Insurance on Rentals....To Buy or Not To Buy?

[lumlum1013]

my situation:

Going to USA, renting a car for 5 days
I own a TD Gold Visa, Covered by Auto Rental Collision/Loss Damage Insurance
Insurance offered by rentals range from $23-$25 per day (115-$125 whole trip)

What's the advantages/disadvantages of using CC's insurance over rentals' insurance? and vise-versa

i was told by a clerk in Hertz, that i should use "HERTZ" insruance,
because if i get into accident in USA, HERTZ will cover every cost,
damage to my car, and the car that i hit and all personal damages. my personal car Insurance company will not be involved. and will not know the accident.

I don't know if i should trust this clerk or not, cuz if i do get into accident,
i will have to file a report, and my insurance will be alerted, and my
premium will sky rocket no matter what......

so should i reject rentals offer, and j/ stick w/ my CC?
or should i accept their offer since they give better coverage than CC?


Thx in advance!

http://visa.ca/cldi/ -- Visa's Auto Rental Collision/Loss Damage insurance info

[gilboman]

your credit card's LDW/CDW should be fine. but you will need liability insurance in the states that is not covered by your CC. you may purchase it from hertz or use your own insurance coverage if you are certain your policy covers rental cars you are driving.

but bear in mind, if you do get into an accident, if you did not purchase hertz's insurance, you maybe on the hook for the damages to the rental car and loss of use first and may need to wait a while to be reimbursed by the cc since hertz can go directly after you instead of dealing with the cc's insurance policy

[aquariaguy]

My friend rented a car once, went for an interview in the States and totalled the car. Good thing he got insurance!

[actng]

You need to read the fine print of the insurance coverages and compare. A lot of rental companies offer "loss damage waivers" LDW. This should not be confused with insurance.

LDWs waive your responsibility to pay the rental company back for the loss of the vehicle, but it doesn't necessarily cover damages to other vehicles/property and more importantly you and your occupants, in the event of an accident. This is where insurance comes in.