So what to do when renting a car?!
The world used to be such a simple place. Everyone had cars, gas was cheap and no-one thought twice about driving everywhere. Suburbs became exurbs and journey lengths expanded. Public transport wilted, and people added extra pounds of body weight as walking dropped out of favor. Now, the world has changed. Gas prices peaked at more than $4 a gallon and, although they dropped down again, the recession has taken money out of household budgets. People no longer spend freely on driving. There’s no public transport in the exurbs so people are cut off from their work and the local amenities without a car. Even if people do start walking again, they live too far out of the nearest towns and cities. The choice has become simple. Life without a car for most is impossible so people keep their old car going longer or they get into rental cars.
The strategies break down as follows. Sharing cars as a way of getting children to school and parents to work has been around for a while. All it requires is some give and take about when people are going to make their journeys and travel suddenly becomes cheaper with shared costs. Except, whoever is doing the driving needs to be sure their policy covers paying passengers. Some insurers take a narrow view that paying passengers turn the deal into a business like a taxi. This is a trap to force car sharers to pay more to insure. Always shop around to get the best cover to ensure that everyone in the car is covered for their medical costs should there be a traffic accident. The more interesting developments are coming in the car rental business. Instead of the classic temporary holiday or full-time business uses, there is now a new car pooling system. Cars are stored in garages around cities. When you want to use a car, you go online and make a booking. The system tells you where the nearest car is to be found. You pick it up and drop it off at the nominated garage, paying only for the hours you have the car in your possession. The guys who work out statistics reckon that the average person spends about $8,000 a year on car ownership. That’s the purchase price, any sales tax and loan interest, the loss of value as the car ages, the cost of insurance, maintenance and repair, and so on. Most car pooling schemes charge around $15 an hour with the cost of gas and insurance included (with you paying the cost of getting to and from the nominated garage).
Except you need to be careful about the terms of the auto insurance included in the package. The rental company is interested in protecting the capital value in the cars so, before you sign up, check the cover for personal injuries. It may be worth paying an extra few dollars to top up the cover for medical expenses and loss of earnings. That said, if you give up your own car, there are big cash savings so long as the auto insurance cover is adequate. And, no desk agents giving you a hard sell every time you pick up the car!
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I strongly support this idea, hope it will spread around the globe. Beside economical, it’s use would also have a lot of ecological benefits, since people would only use a car when they would truly need it.
u’re right..
we cant live without car..
even in Indonesia there’s still many public transport,but so uncomfortable n not safe(because so many thief take a chance when so crowd in public transport)..
rent a car is so expensive too..
what if turn down the rent price..
Because leasing means we will never own our car outright, if this is something we choose to do on a regular basis, then it will most likely end up costing we more than if we had chosen to buy a car.
I always do, I just want to know where to mail the towing receipts-has stood me in good stead twice, once in hawaii when the car was vandalized in secured parking and another time in DC when the rental was ‘lost’ at the hotel valet parking. Both times, I called the rental company, they sent out a new vehicle, I went on about my business, never heard a thing about it. ever
i go online and make a booking. The system tells you where the nearest car is to be found. You pick it up and drop it off at the nominated garage, paying only for the hours you have the car in your possession.
I am renting a car for 5 days. I’m not sure if my own personal car insurance covers for a rental, but I’m pretty sure it doesn’t. Its almost $100 for the insurance that they offer! Seems like a trap. Is it absolutely necessary to purchase it? Thanks
Call your insurance provider. Most will cover rentals for up to a certain amount, regardless if you need it for an emergency (your regular car was totalled and in the shop for repairs) or if you’re using it to get around another town (on business or pleasure trip). It varies from company to company, and what kind of policy (how much coverage) you have. For example, with Geico if you have comprehension and collision coverage on your policy, they will normally transfer to the rental, if you’re using a rental to temporarily replace your own vehicle, while it is in the shop for repairs.
Except you need to be careful about the terms of the auto insurance included in the package. The rental company is interested in protecting the capital value in the cars so, before you sign up, check the cover for personal injuries.
hey thanks for nice suggestions buddy….good approach!!!
Call your insurance provider. Most will cover rentals for up to a certain amount, regardless if you need it for an emergency (your regular car was totalled and in the shop for repairs) or if you
Not it’s not necessary if you have the cash to replace the car and the pay the lost revenue to the rental company,
I am planning my Spring Vacation and I know that I probably won’t have a personal vehicle when I go. So I won’t have personal insurance, I need it when I go to rent a car. or will the rental insurance cover me.
I would rent a car only in there
the insurance issue is legit. if people are paying to use a car, they should all pay for insurance. i’ve seen these car sharing programs in places like seattle, they’re a good deal, especially if you walk to work and only need a car for errands, etc.
Very insightful. It’s always best to be sure going into renting EXACTLY what the carrier is covering.
Your blog is really nice. Thanks for sharing your ideas on car rentals. I haven’t tried renting cars yet but really nice insights.
Good piece of information. Best way to be on the move hassle free.
Good piece of information, only if people will read stuff like this before renting cars.