So before college, I worked at Enterprise Rent-a-car as a rental agent for almost 2 years. I’m no longer affiliated with Enterprise or any other rental car company. Here’s what he missed: 1) your credit card or insurance can cover your car, BUT you will pay a deductible of whatever your policy is AND a $500 deductible to Enterprise. After you pay both deductibles, your insurance might pay for the car, but might not pay for loss of use (the opportunity per day enterprise lost due to the car being unavailable to rent till it get fixed) 2) paying that $25/day will literally cover the car 100% no questions asked, just give them keys and you’re on your way. 3) Let’s say your rental car got stolen, some insurance policy doesn’t extend beyond damages, also some car types you rent your policy might also say no. 4) Enterprise employees selling insurance DO NOT make a commission, they’re only there to obtain best customer service in order to achieve promotion. Other car companies do offer commission, but that’s why you choose enterprise over the others ;) 5) enterprise employees are all college graduates, honest, and ethical. They have to be, or else they will not move to the next level. 6) Gosh now I feel like an Enterprise employee lol Think about it this way, paying an extra $25/day will save you the stress of dealing with the rental company and your insurance company, it will cost you an arm and a leg afterwards as well.
Perfectly said. The piece of mind when purchasing these products allows the customers to drive with no worries. And Nothing reflects on the personal auto policies individuals have which is a huge plus because otherwise if you utilize your personal auto insurance your premiums may increase if damages etc occur. And your absolutely right its all about the customer service. We do not get a raise or commission based off selling the product. We grow as a employee based on customer service.
Very true worked at Avis/Budget and this lady called everyday. To see when the car was gonna be fixed, so she wouldn’t be charged anymore…. Since her insurance didn’t pay for that.
I'm getting annoying alerts from Avis that I'm not covered when I log into my account for my upcoming rental. Ugh! I was one of the 30% who fell for the insurance (different video). I just didn't want the hassle but this makes sense. My insurance will cover my car rental for the most part due to having full coverage. Who wants to pay a third of rental cost added on? I've watch several videos and all pretty much conclude you don't need it but it is still up to the driver. The only thing I worry about is the "loss of use" clause because it's something they can stick it to you....because they can. When do we know insurance companies to be nice when they have the opportunity to squeeze money out of you. It's basically paying for short term disability on one car when they have a fleet. Thank you for the video.
Keep in mind for those who think their "credit cards" have full coverage when it comes to their rental cars. No credit card offers Liability. Credit cards do offer their primary/secondary collision damage waiver aka loss damage waiver and it covers only the vehicle itself. It does not protect you against lawsuits or claims filed against you in the event where you're in an accident and you're at fault.
I know this is from 2017...and there's 1 important thing to remember. At-fault accident claims on your personal auto insurance remains on a person's insurance claims history for 3-6 years depending on the state and insurance company. That means higher premiums for 3-6 years. In some cases, that 1 at-fault accident in a car rental, could be enough to cause a person to lose their California good driver discount - which is up 20% depending on the insurance company. This will place you in the "non-standard" insurance rates and companies till your record is good enough. The other thing to remember, the personal auto insurance policy will only pay up to the limits of the policy. If a person has property damage limits of $25k, and the car the rented is worth $35k at the time of the accident, then the most the personal auto will pay is $25k. This leaves $15k for the insured to pay. In addition, the personal auto insurance policy does not cover the additional administrative fees charged by the rental car companies. I remain very skeptical of the "loss of use" coverage, I've only seen that coverage on home/renter insurance policies. Also, most business insurance policies do not have coverage for car rentals by default. It's an optional coverage or a separate policy - that must be purchased. Since 2017, a lot has changed. The insured must review their own auto insurance policy and limits. For there are no "laws per se" that says an insurance company has to do anything other than provide liability insurance.
As someone who works at a rental company, you are throwing out completely biased information when in fact you just told viewers, "Don't buy the insurance, it is a waste of your money", and yet proceeded to prove why it does hold value to a variety of customers. The bottom line is this,If you have full coverage insurance, great 👍🏻 If you use it and the vehicle comes back with damage then expect a claim to be taken out on your insurance (which means your monthly rates are going up anywhere from 25 to 35 dollars a month for the next three years) and be prepared to hand the rental company your deductible (anywhere from 250 to 1000 bucks), oh and don't forget that you will have to pay the retail rental fee (not the "free upgrade price", 30 to 125 dollars) every day the vehicle is in the shop getting fixed (even if you didn't cause the accident). Not to mention that most full coverage policy's will only cover the rental vehicle UP TO the value of the car on your policy. So when you get in a brand new 2018 Suburban, don't expect the full coverage policy on your 2005 VW Jetta to cover you fully. God forbid you total any car, but if you did you'd be left thousands and thousands in the hole. Now when it comes to my company's insurance, its all about peace of mind. The damage waiver is $19.99 a day and covers every vehicle up to a complete and total loss. The brand new Suburban? Covered. Do you have to pay your deductible? Nope. Loss of use? Nope. Are your insurance rates about to go up? Nah.. the rental company took full financial responsibility of the vehicle the second you signed off and paid the $19.99 a day. So what's the process look like now that an accident has occurred? You come in and tell us what happened. You sign a piece of paper and walk out like it never happened. Done. 15 minutes or less. The credit card you thought was covering you? If they even cover anything it's still not going to save your deductible or the claim on your insurance.. and you are about to spend MONTHS fighting them for anything because trust me, they will find a way out of almost everything. And that's only the damage waiver. At the end of the day, either you're covered or you're not. Either $100 dollars is worth your peace of mind or you have $500+ sitting in your savings ready to spend if it comes down to it. As the person renting you the car, I really could care less what you choose. We really aren't out to scam you. Trust me when I first started I had trouble selling anything at all because I saw the rental bill jump when protection was added. I thought "no way would I ever do that" but then after months and months or seeing accidents and writing damage claims, not to mention hearing personal stories of customers and what they went through... it's worth it when something unexpected goes wrong. It's protection that I now personally believe in. But that's just it,all of the protections hold value to those who want a worry free rental, with no financial responsibility for a vehicle they will never own. It's peace of mind. It's convenience. It's not necessary. And PS. We do NOT get commissioned off of selling to you. That is 100% not true. At best it makes us look good to corporate... but that's it.
