Smart Auto Insurance Blog

I just read an article insinuating that car rental companies might actually be forging your signature to add car insurance to your rental that you didn’t even want.  Most car insurance companies cover a rental car if you need one while yours is getting fixed.  But car rental companies make money off of the additional things they charge you for, so there have been recent allegations that some rental companies are charging you for car insurance you don’t need or want.  Recently, Dollar Rent A Car at the Denver airport was accused of charging a Florida man for car rental insurance without his permission.  This information comes from The Seattle Times article “Is rental-car insurance a scam?,” by Christopher Elliott.

Dollar insisted that the Florida driver had signed his consent for $215 in car rental insurance and $53 in roadside assistance for the rental car he drove for a few days.  When the charges were disputed, Dollar sent a form letter to the driver.  But he also disputed the charges with his credit card company and they believed him and refunded his credit card.  Dollar sent a copy of the supposed signature adding the extra coverage and this particular driver says that it was forged.  Not only did he not sign opting for the extra charges, he didn’t even need that coverage because he had personal auto insurance to cover rental cars as well.

A lawyer and consumer advocate told The Seattle Times that there have been hundreds of other consumers saying that this same thing has happened to them.  Unfortunately many consumers give up after their initial dispute and pay the bill because they don’t think they have a chance to fight any further or don’t want to spend the time fighting in court.  Since there is no type of legislation or regulation on this matter by the federal government, car rental companies don’t have much concern over lawsuits here and there.  Employees working for minimum wage are often pressured to up-sell extra coverage and receive large commissions.  With e-signatures becoming the norm, car rental insurance fraud and other car rental extras might be easier for these employees to pull off.  Read everything you sign and keep copies, especially when it comes to dealing with companies that have a history of fraudulent complaints.

It’s not always the best idea to automatically decline the auto rental insurance that rental companies offer their customers according to the article “Don’t Automatically Refuse Extra Rental Car Insurance Coverage” by Michelle Crouch on creditcards.com.  It’s important to do your homework and ensure that you are covered when you rent an auto.

In recent years auto rental companies have started adding extra fees for damages to the rental.  These are often not covered by the auto insurance companies or credit cards.  This is where research is important.  How much are the fees and are you covered.  Most major credit cards offer some form of auto rental insurance, but it doesn’t always cover the extra fees charged by the rental companies.  It’s important to look into.

Most auto insurance companies also offer some form of coverage for renting a car.  But again, it’s hard to tell if it will fully cover all costs associated with the damages.  If you rent an auto often it will be worth your time to shop around and compare auto insurance benefits.  They can vary greatly from company to company.  Bottom line, educate yourself.  Always read the fine print and be sure you are not paying twice for the same coverage.  But at the same time, ensure you have enough coverage.  It’s a fine line, but as a responsible consumer it’s in our hands to protect ourselves.

According to the article “Additional Auto Insurance May Not Be Needed For Rental Cars” by Lawrence Shipman on usinsuranceonline.com, rental cars have auto insurance through the state of Minnesota. 

Auto insurance to cover a rental car can be up to $10-$15 per day.  This is a lot of money, especially if you are renting the car for an extended period of time.  That’s why it’s important to understand what type of coverage you have through the state of Minnesota and Minnesota auto insurance.  The minimum coverage for covering a rental car in the state is $35,000.  This is probably plenty to cover the car you are driving but the only thing to consider is that if you wreck multiple cars it could end up costing you more.

You will also want to check with your personal auto insurance policy to see if there is any additional coverage for rental cars.  When you are shopping around for Minnesota auto insurance quotes you can ask if there are any policies that offer such a benefit before making a purchase.  The Insurance Information Institute says consumers are usually covered when they rent a car.

According to the article “Best Auto Insurance Coverage for Rental Cars” by Brian McKay on monitorbankrates.com, purchasing auto insurance for your rental car may be unnecessary.  Many auto insurance companies cover rental car insurance liability and collision.  Find out specifically what kind of coverage you have on your own car because most likely you will have that on your rental as well.

If you don’t have comprehensive auto insurance or collision auto insurance you can purchase rental car insurance to cover yourself in case the rental is damaged or stolen.  One thing to keep in mind though is the car you are renting must be used for personal reasons, not for business.  Many personal auto insurance policies only cover recreational rental car insurance.  This is why the rental car company always asks if the car will be used for business or pleasure.

If you are renting a car for business you can take the coverage the rental car company is offering.  The daily car rental expense may be more but at least you will be covered and since it’s a business expense, the cost of the rental and insurance is most likely tax deductible. 

Many credit card companies offer car rental insurance just for putting the purchase on their credit card.  Contact your issuer to see exactly what types of benefits you have with your card.  The benefits probably are not as good as the coverage you get with your own auto insurance policy but it is worth looking into.  You do not want to purchase car rental insurance if you are covered for free through some other outlet.