Rental car in CA - should I buy RLP insurance?

[Homer]

I've rented cars in several US states in the past 5 or so years, including in CA (where I am right now), and I've just come across an insurance charge to accept or decline on the rental agreement that I can't remember seeing before. It's called "RLP" insurance and it is apparently for third-party damage if I cause an accident. I googled it and some describe it as a rip-off while other comments seem to indicate that it is legitimately necessary.

Has anyone come across this before and can you shed more light on this?

 

[AdMEL]

I've rented cars in several US states in the past 5 or so years, including in CA (where I am right now), and I've just come across an insurance charge to accept or decline on the rental agreement that I can't remember seeing before. It's called "RLP" insurance and it is apparently for third-party damage if I cause an accident. I googled it and some describe it as a rip-off while other comments seem to indicate that it is legitimately necessary.

Has anyone come across this before and can you shed more light on this?

My guess is that it stands for Renter's Liability Protection and as far as I can ascertain, it is the same as Additional Liability Insurance (ALI) through Avis/Budget and Liability Insurance Supplement (LIS) through Hertz, i.e. it covers third party legal liability for injury to others and damage to property other than the rental vehicle, given that in most states in the US, there is no third party legal liability cover provided when you hire a car (unless the rate/package specifically includes it). I wouldn't be hiring a car in the US without it. As far as I understand, there is no way for Australians to obtain this cover, other than to purchase it from the car hire company, given no Australian credit card travel insurnace or paid travel insurance provides third party legal laibility cover when using hire cars.

Which state are you hiring in? Which car rental company?

 

[Homer]

Thanks. I think you've nailed it. I'm hiring in California. The rental company is Midway. It was recommended by the hotel because they have premium vehicles. I guess I'll be buying the RLP insurance.

 

[trooper]

Like many Aussies I always book my rental cars through (mainly) European consolidators who offer an "all inclusive" package... at far better prices than US rates + insurances.

Like AdMel I certainly wouldn't rent a car in the USA without CDW and ALI type protections... however obtained.

I thought my travel Insurance covered Liability too however... will check on that.

 

[AdMEL]

Thanks. I think you've nailed it. I'm hiring in California. The rental company is Midway. It was recommended by the hotel because they have premium vehicles. I guess I'll be buying the RLP insurance.

I had a quick look at Midway and their vehicles are quite impressive, with reasonable rates. Depending on the car you want to hire and the cost of the RLP and CDW, you may get it cheaper elsewhere, e.g. Hertz have a number of the same cars - Merc C300, E350, Camaro, Mustang - and offer Aussies a packaged rate which includes all insurances, usually at cheaper rates than they offer US residents without insurance and often with unlimited miles.

What type of car are you looking to hire? For how long? What price?

Like many Aussies I always book my rental cars through (mainly) European consolidators who offer an "all inclusive" package... at far better prices than US rates + insurances.

Like AdMel I certainly wouldn't rent a car in the USA without CDW and ALI type protections... however obtained.

I thought my travel Insurance covered Liability too however... will check on that.

in my experience, most, if not all, third party legal liability cover provided by Australian insurers, including travel insurers and credit card travel insurers, specifically excludes cover for use of motorised vehicles, which would include hire cars. I would check the policy very thoroughly before relying on it for hire car use.

As an example, this is from Travel Insurance Direct policy:

We will not pay for a liability:

1. Arising out of your trade, business or profession.
2. For injury to an employee arising out of, or in the course of, their employment by you.
3. Arising out of an unlawful, wilful or malicious act by you.
4. Arising out of your ownership, possession or use (including as a passenger) of a mechanically propelled vehicle, or any aircraft or watercraft.

 

[Homer]

Thanks to all. Hertz only had a C300 available and, aside from it being a bit of a girl's car I don't like them. Midway rented me a new BMW X5 with all the tricks for $205 per day. We have a bit of luggage and when SUVs are ripping past you at 140 on 8 lane freeways I always feel better if I can match them...

The RLP insurance came to $25 per day which I happily paid based on feedback here. Incidentally the bloke at Hertz explained that they don't have CTP included with their registration here in the US so that is why RLP is required. It makes sense, even though it may not be exactly correct. I declined the LDW/CDW based on advice from Amex's insurance provider that it is covered by my card for vehicles worth less than $70K (and Midway valued their X5 at $79K and change - you've gotta love car prices in the US). I'm still a bit worried about that but I've driven down to San Diego today so there's not much I can do now...