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| Angelika/Mike Schilli |
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In the USA, every driver needs liability insurance. Driving without it is illegal and can end badly. When a German tourist rents a car, liability insurance with a high coverage amount is almost always included in the rental price, as Germans are accustomed to having liability insurance. However, make sure to read your contract carefully!
In contrast, car rental companies in America will sell "Extended Liability" for about $10 a day. In America, the statutory minimum liability coverage only offers about $30,000 in coverage -- a joke! If you hit just one pedestrian, you could declare bankruptcy. Therefore, it is important to read the contract carefully and ensure a coverage amount of at least $500,000.
And there's another special feature: In the USA, if you own a car and have liability insurance for it, you are generally covered not only for your private car but for any car you drive. This means that if Angelika or I drive a rental car (or a friend's car) in the USA, we are automatically covered by liability insurance. If we rent a car because, for example, we fly somewhere and want to be mobile there, we get it without liability insurance. However, this must be explicitly stated in the private auto liability insurance contract.
But what if someone steals the rental car or you crash it yourself? In that case, the renter is fully liable and must not only pay for the damage to the car but also fully compensate the rental company for the downtime during which the company can no longer rent out the car. This can become very expensive. However, you can protect yourself against this: The rental company's insurance, called CDW "Collision Damage Waiver" or LDW "Loss Damage Waiver," offers a type of comprehensive coverage according to German standards for about $10 (depending on the size of the car) with a deductible.
If you live in the USA and have certain credit cards, things are easier for you here as well: these cards cover liability for self-caused accidents (only for the rental car, not for the other party in an accident!) and theft, if you pay the car rental bill with them. Our "American Express" card, for example, includes this in the contract--so when we rent a car, we pay nothing beyond the listed price. Even if the salesperson at the car rental does flips. They always have us sign a few forms stating that we are fully liable for everything. But we are always fully insured, once through private liability insurance and also through the credit card. However, not all residents of the USA think about this, pretend to the car rental agent that they have private insurance, and then drive without any insurance. If something happens, they have to deal with the American legal system.
Therefore: Never skimp on insurance. However, if you already have insurance, the seller might try to talk you into buying a pointless additional insurance policy -- so be cautious and, above all, make sure you are familiar with the contract you signed in Germany (usually with the travel agency). Unfortunately, among the clerks of large car rental companies, there are many bad apples who thoroughly deceive tourists. They take advantage of the fact that most foreigners are not familiar with the American insurance system and, when in doubt, prefer to buy one insurance policy too many rather than too few. As always, being smart gives you an advantage.
There are two more types of insurance that the seller will probably try to sell you: The "Uninsured Motorist Insurance" protects you in case an American without insurance crashes into your car. This is not all that unlikely, and that's why I have to say that it might be sensible to get this insurance, unless it's already included somewhere else. The so-called "Medical" insurance, which costs only about a dollar a day or so, is complete nonsense, as you and your passengers hopefully have extra health insurance when traveling to the USA; otherwise, you're already in a precarious situation.
Conclusion: Don't over-insure, but definitely don't skimp on insurance. You could really ruin yourselves. However, this doesn't mean you shouldn't negotiate hard with car rental companies over the price. Rule of thumb: A small rental car costs $25 a day, CDW/LDW and liability together add another $20. Then there are $10 in taxes and other small fees... so if a German travel agency includes extended liability and comprehensive insurance and charges DM 110 a day or less -- go for it, because you won't get it cheaper in the USA either.
Upon arriving in the USA, the salesperson will immediately try to talk you into a "better," meaning larger, car. They will argue that, for example, for $10 more per day, you could get a convertible. However, this only applies to the base price, turning $25 into $35, but the comprehensive insurance will also become significantly more expensive, as will the tax, which is calculated as a percentage of the total price. So when the salesperson says "$10 more per day," it might actually end up being $20.
And another tip: If you insist on the smaller car you originally ordered, it often turns out (surprise!) that the company doesn't actually have it in stock. If you remain persistent, the salesperson will eventually inform you with a beaming smile that you're getting a free "upgrade," meaning a larger car for the price of the smaller one. Of course, this is a bit of a gamble. For example, it might be worth waiting at a small airport until all the tourists with small cars have left before calmly heading to the car rental desk and insisting on a small car. Our biggest coup so far was in Scotland, where we got a Volvo 440 for the price of a small car for a four-week vacation. We laughed so much!
