Ignore VBmaniac Report Abuse Mo money mo money mo money!!!
armey Champion Author Oregon Posts:1,296 Points:310,255 Joined:Aug 2008	Message Posted: Mar 8, 2012 10:39:39 PM Ignore armey Report Abuse Uh OK!
Rageagainsttm Champion Author Tampa Posts:8,303 Points:1,902,980 Joined:Jul 2007	Message Posted: Mar 8, 2012 10:35:55 PM Ignore Rageagainsttm Report Abuse not good
rd2000 Champion Author Florida Posts:3,571 Points:686,995 Joined:Jul 2007	Message Posted: Mar 8, 2012 10:34:52 PM Ignore rd2000 Report Abuse sounds like another rip off
Masonbulldog Champion Author Lansing Posts:2,872 Points:598,525 Joined:Jul 2011	Message Posted: Mar 8, 2012 10:34:43 PM Ignore Masonbulldog Report Abuse Ain't that the truth, Frosty!
papou Champion Author Tampa Posts:10,884 Points:1,906,335 Joined:Jul 2005	Message Posted: Mar 8, 2012 10:32:22 PM Ignore papou Report Abuse check with your Ins agent you may be able to buy temporary coverage cheaper
RitaVespa Champion Author Oregon Posts:2,981 Points:792,260 Joined:Jan 2011	Message Posted: Mar 8, 2012 10:32:04 PM Ignore RitaVespa Report Abuse Uh, ok
passin_gas2011 All-Star Author Ohio Posts:750 Points:142,320 Joined:Sep 2011	Message Posted: Mar 8, 2012 10:29:23 PM Ignore passin_gas2011 Report Abuse ok,,glad that you posted this,,good thing i read it,,thanks for the info