# Foreign car rental



## Eric in McLean (Aug 2, 2007)

I just applied for a Capital One card because they don't charge for a foreign exchange.  While reading the materials, I found the card also covers car rentals in foreign country.  I'm not a big fan of Capital One but with 2 miles per dollar, I'm hard pressed to find fault with this card.  It's platinum no hassles miles ultra card with no fee.  Just thought I share.


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## Rod in Louisiana (Aug 2, 2007)

Eric in McLean said:


> I just applied for a Capital One card because they don't charge for a foreign exchange. While reading the materials, I found the card also covers car rentals in foreign country. I'm not a big fan of Capital One but with 2 miles per dollar, I'm hard pressed to find fault with this card. It's platinum no hassles miles ultra card with no fee. Just thought I share.


 
Just a word to the wise, Eric. The coverage that you're describing is Collision Damage Waiver (CDW). I don't know of any card that provides liability coverage, and most, if not all, U.S. automobile insurance policies do not provide any type of coverage outside the USA. And, by the way, if your automobile policy does happen to provide collision coverage outside the USA, the credit card coverage becomes secondary coverage.


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## Laurie (Aug 3, 2007)

All car rentals I've ever done outside the US include liability coverage - you don't ever need to pay extra, or use your cc or your own auto insurance for that, to my knowledge. We've almost always used our Capital One card instead of CDW (in all cases except countries which require the CDW - Ireland and Italy), cc coverage is much better coverage - and most other platinum cards do cover that.

My Capital One only gives one mile to the dollar, I'll have to figure out where to get the application for double miles (where'd you find one, Eric?). One thing I haven't liked about Cap One is they have increased miles needed for flights over the years ie reduced benefits. But we've had this cc for years, enjoying no-fee foreign transactions. And also, they will give cash back after the fact on flights - I can't remember the time period, but just book and pay for your flights, then call them and they'll issue credit months later - I've done that. 

We accidently used a different cc overseas last month (UA Air) for an auto rental (lots of $$), and couldn't believe there was a 3% fee!


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## Rod in Louisiana (Aug 3, 2007)

Laurie said:


> All car rentals I've ever done outside the US include liability coverage - you don't ever need to pay extra, or use your cc or your own auto insurance for that, to my knowledge. We've almost always used our Capital One card instead of CDW (in all cases except countries which require the CDW - Ireland and Italy), cc coverage is much better coverage - and most other platinum cards do cover that.
> 
> My Capital One only gives one mile to the dollar, I'll have to figure out where to get the application for double miles (where'd you find one, Eric?). One thing I haven't liked about Cap One is they have increased miles needed for flights over the years ie reduced benefits. But we've had this cc for years, enjoying no-fee foreign transactions. And also, they will give cash back after the fact on flights - I can't remember the time period, but just book and pay for your flights, then call them and they'll issue credit months later - I've done that.
> 
> We accidently used a different cc overseas last month (UA Air) for an auto rental (lots of $$), and couldn't believe there was a 3% fee!


 
We've rented cars outside the US twice this year, in the Cayman Islands and in Panama. There was no liability coverage in either instance, other than that offered by the car rental companies at extra cost. Car rental companies don't even "include" liability coverage here in the USA. Why would they provide it at no charge in other countries?


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## Eric in McLean (Aug 3, 2007)

It's called the Capital One No Hassle Miles Ultra.  From the main credit card page, click on "Find the card that is right for you"  You'll have to fill in some personal info, such as address and whether you have good credit.  Then this card was offered to me.

Here's the coverage 

• MasterRental will pay for covered damages up to $50,000 per incident for which the cardholder or any other authorized driver is legally responsible to the rental agency on a primary basis. Coverage will be provided for: • Up to $50,000 per incident on claims for which the cardholder or any other authorized driver is legally responsible to the rental agency on a primary basis. (a) physical damage and theft of the vehicle up to its market value, not to exceed $50,000. (b) reasonable and customary charges imposed by the rental agency for the period of time the vehicle is being repaired (“Loss of Use” charges) that are substantiated by a Fleet Utilization log. (c) reasonable and customary towing charges to the nearest qualified repair facility imposed by the rental agency on a covered loss. (d) Secondary Personal Effects insurance covers damage or theft of such effects. You must first file under other applicable insurance (e.g., home or business), then we’ll cover whatever is not covered by your insurance. This insurance is only available if you are covered by MasterRental Primary Collision/Damage Insurance. Maximum coverage per rental period is $1,000 per covered person, per occurrence. The total benefits per rental period cannot exceed $2,000. (e) Theft or damage to personal effects while in transit in the rental vehicle or in any building en route during a trip using the rental vehicle


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## Rod in Louisiana (Aug 6, 2007)

