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GasBuddy News Article

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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
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Car-rental firms, insurers vary on loss-of-use policies Back to Topics
REPLIES (newest first) Post a Reply
babyjudy
Champion Author Tucson

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Message Posted: Mar 10, 2012 12:21:37 AM

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

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Message Posted: Mar 9, 2012 8:04:50 AM

Gas prices?
rbrk02
Champion Author Rhode Island

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Message Posted: Mar 9, 2012 7:38:01 AM

Sounds like suggestive selling. Wonder if any commissions or bonuses are paid on policies sold?
LQQKGAS
Champion Author Phoenix

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Message Posted: Mar 9, 2012 7:10:24 AM


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

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Message Posted: Mar 9, 2012 6:50:44 AM

don't buy it. your own policy or using a gold/platinum card is sufficient.
cmptrmush
Champion Author Detroit

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Message Posted: Mar 9, 2012 4:42:27 AM

This sounds like a sales ploy to make an extra buck.
el_fr
Champion Author Massachusetts

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Message Posted: Mar 9, 2012 4:34:33 AM

Waste of money
mike1881
Champion Author Fayetteville

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Message Posted: Mar 9, 2012 4:27:38 AM

Anything to make a dollar. I don't think there are any service related businesses that are truly honest anymore.
wrunner
Champion Author Virginia

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Message Posted: Mar 9, 2012 2:59:02 AM

What a RIP OFF!!
Vetteblu
Champion Author Denver

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Message Posted: Mar 9, 2012 12:10:05 AM

As greedy as the oil companies now!!
dave27johnson
Champion Author Chicago

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Message Posted: Mar 8, 2012 11:22:51 PM

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

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Message Posted: Mar 8, 2012 11:22:13 PM

Rip off
BearGolfn
Champion Author Twin Cities

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Message Posted: Mar 8, 2012 11:22:07 PM

interesting
RENEGADEGAS
Champion Author Missouri

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Message Posted: Mar 8, 2012 11:19:08 PM

This is a story about insurance, has nothing to do with the forum.
1178richmond
Champion Author New Jersey

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Message Posted: Mar 8, 2012 11:18:09 PM

ok
REVLAW
Champion Author San Antonio

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Message Posted: Mar 8, 2012 11:17:38 PM

Hardly worth the read. Questionable article for this particular forum.
DirtDauber
Champion Author San Antonio

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Message Posted: Mar 8, 2012 11:14:16 PM

One of the reasons that I don't rent automobiles.
rumbleseat
Champion Author Winnipeg

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Message Posted: Mar 8, 2012 11:13:39 PM

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

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Message Posted: Mar 8, 2012 11:12:37 PM

Sort of old news.
DEG
Champion Author Las Vegas

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Message Posted: Mar 8, 2012 11:10:25 PM

Sounds like Dollar is becoming a shady operator.
Bruno44
Champion Author Texas

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Message Posted: Mar 8, 2012 11:08:59 PM

Check the contract you sign!
us412
Champion Author Arkansas

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Message Posted: Mar 8, 2012 11:08:11 PM

That's your liability when you choose this line of work.
hybridaholic
Champion Author Appleton

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Message Posted: Mar 8, 2012 11:07:37 PM

Rules from the Airline industry.
srchr
Champion Author San Jose

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Message Posted: Mar 8, 2012 11:06:19 PM

better check your policy
Bill100
Champion Author Grand Rapids

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Message Posted: Mar 8, 2012 11:06:03 PM

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

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Message Posted: Mar 8, 2012 11:05:26 PM

Really?
lonewolfhead
Champion Author Texas

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Message Posted: Mar 8, 2012 11:05:18 PM

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

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Message Posted: Mar 8, 2012 11:04:31 PM

Read the contract.
Ron77095
Champion Author Houston

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Message Posted: Mar 8, 2012 11:03:49 PM

Decisions.
DTrainCanada
Champion Author Saskatoon

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Message Posted: Mar 8, 2012 11:03:28 PM

Cash grab ...
MacDad614
Champion Author Atlanta

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Message Posted: Mar 8, 2012 10:59:39 PM

Really? Buy insurance from the rental company? Really?
pyndasky
Champion Author Maryland

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Message Posted: Mar 8, 2012 10:57:06 PM

such a scam!!!
boborobot
Champion Author Michigan

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Message Posted: Mar 8, 2012 10:56:04 PM

Another consumer rip off

[Edited by: boborobot at 3/9/2012 12:56:44 AM EST]
edgarCA
Champion Author Oakland

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Message Posted: Mar 8, 2012 10:54:12 PM

ok.
Z06KY
Champion Author Louisville

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Message Posted: Mar 8, 2012 10:53:40 PM

Good to know information. Thanksz iyulu
Road-Runner
Champion Author Denver

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Message Posted: Mar 8, 2012 10:50:49 PM

This racket is getting to be just as bad as hospitals and medical "insurance"!
themaninthehat
Champion Author New Orleans

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Message Posted: Mar 8, 2012 10:49:26 PM

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

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Message Posted: Mar 8, 2012 10:46:26 PM

ok
Bruno44
Champion Author Texas

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Message Posted: Mar 8, 2012 10:46:12 PM

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

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Message Posted: Mar 8, 2012 10:45:25 PM

dont pay
LostToo
Champion Author Illinois

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Message Posted: Mar 8, 2012 10:43:17 PM

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

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Message Posted: Mar 8, 2012 10:41:26 PM

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

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Message Posted: Mar 8, 2012 10:40:49 PM

Mo money mo money mo money!!!
armey
Champion Author Oregon

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Message Posted: Mar 8, 2012 10:39:39 PM

Uh OK!
Rageagainsttm
Champion Author Tampa

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Message Posted: Mar 8, 2012 10:35:55 PM

not good
rd2000
Champion Author Florida

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Message Posted: Mar 8, 2012 10:34:52 PM

sounds like another rip off
Masonbulldog
Champion Author Lansing

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Message Posted: Mar 8, 2012 10:34:43 PM

Ain't that the truth, Frosty!
papou
Champion Author Tampa

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Message Posted: Mar 8, 2012 10:32:22 PM

check with your Ins agent you may be able to buy temporary coverage cheaper
RitaVespa
Champion Author Oregon

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Message Posted: Mar 8, 2012 10:32:04 PM

Uh, ok
passin_gas2011
All-Star Author Ohio

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Message Posted: Mar 8, 2012 10:29:23 PM

ok,,glad that you posted this,,good thing i read it,,thanks for the info
LegoVasavouchi
Champion Author Oklahoma

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Message Posted: Mar 8, 2012 10:28:54 PM

Fascinating.
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