Karissa King Please tell me that you work for Enterprise. They have always tried to use scare tactics to sell insurance when they dont need to. *The point of this video is that they often don't need to.* Even when I told them my visa credit card covers my insurance, the manager actually still tried to intimidate me, "Well, but you wouldn't have HAIL COVERAGE or WHAT IF A TREE BRANCH FALLS ON THE CAR? Are you ready to pay for a 25k vehicle if a tree branch falls?" It was also spring so hail was hilarious, but bitch. If you're trying to screw people over this hard ($20 per day) for "no commission" but just to look good for corporate then you are a even worse, horrible person than I thought... I have grown to expect this with enterprise every time I try to use them.
I guess looking good by selling coverage that can potentially save people thousands is the worse thing business employees has ever done. Also the man who was speaking said the credit card coverage is very limited so maybe they were looking out for you.
This guy making the video has little idea what he’s talking about.. By the way, credit card companies “covering” rental cars you rent with their credit card isn’t as easy as they say. Read the fine prints and you will see. Yes that Manager may come off as pushy talking about hail but he/she to me is someone looking out for you by making you aware of other situations where credit card companies has previously failed other customers that were under the impression that they were “covered” by this credit card. FYI, MOST credit card companies rental coverage are secondary. Meaning IF at all they decided to cover you in a rental, they will only cover anything more that your insurance company doesn’t cover. Fine prints will say something like “customer covers the amount and then gets reimbursed by credit card company”. Unless you own an Amex Black card or Diners club credit card, do not count on any other credit card to cover you in a rental instead of your personal insurance policy. When you read the Credit Card fine prints, some of the most common restrictions you would find. You will not be covered if; 1. The vehicle is bigger than a full size car 2. You drive out of state 3. You have the rental for a period of 5 days or less 4. You live on a dirt road 5. You don’t have a primary full coverage insurance policy Rental car insurance is been duped as a scam by people like you and insurance agents because you want your customers to feel like that insurance policy they bought is the best thing out there and they are covered. They are covered alright but you aren’t telling them the consequences. By the time they find out the consequence, it’s too late and you have handed them over to your claims department. High premiums follows. I see rental car insurance as a protection for our own insurance policy. A peace of mind knowing that I can bring back their vehicle and not have to deal with a headache after that.
Smok Alien def not "looking out" for anyone. And in my case, even though my visa credit card did cover me, she still tried to sell that insurance for "hail coverage (in 60-70 degree spring weather) or tree branch coverage." And intended to act intimidating when she saw I was only a young, naive looking college student. She was just really mean...
Eboy Badgie no, I work in sales for a financial institution that sells visa credit cards and HAVE to be aware of the fine print. Maybe enterprise has some employees who care and are honest, but generally they will try to persuade you through intimidation if you look young or naive enough. You also have to know what VISA credit cards offer before you dismiss credit cards as a whole. And again, hail coverage while it was 60-70 degrees in spring? Paying 100$ in case in the 4-5 days I had the car, a tree branch falls? For fun, lets just say my Visa card actually didn't cover me at all. Still, in that situation the enterprise manager thought it did and still tried to sell me on BS!
Thank you so much for this great explanation! For travel outside USA and Canada, it seems best to buy both LDW/CDW and liability coverage, as often USA auto insurance policy won't follow you outside north america. Thanks again!
Buying car insurance was the best move ive ever made totally worth the 100 got in an accident and didn't need to pay anything I was in puerto rico the roads and drivers are terrible soooo I guess it really depends on where you are renting from....But I got out without paying a dime over 100 and I'm incredibly lucky
That's a valid point, and he actually addresses it around 2:27 (with those exact deductible values!) That said, the math for this one isn't especially complicated; however, the result will hinge entirely on the likelihood of having an accident throughout your time renting the car. Given that, without doing any math, one can assume that if you believe it's unlikely you will have an accident, you'll be fine with the deductible option. If you're a terrible driver, the extra coverage is probably a good idea. Similarly, if you're renting car for an extended period, your likelihood of an accident is going to increase due to the longer duration, but so is the additional cost of rental coverage. Given this, at some point, the daily cost of additional coverage is going to exceed the cost of the deductible. For the average driver, it likely still makes sense to skip the extra coverage. If renting for an extended length of time (multiple weeks), it *never* makes sense get the coverage, since it will be more expensive than the deductible. Those truly interested can use basic probability to determine exact numbers, but, again, they would be extremely dependent on the accuracy of the accident likelihood estimates.
Travis Terrell True, but for short rentals it makes sense to me. Just my opinion. Obviously don’t want to keep the rental for a month and pay more than your deductible. Also, doesn’t matter how good of a driver you are accidents happen! If I have a car for 2 days I could pay 40 bucks and potentially end up saving 960 (assuming my deductible is 1000) if I damage a vehicle. If I don’t damage it I lost 40 bucks. Just depends on scenario. And it covers to a total loss. Goes either way
Either way I’d say it’s up to the driver whether they want to use their personal auto policy and credit card combo or go with the rental agency’s policy for piece of mind. Me personally I use my own policy and credit card combo to cover the vehicle. Luckily this far I haven’t had any accidents. I really hope to keep it that way.
