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MichelR
join:2011-07-03
Trois-Rivieres, QC

MichelR

Member

[Serious] Car rental insurance...

Soooo I had a little mishap a couple of days before Christmas:




One accident since I started driving in 1986, so that's not too bad I guess... The car is nearly 15 years old and I don't use it much, so I've decided not to fix it (there were other expenses coming this spring as well). Not much damage (I drove back with it a couple of days later, 500+Km), but you know how it is - it's still several hundred dollars. I'm selling it to one of the mechanics who works where I've had the car serviced for the past 10 years.

I'll be renting a car when I need one, which won't be very often (I live in a central location in Ottawa, so lots of stuff I can do on foot). I haven't rented a vehicle since 1997, so I don't quite remember how much car rental insurance costs.

Before saying "it's for suckers!" (I know), keep in mind that I will no longer have personal auto insurance, and my current credit card doesn't have car rental coverage (it's a TD Rebate Rewards Visa). So I'm wondering whether the rental company's insurance is really very expensive, or if it would be worth for me to get a second credit card with the coverage.

Also, any "gotchas" I should know about, with each of the two options (new card or rental co. insurance)?

elwoodblues
Elwood Blues
Premium Member
join:2006-08-30
Somewhere in

elwoodblues

Premium Member

Last time I looked , and it's been a few years, there are 2(actually 3 they sell) insurances products

1 ) Collision, it was in the $18/day range, you get into an accident, and you have a zero or small (up to $500) deductible.
2) Liability, if you hit someone, your ass is covered. That was a couple of bucks a day
3) Theft, if someone steals something from the car that is yours , again a buck or 2 a day.

Your decision, but if you have no other means of being covered , the price you pay is dirt cheap compared to what it wlll cost to repair the car after the fact (what was the rough cost of fixing the car pictured). When it comes to liability, the couple of bucks could save you everything you own.

Also you need to realize something else, due to the games insurance companies play, if you allow your coverage to lapse (or go without for an extended period of time) you will be considered a "new driver" and they will "sock it you " in premiums.

The savings by not owning a car and renting, may not outweigh the increased premiums when you do decided to own again.
PX Eliezer704
Premium Member
join:2008-08-09
Hutt River

PX Eliezer704 to MichelR

Premium Member

to MichelR
Why not look around a bit at some of your credit card options....

Annual fee of $ 59 gets you the insurance....
»www.capitalone.ca/credit ··· enefits/

dirtyjeffer0
Posers don't use avatars.
Premium Member
join:2002-02-21
London, ON

dirtyjeffer0

Premium Member

nah, i would just get the "full package" they sell at the rental office for the few times a year it is needed...the extra insurance they sell (i got it on my rental last year, was about $10/day) gives you $0 deductible and doesn't use your insurance should something happen...smash into a tree, covered...someone ding your door in a parking lot (when you aren't there), covered...nothing goes through your insurance and you don't pay a penny deductible (this was through Enterprise).

corster
Premium Member
join:2002-02-23
Oshawa, ON

corster to elwoodblues

Premium Member

to elwoodblues
said by elwoodblues:

Last time I looked , and it's been a few years, there are 2(actually 3 they sell) insurances products

1 ) Collision, it was in the $18/day range, you get into an accident, and you have a zero or small (up to $500) deductible.
2) Liability, if you hit someone, your ass is covered. That was a couple of bucks a day
3) Theft, if someone steals something from the car that is yours , again a buck or 2 a day.

Your decision, but if you have no other means of being covered , the price you pay is dirt cheap compared to what it wlll cost to repair the car after the fact (what was the rough cost of fixing the car pictured). When it comes to liability, the couple of bucks could save you everything you own.

And to further expand on those three categories:

1) Collision - You can find a credit card that will cover this. If you want a No-Fee one, check out the RBC Rewards Gold VISA. It's well worth saving $18/day for.

