Rental Car Insurance Abroad

 

Rental Car Insurance Abroad Scam: How It Works

Beware of the International Car Rental Insurance Scam if you're about to travel. It is also known as the Rental Car Insurance Abroad Scheme. Imagine this scenario:

You are planning a great vacation in a different country. You book your hotel, rental car, auto insurance, and then catch the plane. Once you arrive at the destination and go to pick up your vehicle, you are told that their rental company doesn't accept insurance bought in other countries.

You are forced to pay an extra few hundred dollars, because they only recognize their own and you are told that you'll be held responsible for any damage. What to do if you travel soon?

Watch the video below to see tips on how to buy rental car insurance:

Tips On How To Buy Rental Car Insurance Video

 

International Rental Car Insurance Scam: How To Avoid

Always rent from the most renowned car rental companies when you are traveling. Try to find deals and discounts available from all the top rental companies you know (Avis, Hertz, Budget, Entreprise, Thrifty, Alamo, Dollar, National, etc). However, besides the scam presented above, here are some notes for you to keep in mind when you are looking to get insurance for your rental car.

cars driving in the rain insurance

 

You might not know this, but your personal insurance is going to cover a large part of your rental car. In another words, the liability coverage you have transfers over to that rented vehicle. Do not purchase liability insurance on rental vehicles because your insurance – without deductible on liability – carries completely over.

Just make sure that you have your insurance card and your insurance information to show to the rental car company when you're there. Have it with you at all times.

The issue comes in with comprehensive and collision, aka physical damage. When you look at that rental form and you see physical damage that's where you want to start paying attention. This is when you should buy insurance. Why? You do not have to deal with any deductible in that situation. With your personal insurance – even though it does carry over the rental cars – you might have a deductible. When you're on vacation that may become an issue.

There are other problems to deal with at a rental company, such as "loss of use". If you get the car damaged (especially it's your fault) and they can't use it, they can actually come back against you for the days they couldn't use the vehicle! The other problem is something called "Diminution in Value". How does it work?

Let's say you have a brand new vehicle you rent, but unfortunately you damage it two miles after you leave the company's lot. The minute you damage it what is owed on it and what the value is changes. That difference can come back on you. When you sign off and get their full comprehensive coverage on physical damage… that saves you from all of that.

You can drive the car with full confidence and you can just return it to way it was, or with marks, scratches, or dings, because everything is take care of. You can drive that car knowing full piece of mind that you don't have any worries.

If you are about to travel soon, watch the video below to learn great tips on how to get the best deals on rental cars and find cheap car hire.

How To Get The Best Deals On Rental Cars Video

 

International Rental Car Insurance Scam: How To Report

Make your family and friends aware of the Rental Car Insurance Abroad scam by sharing it on social media. You can also officially report the questionable foreign rental car companies to the Federal Trade Commission using the link below:

Report To The FTC Here

 

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1 Comment

  1. Daniella says:

    Rental car insurance ranaround

    You’ve finally gotten off the plane, picked your bag out of the 150 identical pieces of luggage on the carousel, and slogged your way over to the rental car counter. It’s late, you’re tired, and the last thing you want to have to do at this point is think any more than is absolutely required to get to your hotel and to take a shower. And then that darn guy behind the rental counter asks you the question: Do you want to purchase the additional insurance today? *sound of gears grinding* Well? Do you? The $20/day question Well… the answer is it depends. First, let’s examine what you get when you purchase the rental car insurance, which usually isn’t actually insurance, it’s a liability waiver. It’s generally called a Loss Damage Waiver (LDW) or the Collision Damage Waiver (CDW). (There is also something called Personal Accident Insurance, or PAI, which specifically covers passengers not the vehicle.)When you spend that extra couple bucks a day, if you get t-boned by some schmuck not paying attention, it’s not your problem, put simply. The rental agency holds you harmless if you get in an accident, or if the car is stolen or damaged. You don’t pay anything else, your insurance company doesn’t get involved, and you walk away with (pretty much) no strings attached. It’s convenient. Here’s how three major car rental agencies explain their policies:Is the LDW/CDW worth the cost?So why wouldn’t you spring for the waiver insurance?Well, let’s say it’s $12/day (a pretty conservative figure). You have a 5-day rental. So that means that right there is another $60 on top of whatever you’re already paying in rental fees. So what? you say. My personal auto insurance also covers rental cars. That’s right, it certainly does. Of course, if something happens, you’re out the cost of the deductible on your insurance (which is probably a tad more than $60), your rates will most likely go up, and here’s the biggie rental car companies can charge you for loss of use, which means the loss of rental fees while the car is in the shop for repairs. In many states, personal auto insurance policies will not cover this expense you will be out of pocket for it. Check out what three top insurance companies had to say:Put it on the plastic? Well, you say,my credit card has some coverage on it. You’re right your credit card probably does offer some insurance coverage but that’s mostly on a secondary basis meaning your auto insurance company pays first, then you can submit a claim to your credit card company to pay for the deductible and possibly for loss of use charges. But do read the fine print on your credit card coverage here not all cards are created equal, and some provide very little additional coverage. Some info from the major credit/charge/debit card companies:Going international?A final consideration is where you plan on renting the car. If you’re overseas or even just in Canada or Mexico your auto insurance provider may not offer any coverage whatsoever. It would be rather a downer to rear end someone in Paris while sightseeing, then come home to a $10,000 bill for a wrecked rental.

    Property values
    Most rental companies also offer personal property insurance in addition to the liability waiver meaning that if your iPad gets stolen, you’ll get reimbursed. Again, yes, your auto or homeowners policy may cover this type of theft, but, once more, consider the deductible (and the hassle). Once you’ve thought about how much your deductible is, consider how much more likely items are to be stolen while on vacation especially if you’re in a tourist-heavy area. The bottom lineBefore you go off on a trip that requires a rental car, call up your insurance company and your credit card company. Get in writing exactly what they cover, and what they don’t. If you feel good about with the amount of coverage afforded to you via this route, go ahead and save the money at the counter. If you don’t feel comfortable with what you’ve got, you just don’t want to deal with the possible hassle of having to call the insurance, the credit card company, and the rental agent multiple times if something happens, or you just haven’t had a chance to look over your policy recently spend the cash. There’s something soothing about the piece of mind of total coverage not that you should decide to go drive your rental from the Vegas strip into Lake Mead to see if it floats but knowing you could walk away clean if you do, that’s one less thing to worry about while on vacation.

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