Travel Insurance that covers a convertible rental car in the US | Australian Frequent Flyer
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Travel Insurance that covers a convertible rental car in the US

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LenLen

Junior Member
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Jul 20, 2006
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Hi All,

I was about to apply for my travel insurance with Travel Insurance Direct - low cost travel insurance for Australians and noticed that for their rental car vehicle excess cover that they only allow certain types of vehicles and it does not cover convertibles. I'm planning on going on a road trip with friends in the US and we're set on getting a convertible. Unfortunately I'm in a rush to pay my airfare today because the TA has told me that the RTW fares will increase tomorrow and I would like to buy my travel insurance before I pay my full amount.

1. Does anyone know off the top of their head of any insurance companies that cover convertibles?
2. If not, how do people get insured? via the rental agency? Will that cost more?
3. Could I still pay my airfare today and then buy my travel insurance at a later date? Or is it preferable to buy before hand?

Any help will be appreciated.
Thanks
Len
 

Kiwi Flyer

Senior Member
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Sep 24, 2004
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Hi LenLen

I assume your RTW is a standard *A one? If so then my understanding is if already booked but not ticketed you have a couple of weeks to ticket at the current price.

*A said:
Any existing bookings should be ticketed in accordance with fare rule ticketing deadline or no later than 21 May 07 or the new fare conditions will apply
You can buy travel insurance at any time prior to your trip. Obviously better to buy sooner than later as you won't be covered for anything that develops/occurs before the insurance purchase, or reasonably expected. Eg some years ago I had land travel at risk due to bushfires - since I didn't purchase travel insurance early enough I wasn't covered for cancellation due to bushfires that started in between booking the trip and date the insurance was purchased. There are plenty of other situations you can think of that may be declined cover for if don't purchase the insurance soon enough.
 

LenLen

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Jul 20, 2006
Messages
22
Hi KiwiFlyer,

Not sure what type of RTW ticket I've got, but I was told that the oneworld RTW fares are being standardised (no peak or off-peak) and that I have until April 30th to pay my full fare or else I have to pay an extra $150, which I'd rather keep for myself. I've got the money already, and I know I'm definitely going, so I don't mind paying today. But, if I don't get travel insurance today, I don't think I'll pay the fare.

Thanks
Len
 

Kiwi Flyer

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Are you sure that you are flying one world? AFAIK no increase on one world RTW fares at the moment.

Whereas, Star alliance RTWs have a fare increase from tomorrow (but with some extra time to ticket if already booked) and are removing seasonal pricing on the economy special (up to 26k flown miles). This removal is a saving in high season and an increase in low season. When is your first flight (this determines season)?

If you take a short time to get travel insurance arranged, in most cases this is extremely low risk and I have no problem doing this. Exceptions would be visiting some dodgy places (where there is a small risk of war/coup) or if some special need for absolute protection.
 

LenLen

Junior Member
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Jul 20, 2006
Messages
22
Oops, yes sorry, I got mixed up. Star Alliance. Just called up my TA and they definitely said I had to pay today. I will do some research on travel insurance today in regards to rental vehicle insurance with convertibles.
 

Mwenenzi

Established Member
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May 17, 2006
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Cdw ???

"rental car vehicle excess cover" is a insurance term not used in the USA.
Are you sure CDW / LDW (collision or loss damage wavier ) is covered anyway?
There are several threads here & on FlyerTalk - The world's most popular frequent flyer community about this.
Most American's get CDW/LDW a part of there normal car insurance. We have to pay UDS$25 to US$50 or more per day for CDW
 
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Kiwi Flyer

Senior Member
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Sep 24, 2004
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Must be one of the airlines requiring ticketing, as only the 21 May deadline according to the rules.

*A special RTW rules said:
5 Advance Reservation/Ticketing
A. For travel originating world-wide except in Europe reservations and
ticket issuance must be made at least 7 days prior to departure for
sectors up to and including the first international sector. Other sectors
may be booked at any time. Exception: no advance reservation
and ticket issuance required for passengers originating in South
West Pacific.
B. For travel originating in Europe reservations and ticket issuance
must be made at least 7 days prior to departure for sectors up to and
including the first intercontinental sector. Other sectors may be booked
at any time.
C. RTW booking classes by carrier
Note that the following carriers may apply ticketing time limits for
booking classes shown below: AC, LO, LX, OS, OZ, TG, TP, SA, SK,
SQ, UA.
If your departure date for the first international flight is between 1 June and 19 August or 7 December and 24 December, then the price change is a decrease (assuming you are using the special economy fare). If using regular economy fare (more than 26k miles) then no price change and if business or first then the price increases tomorrow.
 

