Car Hire & Insurance in the USA

[neon_crossing]

Hi guys,

I have attempted to get my head around the car hire insurance policies of the companies in the USA and I am getting the run-around, I am not sure if it is my accent or the fact they don't use the same terms as we do like 'excess' or whatever but I just cant get a straight answer from anyone.

What I am trying to work out is this:

My basic understanding so far (or what I am led to believe) is that you can hire a car in the US with NO INSURANCE what so ever, unlike here where there is mandatory insurance and there is always an 'excesss' amount that you are liable for and you can pay extra to reduce that excess, or take out travel insurance to cover that excess. - Is this the case? Do they really hire cars with no insurance at all and you are liable for all damages to the car, medical etc? That is what these companies are trying to tell me.

LDW/CDW - Loss damage waiver / Collision damage wavier - Companies are telling me I can pay a nominated amount like $9 or $12 a day to get this cover which can be just for the car or third party as well and companies are telling me this covers me for everything with NO EXCESS which I find difficult to believe.

Am I crazy or does this just seem like madness, either nothing at all or covered for everything? If this is the case what is the point of having travel insurance for the car excess when they don't seem to have any excess at all.

Keen to hear from anyone with personal experience or more knowledge on the matter, it is doing my head in a little bit and doesn't seem clean cut at all.

Cheers,

-NC

 

[QF029]

Argus have packages with insurance included and very good rates

Argus Car Hire compares the prices of 550 car hire agents at 25,000 locations worldwide to find you the cheapest deal!

I used them a few months back without a hitch. I'm sure Cove will add more as he is the Argus expert.

 

[drron]

I also use the car rental companies UK sites and usually they come with insurance included.Mainly I use Avis.
Most consolidators also include insurance and several have been discussed here.
And you can even buy the insurance-somewhere here is a link to a UK firm that will do this.
But whatever you do dont go without insurance in the US.

 

[serfty]

The only cover that a standard Oz TI might cover in the USA is personal loss and physical injury.

Anything else is unlikely to be covered.

Due to the more competitive environment of the USA, such insurance is often provided as part of a US based Credit Card facility.

As indicated, check the fully inclusive prices of the consolidators such as Argus, Driveaway etc.

 

[robd]

Below is directly from my Gold CC Insurance - the underwriter is Zurich. I confirmed with them that I didn't need additional cover. Suggest you call to be sure.

 

[trooper]

As already indicated Americans get their rental car cover through their credit cards (or apparently through many homeowner insurance policies).

Presumably that is why US rentals are offered on a "bare bones" (or ala carte) basis...

Thos folks advising the use of "all in" consolidators are giving good advice... for an Aussie CDW/LDW is very important and those companies provide it in a bundle at often very good rates... paying "US" rates then adding such coverage would I think almost always cost more...

P.S. I think the average rental still has an excess...IIRC one must pay an "excess reduction" to entirely eliminate it... so the TI excess cover is likely a good thing...

 

[neon_crossing]

Great tips and info guys.

I am liking the AVIS.co.uk website showing everything inclusive, works out alot cheaper in some cases, especially with a discount code of some sort and it seems as though they don't flog you as much or at all for 'local' one way rentals like SNA > LAX airport or LAS airport to Hotel sites etc which seems handy.

 

[trooper]

True... and some sites allow drop-off-free rentals within CA..and between CA/NV/AZ.. which with my travel patterns is very useful!

 

[AdMEL]

Hi guys,

I have attempted to get my head around the car hire insurance policies of the companies in the USA and I am getting the run-around, I am not sure if it is my accent or the fact they don't use the same terms as we do like 'excess' or whatever but I just cant get a straight answer from anyone.

What I am trying to work out is this:

My basic understanding so far (or what I am led to believe) is that you can hire a car in the US with NO INSURANCE what so ever, unlike here where there is mandatory insurance and there is always an 'excesss' amount that you are liable for and you can pay extra to reduce that excess, or take out travel insurance to cover that excess. - Is this the case? Do they really hire cars with no insurance at all and you are liable for all damages to the car, medical etc? That is what these companies are trying to tell me.

