Auto Rental Insurance: Is Priceline's Policy Worth The Cost?

Purchasing rental car insurance from Priceline can be a convenient option, but it's important to carefully consider the coverage offered and compare it with other available options. Priceline's insurance is provided by a third-party insurer, Allianz, and typically costs around $10-$13 per day. While this can be significantly cheaper than the insurance offered directly by rental car companies, it's important to review the fine print as there may be exclusions or limitations. For example, Priceline's insurance may not cover certain types of vehicles, such as 3-wheel drive SUVs. Additionally, it's worth noting that Priceline's insurance only covers damage to the rental vehicle itself and does not include liability coverage.

When deciding whether to purchase Priceline's rental car insurance, it's also worth considering alternative sources of coverage, such as your existing car insurance policy or credit card benefits. Many credit cards offer collision damage waivers or other forms of rental car insurance when you use the card to secure the rental. However, it's important to check the terms and conditions of these alternative coverage options, as they may have exclusions or require you to pay upfront and claim reimbursement later. Ultimately, the decision to purchase Priceline's rental car insurance depends on your individual needs, risk tolerance, and the specific details of the coverage offered.

Priceline's insurance may not cover everything you need

Additionally, Priceline's insurance does not cover all types of vehicles. For example, one user reported that the insurance did not cover 3-wheel drive SUVs. Therefore, it is essential to carefully read the fine print of the insurance policy before purchasing.

Furthermore, Priceline's insurance is secondary coverage, meaning it will only cover you if there is no other insurance available. If you have your own car insurance, you will need to go through them first and will not be able to make a claim with Priceline's insurance.

When considering whether to purchase Priceline's insurance, it is important to compare it with other options, such as your own car insurance policy, credit card benefits, or third-party insurance. These alternatives may offer more comprehensive coverage and better protect you in the event of an accident.

Credit cards often offer rental insurance

Many credit cards offer rental car insurance, which can provide peace of mind when you're travelling. This insurance typically covers the cost of the rental car in case of an accident. However, it's important to note that this coverage may be secondary, meaning it kicks in after your personal car insurance policy. In that case, you would need to file a claim with your car insurance company first and then submit a claim through your credit card's insurance provider.

Understanding Your Credit Card's Coverage

Before relying on your credit card for rental car insurance, it's crucial to understand the details of its coverage. Here are some key points to consider:

• Eligible vehicles: Most credit cards exclude certain types of vehicles, such as luxury or exotic cars, motorcycles, and commercial vehicles.
• Country exclusions: Coverage may vary by country, and certain countries may be excluded altogether. For example, Visa and Mastercard typically exclude rentals in Israel, Jamaica, and Ireland, while American Express excludes Italy, Australia, and New Zealand.
• Primary vs. secondary coverage: Most credit cards offer secondary coverage, but some premium cards provide primary coverage, allowing you to file a claim directly with the credit card company.
• Liability and personal coverage exclusions: Credit card rental insurance usually covers damage to the rental car but may exclude liability coverage (damage to other vehicles or property) and personal effects coverage (theft of items from the rental car).
• Payment requirements: To be eligible for the insurance benefit, you typically must pay for the full rental cost with the credit card and decline the rental company's collision damage waiver.

Popular Credit Cards with Rental Insurance

When choosing a credit card for rental car insurance, consider the following options:

• Chase Sapphire Preferred® Card: This card offers primary rental car coverage for up to 31 consecutive days in most countries. It covers losses, including physical damage, theft, loss-of-use charges, and towing charges.
• Chase Sapphire Reserve®: Similar to the Chase Sapphire Preferred® Card, the Chase Sapphire Reserve® provides primary coverage for up to 31 days. It covers damage, theft, loss-of-use charges, and towing charges.
• Capital One Venture X Rewards Credit Card: This card offers primary coverage for up to 31 days, excluding certain countries like Jamaica, Ireland, and Israel. It covers damage, theft, loss-of-use, and towing charges up to $75,000.
• Bilt World Elite Mastercard® Credit Card: The Bilt World Elite Mastercard® offers primary rental car insurance and above-average travel rewards, making it a good option for budget-conscious travellers.
• American Express cards: While American Express cards typically offer secondary rental car coverage, you can enrol in their Premium Car Rental Protection program for primary coverage. This program charges a flat fee per rental (around $20-$25) and covers rentals of up to 42 days. However, it excludes liability coverage and certain countries.

