I am having a argument here, I say you should buy rental insurance but my brother says its a scam and not needed because your insurance company will cover you.

I think this may be true but sometimes your insurance company could opt for the minimum coverage and leave you with the rest?

[Seinfeld] yep I'm gonna drive the hell out of this thing [Sienfeld]

Check the fine print, the optional rental insurance usually only pays after every other form of coverage you may have (regular car policy, credit card additional rental coverage, etc.)

You might find your credit card also offers some insurance when you rent a car with it.

Quoted: I always get it, keeps life simple.

+1, I didn't get it once and totaled a rental car. They wanted 20k out of me, luckily the accident wasn't my fault.

You better make damn shure in writing from your insurance company. They generaly cover the price to fix the car, They may not cover the "rental" some compainies charge while it is out of service.

Quoted: My policy with the evil communist company Progressive covers me in any vechile I am authorize to drive. From what I've heard about the car rental insurance, they(the rental place) bank all the money they receive for the so call "rental insurance" and only pay it to the insurance company only if something happens. It's a scam.

All the more reason to return the car like Johnny Knoxville did in Jackass the movie.

"Loss-Damage Waiver" sold by car rental companies ONLY COVERS THE COST OF YOUR DEDUCTIBLE!!! It is NOT insurance.

That is to say that if you get door-dinged in a parking lot while you are renting the car, you will not have to pay for the repairs out-of-pocket. BUT IF YOU WRECK THE CAR then YOUR insurance still has to pay for all damages to the rental vehicle, and YOU have to pay YOUR deductible ($500 - $1,000) unless you have "Loss Damage Waiver".

Most premium credit cards, (Gold cards, Platinum Cards, etc) already will cover your Loss Damage Waiver due to agreements that they have with the rental agencies. So, if you pay with your Gold Card AND you also pay for the Loss Damage Waiver, then they have took you Hook, Line, and Sinker...The car rental company just sold you the Brooklyn Bridge.

You can also buy real "Rental" insurance and if you drive the car for work, you will have to have a commercial policy with a "Rented and Leased Vehicles" rider because your PERSONAL car insurance will most likely NOT cover an accident that occurs within the course and scope of your employment.

We handle a lot of subrogation cases in my line of work, we do this for a living...

Quoted: how about AAA?

I have been a AAA member for over 20 years, and use their insurance.

Your AAA benefits cover any vehicle that you are driving and/or a passenger in.  The AAA insurance covers any vehicle that you rent or lease.

I can attest to both of the above facts.  

AAA is the shizznits.

ETA:  The level of insurance that you carry helps when renting a car.  I carry 100/300/100, as my job requires extensive travel, including rental cars.  I NEVER buy the extra coverage from the rental agency.  IMHO, it is a rip-off.

Quoted: My State Farm Agent says that I'm covered in any vehicle that I drive.

Your State Farm guy is really sticking his neck out.  I HIGHLY suggest you READ YOUR POLICY.  That goes for EVERYONE.  Remember: Auto insurance follows the vehicle, NOT the driver!  You can add a rider to your own policy that is called "drive other vehicle" coverage.  That sill extend your own policy to any other vehicle you drive.

It says so right in your policy.  Yay or nay.  Every state is different, every company is slightly different,  In some cases only the liability is covered, in some cases on personal insjuries damages done to self (not vehicle) is covered.  Lots ot variables.  READ YOUR POLICY!

In most cases... the liability will cover you, but the property damages will not.  What is NOT covered by ANY insurance company is the "loss of income" the rental car company charges for when the car is being repaired in the body shop.  The rental car company will charge YOU full price per day it is not sitting on their lot to be rented.  I know from personal experience.  I let someone else drive my dad's rental car because I was too drunk to drive it and guess what.... the dumbass put it up a telephone pole guidewire.  The rental car company was paid full damages by my dad's insurance company (his own, he is an insurance agent) but the insurance company refused to pay the $1800 in "loss of income" to the rental company while it was in the shop.  Guess who paid the $1800?  Me.  