Another tip. In the event that you get in an accident, and you are not at fault, and you are getting a rental car to replace your car while it’s in the shop...AND....you only have liability insurance, let that insurance company know, and they may pay for you to get loss damage waiver. It’s something that you should negotiate before getting to the rental car office. If you’re going through your insurance company, you’re already paying a deductible for your car repairs. If you feel comfortable using your insurance to cover damage to the rental, that’s fine, but....should something happen again, you may be out another deductible. And the rental car company deals with you. Not your insurance when handling a rental car claim. Your credit card won’t cover it because you are ultimately not paying for the rental. The insurance company is. This is all in the situation where someone has rental reimbursement on their policy. Something to think about, especially if you start becoming a regular at the body shop and car rental office.
So what Matt is saying is that- if you decide to use your own coverage and a car is damaged you’re potentially out $500-$1000 in a deductible plus loss of use (another potential $1000). OR pay the money for the rental car coverage and walk away no questions asked. Easy math...3 day rental = $120. Damaged car without it $2000. What’s better? What he failed to mention is vicarious liability. Meaning regardless of ownership of car you are responsible for it. How do insurance companies measure risk? Liability claims! What’s that mean for you of a car is damaged? You got it! Risk to you as a driver and rates increase- meaning Matt here makes more off you for 5+years in policy increase than the simple $100 you’d pay to be covered. Peace of mind is priceless. Buy the coverage
I'd like to get your advice about this scenario (in Florida), someone hit the front headlight area of my boyfriends' car while we were at a job site working (he has a business in the construction field) Progressive got us into a rental but it had to be in my name because he doesn't have a license. We were using this rental truck day to day while waiting for the repair shop and finally almost one month later they said the car is about ready and you can drop off the rental here, pick up your car, and we return the rental for you. In the meantime, on the last day just before bringing it to the shop to switch vehicles I noticed damage to the rear bumper (and took photos) and was upset of course because I didn't know about it until then, and my boyfriend said that it happened today when the workers were getting some tools/heavy equipment out of the bed of the truck. I was in a rush to drop it off because it was five o'clock and they were closing so I handed them the key and they got in and moved it to another location, I'm not sure if it was to Enterprise rental company or just a different area of the shops' parking lot. We drove away in our repaired car and was thinking of what we should do.. I think he has insurance for his business and of course I have car insurance of my own but did not opt in for any extra insurance that they offer... so I'd like to know how I should go about this. Thank you so much for your time!
At what point does a trip become a business purpose? E.g., I go to a conference on my own time to further my networking in my field. What if only part of the trip is business?
Anita Diane true I rented a car from Enterprise in Trinidad Someone hit my car while I was in my apartment. I purchased insurance and when I took it back there was no hassle all they asked for was a simple police report. They told me your covered ... get the insurance
Hi Matt ! Do I need to take loss damage waiver together with liability insurance, as i am from europe . Or loss damage waiver will cover me for everything? Thnx !
saimonas rasytinis loss damage waiver only covers damage and loss of use to the rental car. You are still on the hook for any accident that is your fault, so damages to another vehicle, injuries and property damage will be yoir responsibility unless you have the liability insurance. Especially if you are from overseas visiting the US, get both loss damage and liability to completely cover yourself.
Some of your information is inaccurate. If you rent at a enterprise home city location, aka not airport. There is no commission for protection product sales. Also you failed to discuss no fault states
What about roadside assistance and towing? If your car breaks down on some highway 100 miles from home, can you call an Enterprise roadside assistance number, and do they provide this?
Matt, thanks for your information and putting this out there for discussion. This topic is a little crazy making for me. Like some have mentioned, this insurance does have a certain value. I have had one car agency explain it to me as "waiver insurance," which I think is a more apt term. I.e., the insured gets to just walk away without any hassle. So far, i haven't found that benefit with any other type of coverage discussed. I also am a little paranoid because I rent a car about half a dozen times a year and last year I got swiped twice in hit and run parking lot situations. As a matter of fact, most of my experience with car body damage, rental or otherwise has been when my car was parked and someone damaged it and left the scene without leaving info. The damage is usually a 'scratch' or damage that costs between $500-1000 to repair (hello deductible). Car agency rental insurance removes my liability for this and I don't have to spend time or energy addressing the issue, I just walk away. The 'scam' part of this insurance to me is not the product, but the cost. To me it is the time share of auto insurance. At an average of $20 per day, that's an annual price of $7300 per year. That's exorbitant. My last trip I tried buying the insurance offered through my travel agency at half the cost ($10/day). When i returned the car, there was a scratch on the rear fender ($600). I didn't notice it and was shocked to see it as I had been soooo careful , parked on the street. I only had one opportunity where the hit could have occurred, about 15 minutes parked in a parking lot when I went to pick up dinner. That's all it took. Sigh. The insurance company did pay the claim, but it was far from hassle free, I had to jump through several hoops. Also, the fine print on that policy stated I needed a police report, which i didn't have because I didn't even know the car had been hit till i returned it. Gratefully, the insurance co did not hold my feet to the fire on that one. It took about a month of back and forth between the car rental agency and the insurance co to get it all taken care of (read: "Major hassle"), not to mention lots of minion types questioning my integrity (The person at Enterprise was a beast to deal with, despite my efforts to 'do the right thing'). The car agency (Enterprise) also charged me a processing fee of $50, which the insurance did not pay for, so my savings ended up being a wash. I will probably just buy the car agency insurance in the future, but it will always leave a bad taste in my mouth knowing i am being ripped off. There is an opportunity here for some company to do the right thing and offer "waiver insurance" for a reasonable cost.
