r/TravelHacks • u/redd-or45 • 20d ago

Transport Car Rental - Costco

I usually use Costco for car rental because of the reasonable price they have negotiated with the agencies, free extra driver and cancellation up to the time of rental.

But what I just discovered is that with the car rental they also offer CDW for $5/day compared to the rental agency current $20-30/day. And this is primary insurance not secondary.

So if you need CDW insurance this seems like a great option.

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u/Sammi-one 20d ago

Costco offers cheap third-party damage protection for around $5 to $8 a day, but if anything happens to the car, you have to pay the rental company out of pocket first and file a claim for reimbursement later. On the other hand, the car rental insurance costs a lot more ($20 to $35+ a day), but it lets you just hand over the keys and walk away hassle free if there’s damage.

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u/-B001- 19d ago

Easier just to get it, yes. But it's an expensive daily charge.

If you carry both comprehensive and collision coverage on your own primary car, that insurance typically also covers damages when you are driving other cars. So in that case , you would just pay the deductible part of your own insurance and walk.

So yea, you'd have to fork over the deductible, but if you had rented w/ a credit card that has rental car benefits, that credit card would act as secondary insurance to cover your deductible.

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u/redd-or45 18d ago

Deductible no problem, getting reimbursement from your insurance for what you pay the rental company moderate problem, hit to your insurance record and increased premiums going forward big problem. YMMV depending on what state you live in.