Is it a scam?  No.  Is it high priced?  Yes.  But is it worth it not to have ANY worries?  ya damned right it is.  

Take it from an Allstate agent (your's truely).... First: read yor own policy.  Second: buy the extra coverages from the rental car company.  You may pay an extra $$$, but you do not have to worry.  I lost a lot of sleep over my mess up.

I've only rented cars the past couple years on business....

our corporate insurance covers everything so I opt out.

It's a scam. I use my AMEX and they'll cover it.

Quoted: Quoted: My State Farm Agent says that I'm covered in any vehicle that I drive. Your State Farm guy is really sticking his neck out.  I HIGHLY suggest you READ YOUR POLICY.  That goes for EVERYONE. It says so right in your policy.  Yay or nay.  Every state is different, every company is slightly different,  In some cases only the liability is covered, in some cases on damages done to self (not vehivle) is covered.  Lots ot variables.  READ YOUR POLICY! In most cases... the liability will cover you, but the property damages may not.  What is NOT covered by ANY insurance company is the "loss of income" the rental car company charges for when the car is being repaired in the body shop.  The rental car company will charge YOU full price per day it is not sitting on their lot to be rented.  I know from personal experience.  I let someone else drive my dad's rental car because I was too drunk to drive it and guess what.... the dumbass put it up a telephone pole guidewire.  The rental car company was paid full damages by my dad's insurance company (his own, he is an insurance agent) but the insurance company refused to pay the $1800 in "loss of income" to the rental company while it was in the shop.  Guess who paid the $1800?  Me.   Is it a scam?  No.  Is it high priced?  Yes.  But is it worth it not to have ANY worries?  ya damned right it is.   Take it from an Allstate agent (your's truely).... First: read yor own policy.  Second: buy the extra coverages from the rental car company.  You may pay an extra $$$, but you do not have to worry.  I lost a lot of sleep over my mess up.

This is what I was trying to say above. They do cover loss of income. But you have to have a rider for it. It cost me 24 bucks a year

Quoted: It's a scam. I use my AMEX and they'll cover it.

Did you read your policy?  

I know for a fact that AMEX wont cover a rental car in SD or IA.  I have one of my insureds going to court against an AMEX insured due to a very similar situation.  She was hit by an AMEX insured who was driving a rental car... the other driver had no coverage at all.  There was no coverage.  Now my insured has to go after her via the courts.  Not fun.

Quoted: Quoted: Quoted: My State Farm Agent says that I'm covered in any vehicle that I drive. Your State Farm guy is really sticking his neck out.  I HIGHLY suggest you READ YOUR POLICY.  That goes for EVERYONE. It says so right in your policy.  Yay or nay.  Every state is different, every company is slightly different,  In some cases only the liability is covered, in some cases on damages done to self (not vehivle) is covered.  Lots ot variables.  READ YOUR POLICY! In most cases... the liability will cover you, but the property damages may not.  What is NOT covered by ANY insurance company is the "loss of income" the rental car company charges for when the car is being repaired in the body shop.  The rental car company will charge YOU full price per day it is not sitting on their lot to be rented.  I know from personal experience.  I let someone else drive my dad's rental car because I was too drunk to drive it and guess what.... the dumbass put it up a telephone pole guidewire.  The rental car company was paid full damages by my dad's insurance company (his own, he is an insurance agent) but the insurance company refused to pay the $1800 in "loss of income" to the rental company while it was in the shop.  Guess who paid the $1800?  Me.   Is it a scam?  No.  Is it high priced?  Yes.  But is it worth it not to have ANY worries?  ya damned right it is.   Take it from an Allstate agent (your's truely).... First: read yor own policy.  Second: buy the extra coverages from the rental car company.  You may pay an extra $$$, but you do not have to worry.  I lost a lot of sleep over my mess up. This is what I was trying to say above. They do cover loss of income. But you have to have a rider for it. It cost me 24 bucks a year

Awesome.  I wish more people payed attention and listened to their insurance agent like you.  The insurance world would be a much better place.  

