How the scam works:
Scenario 1. You rent a nice vehicle and the agent you're renting from asks you to pay a mandatory insurance fee. You might be okay with that, since insurance is important.
What you probably don't know is that your own credit card has auto insurance incorporated already, so the rental company is just getting more money by asking for this. Most credit cards cover auto insurance, though this is not commonly known. Of course, the agent knows, but they get a commission for selling you the extra insurance.
Scenario 2. There are legitimate companies out there that are fair, but imagine this: you call the company, tell them what you need, say “no insurance” and go there to pay and pick up the car. The teller is a nice guy who gets you to sign the contract, folds it and staples it, so you won't get to see the fine print. Nicely folded and easier to carry in an envelope, you don't pay attention to it until you get your credit card statement and see you were overcharged by $180, although you said no insurance is needed.
How to avoid:
Everytime you rent a car, look for what your credit card covers. Always, always, always – check the fine print. It is “fine” for a reason. Don't rely hundred percent on what you ask for, but on what you see in front of you on the agreement. Also, always rent from the most reputable companies.
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