Eric in McLean said:


> It's called the Capital One No Hassle Miles Ultra. From the main credit card page, click on "Find the card that is right for you" You'll have to fill in some personal info, such as address and whether you have good credit. Then this card was offered to me.
> 
> Here's the coverage
> 
> • MasterRental will pay for covered damages up to $50,000 per incident for which the cardholder or any other authorized driver is legally responsible to the rental agency on a primary basis. Coverage will be provided for: • Up to $50,000 per incident on claims for which the cardholder or any other authorized driver is legally responsible to the rental agency on a primary basis. (a) physical damage and theft of the vehicle up to its market value, not to exceed $50,000. (b) reasonable and customary charges imposed by the rental agency for the period of time the vehicle is being repaired (“Loss of Use” charges) that are substantiated by a Fleet Utilization log. (c) reasonable and customary towing charges to the nearest qualified repair facility imposed by the rental agency on a covered loss. (d) Secondary Personal Effects insurance covers damage or theft of such effects. You must first file under other applicable insurance (e.g., home or business), then we’ll cover whatever is not covered by your insurance. This insurance is only available if you are covered by MasterRental Primary Collision/Damage Insurance. Maximum coverage per rental period is $1,000 per covered person, per occurrence. The total benefits per rental period cannot exceed $2,000. (e) Theft or damage to personal effects while in transit in the rental vehicle or in any building en route during a trip using the rental vehicle


 
Eric, the coverage provided by this credit card appears to be very good, and it's certainly a cut above that which is provided by some other credit cards.  However, nothing in the verbiage refers to liability coverage.  I still maintain that neither this card nor any other card provides liability coverage when used to rent a vehicle.


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## Eric in McLean (Aug 6, 2007)

You're right.  I wish I had more experience in reading and understanding credit card legalese.  The coverage provided is if I wreck the car, they would pay the car rental company up to $50k?  If in the process of wrecking the car, I hit someone, I'm still liable to the person I hit?  Given that's the case, do you always buy insurance when renting abroad?


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## Rod in Louisiana (Aug 7, 2007)

Eric in McLean said:


> You're right. I wish I had more experience in reading and understanding credit card legalese. The coverage provided is if I wreck the car, they would pay the car rental company up to $50k? If in the process of wrecking the car, I hit someone, I'm still liable to the person I hit? Given that's the case, do you always buy insurance when renting abroad?


 
We always take the liability coverage offered by the car rental company. For CDW, we use the $24.95 American Express policy, which kicks in automatically every time we rent a car. It provides primary CDW for a continuous period of 30 or 40 days (I can't remember which) and also provides medical coverage. Unfortunately, it does not provide liability coverage. We started using this policy because we sometimes rent 9 passenger vans in the Cayman Islands, and the CDW coverage on the Amex Gold Card doesn't cover anything over 8 passengers.

We've found that the rates for liability coverage are very reasonable and they're usually about one-half the rate for CDW coverage. In my opinion, it's a very low price to pay for the peace of mind it provides.


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## Htoo0 (Aug 8, 2007)

I always get liability coverage and sometimes everything depending upon price. Cayman seems pretty reasonable to me although reading the fine print it seems some damages may not be covered. (Such as falling coconuts ???) Had to spend some months in Canada for business some time ago and fortunately I insisted they provide proof of insurance for the rental. Contrary to their belief, their insurance was NOT valid in Canada or other foreign country.


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## WinniWoman (Jan 2, 2012)

*Car rental in Scotland*

So, I am going to charge my car rental with Hertz on my Capital One card. Do you suggest that I take out the liability coverage at the airport counter when we arrive? I am very worried about this - we have never driven overseas and want to be properly covered. 

Also, we took out Travelers Insurance with CSA. Is that sufficient in terms of medical coverage. (We have medical insurance in the US through my husband's employer - United Health Care, which I assume doesn't help us overseas.


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## Rod in Louisiana (Jan 2, 2012)

mpumilia said:


> So, I am going to charge my car rental with Hertz on my Capital One card. Do you suggest that I take out the liability coverage at the airport counter when we arrive? I am very worried about this - we have never driven overseas and want to be properly covered.
> 
> Also, we took out Travelers Insurance with CSA. Is that sufficient in terms of medical coverage. (We have medical insurance in the US through my husband's employer - United Health Care, which I assume doesn't help us overseas.



I'll say it again.  I don't know of *ANY* credit cards that provide liability insurance with their complimentary CDW coverage.  Your insurance policy that covers your personal automobiles almost certainly doesn't provide coverage outside the  USA.  In my opinion, it would be the height of foolishness if you don't purchase the liability coverage from the car rental company.


