Auto Rental Insurance: Understanding The Nu Rentals Partnership

NU Car Rentals is a rental car company that offers discount rental cars in over 29 countries. The company has received a large number of negative reviews, with customers complaining about hidden charges, poor customer service, and a lack of transparency. Many customers have also accused the company of scamming and fraudulent practices, such as adding extra charges without informing the customer, and misleading customers about insurance requirements.

When it comes to auto rental insurance, NU Car Rentals does offer insurance options, but it is not clear if these are included in the rental price or offered as optional extras. Some customers have complained about being pressured to purchase additional insurance, even when they already had their own coverage. It is important to carefully review the rental agreement and understand what is and is not covered by the insurance provided by NU Car Rentals.

Before renting a car from NU Car Rentals or any other company, it is recommended to check with your personal auto insurance provider to understand what coverage, if any, will extend to a rental car. Additionally, using a credit card to pay for the rental may also provide some level of insurance coverage. It is important to carefully review the terms and conditions of any insurance policy or rental agreement to ensure you have the necessary coverage and to avoid any unexpected charges.

Nu Car Rentals' insurance requirements

Nu Car Rentals Insurance Requirements

Nu Car Rentals is a discount rental car company that offers car hire in over 29 countries, including Europe, Central and South America, the Caribbean, Australia, and New Zealand.

Insurance Requirements

When renting a car from Nu Car Rentals, you will be required to provide proof of insurance. The company may try to persuade you to purchase their insurance policy, but you may already have sufficient coverage through your personal auto insurance policy or credit card. Here are the insurance requirements and options to consider when renting a car from Nu Car Rentals:

• Liability Coverage: This protects you if your rental vehicle is in an accident that causes bodily harm to other individuals or damage to property. Your personal auto insurance policy's liability coverage will typically cover this. However, if you only have the state's minimum-required coverage, you may consider purchasing additional liability insurance from Nu Car Rentals or a third party.
• Collision/Loss Damage Waiver: This relieves you of financial responsibility if your rental vehicle is damaged or stolen. Your personal auto insurance's collision and comprehensive coverage may already cover this, but for a more expensive rental car, you may need to purchase additional coverage to ensure the full value of the vehicle is covered. Nu Car Rentals offers a Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW) to waive your financial responsibility.
• Personal Accident Coverage: This covers medical fees for you and your passengers in the event of an accident. If you have personal injury protection or similar coverage through your auto or health insurance, you may not need to purchase additional personal accident coverage from Nu Car Rentals.
• Personal Effects Coverage: This protects your belongings if they are stolen from the rental vehicle. However, renters or homeowners insurance typically covers these situations, so additional coverage may not be necessary.

Before renting a car from Nu Car Rentals, be sure to review your personal auto insurance policy and credit card benefits to determine if you have sufficient coverage. Contact your insurance provider or credit card company to confirm the details of your coverage. Additionally, be aware of Nu Car Rentals' specific requirements and policies, as there have been reports of unexpected charges and aggressive upselling of insurance and other add-ons.

Personal auto insurance and rental cars

When renting a car, you may be asked if you want to add insurance to your rental or waive the insurance. This can be confusing, especially as the rental company may try to persuade you to purchase their insurance policy. However, your own auto policy may already cover your rental car.

This depends on your personal circumstances. You want to make sure you and your rental vehicle are covered, but you also don’t want to pay for unnecessary duplicate insurance coverages that could double the price of your rental.

Before signing any paperwork at the rental office, call your auto insurance agent and ask if your car insurance covers your rental car. If you don’t have liability, comprehensive and collision coverage on your own car, then your insurance likely will not cover your rental car if you get into a collision or damage the rented vehicle. Another important thing to keep in mind is the purpose of the trip. If your personal auto insurance doesn't cover business use, you may not be covered by your policy if you rent a car for a business trip. Always double-check your personal auto insurance policy to make sure that you have sufficient coverage before accepting or declining insurance at the rental office.