BAD ADVICE, CHECK WITH YOUR INSURANCE COMPANY, I THOUGHT I WAS COVERED GOT INTO A WRECK AND MY INSURANCE COMPANY SAID (NOT COVERED) AND I HAD FULL COVERAGE...................
I was rear ended and the other insurance company kept telling me that they have not accepted liability and they would not authorize a rental vehicle. After 11 days with no vehicle I went and rented a vehicle on my own. My question is does the other insurance company have to pay me for lost of use for the 11 days that I did not have a vehicle?
This video is biased. First of all, the prices of those coverages vary state to state depending on that state's individual laws. Second, he never mentioned the fact that you will have a claim filed against your policy if you damage a rental without the LDW/CDW on the contract (which can and most likely will lead to higher premiums). Third he failed to mention that Loss of Use isn't covered (even by the major companies) depending on the state you are in. The only company that actively covers loss of use is USAA. Fourth, I recommend anyone who thinks their credit card will cover them reads the terms and conditions, most credit cards have more fine print regarding damage to the rental than the actual rental company has on their own contracts. Finally, most rental car companies DO NOT go through your credit card if you damage their vehicle, they will go through your insurance EVERY TIME and its up to the renter to seek reimbursement through said credit card. People seem to think rental coverage is a scam yet there is actual value in simply taking the insurance instead of putting your own policy on the line for a rental, which if you damage can get expensive real quick. Just some food for thought.
Well said. People are not well informed and focus on the extra cost at time of rental. When something actually happens, they soon find out real quick how your insurance will go up.
Very helpful video. What do you recommend as I live in Asia and need to rent a car for about 15 days in California. I have travel insurance but do not own a car at home. What would you recommend that I get from the car rental company? Should I carry LDW ? Thanks again for the great video.
Thanks, but it might be useful to mention that liability insurance is required by law in Europe and is included in the annual insurance fee for the car itself.
Hi Matt, great video! I only have liability insurance for my personal car. Assume I don't buy the CDW and the car gets damaged. I file a claim with my auto insurance and it will get denied, will the credit card cover the entire bill up to its limitations? Or do you have to have primary coverage that actually pays before the credit card will pay the rest?
Do you need rental car insurance? The lawyer says no. Someone hits you while in the rental and their insurance is trying to not pay out. Now, you need to hire a lawyer. Congratulations, you just got played by the lawyer. -- If you would have just bought the damn damage waiver, you wouldn't have to deal with this nightmare scenario or any other countless nightmare situations that could arise while in the rental.
Working for a law firm makes you appear knowledgeable on this topic but I can tell you that you are clueless as this is not your area of work. Rental car companies trains their employees to sell coverage as a want and not a need. No one tells you it’s a NEED and if they do, they weren’t trained to. You’re making it seem like it’s sold as a NEED. You stand here telling people they have insurance so it’s all good. Explain to people how policies are affected when they get into an accident with a rental. These are things even insurance agents will avoid talking to their customers about. Their customers won’t know how it all works until they get into an accident and are deferred to the claims department by their agent that’s supposed to be handling the situation. Rental car companies are basically telling you to use your personal insurance policy to cover your vehicle and you are offered their insurance to cover their car in the case of an accident. 100% value of vehicle is covered. Your insurance rates aren’t affected. No deductible. No filing a claim against your policy. I’m not here to tell you to tell people to get the rental company insurance. If you’re going to tell them why you think they should not get this stuff, make sure you give pros and cons and not just the good stuff.
Alex Galdamez Your car insurance will also go up if you get in a accident in your own personal car. I assume the chances of me getting in a car accident does not increase because I am renting a car.
BSP car Morocco customer service both French & English were incapable of doing there job properly just bunch of incompetent losers. Misleading adverting just lies. The lady from customer service mumbling. She just ain't do anything for me she just said they were working in the City of Rabat, Morocco herded like cattles there she said there is nothing she can do for me to get my car at the airport slack. BSP car corporation must change the whole staff & management there. What a shame!
So before college, I worked at Enterprise Rent-a-car as a rental agent for almost 2 years. I’m no longer affiliated with Enterprise or any other rental car company.
Here’s what he missed:
1) your credit card or insurance can cover your car, BUT you will pay a deductible of whatever your policy is AND a $500 deductible to Enterprise. After you pay both deductibles, your insurance might pay for the car, but might not pay for loss of use (the opportunity per day enterprise lost due to the car being unavailable to rent till it get fixed)
2) paying that $25/day will literally cover the car 100% no questions asked, just give them keys and you’re on your way.
3) Let’s say your rental car got stolen, some insurance policy doesn’t extend beyond damages, also some car types you rent your policy might also say no.
4) Enterprise employees selling insurance DO NOT make a commission, they’re only there to obtain best customer service in order to achieve promotion. Other car companies do offer commission, but that’s why you choose enterprise over the others ;)
5) enterprise employees are all college graduates, honest, and ethical. They have to be, or else they will not move to the next level.
6) Gosh now I feel like an Enterprise employee lol
Think about it this way, paying an extra $25/day will save you the stress of dealing with the rental company and your insurance company, it will cost you an arm and a leg afterwards as well.
Perfectly said. The piece of mind when purchasing these products allows the customers to drive with no worries. And Nothing reflects on the personal auto policies individuals have which is a huge plus because otherwise if you utilize your personal auto insurance your premiums may increase if damages etc occur.
And your absolutely right its all about the customer service. We do not get a raise or commission based off selling the product. We grow as a employee based on customer service.
@@cheypelpel
Yes u r right
Very true worked at Avis/Budget and this lady called everyday. To see when the car was gonna be fixed, so she wouldn’t be charged anymore…. Since her insurance didn’t pay for that.
damage waiver purchases go into a reserve account and the branch manager gets a chunk of it as profit at the end.