LenLen

Junior Member
Joined
Jul 20, 2006
Messages
22
Here is a explanation:

Rental Vehicle Excess: If you Rent a Car from a rental company and it is involved in an accident damaged or stolen, we will pay up to the amount shown towards the cost of the insurance excess on the vehicle – additionally if you are certified by a treating medical practitioner or dentist as being unable to drive we will pay $250 towards the cost of return of the vehicle to the owner’s nearest depot. You have the option to increase the amount of cover by payment of an extra premium of $15 for each additional $500 of excess cover required maximum $5,000.

I always assumed that when you get travel insurance that you would not need to purchase the extra insurances offered when renting a car because you were covered by your travel insurance policy, is that correct? This is all so confusing.
 

Mwenenzi

Established Member
Joined
May 17, 2006
Messages
1,801
CDW / LDW in NOT insurance.

CDW / LDW in NOT insurance.
Have a read on hertz.com or avis.com or the rental car company you will use.
Search for insurance or CDW/LDW on the sites

Hertz.com (for LAX)
https://www.hertz.com/rentacar/byr/index.jsp?targetPage=HowProtectedAreYou.jsp&EXTRAS_KEY=YYZ&leftNavUserSelection=globNav_3_3_4



Hertz Loss Damage Waiver (LDW)
When you purchase Hertz' LDW, which is not insurance, you will not be held responsible for damage to the Hertz car in the event that any damage should occur, provided the loss or damage was not the result of any prohibited use of the car.

[FONT=Times New Roman, Times]Hertz Partial Damage Waiver (PDW)
Partial Damage Waiver (PDW) is offered at select locations. When you purchase PDW, which is not insurance, you will not be held responsible for loss or damage to the car in an amount equal to the applicable deductible on your personal automobile insurance, up to a maximum waiver of $1,000, provided the loss or damage was not a result of any prohibited use of the car.
[/FONT]
[FONT=Times New Roman, Times]Hertz Limited Loss Damage Waiver (LLDW)
Limited Loss Damage Waiver (LLDW) is offered at select locations. When you purchase LLDW, which is not insurance, you will not be held responsible for loss or damage to the Hertz car up to a maximum waiver of $1,000, provided the loss or damage was not a result of any prohibited use of the car. You will be responsible for all damages in excess of $1,000.
[/FONT]
[FONT=Times New Roman, Times]Hertz Liability Insurance Supplement (LIS)
Liability Insurance Supplement (LIS) provides you with up to $1 million of increased protection should bodily injury and property damage claims be made against you by people injured in an accident. LIS safeguards your insurance policy and/or your personal assets for the first $1 million should such claims be made against you. LIS also provides you with up to $100,000 in coverage for combined bodily injury and/or property damage claims, should you be harmed by an uninsured/underinsured driver.
[/FONT]
 
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Mwenenzi

Established Member
Joined
May 17, 2006
Messages
1,801
more from Hertz. LDW & insurance Can vary from state to state
[FONT=Times New Roman, Times]Loss Damage Waiver (LDW)[/FONT]
[FONT=Times New Roman, Times]


What is your responsibility?
[/FONT]
[FONT=Times New Roman, Times]In most states, when you rent a car from Hertz, you are responsible for any and all loss or damage to the car resulting from any cause, including but not limited to, collision, rollover, theft, vandalism, seizure, fire flood, hail or other acts of nature or God regardless of fault. [/FONT]​
[FONT=Times New Roman, Times]In most states, in the event of any loss or damage to the car, regardless of fault, your financial responsibility extends to the full value of the car at the time of rental, less its salvage value, plus expenses for towing, storage impound fees, an administrative fee and a reasonable charge for loss of use. If your responsibility differs in the state in which you rent, it will be stated in paragraph 4 of the Rental Agreement. In California and Nevada, your responsibility for loss or damage to the car from vandalism unrelated to theft will not exceed $500 and you are not responsible for theft, regardless of purchasing LDW, unless the theft results from your fault. In Illinois, your responsibility for loss or damage related to theft is limited to $2000, unless the theft results from your fault. [/FONT]
[FONT=Times New Roman, Times]
What protection does Hertz LDW offer?
By accepting LDW you will be relieved of all financial responsibility for loss or damage to the rental car, whether or not you have insurance to cover such damage. In order for LDW to be applied to any damage claims, you must properly report the related incident in accordance with the Rental Agreement.

However, if the vehicle is obtained through fraud or you have an accident resulting from use of the car in a manner prohibited by paragraph 5. of the Rental Agreement, LDW is void and you will be responsible for all loss of or damage to the car.[/FONT]​

 

LenLen

Junior Member
Joined
Jul 20, 2006
Messages
22
Hi Mwenenzi,

Thanks for your reply... AH ok, I haven't yet looked into booking the car yet as the trip is in Sept. What I might do is pay for my airfare, and then buy my travel insurance in the next couple of days once I do more research. Looks like most insurance companies don't cover convertibles and i will read over the links you sent me.