Final Thoughts

When considering rental car insurance through your credit card, carefully review the terms and conditions to understand the scope of coverage. Additionally, compare different credit card options to find the one that best suits your needs and provides the most comprehensive protection. Remember that rental car insurance is just one aspect of travel insurance, and you may also want to explore other coverage options for a well-rounded protection plan during your travels.

Primary vs secondary insurance

When it comes to purchasing rental car insurance from Priceline, it is important to understand what is covered and what your alternative options are. Priceline offers rental car insurance for \$13/day, which covers up to \$75,000 in damage to the rental vehicle itself. However, it is important to note that this insurance does not provide liability coverage, which is required in some states like California. You may need to purchase additional liability coverage directly from the rental company or from another provider.

Now, let's discuss the difference between primary and secondary insurance. In the context of health insurance or travel insurance, primary insurance is the first policy that covers your medical expenses. It is typically the insurance plan you have through your employer or your domestic health insurance plan. If you have multiple insurance plans, your primary insurance will be billed first when you receive healthcare services. Most people have a primary insurance plan, but not everyone needs a secondary insurance plan.

Secondary insurance is a supplementary plan that covers additional expenses not covered by your primary insurance. It comes into effect when your primary insurance coverage is exhausted or does not cover a specific incident. For example, if your primary insurance only covers a limited number of physical therapy sessions, your secondary insurance may cover additional sessions. Secondary insurance can also help cover deductibles, copays, and unexpected critical care expenses.

In the context of rental car insurance, credit cards often provide secondary coverage, which means they will cover expenses only if there is no other insurance available. If you already have rental car insurance or personal car insurance that covers rentals, you will need to make a claim with them first before your credit card coverage can be used.

Having both primary and secondary insurance can provide additional benefits and ensure that you have comprehensive coverage. However, it is important to understand the specifics of your insurance plans, including their terms, conditions, and limitations, to make informed decisions about your healthcare and travel needs.

Third-party insurance pros and cons

Third-party insurance is a type of insurance that protects you in case of any damage done to someone else’s property. In the context of car rental, it can cover damage caused to anyone or anything other than the rental car itself. This includes damage to other vehicles, passengers inside other vehicles, or other people's property. It is important to note that third-party insurance does not cover damage to the rental car or loss/damage to valuables inside the rental car.

Pros of Third-Party Insurance:

• It provides coverage for damage caused to other people's property, which can be costly to repair or replace.
• It offers protection for injuries caused to third parties, which can result in expensive medical bills.
• It covers legal fees that may arise in the event of an accident.
• It provides peace of mind and reduces financial risk when driving a rental car.

Cons of Third-Party Insurance:

• It does not cover damage to the rental car itself, so you may need to purchase additional insurance such as Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) to protect against those costs.
• It does not cover damage or loss of valuables inside the rental car, so renters may need separate insurance for their personal items.
• In some cases, the minimum coverage required by law may be low, and you may need to purchase supplemental liability insurance to ensure adequate protection.
• There is a possibility that your regular car insurance policy already includes third-party coverage for rental cars, making the additional insurance redundant.

Rental company insurance is often overpriced

Rental car insurance can be expensive, and it can easily double your rental costs if you purchase a full-coverage package. The cost of rental car insurance varies depending on the vehicle and location, but it typically ranges from $31 to $60 per day. In comparison, you probably pay much less than $60 per day for your personal auto insurance.

The high cost of rental car insurance is due to the inclusion of various coverage types, such as liability coverage, a loss damage waiver (LDW), personal accident insurance, and personal effects coverage. While these coverages can provide peace of mind, they may not be necessary for everyone.

For example, if you already have personal auto insurance, it may provide sufficient coverage for rental cars. In most cases, your personal auto insurance will cover rental cars with the same limits and deductibles as your primary vehicle. However, it's important to note that personal auto insurance usually only applies to rental cars used for personal travel, not business purposes.

Additionally, credit cards often offer rental car insurance benefits when used to secure the rental. This coverage typically includes collision damage and theft protection, as well as loss-of-use charges and towing fees. Premium credit cards may even provide primary coverage, meaning they will handle the entire claim without involving your personal insurance company.

Another alternative to rental company insurance is purchasing a standalone policy from a third-party insurance company. These policies can be purchased independently or through online travel agencies like Expedia or Priceline, and they typically cost around $10-$20 per day. This option can provide similar coverage to rental company insurance but at a lower price.

Overall, while rental company insurance can offer comprehensive protection, it is often overpriced compared to other available options. By considering your existing coverage through personal auto insurance or credit cards, or by purchasing a third-party policy, you can likely find more affordable alternatives that provide the same level of protection.

Frequently asked questions