I'm getting annoying alerts from Avis that I'm not covered when I log into my account for my upcoming rental. Ugh! I was one of the 30% who fell for the insurance (different video). I just didn't want the hassle but this makes sense. My insurance will cover my car rental for the most part due to having full coverage. Who wants to pay a third of rental cost added on? I've watch several videos and all pretty much conclude you don't need it but it is still up to the driver. The only thing I worry about is the "loss of use" clause because it's something they can stick it to you....because they can. When do we know insurance companies to be nice when they have the opportunity to squeeze money out of you. It's basically paying for short term disability on one car when they have a fleet. Thank you for the video.
Keep in mind for those who think their "credit cards" have full coverage when it comes to their rental cars. No credit card offers Liability. Credit cards do offer their primary/secondary collision damage waiver aka loss damage waiver and it covers only the vehicle itself. It does not protect you against lawsuits or claims filed against you in the event where you're in an accident and you're at fault.
correct ... reject CDW and accept LIABLITY
I know this is from 2017...and there's 1 important thing to remember. At-fault accident claims on your personal auto insurance remains on a person's insurance claims history for 3-6 years depending on the state and insurance company. That means higher premiums for 3-6 years. In some cases, that 1 at-fault accident in a car rental, could be enough to cause a person to lose their California good driver discount - which is up 20% depending on the insurance company. This will place you in the "non-standard" insurance rates and companies till your record is good enough.
The other thing to remember, the personal auto insurance policy will only pay up to the limits of the policy. If a person has property damage limits of $25k, and the car the rented is worth $35k at the time of the accident, then the most the personal auto will pay is $25k. This leaves $15k for the insured to pay. In addition, the personal auto insurance policy does not cover the additional administrative fees charged by the rental car companies. I remain very skeptical of the "loss of use" coverage, I've only seen that coverage on home/renter insurance policies. Also, most business insurance policies do not have coverage for car rentals by default. It's an optional coverage or a separate policy - that must be purchased.
Since 2017, a lot has changed. The insured must review their own auto insurance policy and limits. For there are no "laws per se" that says an insurance company has to do anything other than provide liability insurance.
As someone who works at a rental company, you are throwing out completely biased information when in fact you just told viewers, "Don't buy the insurance, it is a waste of your money", and yet proceeded to prove why it does hold value to a variety of customers.
The bottom line is this,If you have full coverage insurance, great 👍🏻 If you use it and the vehicle comes back with damage then expect a claim to be taken out on your insurance (which means your monthly rates are going up anywhere from 25 to 35 dollars a month for the next three years) and be prepared to hand the rental company your deductible (anywhere from 250 to 1000 bucks), oh and don't forget that you will have to pay the retail rental fee (not the "free upgrade price", 30 to 125 dollars) every day the vehicle is in the shop getting fixed (even if you didn't cause the accident).
Not to mention that most full coverage policy's will only cover the rental vehicle UP TO the value of the car on your policy. So when you get in a brand new 2018 Suburban, don't expect the full coverage policy on your 2005 VW Jetta to cover you fully. God forbid you total any car, but if you did you'd be left thousands and thousands in the hole.
Now when it comes to my company's insurance, its all about peace of mind. The damage waiver is $19.99 a day and covers every vehicle up to a complete and total loss. The brand new Suburban? Covered. Do you have to pay your deductible? Nope. Loss of use? Nope. Are your insurance rates about to go up? Nah.. the rental company took full financial responsibility of the vehicle the second you signed off and paid the $19.99 a day.
So what's the process look like now that an accident has occurred? You come in and tell us what happened. You sign a piece of paper and walk out like it never happened. Done. 15 minutes or less. The credit card you thought was covering you? If they even cover anything it's still not going to save your deductible or the claim on your insurance.. and you are about to spend MONTHS fighting them for anything because trust me, they will find a way out of almost everything.
And that's only the damage waiver.
At the end of the day, either you're covered or you're not. Either $100 dollars is worth your peace of mind or you have $500+ sitting in your savings ready to spend if it comes down to it. As the person renting you the car, I really could care less what you choose. We really aren't out to scam you. Trust me when I first started I had trouble selling anything at all because I saw the rental bill jump when protection was added. I thought "no way would I ever do that" but then after months and months or seeing accidents and writing damage claims, not to mention hearing personal stories of customers and what they went through... it's worth it when something unexpected goes wrong. It's protection that I now personally believe in. But that's just it,all of the protections hold value to those who want a worry free rental, with no financial responsibility for a vehicle they will never own. It's peace of mind. It's convenience. It's not necessary.
And PS.
We do NOT get commissioned off of selling to you. That is 100% not true. At best it makes us look good to corporate... but that's it.
Karissa King Please tell me that you work for Enterprise. They have always tried to use scare tactics to sell insurance when they dont need to. *The point of this video is that they often don't need to.* Even when I told them my visa credit card covers my insurance, the manager actually still tried to intimidate me, "Well, but you wouldn't have HAIL COVERAGE or WHAT IF A TREE BRANCH FALLS ON THE CAR? Are you ready to pay for a 25k vehicle if a tree branch falls?" It was also spring so hail was hilarious, but bitch. If you're trying to screw people over this hard ($20 per day) for "no commission" but just to look good for corporate then you are a even worse, horrible person than I thought... I have grown to expect this with enterprise every time I try to use them.
I guess looking good by selling coverage that can potentially save people thousands is the worse thing business employees has ever done. Also the man who was speaking said the credit card coverage is very limited so maybe they were looking out for you.