2) Liability - If you are renting in Ontario, you will likely not have to worry about this. The car will already carry $1 million in Liability Coverage. You only really have to worry about this in jurisdictions where rental companies aren't required to carry Liability Insurance, or are only required to carry a very low amount (like many parts of the US).

3) Theft - this is Personal Effects Coverage, and it's really up to you if you want to buy it. No credit card will cover you, but your homeowner's insurance may.

RBC Rewards Gold VISA: »www.rbcroyalbank.com/cre ··· old.html
NCRGuy
join:2008-03-03
Ottawa, ON

2 recommendations

NCRGuy to MichelR

Member

to MichelR
I would look in a completely different direction. Insurance companies look at continuous coverage. Walk away from coverage and if you need it again they may look at you as close to a new driver.

If you live in central Ottawa, take a look at »www.vrtucar.com. This could deal with your ongoing needs at a much kore reasonable cost, give you continuous auto insurance and give you a discount with Avis for more long term rentals.
peterboro (banned)
Avatars are for posers
join:2006-11-03
Peterborough, ON

peterboro (banned)

Member

said by NCRGuy:

I would look in a completely different direction. Insurance companies look at continuous coverage. Walk away from coverage and if you need it again they may look at you as close to a new driver.

I was about to recommend those car loner programs as well. The last time I was wrangling with an insurance company and looking at FSCO directives there is no need for continuity of coverage just one year prior in Ontario. With the giant "rat agency" Autoplus underwriters are never at a disadvantage whether you have coverage or not.

elwoodblues
Elwood Blues
Premium Member
join:2006-08-30
Somewhere in

elwoodblues to corster

Premium Member

to corster
I didn't know about the liability. Is that new? Like I days it's been years and they "offered" it for a couple of bucks.
peterboro (banned)
Avatars are for posers
join:2006-11-03
Peterborough, ON

peterboro (banned)

Member

Liability is automatically on all rental cars as to not do so is illegal.
MichelR
join:2011-07-03
Trois-Rivieres, QC

MichelR to NCRGuy

Member

to NCRGuy
said by NCRGuy:

I would look in a completely different direction. Insurance companies look at continuous coverage. Walk away from coverage and if you need it again they may look at you as close to a new driver.

If you live in central Ottawa, take a look at »www.vrtucar.com. This could deal with your ongoing needs at a much kore reasonable cost, give you continuous auto insurance and give you a discount with Avis for more long term rentals.

That's what I was going to reply to elwoodblues. I forgot to mention that - for occasional needs of a car in the city, I would sign up with Vrtucar (there's one of their vehicles in the building next door, plus a few others within reasonable walking distance). They do state that if a member later needs to buy a car for daily use, their insurance company will provide a letter of experience (something like that). So that's a way to keep continuous coverage without the full expense of a car.

Didn't know their partner was Avis (they don't say which one it is on their web site). I can also get discounts with Hertz with my CAA card (not sure I'm going to keep that though), and with Hertz and Budget with my union membership.
MichelR

MichelR to PX Eliezer704

Member

to PX Eliezer704
said by PX Eliezer704:

Why not look around a bit at some of your credit card options....

Annual fee of $ 59 gets you the insurance....
»www.capitalone.ca/credit ··· enefits/

I did. By asking here I'm looking more for real-world experience from people - i.e. any gotchas to be aware of. It's always all fine and dandy when you read off a bank's or car rental company's web site.
MichelR

MichelR to corster

Member

to corster
said by corster:

RBC Rewards Gold VISA: »www.rbcroyalbank.com/cre ··· old.html

Thanks - I'll look into that. At the moment I'm trying to figure out the best option to go with, so any tip like this is welcome. TD has a no-fee "Gold Select" card with insurance, but the little extras could sway me one way or the other.
MichelR

MichelR to elwoodblues

Member

to elwoodblues
said by elwoodblues:

Also you need to realize something else, due to the games insurance companies play, if you allow your coverage to lapse (or go without for an extended period of time) you will be considered a "new driver" and they will "sock it you " in premiums.

