More on rental car insurance? You got it

By JOHN EWOLDT, Star Tribune

Last update: October 30, 2009 - 5:59 PM

Readers sent in lots of questions and comments about last week's column (www.startribune.com/65840922.html) on refusing insurance at the car rental counter. I wrote that anyone with Minnesota car insurance is automatically covered for $35,000 worth of coverage for loss of use, collision damage and liability. Here are additional questions from readers.

Q You mentioned that anyone with an American Express card can pay $20 per rental for $75,000 worth of primary coverage. How does it work?

A Call the toll-free number on the back of your Amex card or 1-800-437-9209 in advance of your rental to sign up for Premium Car Rental protection. Every time you rent a car and pay for it with your Amex, it will trigger the extra coverage and $20 fee. You'll have to call in advance of a rental to cancel future coverage.

Q Does it cover everything that property damage coverage does?

A It covers protection against loss, theft and damage, but not liability. Property damage from your Minnesota auto policy coverage backs you up for that.

Q What can non-car owners who don't have auto insurance do to avoid the $20 per day insurance through the car rental company?

A You could buy the primary insurance through American Express, but then you won't have liability coverage. Check with other credit cards you have to see if they offer primary coverage you can purchase. You can purchase a "named non-owner" policy from an auto insurance agent; that policy will include liability but not comprehensive or collision. It's probably easier to buy insurance from the rental car company, but not necessarily cheaper.

Q Does the automatic coverage through a Minnesota policy apply when renting a car in Mexico or overseas?

A No, the coverage is generally only valid in the United States, Canada, Puerto Rico and U.S. territories. Check with your insurance agent. Coverage in other countries can be purchased at the rental counter. Check with your credit cards for primary or secondary coverage in other countries. The Amex Premium plan offers primary coverage except in six countries.

Q Are SUVs, motor homes, or moving trucks covered for loss of use, collision damage and liability just as cars?

A SUVs, pickups and vans are covered, but motor homes are not. Check with your insurance agent about a motor home, U-Haul or Penske-type truck after you've decided what type of vehicle you need. A truck with a gross weight under 26,000 pounds is insured under Minnesota statute 65B.49, subdivision 5A and defined in statute 168.011. A rented trailer is generally not covered by personal insurance and might need to be insured through the moving company. If an aggressive rental agent insists you pay damage claims out of your own pocket to be reimbursed later by their personal insurance company, don't pay, say consumer experts.

Q Is there a time limit on how long rental coverage lasts through my personal auto insurance?

A Up to 30 days. Snowbirds or anyone on an extended vacation should plan on returning the car at 30 days and starting a new contract.

John Ewoldt • 612-673-7633 or jewoldt@startribune.com. If you spot a deal, share it at www.startribune.com/blogs/dealspotter.

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