LDW/CDW - Loss damage waiver / Collision damage wavier - Companies are telling me I can pay a nominated amount like $9 or $12 a day to get this cover which can be just for the car or third party as well and companies are telling me this covers me for everything with NO EXCESS which I find difficult to believe.

Am I crazy or does this just seem like madness, either nothing at all or covered for everything? If this is the case what is the point of having travel insurance for the car excess when they don't seem to have any excess at all.

Keen to hear from anyone with personal experience or more knowledge on the matter, it is doing my head in a little bit and doesn't seem clean cut at all.

Cheers,

-NC

Your basic understanding is pretty much correct. There is generally no such thing as an 'excess' in the US - you either have no cover at all, or full cover without an excess.

Something not covered in this thread - Hertz often give Aussies packaged rates inclusive of all insurances, often at lower rates than they offer US residents with no insurance!

Have a look at my other posts and other threads on this subject and there is a wealth of info.

The only cover that a standard Oz TI might cover in the USA is personal loss and physical injury.

Anything else is unlikely to be covered.

Due to the more competitive environment of the USA, such insurance is often provided as part of a US based Credit Card facility.

As indicated, check the fully inclusive prices of the consolidators such as Argus, Driveaway etc.

Most, if not all, Oz TI and Oz Credit Card TI specifically excludes cover where using a motorised vehicle, which would rule out rental cars.

Below is directly from my Gold CC Insurance - the underwriter is Zurich. I confirmed with them that I didn't need additional cover. Suggest you call to be sure.

View attachment 8178

As posted above, US car rentals generally/almost always do not have an excess, therefore Oz credit card car rental excess is useless.

As already indicated Americans get their rental car cover through their credit cards (or apparently through many homeowner insurance policies).

Presumably that is why US rentals are offered on a "bare bones" (or ala carte) basis...

Thos folks advising the use of "all in" consolidators are giving good advice... for an Aussie CDW/LDW is very important and those companies provide it in a bundle at often very good rates... paying "US" rates then adding such coverage would I think almost always cost more...

P.S. I think the average rental still has an excess...IIRC one must pay an "excess reduction" to entirely eliminate it... so the TI excess cover is likely a good thing...

As posted above, US car rentals almost always do not have an excess - Americans usually don't even know what the word means in this context. IME, only some of the rentals offered to non US residents, especially through European based consolidators, will have an excess.

 

[robd]

Great tips and info guys.

I am liking the AVIS.co.uk website showing everything inclusive, works out alot cheaper in some cases, especially with a discount code of some sort and it seems as though they don't flog you as much or at all for 'local' one way rentals like SNA > LAX airport or LAS airport to Hotel sites etc which seems handy.

I can't remember which car rental company that we used last year in US, but it was Hertz or Avis or the like (I'm thinking Hertz). We hired it in San Diego and dropped it off in Los Angeles. There was no additional fee from dropping it off.

 

[serfty]

I believe in California one way drop of fees are not commonly charged for rentals within the state.

Posted on a wing and a prayer ...

 

[drron]

There should be no drop off fee in California.For Avis UK there is no one way fee in or between CA,NV and AZ.I think this applies for all the majors.But if booking via US site they sometimes add a drop off fee.

 

[robd]

I can't remember which car rental company that we used last year in US, but it was Hertz or Avis or the like (I'm thinking Hertz). We hired it in San Diego and dropped it off in Los Angeles. There was no additional fee from dropping it off.

I found the booking - it was Hertz.

 

[schomers87]

I have been scratching my head on this issue for the last day. A good site is Car Rental Insurance which sums up everything that has been said here i.e. there is no such thing as an excess so you need LDW, also personal liability is often not covered in TI policies where motor vehicles are involved.