This guy making the video has little idea what he’s talking about.. By the way, credit card companies “covering” rental cars you rent with their credit card isn’t as easy as they say. Read the fine prints and you will see. Yes that Manager may come off as pushy talking about hail but he/she to me is someone looking out for you by making you aware of other situations where credit card companies has previously failed other customers that were under the impression that they were “covered” by this credit card.
FYI, MOST credit card companies rental coverage are secondary. Meaning IF at all they decided to cover you in a rental, they will only cover anything more that your insurance company doesn’t cover. Fine prints will say something like “customer covers the amount and then gets reimbursed by credit card company”. Unless you own an Amex Black card or Diners club credit card, do not count on any other credit card to cover you in a rental instead of your personal insurance policy.
When you read the Credit Card fine prints, some of the most common restrictions you would find.
You will not be covered if;
1. The vehicle is bigger than a full size car
2. You drive out of state
3. You have the rental for a period of 5 days or less
4. You live on a dirt road
5. You don’t have a primary full coverage insurance policy
Rental car insurance is been duped as a scam by people like you and insurance agents because you want your customers to feel like that insurance policy they bought is the best thing out there and they are covered. They are covered alright but you aren’t telling them the consequences. By the time they find out the consequence, it’s too late and you have handed them over to your claims department. High premiums follows.
I see rental car insurance as a protection for our own insurance policy. A peace of mind knowing that I can bring back their vehicle and not have to deal with a headache after that.
Smok Alien def not "looking out" for anyone. And in my case, even though my visa credit card did cover me, she still tried to sell that insurance for "hail coverage (in 60-70 degree spring weather) or tree branch coverage." And intended to act intimidating when she saw I was only a young, naive looking college student. She was just really mean...
Eboy Badgie no, I work in sales for a financial institution that sells visa credit cards and HAVE to be aware of the fine print. Maybe enterprise has some employees who care and are honest, but generally they will try to persuade you through intimidation if you look young or naive enough.
You also have to know what VISA credit cards offer before you dismiss credit cards as a whole. And again, hail coverage while it was 60-70 degrees in spring? Paying 100$ in case in the 4-5 days I had the car, a tree branch falls? For fun, lets just say my Visa card actually didn't cover me at all. Still, in that situation the enterprise manager thought it did and still tried to sell me on BS!
Thank you so much for this great explanation! For travel outside USA and Canada, it seems best to buy both LDW/CDW and liability coverage, as often USA auto insurance policy won't follow you outside north america. Thanks again!
Buying car insurance was the best move ive ever made totally worth the 100 got in an accident and didn't need to pay anything I was in puerto rico the roads and drivers are terrible soooo I guess it really depends on where you are renting from....But I got out without paying a dime over 100 and I'm incredibly lucky
If you damage the rental, you have to pay your deductible. Even if you have full coverage! Typically 500 or 1000. He didn’t really talk about that
That's a valid point, and he actually addresses it around 2:27 (with those exact deductible values!)
That said, the math for this one isn't especially complicated; however, the result will hinge entirely on the likelihood of having an accident throughout your time renting the car. Given that, without doing any math, one can assume that if you believe it's unlikely you will have an accident, you'll be fine with the deductible option. If you're a terrible driver, the extra coverage is probably a good idea. Similarly, if you're renting car for an extended period, your likelihood of an accident is going to increase due to the longer duration, but so is the additional cost of rental coverage. Given this, at some point, the daily cost of additional coverage is going to exceed the cost of the deductible.
For the average driver, it likely still makes sense to skip the extra coverage. If renting for an extended length of time (multiple weeks), it *never* makes sense get the coverage, since it will be more expensive than the deductible. Those truly interested can use basic probability to determine exact numbers, but, again, they would be extremely dependent on the accuracy of the accident likelihood estimates.
Travis Terrell True, but for short rentals it makes sense to me. Just my opinion. Obviously don’t want to keep the rental for a month and pay more than your deductible. Also, doesn’t matter how good of a driver you are accidents happen! If I have a car for 2 days I could pay 40 bucks and potentially end up saving 960 (assuming my deductible is 1000) if I damage a vehicle. If I don’t damage it I lost 40 bucks. Just depends on scenario. And it covers to a total loss. Goes either way
@@Vision3434 Exactly
Either way I’d say it’s up to the driver whether they want to use their personal auto policy and credit card combo or go with the rental agency’s policy for piece of mind. Me personally I use my own policy and credit card combo to cover the vehicle. Luckily this far I haven’t had any accidents. I really hope to keep it that way.
@@Will_Bx_NYC_718 yeah forsure, but accidents happen. It’s only a scam if you have it on there for a long period time. Up to you though
Another tip. In the event that you get in an accident, and you are not at fault, and you are getting a rental car to replace your car while it’s in the shop...AND....you only have liability insurance, let that insurance company know, and they may pay for you to get loss damage waiver. It’s something that you should negotiate before getting to the rental car office. If you’re going through your insurance company, you’re already paying a deductible for your car repairs. If you feel comfortable using your insurance to cover damage to the rental, that’s fine, but....should something happen again, you may be out another deductible. And the rental car company deals with you. Not your insurance when handling a rental car claim. Your credit card won’t cover it because you are ultimately not paying for the rental. The insurance company is. This is all in the situation where someone has rental reimbursement on their policy. Something to think about, especially if you start becoming a regular at the body shop and car rental office.
Regards from Sweden, I watched your presentation with great interest. If I buy LDW, do I need CDW?
So what Matt is saying is that- if you decide to use your own coverage and a car is damaged you’re potentially out $500-$1000 in a deductible plus loss of use (another potential $1000). OR pay the money for the rental car coverage and walk away no questions asked. Easy math...3 day rental = $120. Damaged car without it $2000. What’s better?
