Renting car in states. What insurance do I need

adam88

Hey. Renting a car in the states next month. I’m going to take out excess insurance cover with insuremyexcess however it’s vetu confusing if I need to take out the basic cover in the states. I’ll have the sli cover. So confusing.

NSAman

adam88 wrote: »

Hey. Renting a car in the states next month. I’m going to take out excess insurance cover with insuremyexcess however it’s vetu confusing if I need to take out the basic cover in the states. I’ll have the sli cover. So confusing.

Difficult one to be honest.

It all depends on what insurance you are taking out here.

Most Americans have insurance on their rentals already through their own car insurance policies.

There is a basic policy for most rental cars but even that can put the price through the roof (not to mention the service fees, parking lot fees, city tax, etc..etc..)

Make sure that any policy you do take out will cover ALL eventualities.

The other thing is, make sure to check the car fully before heading off... I know it is not as prevelant as here in regards to charging you for damage but still take pictures and mark the appropriate forms BEFORE you head off. (Take pics with a date if need be)

Personally, I rent a huge amount thanks to business. I have a company policy which will cover anything that happens, but I still check (despite the fact I have never had anything scraped/damaged)

NEVER choose the fuel option in the US... it is crazily expensive. Always drop the car back fully fueled up. It will save you a fortune.

Depending on where you are renting the toll pass can be useful, I personally always use it, it is a little more expensive but saves a lot of time. It normally is charged on a credit card after your rental has ended.

Ask the pertinent questions of your insurance agent here, and dont forget to bring that with you when you are driving just in case the police stop you.

dennyk

Really depends on exactly what terms your excess policy provides; "insuremyexcess" only turns up what looks like a defunct UK insurer with a dead web site, so there's no way for us to say for sure.

Car hire insurance can be complex, as there are several types. SLI is liability coverage, basically the same as your standard third party insurance coverage here; it pays for damage and injury caused to third parties in the event of an accident where you are partially or fully at fault. Unlike in the EU, though, hire cars in the US do not typically include SLI coverage; it must be purchased for an additional fee. If you are going to decline SLI coverage, you must make certain that your excess policy provides proper liability insurance coverage. You should also check the policy limits whether you buy SLI from your car hire company or via a third party company; in the US, the legal minimum liability coverage can be very small (as little as $10k per injured party and $20k total per accident in some states), but American medical costs can be enormously expensive even for treatment of minor injuries, so if your policy doesn't provide adequate coverage, you could find yourself personally liable for a huge bill in the event of an accident. I'd say you should make sure your policy provides at least $100k of personal injury liability coverage at an absolute minimum, and preferably $500k or more to be safe (the more, the better). Property damage liability limits, if applied separately, are less critical, but still important in the event that you cause an accident that totals an expensive vehicle or involves multiple cars.

There is also the "insurance" that covers your own rental car. Generally this is offered by the car hire company as a "Collision Damage Waiver" (CDW), which covers damage to the rental car due to an accident (whether you are at-fault or not). If the coverage also protects against loss by theft, fire, or other non-accident damage (e.g. vandalism, weather damage, etc.), it's usually called a "Loss Damage Waiver" (LDW). Again, while basic CDW/LDW coverage (with a large excess) is normally provided with the base rental price in the EU, it is not normally included in the US and must be purchased separately from the car hire company (or a third party insurer). CDW/LDW will usually have an excess (called a "deductible" in the US) that you will have to pay before the waiver applies, usually $500-$1000 in the US; your third party excess insurance will usually cover this amount for you, though it will likely be as a reimbursement, so make sure you have enough room on your credit card to pay the charges up front if required.

Note that CDW/LDW often has several exclusions as well, usually excluding coverage for damage to wheels and tyres, windshields, undercarriage, etc.; if any of these parts get damaged, you will be responsible for the cost, even if you were not at fault (if the damage was the fault of a third party, you would have to pursue said third party for damages yourself, which would likely be quite expensive and difficult given that you live overseas). Most car hire companies will sell additional coverage options to cover these items for an extra fee, and some supplementary insurance policies may offer their own coverage.

Many car hire companies will also offer some form of insurance to cover costs relating to injuries to you and your passengers and damage or loss of your belongings while in the car, often called "Personal Accident and Effects" insurance (PAE) or similar. This insurance usually isn't worth it, as the coverage provided is usually very small (usually not enough to fully cover your costs) and you should have other insurance (such as your own private health insurance's overseas medical coverage and/or your travel insurance) which will provide the same coverage anyway. (Just make certain your private health insurance or your travel medical insurance will cover medical costs in the US; not all policies will, due to the ridiculous cost of care there, so you may need to purchase a better policy. Traveling to the US without any medical coverage is definitely a bad idea...)

Roscoe P Coltrane

adam88 wrote: »

Hey. Renting a car in the states next month. I’m going to take out excess insurance cover with insuremyexcess however it’s vetu confusing if I need to take out the basic cover in the states. I’ll have the sli cover. So confusing.

Hey Adam. I have rented over there a few times the last few years through one of the big online rental car brokers- ldw & cdw has always been included with $0 excess and sli must be provided by the rental company by law. When speaking to agents at desks as they tey to sell me more, i point this out and they always agree you need nothing else. Make sure your travel/health insurance is up to date and always try to book a car with a free tank of gas & extra drivers if required- this option is always available on sites for very little extra & saves the refuelling (and usually about $50 in fuel)