Any coverage that you have normally through your auto insurance policy will typically transfer to the car that you’re renting. Here are some examples of the kinds of coverage your rental company will offer you and whether your standard insurance covers them:

• Liability coverage protects you if your rental vehicle is in an accident that causes bodily harm to other individuals or damage to property. Your liability insurance from your auto policy will most likely cover this already.
• Collision/loss damage waiver relieves you of financial responsibility for damages caused to your rental vehicle. Your collision and comprehensive coverage will usually cover this already, however, a more expensive rental car may require you to purchase additional coverage to ensure the cash value of the vehicle is covered.
• Personal effects coverage protects you if any of your belongings are stolen from your rental vehicle, however, renters or homeowners insurance typically covers you in these cases.
• Personal accident coverage protects you from any medical fees caused by an accident. If you have personal injury protection through your auto insurance, you can decline this additional coverage from the rental company.

Credit Cards and Rental Insurance Coverage

In addition to coverage from your auto insurance policy, your credit card company might provide insurance coverage if you use its card to pay for the rental. However, it's important to check with the company before you rent to understand exactly what kind of coverage you may or may not have. In some cases, it might only be collision insurance, which can help pay for any property damage but not cover any costs arising from injuries that occurred in the collision. Also, be aware that different credit card companies have different rules and restrictions when it comes to what they cover. Certain models such as sports cars or exotic vehicles are often excluded, and what's covered can vary from one credit card provider to the next. Some don't cover incidents that take place on dirt or gravel roads, while other cards don’t cover damage to wheels and rims.

Rental car insurance vs. your own auto insurance

Rental car insurance can be purchased from the rental company, or you may already be covered by your auto insurance policy or credit card. It's important to understand the differences between these options to avoid paying for duplicate coverage. Here's a detailed comparison to help you make an informed decision:

Rental Car Insurance:

Rental car companies typically offer several types of insurance coverage, including:

• Liability coverage: Covers damages or injuries you cause to others while driving the rental car.
• Loss/Collision Damage Waiver: Releases you from responsibility for damage to the rental car, including theft and vandalism.
• Personal Accident Insurance: Covers medical expenses for you and your passengers in case of an accident.
• Personal Effects Coverage: Protects your personal belongings if they are stolen from the rental car.

Your Own Auto Insurance:

Your personal auto insurance policy may already provide sufficient coverage for rental cars, especially if you have comprehensive and collision coverage. Here's how your own policy might apply:

• Liability coverage: Your liability insurance typically extends to rental cars and covers injuries or property damage caused to others.
• Collision and Comprehensive coverage: Covers damage to the rental car due to accidents, theft, or vandalism. However, you will still be responsible for your deductible, and filing a claim may increase your premium.
• Personal Injury Protection or Medical Payments Coverage: If you have this coverage, you may not need personal accident insurance from the rental company.
• Homeowners or Renters Insurance: Your policy may cover personal belongings stolen from a rental car, making personal effects coverage unnecessary.

Credit Card Coverage:

Many credit cards offer rental car insurance if you use the card to pay for the rental. This coverage is usually secondary, meaning your auto insurance policy will pay out first. However, some premium credit cards offer primary coverage, which handles the entire claim without involving your auto insurance company.

Standalone Policies:

If you don't want to rely on your auto insurance or credit card coverage, you can purchase standalone rental car insurance policies from third-party insurers. These policies can provide primary coverage and may be more affordable than the rental company's options.

When to Consider Rental Car Insurance:

There are a few situations where purchasing rental car insurance might be beneficial:

• You have high deductibles on your auto policy, and you want to avoid paying a high out-of-pocket expense in case of a claim.
• You want to avoid filing a claim on your auto policy to prevent a potential rate increase.
• You don't have comprehensive or collision coverage on your personal policy.
• You have low liability coverage limits, and you want additional protection in case of an at-fault accident.
• You're travelling internationally to a country where your auto policy doesn't provide coverage.

When Your Own Auto Insurance May Be Sufficient:

In many cases, your personal auto insurance policy will provide sufficient coverage for rental cars, especially if you have comprehensive and collision coverage. However, it's important to confirm with your insurer that your policy extends to rental vehicles and understand any limitations or exclusions.

