AUTO INSURANCE: Cheap car rental and insurance scams

One of the most consistent features whenever you present yourself at a collection point is the hard sell for additional insurance cover. The fact you already paid for insurance when you made the booking does not prevent the counter staff from going through their pitches. Why should you resist? Because the additional last-minute cover is always significantly more expensive than the cover you could buy beforehand. Why will the pressure be on for you to buy? Because the rental companies make a very good commission on all the insurance it sells. What's the problem?

Some of the cover on offer will add up to half as much on top of the existing hire charges. If you give in, what started off life as cheap car rental suddenly becomes expensive. Why expensive? There's never a problem in paying more if what you buy is good value for money. Recent surveys over the last five years have consistently found the last-minute policies to be overpriced for the coverage sold. First check whether you have adequate cover from your own vehicle's insurance when you drive a vehicle that does not belong to you. Then look at whether your credit card company has insurance as a perk. If no adequate cover is available, you will always get better value if buy from a third-party insurer before you leave home.

Now here comes the standard scam. The cheap car rental company has your credit card details. If you refuse to buy additional cover, staff will check the vehicle on return. If there's the slightest scratch or mark, the company will demand cash from you for repairs. If you refuse, your credit card will be debited unless you very quickly produce a third party comprehensive policy to cover the alleged damage. To protect yourself, take pictures of any damage visible on the vehicle before you drive it away. Write notes on the rental forms you sign, detailing existing damage. Hopefully, this evidence will prevent the car rental company from claiming the damage occurred while you were in possession of the vehicle. Failure to spend a few minutes inspecting the vehicle before you drive it away could mean expensive disputes and claims on third party policies that damage your claims record.

Source: http://seismicaces.blogspot.com/2012/08/beware-of-insurance-scams-in-car-rental-services.html

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