Car insurance question

[Monoriu]

When I rented Chevy Cobalt from Enterprise for a day, my insurance costs amounted to $30.  Since I didn't have a car yet (in fact I was renting one to drive to dealerships), I didn't have my own auto policy, so I had to bend over and take it.  That $30 a day for a crappy Cobalt means $900 a month, or $5400 for 6 months.  As a comparison, I pay $650 for 6 months for my own car insurance now, in the same area and for a similar type of car.  Do the math.

Ahh, so I was right to decline after all.  I didn't do any math.  I reacted instinctively - the answer to anybody selling any type of insurance to me should be no.

Another thing is, I'll not be financially ruined if I need to pay the excess. 

[grumbler]

Yep, the added coverage is basically pure profit for the rental agency.  Offering it is scare tactics.  Most credit card companies cover that as a matter of course (all of mine have), so declining the extra coverage should be automatic. 

[Monoriu]

Most credit card companies cover that as a matter of course (all of mine have), so declining the extra coverage should be automatic.

I didn't know that.  I'll have to see if that is true for cards issued in HK. 

[DGuller]

Ahh, so I was right to decline after all.  I didn't do any math.  I reacted instinctively - the answer to anybody selling any type of insurance to me should be no.

Another thing is, I'll not be financially ruined if I need to pay the excess.

I agree mostly, but you do have to be careful with auto insurance, because the sums involved can be life-ruining.  You do have to make sure that large deductible is all you really are on the hook for if Mrs. Mono turns the standard sedan into a compact.

[Monoriu]

I agree mostly, but you do have to be careful with auto insurance, because the sums involved can be life-ruining.  You do have to make sure that large deductible is all you really are on the hook for if Mrs. Mono turns the standard sedan into a compact.

I've rented cars in Japan, Hong Kong and Australia.  Only in Australia is the extra insurance offered. 

[crazy canuck]

But you are not paying 30 bucks a day for a year.  You are paying 30 bucks a day for bridge insurance.

[DGuller]

But you are not paying 30 bucks a day for a year.  You are paying 30 bucks a day for bridge insurance.

What's the difference?

[crazy canuck]

But you are not paying 30 bucks a day for a year.  You are paying 30 bucks a day for bridge insurance.

What's the difference?

$10,770.

If you guys want to fool with deductables, your insurance company and foriegn laws if you get into a trouble with a rental car in foreign company that is of course your perogative.  But I prefer to pay to just drop off no matter what has occurred.

[DGuller]

But you are not paying 30 bucks a day for a year.  You are paying 30 bucks a day for bridge insurance.

What's the difference?

$10,770.

If you guys want to fool with deductables, your insurance company and foriegn laws if you get into a trouble with a rental car in foreign company that is of course your perogative.  But I prefer to pay to just drop off no matter what has occurred.

Maybe, but that doesn't change the original point.  Insurance offered by rental companies is almost pure profit, and often completely unnecessary (meaning that it provides redundand coverage).  Just because you're raped hard, but only for a couple of seconds, doesn't mean that you weren't raped.

[crazy canuck]

But you are not paying 30 bucks a day for a year.  You are paying 30 bucks a day for bridge insurance.

What's the difference?

$10,770.

If you guys want to fool with deductables, your insurance company and foriegn laws if you get into a trouble with a rental car in foreign company that is of course your perogative.  But I prefer to pay to just drop off no matter what has occurred.

Maybe, but that doesn't change the original point.  Insurance offered by rental companies is almost pure profit, and often completely unnecessary (meaning that it provides redundand coverage).  Just because you're raped hard, but only for a couple of seconds, doesn't mean that you weren't raped.

But the point is, it isnt redundant and especially if you are travelling in a foreign country.

Assuming the best possible scenario where you have a low deductable, some kind of coverage already in place (including credit card coverage) and the foresight to bring all that documentation along with you for easy reference, that fact remains that if you try to return that vehicle with damage the rental car company will demand immediate payment which might require time to assess the damage (delaying you) and which payment your insurers might in due course deem to have been excessive.

Like I said I prefer to pay a premium to avoid all of that considering that the price is low for the convenience it buys me.