Thanks so much for your help
Len
 

trooper

AFF Supporter
Joined
Apr 16, 2007
Messages
1,504
To the best of my knowledge (and I would love to be proved wrong!!!!) the "rental car excess" cover you get with travel Insurance policies (any I've seen anyway) is ONLY that.... coverage for the EXCESS... I have looked VERY hard for a policy that provides car rental INSURANCE... and not succeeded.

As pointed out in another post, you can be held liable for everything up to and including the rental car companies "loss of use" of the vehicle IF you are not covered "comprehensively"...

My understanding (and again I'd dearly love to be proved wrong!) is that "we" (Aussies etc withOUT US based credit cards) really do need LDW/CDW with ANY US rental..... No, it's not insurance.. it is a WAIVER of the rental companies entitlement to hold you responsible for all costs....

For the last few years we have been renting through a mob called cheapercarrental.com who offer rates for non-US residents with CDW built in.. and at competitive rates.... I suppose they are sort of a consolidator... as it is possible to end up with vehicles from various companies (although mainly "Dollar" in our experience)... It is all pre paid.. you just print out the "voucher" they e-mail to you and present that... which BTW short circuits the usual "hard sell" of "supplemental this" and "extra that" that many rental counter staff launch into... With these vouchers they just tell you where the car is....:D

They also offer free one way rentals within and between CA/AZ/NV.. which happens to suit much of our travel...

Sorry to be long winded.. but this has been a sore topic for me!!!! ;)
 

serfty

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Nov 16, 2004
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Too weary to search for it, but there is a good thread on this in AFF.

Basically most ex oz Travel insurance policies do not generally provide any real cover for car rental issues; although covering a limited amount of excess if you have other policies.

If you do not wish to 'underwrite' yourself, you need to take out specific policies for hiring a car.

There are two general types:
  • Rental agreement cover where you pay additional per day premiums to the Hire car company when you rent the vehicle.
  • Special policies designed to cover that which the #1 would have covered. Dave Noble has posted information on an annual policy he uses.
 
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LenLen

Junior Member
Joined
Jul 20, 2006
Messages
22
Hi All,

I think I finally had the light bulb moment last night where it all clicked into place. I mean, it's what it exactly describes rental vehicle excess cover, I was still thinking in terms of car insurance. So I still need to take those waivers (LDW/CDW) described by Mwenenzi when hiring the the car, and god forbid an accident happens, then the travel insurance will cover the excess.

Stress can make you really dumb sometimes, thanks everyone for all the clarification. I think I have found a company that provides cover that does limit the type of car.

Travel Insurance Australia - Travel Insurance Quote


Thanks for your email.

the Benefit of Car Hire is for the Excess component or the cost of repairing a rental vehicle, which ever is the lesser amount. We do not specify as to what type of rental vehicle you are driving.

I have copied the Benefit of Rental Vehicle below. I have also attached a Product Disclosure Statement for your perusal.

I'll be reading the policy today.

Trooper - thanks for the link to cheapercarrental.com, I'll have a peruse as well.

Thanks
Len
 

Shano

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Aug 17, 2006
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Have a read through this thread.

Dave Noble give a link to an insurance company that will cover the excess on rentals that are more than 150 km from your home address. This would be in addition to your other travel insurance, but is valid for 12 months. Depends on how often you will be renting in that 12 month period.

Our corporate travel insurance is through QBE, who will also cover the rental car excess in the case of an accident. I do not know if tihs type of cover is available for personal travel.
 

LenLen

Junior Member
Joined
Jul 20, 2006
Messages
22
Hi Shano,

I only travel once a year (if that) so I don't think having an annual policy would suit me. This is the first time I'm actually hiring a car overseas so it's all a bit daunting. Knock on wood that I never need to claim.

Thanks
Len
 

Shano

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If only renting for about a week, then paying tha daily CDW/LDW probably makes sense. If renting for 2 weeks plus, then at ~ $25 per day for CDW/LDW, this quickly passes the ~$300 annual premium for the cover mentioned by Dave.
 

stryker

Member
Joined
Sep 28, 2006
Messages
450
Hi Guys,

Interesting thread, but I seem to be having difficulty with a few issues.

Firstly, cheapercarrental.com doesn't seem to exist on my version of the Internet... have they gone awol?

Secondly, if you're an Aussie, pretty much the only way you're going to get CDW and LIS (THE most important insurance, particularly if you're going to run into a gold plated Rolls full of Saudi oil sheikhs), is to get it from the car rental company (very expensive, eg USD 35 per day).

Personally, when travelling in the US, I rent from Car Hire - excellent rates, with all insurances included, and a tankful of petrol at a very good price.

If I were you, I would be VERY careful about renting a car in the USA, or you might find the need to get a bail bond at short notice ...

Good luck on your travels anyway.
 
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