Rental Car Insurance – Why You Have to Have It

Let me tell you a story.  Today, I took my pristine 2003 Ford Mustang into the shop in order to have the transmission checked out as the cylinders weren’t firing properly.  In 8 years of owning this car, it’s never been in an accident, never had a scratch and has been the only true “asset” I’ve ever owned. I bought it used with 23,000 miles on it in 2004 for $15,000 and I love that car.  Outside of routine maintenance and a few new tires, that car has done me well over the years.  And I’ve never driven anything else.

After dropping off my car, it was determined that the issue could take a few days to diagnose and fix, which wasn’t a problem because I work from home and am in no rush.  But the wife and I only have this one car, and we need a vehicle in case of emergency, run errands, etc., so I decided to rent a car for a couple of days.  Enterprise showed up inside of 15 minutes and only had three vehicles available.  A minivan, Ford F-150 and Dodge Dakota were all I had the choice of renting and I didn’t want any of them.  Too big and bulky for a guy like me and I live in a high rise with a tight parking garage. But I did the dumb thing and rented the Dakota … the smallest of the available autos.

The agent was nice enough to offer the normal price of $39.99 a day (mileage included) and with minimal fees, I expected to pay around $100 for two days of driving.  He asked me if I wanted to add the damage waiver for $19.99 a day and I said no.  That’s right; I said no to a damage waiver that cost $20 a day because I was only driving the car 75 miles or less in a couple of days, and didn’t want to pay the $40.  I paid with my Capital One Spark for Business Visa Card (because I knew it had rental car insurance built in) and off I went.

Returning home, my fear of not being able to fit this truck into my parking spot was realized.  I have a nice concrete beam to my left, and a car parked in the space next to me to my right (and behind my space).  This meant I had little room to pull in and the SMART thing (which I lack in this episode of my financial life) would have been to park somewhere else or consider a different option.  Going less than one mile an hour, I eased my way into my space like an old man into hot bath.  You’d think geometry would be a strong point of mine since I have a mathematics background but sure enough, I wedged the truck into the  concrete pillar, and the only way to “unstick” was to push through.  Oh that sound haunts me now.  You know the one where you flush hundred dollar bills down the toilet.

I surveyed the damage and the drive side door was dented and scratched (not so bad) but the bed of the truck (where it meets the cab) was a little “crumpled”.  About six inches worth and I knew it was not good.  On my way up to my apartment, I hated myself.  Sick to my stomach, I called Visa to make sure I was covered and that all was right with the world again.  Just as I’m about to complete my claim, the CSR says to me “Sorry sir, because you rented a pick-up truck, you’re not covered.”  At this point, I was thinking the following:

• I wonder if I can get my hands through this phone and strangle the woman on the other end
• Why didn’t I call Visa before I rented a car to check their policy
• How a guy that writes about credit cards every day for the last two years didn’t know this little caveat

I informed the CSR that it was the only auto available to be at the time (which is true) and she suggested I still file the claim, even though I had little chance for approval.  I obliged and hung up the phone defeated.  The last step was to return the rental car just a few hours after I obtained it, because the sight of my work made me sick.

Turns out the Enterprise I rented the car from is located less than 100 feet from my apartment!  Located in the DoubleTree hotel across the street, I carefully backed my most hated Dodge Dakota out of my space successfully and dropped it off.  Dave (the agent who rented me the vehicle) smiled as I returned it and knew something was up.   He checked out the damage on the truck, told me it was a “doozy” and wrote up my  report.  I expect a call from Enterprise tomorrow with the damage, that I’m likely to pay the full amount for.  Not happy.

Once I have the estimate of the damage, I’ll be sure to post an update but please don’t be as stupid as I was and pick up the rental insurance the next time you need a car, truck or van.  ESPECIALLY if you need a truck.

• Featured in the Cavalcade of Risk