Like many, you have probably asked yourself, is car rental coverage a scam? The answer is no. You may have also asked yourself, is it mandatory for me to purchase coverage from my car rental company? Again, the answer is no.
California law requires that you have a way to pay for damages or injuries you may have caused in a car accident. There are minimum coverage requirements, but the minimums will only cover damages to 3rd party property. You have the option to purchase additional coverage for your property, and that is typically available through the same provider. However, the law does not mandate where coverage should be purchased.
At Midway Car Rental, we respect when a renter chooses to apply personal auto coverage to their rental, but we still offer our coverage options because we know the benefits of purchasing rental car coverage. Many renters do not know that most insurance companies have fine print that will exclude some coverages while you are driving a rental vehicle.
Example #1, most insurance companies will not cover additional fees like loss of use, or admin fees. You would also be responsible for the deductible amount on your policy. Example #2, some insurance companies will only cover the primary policyholder but might not cover other drivers, even if they are listed under your policy. Example #3, credit card rental coverage may have similar exclusions. Coverage typically only kicks in if you use the credit card that offers the product to pay for the rental. At times, credit card coverage will not include the minimum state liability requirements. Credit card coverage usually limits the type of vehicle that will qualify for coverage and limits the time frame in which you are able to file a claim after the date of loss. Example #4, the date range for coverage you purchased on an online travel site may not be open to changes. If you return the vehicle early, you might not receive a refund for the extra days. If you need to extend your rental, you may not be able to extend your coverage policy with that company. Filing a claim with a third party travel insurance company may also turn out to be quite the hassle.
Every insurance policy is different, including the policies offered by different rental car companies. No rental car company can tell you what your personal insurance, your third-party insurance, or what other rental car companies will cover. At Midway Car Rental, we will simply suggest that you contact your provider to be 100% clear on the risk you are taking when you decline our car rental coverage. We are always happy to answer ANY questions you may have.
At this point, you’re probably wondering why Midway Car Rental is telling you this. Well, it’s because we care. For those of you that are not familiar with Midway Car Rental, we are the largest independently owned car rental company in Los Angeles, founded in 1972, with customer service as our core value. We understand the importance of being honest with our renters, so we want to fill you in on the issues that matter to you most.
What are the benefits of purchasing car rental coverage with Midway? Midway offers products that cover it all, such as towing, admin fees/loss of use, additional drivers, and no deductible. If you return your vehicle early, we will not charge you for coverage past the date/time of your return. If you need to extend your rental, we are able to extend the coverage as well. Multiple products are available and may be sold separately so that you can accept/decline coverage according to your needs. Products may also be packaged for a discount. Don’t forget that you avoid the hassle of becoming the middleman after filing a claim with your personal insurance provider, your credit card company, or the travel insurance company you purchased coverage from online.
If you purchase coverage through Midway Car Rental and you are involved in an accident, simply file your claim directly with us, and we will take care of anything that falls under the coverage product(s) you have accepted. Don’t take our word for it. Check out our online reviews!