As for the rental insurance, I can absolutely see why they push it, despite credit-card-only payment. How long does it take the person at the rental car counter to pitch the insurance? A minute, maybe? If the cost of keeping that employee around is $20/hour, then it cost the company 33 cents to pitch the insurance. For a $40-$80 payout (or more!) even factoring in claims, you only need to get a fraction of 1% of the people to take you up on it to break even. That math isn’t hard to justify — I’d probably instruct them to sell it harder!

As for rental car insurance…well, I already said my piece on that. Maybe if the agencies still accepted cash or checks it might make sense…but with credit-card-only rules in effect, I don’t see there being many people renting cars who aren’t already covered for free.

-Amit

Don’t know how legitimate it is and if the agent is just trying to get away and not caring whats in my best interest.

-NS.

I used Priceline for the rental car for our honeymoon — and darn it if they weren’t out of the size that we bid on and they had to upgrade us — to a convertible Camaro!

Sometimes the rooms aren’t exactly what I would have wanted but if I get them at a third the price of calling up the hotel I can’t really complain too badly.

But it amazes me that car rental companies are still pushing this insurance, now that they no longer accept any form of payment except credit cards, and even the low-end cards for people with bad credit give coverage for rental cars nowadays.

You can sometimes get fairly good prices with these services. However, make sure everything is as you want it before submitting your request! When you get to the rental counter, just about anything you want to change will cost you. Even adding a driver will cost you, so put it in the person’s name that you want to drive.

You give good advice to study what exactly you are covered for. This is the only way to ensure you are not taken for a ride (pardon the pun!!)