Then the salesperson asks if you would like to buy discounted fuel from the car rental company. Gasoline in the Bay Area currently costs about $1.35 per gallon at the gas station (approximately â¬0.40 per liter), but the car rental company will sell it for $1.10 if you take a full tank. Sounds good, right? But it's a scam. The renter has the option to either a) return the car with a full tank, or b) buy a full tank of gas so that you can return the car empty to the parking lot.
The problem, of course, is that you can never run the tank completely empty (unless, of course, your name is Günter Speckhofer, who, with his iron nerves, is known to leave only homeopathic amounts in the tank), because who would risk running out of gas on the highway? Even the most cunning driver must always leave at least five liters in the tank (by then, the needle is already deep in the red) and give that to the car rental company -- which, of course, totally ruins the cheaper fuel price. Or, you might not drive enough to empty the tank. A person from Portland, whose identity we won't reveal here (Richard Patten), once chose the "I buy a full tank" option for a two-day stay in San Diego. The only way to empty the tank would have been to leave the engine running overnight.
Therefore: Always choose the "Return full" option, meaning return the car with a full tank, to ensure you don't end up paying extra. Some car rental companies let customers drive away with a half-full tank and require them to return it half-full again with the "Return full" option. This is also a scam because no one can accurately estimate how many liters you need to fill up to make the tank of an unfamiliar car exactly half full.
What about scratches and dents? The large car rental companies "Dollar," "Alamo," "Avis," and "Budget" are not very strict about them. When returning the car, they usually don't even check if there's an additional scratch. You drive up with the car, an employee takes the contract, reads the odometer and fuel gauge, and prints a receipt on a mobile computer -- and that's it. You take the shuttle bus to the airport and you're on your way. Some smaller companies (e.g., Enterprise) create a small diagram of the existing dents when you pick up the vehicle, which you have to sign (illustration 3), and this is then compared with the vehicle upon return.
How can you find a good car rental deal when you're in the USA? You can either read the Sunday newspaper and study the large-format ads from the major providers mentioned earlier. But be careful, there is always a so-called "code" next to the offer. If you call the car rental company, the representative will quote you a higher price than the one listed in the ad. However, if you provide them with the "code" (e.g., "AQ7"), you'll get the price shown in the ad. You need to be careful, though, as some ads are only valid for specific locations--sometimes only at airports, sometimes only in Florida--so read carefully.
One more thing: Cars are always rented on a daily basis. So if you pick up the car at 7:00 PM, you should also state 7:00 PM as the return time. If you say 6:00 PM as the return time, you'll have to return the car an hour earlier unnecessarily, without saving any money. If you do show up at the car rental at 6:00 PM, it's not a problem. Conversely, if you pick up the car at 7:00 PM and state 8:00 PM as the pickup time, the car rental company will charge you for an entire extra day! By the way, if you want to keep the car longer than planned, just call them; it's usually possible. The same applies in case of an accident: call the car rental company immediately and ask for advice, as their centers are staffed around the clock.
When making a reservation by phone, you don't have to pay anything upfront. They will only ask if you will be paying later with a "major credit card" -- such as American Express, Visa, or Mastercard. You will then receive a reservation number, which you can use to simply show up at the car rental location later. By the way, the websites have also improved recently. I've found some great deals on www.dollar.com. You can make a firm booking there and then go to the respective branch with the printed reservation.
There, you present your driver's license and credit card and acquire the necessary insurance. By the way, the agent might ask you not only to sign the contract at the bottom but also to place your "initials" at certain spots. By putting your initials (e.g., "M.S.") there, you agree to the respective clauses, and you can't later claim you didn't read them. If there are two or more of you, you need to inform the seller who will be driving. Usually, only the person listed in the contract is insured. There are exceptions for married couples, but always ask and present the driver's license -- all drivers must be present in person. Often, an additional driver costs money, $3 per day is common. And a warning to our dear youngsters: Those under 25 or so have to pay more. Then you get the key, go to the garage, and are assigned a car. By the way, it's always automatic and perfumed with an interior spray -- phew! And off you go!
Sure, here's the translation:
"So, that should be enough to keep you from falling for the car rental scammers. Yes, I am not afraid to shout this out to the world: All American car rental companies are scammers! Or very, um, business-savvy, as the Americans say. Fight with tough measures!
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- More topics you might be interested in:
German Influences in English
The Mormon Temple of San Diego
Jarritos -- the newsletter top product
Marathon and chocolate
Geisterstädte
Lage der Nation" translates to "State of the Nation" in English.
Politisch Korrekt" translates to "politically correct" in
Consequences of September 11
The term "Amerikanische Rasterfahndung" translates to "American
Snow in Silicon Valley
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