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## WinniWoman (Jan 2, 2012)

Thank you for the confirmation. Will definitely take out the personal injury and liability insurance through Hertz. (I assume this would also cover damages to other vehicles or property or others injuries?)


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## Rod in Louisiana (Jan 2, 2012)

mpumilia said:


> Thank you for the confirmation. Will definitely take out the personal injury and liability insurance through Hertz. (I assume this would also cover damages to other vehicles or property or others injuries?)



Yes, personal injury and liability coverage through Hertz will cover most damage to other vehicles and property.

Two things you need to consider, especially in Ireland, are diminution of value and loss of use.  When a vehicle has been in a wreck and has had significant body damage to be repaired, the resale value of the vehicle is diminished.  On some vehicles, this diminution of value can be thousands of dollars. The car rental company also loses potential revenue while the vehicle is being repaired.

Theoretically, collision damage policies cover these items.  However, in real-life situations, they do not.  The American Express policy, for example, covers these items in its terms and conditions.  The catch is that Amex requires that the car rental company provide them with rental information on their entire rental fleet at that location  and also provide the repair history of the vehicle.  When the car rental company refuses to furnish this information, as the vast majority of them do, Amex refuses to pay for the loss in value of the vehicle or for the loss in revenue while the vehicle is being repaired.  Can you guess who's then on the hook for these charges?  Read the terms and conditions of your rental.  These items are in every car rental contract in every country where we've rented a car, even in the USA.  My sister-in-law was in a traffic accident last year, which was not her fault.  Her Infinity G37 had significant damage.  Her auto insurance company and the auto insurance company of the person who hit her refused to pay for diminution of value.  So, she now has a vehicle that's severely diminished in value and the major auto resellers, such as Carmax, won't even buy it from her.

For these reasons, when renting a vehicle outside the USA, I now always purchase the full coverage offered by the rental agencies.  Yes, it's expensive.  No, I haven't ever had an accident or had to file a claim.  But, that's insurance for you.  You buy something that you hope you never need to use, largely for peace of mind.

I'm not trying to scare you.  I just want you to be aware of the risks.  I understand that there are lots of folks out there who disagree with me.  I submit that many, if not most of these folks have never had an accident in a rental vehicle.  To those folks, insurance must seem like a complete waste of money.  If you want to read some auto rental insurance horror stories, read the Tripadvisor forum on Ireland.


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## Catira (Jan 2, 2012)

We were in France this past August and rented a car with full coverage offered by the rental agency and then added a top tier cdw when we picked up the car. Got our rental car, and after being jet lagged we just loaded our luggage and off we went. Never inspected our car prior to leaving airport car rental.

Several days later, returned car and asked agent if everything was okay. She was outside right in front the rental space where we parked car. She looked over the car and said "Have a nice trip".

A week later while we are now in Paris, I get an email with pics from the rental car agency stating our car has been damaged during our rental contract.   The damage described and pictured is a 3 centimeter door ding with no paint damage!! I am asked if there was a police report filed during the timeframe I rented car. Really for a door ding?? I reply to email and state that we have full coverage insurance plus the top tier CDW and believe the insurance should cover the damage. A week later, we are charged $80 for the door ding damage. I file a dispute with Visa and am refunded the charge since we had FULL COVERAGE insurance.

Moral of the story.. TAKE PICS of your rental car at pick up and drop off. Make sure your insurance will take car of any incidentals and avoid a headache later on.


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## Rod in Louisiana (Jan 2, 2012)

Catira said:


> We were in France this past August and rented a car with full coverage offered by the rental agency and then added a top tier cdw when we picked up the car. Got our rental car, and after being jet lagged we just loaded our luggage and off we went. Never inspected our car prior to leaving airport car rental.
> 
> Several days later, returned car and asked agent if everything was okay. She was outside right in front the rental space where we parked car. She looked over the car and said "Have a nice trip".
> 
> ...



Catira, thanks for good point about the Top Tier CDW (which is called different things in different places).  In many countries, regular CDW does not cover everything, so we always opt for the "Super" CDW.  In Mexico, where we travel extensively, most rental contracts do not cover everything, even when you take all coverages offered by the car rental companies.  Windshield damage, for instance, is rarely covered by rental car insurance outside the USA.  It's always a good idea, in my opinion, to take the full coverage AND to take photos of your vehicle before you take possession.


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## WinniWoman (Jan 3, 2012)

Wow! So this CDW coverage - top tier- is offered by the car rental co also? (does that stand for "collision damage waiver"?) What is the average cost of the best car rental company insurance? My planned trip is already costing a fortune - more than I planned. Although renting a car is pretty important for where we are staying, I am rethinking renting and just using public transport and cabs. This car rental thing in another country where we are not used to driving (never done it before), is scaring me. A friend of mine went to Ireland and had an accident and it became a nightmare, so her next trip they just stayed in Dublin and took buses. Unfortunately, we will be in an area outside Edinburgh where having a car would allow us to see a lot more for the one week we are there. Need to think this through more.....