The savings by not owning a car and renting, may not outweigh the increased premiums when you do decided to own again.

That's definitely been a concern, but I figure Vrtucar is a good, cheap alternative to get continuous coverage (a little bit of info I forgot to mention in my first post).

For the past 5 years or so, I've barely touched 5000 Km/year, and most of it was when I drove to visit family (roughly 1000 Km total per trip). That's actually where I skidded off the road (and I was only about 25Km from arriving at my sister's... grmbl). I've had a number of expensive repairs due to lack of use (a few times the mechanics told me "you need to drive it more"). So basically sometimes I'd just go out for a drive just to give the car some exercise. Burning fuel for nothing, and driving is nowhere near as fun as it used to be, what with all the cyberzombies on the road. As much as I love my car, I'm not putting it to good use.

So I figure Vrtucar for maybe one or two trips per month to run errands I can't do on foot, and a rental company for trips back home will save me anywhere from $1000 to $2000 per year, without having to worry about going for a drive regularly even when I don't feel like it. haha!

elwoodblues
Elwood Blues
Premium Member
join:2006-08-30
Somewhere in

elwoodblues to MichelR

Premium Member

to MichelR
One thing to be aware of when it comes to CC insurance (and I could be wrong) I was told(by the rental company) that the damage was still my problem and I had to deal with the CC company to get my money back for any repairs.

Gone
Premium Member
join:2011-01-24
Fort Erie, ON

Gone to corster

Premium Member

to corster
said by corster:

2) Liability - If you are renting in Ontario, you will likely not have to worry about this. The car will already carry $1 million in Liability Coverage. You only really have to worry about this in jurisdictions where rental companies aren't required to carry Liability Insurance, or are only required to carry a very low amount (like many parts of the US).

It is also worth pointing out that some automobile insurance policies will cover you for this even when driving a rental vehicle, rather than just what the rental company does (or doesn't) provide. You'd want to check your own policy first.

corster
Premium Member
join:2002-02-23
Oshawa, ON

corster to elwoodblues

Premium Member

to elwoodblues
said by elwoodblues:

One thing to be aware of when it comes to CC insurance (and I could be wrong) I was told(by the rental company) that the damage was still my problem and I had to deal with the CC company to get my money back for any repairs.

Yeah. That's always something to check with the rental car company.

The one time I had to make a damage claim, it was with my RBC Visa and a Hertz location in Ottawa. The local Hertz franchisee (Surgenor, who owns all the Hertz locations in the NCR) dealt directly with RBC. All I had to do was call RBC and open the initial claim and they did the rest.

donoreo
Premium Member
join:2002-05-30
North York, ON

donoreo to MichelR

Premium Member

to MichelR
If you only need a car now and then look into Zip car.

Thane_Bitter
Inquire within
Premium Member
join:2005-01-20

Thane_Bitter to NCRGuy

Premium Member

to NCRGuy
said by NCRGuy:

I would look in a completely different direction. Insurance companies look at continuous coverage. Walk away from coverage and if you need it again they may look at you as close to a new driver.

Excellent advice, the cost to keep a no car policy is extremely low.

dirtyjeffer0
Posers don't use avatars.
Premium Member
join:2002-02-21
London, ON

dirtyjeffer0 to elwoodblues

Premium Member

to elwoodblues
said by elwoodblues:

One thing to be aware of when it comes to CC insurance (and I could be wrong) I was told(by the rental company) that the damage was still my problem and I had to deal with the CC company to get my money back for any repairs.

yea...i have coverage with my credit card and my car insurance (if i have a rental car for whatever reason), however, the extra insurance you get from the rental place is more of a "make it simple" process...sure, it costs a bit extra, but i'd rather pay the $30 for a weekend of coverage (like i did last year) and not have to worry about some moron dinging a door in the parking lot, leaving me to foot the bill for the deductible or repair.
peterboro (banned)
Avatars are for posers
join:2006-11-03
Peterborough, ON

peterboro (banned)

Member

said by dirtyjeffer0:

yea...i have coverage with my credit card and my car insurance (if i have a rental car for whatever reason), however, the extra insurance you get from the rental place is more of a "make it simple" process...sure, it costs a bit extra, but i'd rather pay the $30 for a weekend of coverage (like i did last year) and not have to worry about some moron dinging a door in the parking lot, leaving me to foot the bill for the deductible or repair.