Quoted: "Loss-Damage Waiver" sold by car rental companies ONLY COVERS THE COST OF YOUR DEDUCTIBLE!!! It is NOT insurance. That is to say that if you get door-dinged in a parking lot while you are renting the car, you will not have to pay for the repairs out-of-pocket. BUT IF YOU WRECK THE CAR then YOUR insurance still has to pay for all damages to the rental vehicle, and YOU have to pay YOUR deductible ($500 - $1,000) unless you have "Loss Damage Waiver". Most premium credit cards, (Gold cards, Platinum Cards, etc) already will cover your Loss Damage Waiver due to agreements that they have with the rental agencies. So, if you pay with your Gold Card AND you also pay for the Loss Damage Waiver, then they have took you Hook, Line, and Sinker...The car rental company just sold you the Brooklyn Bridge. You can also buy real "Rental" insurance and if you drive the car for work, you will have to have a commercial policy with a "Rented and Leased Vehicles" rider because your PERSONAL car insurance will most likely NOT cover an accident that occurs within the course and scope of your employment. We handle a lot of subrogation cases in my line of work, we do this for a living...

Interesting.

I thought if you bought the rental companies insurace you could return the car completely destroyed, hand the the keys and walk away. they are really misrepresenting what they are selling.

My squad leader used to work for Enterprise Rent a Car, and he said that they got bonuses for how many people they were able to scam into buying that insurance.

I had to rent a car and in a weak moment took their insurance. My insurance covers me but it would still have cost me a $250 deductable if something happened. I took the car out of town with friends. We went to a concert and when I came out the entire drivers side was caved in. So bad in fact I had to crawl in thru the passenger side. How fast they were going in a parking lot is beyond me, BUT the look on the face of the rental company when I rolled in  was worth every red cent of the $21.

Quoted: .... rental car insurance? ....

Generally speaking, any form of insurance is a "scam".

A "rental car insurance" is a bigger scam, folks keep paying for it to help the rich folks get filthy rich.


:}

The rental agents must get a bonus or percentage by the way they try to scare you into buying the extra coverage !
The last time I rented a car was through Alamo and the agent insisted that coverage through my Visa card did not cover Alamo's revenue loss while a vehicle is being repaired.
He also stated most personal insurance did not cover this expense and I would have to pay for loss of revenue out of pocket if the vehicle were damaged .
I wasn't exactly sure what Visa covered , so I paid an extra 12 bucks a day for their minimum insurance .

This is what Visa's Web Site Says :
What is covered?
Subject to the terms and conditions in this Guide to Benefit, Visa Auto Rental CDW reimburses you for covered damage or theft to a rental vehicle while it is your responsibility as well as valid administrative and loss-of-use charges imposed by the auto rental company and reasonable towing charges. Only vehicle rental periods that neither exceed nor are intended to exceed fifteen (15) consecutive days within your country of residence or thirty-one (31) consecutive days outside your country of residence are covered.

The benefit provides reimbursement up to the actual cash value of the vehicle as it was originally manufactured. Most private passenger automobiles, minivans, and sport utility vehicles are eligible, but some restrictions may apply. Please contact the Benefit Administrator to inquire about a specific vehicle.

Within your country of residence, this benefit supplements, and applies excess of, any valid and collectible insurance or reimbursement from any source. This means that, subject to the terms and conditions of this Guide to Benefit, Visa Auto Rental CDW applies to losses or expenses that are not covered by insurance or reimbursement.

Covered losses are:

Physical damage and/or theft of the covered rental vehicle.
Valid loss-of-use charges imposed and substantiated by the auto rental company through a fleet utilization log.
Reasonable and customary towing charges, due to a covered loss, to the nearest qualified repair facility.

VISA'S WEBSITE

Quoted: You might find your credit card also offers some insurance when you rent a car with it.

Quoted: It's a scam. I use my AMEX and they'll cover it.

Be careful with this guys, check your credit card fine print.

We did this once and only after the accident learned that the credit card didn't cover SUV's, which, of course, we had.

Fortunately, State Farm covered the loss, because we had declined the rental car co.'s insurance policy.