Car rental "loss of revenue" insurance

Old Sep 15th, 2003, 03:51 PM
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Car rental "loss of revenue" insurance

I checked with my auto carrier to make sure I'm covered for my Thrifty rental car in Honolulu next week. She says I'm not covered for "loss of revenue" (this is a new thing to me). I called the 800# for Thrifty, who says I am indeed responsible if I want this coverage, but I have to find out how much the coverage is when I arrive in Hawaii.

Is this common to all car rentals now, or just Hawaii? Is it expensive coverage (I'm getting a compact)? I can't believe Thrifty won't tell me till I get there...
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Old Sep 15th, 2003, 05:31 PM
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It is something we have encountered in several cities in last year - my guess is that since fewer people are falling for the old "buy our insurance" scare tactics since they finally realize they are covered in other ways - the car rental companies have come up with this as a way to make money.
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Old Sep 15th, 2003, 05:47 PM
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I did check with my insurance company and found that if I'm in a rental vehicle and in an accident where I'm at fault my insurance does cover me. My insurance does not cover the rental car for the time it's in the body shop being repaired - that's the down time they're referring to. Most insurance companies do not cover you for this down time and let's face it - what insurance company wants to reimburse for 1 to 2 weeks that a car is in the shop. I have been told that American Express covers this "loss of revenue" on its gold cards but you could probably check with AE again.
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Old Sep 15th, 2003, 06:55 PM
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Good info LN

I guess that is another reason to consider the rental company "CDW"
collision damage waiver, eventhough it is consider expensive....thanks for the info
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Old Sep 15th, 2003, 07:02 PM
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I recently spoke with the American Express insurance dept. about Loss of Use coverage on a Hertz rental car to be charged to the AX Platinum Card. They said there is NO Loss of Use Coverage. If Platinum card doesn't have it, I doubt that Gold card would either. I'd be sure to check with AX before renting. Although expensive, I'm going to take out that ins. I don't want to be responsible for Loss of Use charges.
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Old Sep 16th, 2003, 02:44 PM
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I had the misfortune of having a deer run out and hit the rental car on the last day of my vacation. It took off the driver's mirror and dented in the door. I used a Bank One Visa card and declined all insurances when I picked up the car. I filed the claim with my insurance agent and with Visa since auto insurance is available with them. My insurance picked up the actual repair bill less the deductible and Visa took care of the loss of use. It took many phone calls to get everyting coordinated but in the end it only cost me the deductible. The Visa agent (actually a company they deal with) said if I had not declined all the insurances I would have had to pay out for he loss of use. By the way it took the rental agency three days to take the car to a in city repair station before repairs even began which added to the loss of use bill.
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Old Sep 16th, 2003, 03:44 PM
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Photodog, Which Visa did you have? platinum or gold? Also, why didn't it cover your deductable? thanks,
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Old Sep 16th, 2003, 05:06 PM
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I think I'm a bit confused (but that does happen at times) as to declining all the insurance offered by the car agency. Did you mean that if you took out the CDW (to cover loss of use) that YOU would have had to pay (from your own pocket) for the loss of use? I'm misunderstanding something here, aren't I?

As far as the "Loss of Use" coverage by AE - they DID have it at one time - cause that's why I took their card. Gold Visa and Mastercards sometimes have it too.
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Old Sep 16th, 2003, 07:07 PM
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LN....In order for the credit card company insurance to be in effect, the rentor must decline all rental car coverages...it is in their (visa, mastercard etc ) insurance coverage agreement. And, credit card insurance coverage only becomes "secondary", after your own personal insuranace carrier, unless you do not have a primary carrier, or that type insurance....i.e collision.

The CDW offered by the rental car companies covers the car for physical damage (not liability - that is another issue)....that includes damage, loss of revune etc....The CDW as noted by the rental car company is "not" insurance...but self indemnification.

All this information can be obtained by going to the "credit card" websites, searching, and reading the agreements.

Again....a good example of investigate for yourself, don't trust what others tell you ....it is usually wrong.

I usually take the CWD for the simple purpose that the slightest mishap can cost $500-$1000.....i.e. some opens a door into your car while you are parked, the old key on the paint trick...WOW that could cost a bundle! etc.

When on vacation...I don't want the worry nor the expense for a few extra bucks....but that is a personal decision.

The other part of it is; I don't want to do alot of paperwork, and follow-up with tel calls, etc. while on vacation or on my return.

