“Will you be needing a car with that ticket?” It’s a common enough question for those of us who still buy airline tickets from humans. But before you take out your credit card yet again, there are some things to consider about how to rent that car and where.
For starters, not all U.S. cities are equal when it comes to daily rates. A survey conducted in August by CheapCarRental.com looked at rates for the cheapest available car rental in 50 American cities and discovered that it is not Honolulu, nor is it Anchorage that charges the highest rate. It’s Portland, Oregon. It will cost you $111 daily to manage that city in your own private conveyance. And Portland joins Anchorage, Kailua, Louisville and Detroit as the five most expensive cities for car rentals.
Fortunately, the spectrum has a bottom and San Diego, Las Vegas, Fort Lauderdale, Tampa and Orlando stand as the five least expensive cities for car rentals, running $25 to $28 a day.
One added way to save when renting a car is by pulling out the right credit card.
A 2014 Credit Card Auto Rental Insurance Study conducted by CardHub this summer showed most consumers had little knowledge that all four major card networks (i.e. Visa, MasterCard, American Express and Discover) provide rental insurance coverage to card holders that may preclude the need to purchase an additional policy from a rental agency.
Roughly 20 precent of consumers always purchase supplemental insurance coverage when renting a car and another 20 percent do so on occasion. But the primary reason for doing so is less for need and more about confusion. Indeed, 62 percent of consumers do not believe their personal auto insurance automatically covers rental cars, according polls by the National Association of Insurance Commissioners. Similarly, nearly a quarter of those renting cars are not sure whether their credit cards provide any sort of coverage at all.
The facts are that all four major card networks provide some form of rental car insurance coverage.
American Express received the highest cumulative score (90 percent) for its rental car insurance policy, while Discover ranked second (88 percent), MasterCard ranked third (79 percent) and Visa ranked last (74 percent). MasterCard is the only network that does not provide coverage on all of its cards.
All four major networks require cardholders to charge their entire rental car purchase on their credit card and decline supplemental insurance/Collision Damage Waivers (CDW) offered by the rental company in order to be eligible.
However, a number of disqualifiers are waiting in the wings. None of the four major networks provides coverage for the rental of: 1) exotic, expensive or antique cars; 2) trucks; 3) vehicles with open beds; or 4) off-road vehicles.
VISA does not cover accidents occurring on dirt and gravel roads. MasterCard covers accidents on dirt and gravel roads only if they are “regularly maintained.”
American Express is the only network not to provide coverage for renting certain popular SUVs – including the Suburban and Tahoe from Chevrolet, GMC Yukon, Ford Expedition, Lincoln Navigator, Toyota Land Cruiser, Lexus LX450, Range Rover, and full-sized Ford Bronco.
Are You Covered?
Call your insurance company and find out if rentals are covered under your standard policy. Older policies may not offer this coverage.
Call your credit card issuer and ask what limitations apply to the car rental coverage provided by your particular type of credit card.
It might be wise to accept the liability insurance and collision damage waiver offered by the car rental company if you do not have personal auto insurance and your credit card does not provide sufficient coverage.
Long-term rentals might not be covered by your existing auto insurance or credit card, as time limitations may be in effect.
Your personal auto policy – if it even covers rentals – only applies when the vehicle is used for personal use. So, if you are moving boulders for a construction company, you had better check the small print.
If you rent a car of similar value to your own car, it will increase the likelihood that your existing coverage will be adequate for the rental car.
If your personal policy will not cover the car rental you have in mind, ask about adding an insurance rider for a small fee.
If you are not a car owner but drive from time to time, you might want to consider purchasing a non-owner auto insurance policy.
Other Do’s and Don’ts on the Car Rental Road
Don’t rent at the airport: You will always be paying the highest rates. Rentals may be 20 percent to 30 percent lower at a satellite office.
Consider lesser-known brands: There are more options out there than Hertz and Avis. Consider scoping for lesser-known or unknown car rental companies. They want your business so their rates will be attractive, and you will be protected from scam or fraud concerns by your credit card. However, they will not be convenient in location and you will have to find transportation to get to these rental spots.
Fill the tank before you return the car: Pump prices at the rental agency will likely be 30 percent higher per gallon than what you would pay just down the street.
Beware of hidden fees and charges: Don’t take the souped-up stereo or fancy GPS monitor. Cool amenities could add dollars to your daily charges.
Test drive latest models:
If you’re on a liberal per diem or want to check out the latest luxury hybrid, now’s your chance.
Lark Gould is a veteran travel writer living in Los Angeles. She blogs at Larkslist.com.
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