What he failed to mention is vicarious liability. Meaning regardless of ownership of car you are responsible for it. How do insurance companies measure risk? Liability claims! What’s that mean for you of a car is damaged? You got it! Risk to you as a driver and rates increase- meaning Matt here makes more off you for 5+years in policy increase than the simple $100 you’d pay to be covered.
Peace of mind is priceless. Buy the coverage
If i I have collision on my personal car but not comprehensive, would I he covered for an accident?
From this video, I would say probably not. It definitely makes sense to ask your insurance company, though, since every policy has different perks.
I'd like to get your advice about this scenario (in Florida), someone hit the front headlight area of my boyfriends' car while we were at a job site working (he has a business in the construction field) Progressive got us into a rental but it had to be in my name because he doesn't have a license. We were using this rental truck day to day while waiting for the repair shop and finally almost one month later they said the car is about ready and you can drop off the rental here, pick up your car, and we return the rental for you. In the meantime, on the last day just before bringing it to the shop to switch vehicles I noticed damage to the rear bumper (and took photos) and was upset of course because I didn't know about it until then, and my boyfriend said that it happened today when the workers were getting some tools/heavy equipment out of the bed of the truck. I was in a rush to drop it off because it was five o'clock and they were closing so I handed them the key and they got in and moved it to another location, I'm not sure if it was to Enterprise rental company or just a different area of the shops' parking lot. We drove away in our repaired car and was thinking of what we should do.. I think he has insurance for his business and of course I have car insurance of my own but did not opt in for any extra insurance that they offer... so I'd like to know how I should go about this. Thank you so much for your time!
Solid information
I understand this information is only valid in the US as many insurance companies do not cover you abroad. Am I right?
Thank you so much for explaining the different types of rental car insurance. So Helpful! 💗😊
At what point does a trip become a business purpose? E.g., I go to a conference on my own time to further my networking in my field. What if only part of the trip is business?
Does applies in Mexico .i'm going to be in Mexico for 8 days
Buy the insurance! A lot less hassle, deductibles, possibly goes on your record, etc...
Anita Diane true I rented a car from Enterprise in Trinidad Someone hit my car while I was in my apartment. I purchased insurance and when I took it back there was no hassle all they asked for was a simple police report. They told me your covered ... get the insurance
Enterprise employees don't make commission
thanks for your information
Dude, this video is awesome!!! You literally just saved me from paying for coverage I already have on other personal policies. Thank you!!
Hi Matt ! Do I need to take loss damage waiver together with liability insurance, as i am from europe . Or loss damage waiver will cover me for everything? Thnx !
You should get both so that you area covered for property damage (your car, other cars, other property) and personal injury exposure.
saimonas rasytinis loss damage waiver only covers damage and loss of use to the rental car. You are still on the hook for any accident that is your fault, so damages to another vehicle, injuries and property damage will be yoir responsibility unless you have the liability insurance. Especially if you are from overseas visiting the US, get both loss damage and liability to completely cover yourself.
Wow! Even 3 years later this video is saving people (like me) money! 👏🏾👏🏾👏🏾👏🏾👏🏾👏🏾
Some of your information is inaccurate. If you rent at a enterprise home city location, aka not airport. There is no commission for protection product sales. Also you failed to discuss no fault states
Thank you for educating us!
Great summary advice. Definitely going to share with people so I can stop wasting my breath.
What about roadside assistance and towing? If your car breaks down on some highway 100 miles from home, can you call an Enterprise roadside assistance number, and do they provide this?
AudiophileTubes buy aaa it cost like 100 a year for any car u are driving that includes rentals
YES ENTERPRISE PROVIDES EMERGENCY SERVICES. THEY WILL BRING YIU A CAR AND TOW THE OTHER IF THERE IS A NEED.
Matt, thanks for your information and putting this out there for discussion.
This topic is a little crazy making for me. Like some have mentioned, this insurance does have a certain value. I have had one car agency explain it to me as "waiver insurance," which I think is a more apt term. I.e., the insured gets to just walk away without any hassle. So far, i haven't found that benefit with any other type of coverage discussed. I also am a little paranoid because I rent a car about half a dozen times a year and last year I got swiped twice in hit and run parking lot situations. As a matter of fact, most of my experience with car body damage, rental or otherwise has been when my car was parked and someone damaged it and left the scene without leaving info. The damage is usually a 'scratch' or damage that costs between $500-1000 to repair (hello deductible). Car agency rental insurance removes my liability for this and I don't have to spend time or energy addressing the issue, I just walk away.
The 'scam' part of this insurance to me is not the product, but the cost. To me it is the time share of auto insurance. At an average of $20 per day, that's an annual price of $7300 per year. That's exorbitant.
My last trip I tried buying the insurance offered through my travel agency at half the cost ($10/day). When i returned the car, there was a scratch on the rear fender ($600). I didn't notice it and was shocked to see it as I had been soooo careful , parked on the street. I only had one opportunity where the hit could have occurred, about 15 minutes parked in a parking lot when I went to pick up dinner. That's all it took. Sigh. The insurance company did pay the claim, but it was far from hassle free, I had to jump through several hoops. Also, the fine print on that policy stated I needed a police report, which i didn't have because I didn't even know the car had been hit till i returned it. Gratefully, the insurance co did not hold my feet to the fire on that one. It took about a month of back and forth between the car rental agency and the insurance co to get it all taken care of (read: "Major hassle"), not to mention lots of minion types questioning my integrity (The person at Enterprise was a beast to deal with, despite my efforts to 'do the right thing'). The car agency (Enterprise) also charged me a processing fee of $50, which the insurance did not pay for, so my savings ended up being a wash.
