Car Rental Agencies Look to Recoup Lost Revenues

With many people traveling over the holidays and beyond, car rentals are a popular choice for those hitting the roads.

Among the things to look at when renting vehicles would be whether or not to get rental insurance and are you getting charged more than you should?

In looking at the prices these days for rentals, keep in mind that some rental agencies may be looking to recoup lost revenues which arose from a bad economy and a declining demand for cars the last few years. Ever increasing gasoline prices have also led many rental agencies to pass along increased costs to their customers.

According to some industry experts, the number one reason for the hike in car rental prices is the decline in demand, tied into the fact that tourism has dropped in many areas as more people stay closer to home.

According to a recent report from the New York Times, car rental agencies have imposed added costs to their customers. Among the additional costs are collision insurance packages and roadside assistance bills. The packages are passed on to the customers despite the fact they already have auto insurance protection in place.

As the Times goes on to report, consumers do not have the proper amount of “bargaining room” at the time of renting a vehicle. Given that fact, they have to take the packages that are offered from the car rental agencies.

It probably doesn’t come as a surprise that many consumers renting cars are often not entirely sure of what they should and should not take when it comes to protection packages.

According to a recent National Association of Insurance Commissioners (NAIC) survey of more than 600 consumers, 42 percent were “either thoroughly confused or had only a rough idea about insurance.”

The association of top state insurance heads reports 34 percent of consumers surveyed via telephone purchased a rental car company’s coverage just in order to be sure they were protected.

According to Alabama Insurance and NAIC President Walter Bell, “When renting a car, many consumers purchase unnecessary insurance and end up wasting money.”

Consumers renting cars are advised to determine whether their personal auto insurance policy and a credit card used for the rental give them adequate protection without having to buy added insurance. A large number of credit cards include a degree of collision and theft coverage, but the benefits are typically secondary to personal auto insurance or the coverage sold by a car rental company.

When renting a car, look for deals on the rental price, but more importantly, make sure your auto insurance provider has you covered before you get behind the wheel.