Using your credit card for rental car coverage

If you're renting a car, you may be wondering whether you need to purchase the rental company's insurance. The answer depends on a few factors, including whether you already have auto insurance and whether your credit card offers rental car coverage.

Here's what you need to know about using your credit card for rental car coverage:

Understanding rental car insurance

Rental car insurance typically includes four types of coverage:

• Collision Damage Waiver (CDW): This covers damage, theft, or vandalism to the rental car.
• Personal Accident Insurance: This covers medical expenses for the driver and passengers.
• Liability Insurance: This covers damages if you're at fault for an accident, including medical expenses and property damage.
• Personal Effects Coverage: This covers theft of items from the rental car.

How credit card rental coverage works

Many credit cards offer rental car coverage as a benefit. This coverage typically acts as secondary coverage, meaning it kicks in after your personal auto insurance policy. However, some premium credit cards offer primary coverage, which allows you to file a claim directly with the credit card company.

To be eligible for credit card rental coverage, you must meet certain requirements:

• Pay for the full rental cost with the credit card.
• Be the primary renter or be listed on the rental contract.
• Decline the rental company's CDW or Loss Damage Waiver (LDW).

It's important to note that credit card rental coverage usually has exclusions and limitations. For example, it may not cover luxury or recreational vehicles, and there may be a limit on the number of days of coverage (typically up to 14 or 31 days). Additionally, credit card coverage usually doesn't include liability coverage, so you may need to purchase additional protection from the rental company if you want that type of protection.

Benefits of using credit card rental coverage

• It can save you money by avoiding the daily fee for the rental company's insurance.
• It offers convenience and peace of mind, especially if you don't have your own auto insurance policy.
• Some credit cards offer primary coverage, allowing you to bypass your personal insurance and file a claim directly with the credit card company.

Examples of credit cards with rental coverage

• Chase Sapphire Reserve® and Chase Sapphire Preferred® Card: These cards offer primary coverage for car rentals in most countries, with a maximum coverage of 31 consecutive days.
• Capital One Venture X Rewards Credit Card: This card provides primary coverage for rentals up to $75,000, with some exclusions for certain vehicle types and countries.
• PenFed Platinum Rewards Visa Signature® Card: This card offers secondary coverage for up to 15 or 31 days, depending on your country of residence.
• Blue Cash Preferred® Card from American Express: This card provides auto collision damage waiver (CDW) for up to 30 consecutive days.

How to check if your credit card offers rental coverage

To find out if your credit card offers rental car coverage, you can:

• Review the card's benefits guide, which you may have received when you first got the card.
• Log in to your card account online and look for the list of benefits.
• Call the phone number on the back of your card and ask about the benefits available.

In conclusion, using your credit card for rental car coverage can be a valuable option, especially if you don't have your own auto insurance policy. However, it's important to understand the specific coverage, exclusions, and limitations of your credit card before relying on it for rental car insurance.

Buying standalone rental car insurance

If you are looking to buy standalone rental car insurance, you have a few options.

Allianz Global Assistance offers a OneTrip Rental Car Protector for $11 per day, which covers up to $50,000 for damage and loss. It is primary coverage, so it pays out before your regular insurance and includes 24-hour emergency assistance.

Bonzah sells insurance starting at $21.95 per day, which covers up to $35,000 in repairs or replacement of the vehicle. It is also primary insurance, so it pays out before your regular insurance. Their policies generally cover travel abroad, but it is always best to check the fine print.

Rental Cover offers no-deductible policies that act as primary coverage, so you wouldn't need to make a claim with your regular insurer first. Coverage options vary by country, and prices are not listed on their website, but they claim to be up to 50% cheaper than rental desk insurance.

Standalone rental car insurance may be a good option if you are worried about having to pay a deductible or a higher rate on your regular insurance if you damage a rental car, if you don't have your own car insurance or coverage through a credit card, or if you are travelling overseas where your personal policy won't cover you.

Frequently asked questions