I will probably just buy the car agency insurance in the future, but it will always leave a bad taste in my mouth knowing i am being ripped off. There is an opportunity here for some company to do the right thing and offer "waiver insurance" for a reasonable cost.
BAD ADVICE, CHECK WITH YOUR INSURANCE COMPANY, I THOUGHT I WAS COVERED GOT INTO A WRECK AND MY INSURANCE COMPANY SAID (NOT COVERED) AND I HAD FULL COVERAGE...................
Nigga why u lien.. lol
I was rear ended and the other insurance company kept telling me that they have not accepted liability and they would not authorize a rental vehicle. After 11 days with no vehicle I went and rented a vehicle on my own. My question is does the other insurance company have to pay me for lost of use for the 11 days that I did not have a vehicle?
planner tanlr
planer table
This video is biased. First of all, the prices of those coverages vary state to state depending on that state's individual laws. Second, he never mentioned the fact that you will have a claim filed against your policy if you damage a rental without the LDW/CDW on the contract (which can and most likely will lead to higher premiums). Third he failed to mention that Loss of Use isn't covered (even by the major companies) depending on the state you are in. The only company that actively covers loss of use is USAA. Fourth, I recommend anyone who thinks their credit card will cover them reads the terms and conditions, most credit cards have more fine print regarding damage to the rental than the actual rental company has on their own contracts. Finally, most rental car companies DO NOT go through your credit card if you damage their vehicle, they will go through your insurance EVERY TIME and its up to the renter to seek reimbursement through said credit card. People seem to think rental coverage is a scam yet there is actual value in simply taking the insurance instead of putting your own policy on the line for a rental, which if you damage can get expensive real quick. Just some food for thought.
Well said. People are not well informed and focus on the extra cost at time of rental. When something actually happens, they soon find out real quick how your insurance will go up.
This was really helpful, thanks
Helpful video, thank you
Thanks great video
I have question which is what's SCDW ? Is it the same as LDW
Very helpful video. What do you recommend as I live in Asia and need to rent a car for about 15 days in California. I have travel insurance but do not own a car at home. What would you recommend that I get from the car rental company? Should I carry LDW ? Thanks again for the great video.
Thanks, but it might be useful to mention that liability insurance is required by law in Europe and is included in the annual insurance fee for the car itself.
Hi Matt, great video! I only have liability insurance for my personal car. Assume I don't buy the CDW and the car gets damaged. I file a claim with my auto insurance and it will get denied, will the credit card cover the entire bill up to its limitations? Or do you have to have primary coverage that actually pays before the credit card will pay the rest?
Thanks for taking time to post up. This video is very helpful. Thanks again
Great video with lots of information and not a lot of useless talk up front.
If you only carry liability you would need to purchase it, wouldn't you?
Kimberly White , you wouldn’t NEED it but if your personal insurance doesn’t have comprehension or colisión , id consider it .
Do you need rental car insurance? The lawyer says no. Someone hits you while in the rental and their insurance is trying to not pay out. Now, you need to hire a lawyer. Congratulations, you just got played by the lawyer. -- If you would have just bought the damn damage waiver, you wouldn't have to deal with this nightmare scenario or any other countless nightmare situations that could arise while in the rental.
Working for a law firm makes you appear knowledgeable on this topic but I can tell you that you are clueless as this is not your area of work.
Rental car companies trains their employees to sell coverage as a want and not a need. No one tells you it’s a NEED and if they do, they weren’t trained to. You’re making it seem like it’s sold as a NEED.
You stand here telling people they have insurance so it’s all good. Explain to people how policies are affected when they get into an accident with a rental.
These are things even insurance agents will avoid talking to their customers about. Their customers won’t know how it all works until they get into an accident and are deferred to the claims department by their agent that’s supposed to be handling the situation.
Rental car companies are basically telling you to use your personal insurance policy to cover your vehicle and you are offered their insurance to cover their car in the case of an accident. 100% value of vehicle is covered. Your insurance rates aren’t affected. No deductible. No filing a claim against your policy.
I’m not here to tell you to tell people to get the rental company insurance. If you’re going to tell them why you think they should not get this stuff, make sure you give pros and cons and not just the good stuff.
Totally. Here's why ua-cam.com/video/Q8hE48857Eg/v-deo.html
All the board work shows a lot of research though
Okay, Matthew.... you have GOT to know how hot you are!!!
Nice work Mr. Quinlan! Thanks! Good luck!
Wonderful video. Invaluable information. Really appreciate for sharing this. Thumb UP
Thanks, good video.
Once they file a claim and pay their deductible. Their insurance premium will go up for the next 3 years. Talk about that, fool
Alex Galdamez Your car insurance will also go up if you get in a accident in your own personal car. I assume the chances of me getting in a car accident does not increase because I am renting a car.
Dept246 But it does
Nice job.👍Thanks
I appreciate how handsome you are cause this kinda stuff is so boring to listen too lol!!!!
Df 🤨
Ha assumes that I have car insurance..... maybe I would .... if I owned a car.
thank you
Do you need it? No!
Yeah, you better give me the insurance, because I am gonna beat the hell out of this car.
Great!!!
BSP car Morocco customer service both French & English were incapable of doing there job properly just bunch of incompetent losers. Misleading adverting just lies. The lady from customer service mumbling. She just ain't do anything for me she just said they were working in the City of Rabat, Morocco herded like cattles there she said there is nothing she can do for me to get my car at the airport slack. BSP car corporation must change the whole staff & management there. What a shame!
this is bull!! misleading not an expert clearly
👍
Nice fake hair piece. Is it a glue on? just makes you look even more insecure. It stands out bad man.
Yeah, you better give me the insurance, because I am gonna beat the hell out of this car.
Only one problem with that... If you do it intentionally or violate the terms of the contract that doesn't matter.