Mar 2001 in Fla.: Had a car totaled...hit from behind 2 times while at a stop light...pushed into the car in front. I had CDW from the rental car company. A call to my insurance agent, and a call to the rental car company....The rental car company sent a wrecker to pick me and the car up. Back to the rental car yard....got another car, and was on my way. One follow up call from my agent. Case closed. Was it worth the $150 for the CDW....I think so..
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Old Sep 16th, 2003, 07:27 PM
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Yep...what circa said.

Of my various pieces of plastic, I just checked and only my Citi Platinum card includes the CDW deductible/loss coverage, with the provisions just as circa stated.
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Old Sep 17th, 2003, 04:54 AM
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Very interesting information ... I've also been thinking about this as my husband and I will be renting a car for 10 days next month and going all over Arizona. I'm thinking of going with the CDW because I just don't want to deal with the hassle if something happens. Also, if I relied on my own auto insurance, I could still get stuck with paying the deductible on my insurance. And now-a-days insurance companies are not that consumer friendly ... If they've paid a claim on you recently, they may not look so kindly on paying another claim with respect to your future rates. I will also check on my own, but apparently by taking the CDW, it will also cover loss of use?
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Old Sep 17th, 2003, 05:33 AM
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I just called American Express. They used to have the loss of revenue coverage but in order for a rental car company to collect on that, they had to prove that 85% of their rental fleet was on the road at the time the damaged car was being repaired. They weren't able to do that and so those claims were never paid out anyway. I asked her if I should sign the waiver or pay the CDW insurance. She said that the vehicle was covered for theft and damage but not for lost revenue. When I asked her if the rental car company tried to collect loss revenue, what would my recourse be. She said that they would have to prove that 85% of their vehicles were on the road and rented during the time of the car's disability. Any thoughts
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Old Sep 17th, 2003, 05:38 AM
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Remember one thing about insurance, though. The insurers have already calculated how much money they have to take in (premiums, CDW's etc) to make a profit. And over the long haul, they win, not the consumers as a whole.

That is, if you add the cost of insurance for all people who rent, then subtract the payouts for the various claims, the renters still pay more than they receive. That's the very nature of insurance.

It's great that circa didn't have to pay those $$$.
But if I add up all the CDW fees that I have NOT paid over the past 35 years, I'm sure the total easily exceeds $15,000.
So until I get into a >$15,000 loss situation (not covered by my credit card), I'm way ahead for NOT having purchased CDW's over the years.
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Old Sep 17th, 2003, 06:07 AM
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I'm with Travelis, never take the insurance, I've rented a hundred+ cars. For "loss of use", they do really have to prove that they likely lost revenue based on not having the car (hence the 85% fleet use). And as for the deductible, when I hop in my car every day, I'm riding with a $500 deductible, a rental is no different. Don't crash into anything and you're all set. If someone else it at fault then their liability pays.

There is one credit card that offers PRIMARY auto coverage, is it Diner's Club? I remember seeing it somewhere touted as the ONLY primary coverage. Maybe they also insure loss of use???
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Old Sep 17th, 2003, 07:55 AM
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Not that I believe everything I hear, but it's interesting that the person at the car rental (Thrifty in Phoenix) tells me that they have taken loss of use cases to court and been able to prove their case and collect ... I know ... of course this is what I would expect them to say!
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Old Sep 17th, 2003, 02:25 PM
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To DawnCT
I have a platinum Visa. The reason the the deductible was not covered is explained by circa.
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Old Sep 17th, 2003, 03:21 PM
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Whether to get the CDW for the Loss of Use coverage or not? I think it really boils down to how much risk you're willing to take on. This is the first time I've done it, since for this trip I'm going to rent a Jaguar and I wanted to be sure I had all the bases covered. If that baby goes to the shop it would cost me BIG $$$$. For regular rental cars, I might not bother, but this time it's worth the peace of mind to have it.
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Old Sep 17th, 2003, 05:49 PM
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Good information from all.

By the way I agree with travleis...the more you rent, the less likely for a loss. Many business men/persons rent cars many times a year without mishap...and are money ahead.

Without question....CDW can be a very nice profit pocket for the rental company. But What do you do?...It's your choice!

Drive Safely....
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Old Sep 17th, 2003, 06:27 PM
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Hi All:

Now this was a good learning experience!! For although some of us knew some of the answer, it took others to put the whole picture together.

Fortunately my Platinum Visa does have the CDW coverage but since I orginially thought that my AmEX had the coverage I think I'll check back fairly often (like before I'm going to need it)

Thanks again everyone - this was GOOD!!!!
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Old Sep 18th, 2003, 04:46 AM
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LN, Your AmEx does have CDW insurance if you are a gold card holder or above. They just don't have the lost revenue portion. Things change however so it is good to check before traveling.
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