A more important consideration is the fact you will not have an at fault accident on your record for 6 years if you make a mistake. As we all know DJ you have used your last get of jail free card last year with your reckless driving spree.

Another consideration is the money maker for the car rental industry in hitting up customers for inflated repairs for every little nick or scrape that doesn't constitute an accident. With your track record of wanton disregard for vehicles in your proximity this may be advisable in your case.

elwoodblues
Elwood Blues
Premium Member
join:2006-08-30
Somewhere in

elwoodblues to donoreo

Premium Member

to donoreo
said by donoreo:

If you only need a car now and then look into Zip car.

They just got swallowed by AVIS.

dirtyjeffer0
Posers don't use avatars.
Premium Member
join:2002-02-21
London, ON

dirtyjeffer0 to peterboro

Premium Member

to peterboro
said by peterboro:

As we all know DJ you have used your last get of jail free card last year with your reckless driving spree.

wtf?

there was no reckless driving spree.

koira
Hey Siri Walk Me
Premium Member
join:2004-02-16

1 edit

koira

Premium Member

Beware of the trailer hitch
peterboro (banned)
Avatars are for posers
join:2006-11-03
Peterborough, ON

peterboro (banned) to dirtyjeffer0

Member

to dirtyjeffer0
said by dirtyjeffer0:

wtf? there was no reckless driving spree.

To clarify it was a spree that lasted one trip and then and it was careless not reckless...or it was reckless...I don't think there is a difference. Just so you know, and contrary to what you think that I'm not perfect, years ago when pulling over out on a back road in a blizzard at 3am I pulled over too far and one of tires dropped over the edge and I got stuck.
NCRGuy
join:2008-03-03
Ottawa, ON

NCRGuy to elwoodblues

Member

to elwoodblues
said by elwoodblues:

said by donoreo:

If you only need a car now and then look into Zip car.

They just got swallowed by AVIS.

Who cares. Zipcar doesn't operate in Ottawa anyway. The car sharing here is called Vrtucar, and has already been discussed and acknowledged in this thread.
peterboro (banned)
Avatars are for posers
join:2006-11-03
Peterborough, ON

peterboro (banned)

Member

said by NCRGuy:

Who cares. Zipcar doesn't operate in Ottawa anyway. The car sharing here is called Vrtucar, and has already been discussed and acknowledged in this thread.

Maybe someone outside Ottawa is reading this thread. Take a valium.
MichelR
join:2011-07-03
Trois-Rivieres, QC

MichelR to donoreo

Member

to donoreo
said by donoreo:

If you only need a car now and then look into Zip car.

Zip Car is only in Toronto and Vancouver. In Ottawa we have Vrtucar - same kind of service. They recently expanded into Kingston.

Edit: Oops, didn't see someone had already pointed that out.
MichelR

MichelR to Thane_Bitter

Member

to Thane_Bitter
said by Thane_Bitter:

said by NCRGuy:

I would look in a completely different direction. Insurance companies look at continuous coverage. Walk away from coverage and if you need it again they may look at you as close to a new driver.

Excellent advice, the cost to keep a no car policy is extremely low.

A no-car policy? Is there such a thing?

Thane_Bitter
Inquire within
Premium Member
join:2005-01-20

Thane_Bitter

Premium Member

As a standalone product to a new customer, I doubt it, however if you have coverage with a company they keep your old car on file as I recall.

Since you have insurance, aren't making a claim on the car, but aren't interested in getting a replacement vehicle immediately talk to your agent and see what you best options are.