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## Rod in Louisiana (Jan 3, 2012)

mpumilia said:


> Wow! So this CDW coverage - top tier- is offered by the car rental co also? (does that stand for "collision damage waiver"?) What is the average cost of the best car rental company insurance? My planned trip is already costing a fortune - more than I planned. Although renting a car is pretty important for where we are staying, I am rethinking renting and just using public transport and cabs. This car rental thing in another country where we are not used to driving (never done it before), is scaring me. A friend of mine went to Ireland and had an accident and it became a nightmare, so her next trip they just stayed in Dublin and took buses. Unfortunately, we will be in an area outside Edinburgh where having a car would allow us to see a lot more for the one week we are there. Need to think this through more.....



CDW does indeed stand for "Collision Damage Waiver."  In some countries, even though you accept the CDW coverage, you are still liable for the first $2,500 (or some other amount).  The "Top Tier" or "Super" CDW provides coverage for that amount.  If you don't accept the Super CDW coverage, a hold is placed on your credit or debit card for that amount.  

The cost of the car rental insurance is all over the board.  In Ireland, complete coverage costs as much or more than the rental cost for the car.

One of the better sources of information on topics such as this is the TripAdvisor forum on Scotland.  Here are the results of a search I made on that forum on "car rental insurance".

http://www.tripadvisor.com/SearchFo...eturnTo=__2F__&sub-search.x=5&sub-search.y=11


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## WinniWoman (Jan 3, 2012)

Thanks. I will check out the forums.


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## AKE (Jan 4, 2012)

Each car rental company is different and the countries that a car is allowed into also differ between car rental companies.  In Europe, especially the eastern part, THEFT INSURANCE is a must.  I dont know if a credit card covers this, and especially outside the US/Canada.  As well, some car rental companies will not accept your credit card insurance; others will until you have an accident and then all types of exclusions will kick in.  I have also heard that passports can be confiscated until the damages are covered and on and on.  For peace of mind just get their insurance if you are outside of US/Canada.


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## WinniWoman (Mar 10, 2012)

Catira said:


> We were in France this past August and rented a car with full coverage offered by the rental agency and then added a top tier cdw when we picked up the car. Got our rental car, and after being jet lagged we just loaded our luggage and off we went. Never inspected our car prior to leaving airport car rental.
> 
> Several days later, returned car and asked agent if everything was okay. She was outside right in front the rental space where we parked car. She looked over the car and said "Have a nice trip".
> 
> ...



 So, I am still mulling over all this overseas car rental business. My Capital One card (which is not the mileage card, but a World Mastercard) has CDW coverage for car rentals, but not liability/injury/car damages to other vehicles. However, if you take out CDW coverage with the car rental company, the entire credit card coverage is null and void. So- is the advice then to forget about the credit card CDW coverage and take out TOP Tier CDW AND Personal Liability/Injury/Other Vehicles coverage with the car rental company? That's was I am ascertaining from re-reading all these posts...(I also saw the fine print on the diminishment of value not being covered)


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## Passepartout (Mar 10, 2012)

We check with our own car insurance. After all they insure you, not the vehicle you drive. See what your own coverages are. You might just be able to carry a copy of the coverages page of your policy. You are just renting in Scotland, not Eastern Europe or some 3rd world backwater. Also ask the agency where you are renting. They obviously try to sell you insurance you don't need, but if it duplicates what you already have, they won't pay anyway, but that won't stop them from collecting the premium from you.

Jim


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## WinniWoman (Mar 10, 2012)

Passepartout said:


> We check with our own car insurance. After all they insure you, not the vehicle you drive. See what your own coverages are. You might just be able to carry a copy of the coverages page of your policy. You are just renting in Scotland, not Eastern Europe or some 3rd world backwater. Also ask the agency where you are renting. They obviously try to sell you insurance you don't need, but if it duplicates what you already have, they won't pay anyway, but that won't stop them from collecting the premium from you.
> 
> Jim



I thought for sure that auto insurance in the US will not cover overseas anywhere/anyhow, but I will check. (we have Allstate)


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## Passepartout (Mar 10, 2012)

mpumilia said:


> I thought for sure that auto insurance in the US will not cover overseas anywhere/anyhow, but I will check. (we have Allstate)



Might be, but you don't know until you ask. Ours worked in Puerto Rico but they wanted to see the 'coverages' page of our policy.

Jim


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## WinniWoman (Mar 11, 2012)

The other thing I am going to check is our Umbrella Policy. That is a liability policy we have along with our Auto Policy for excess liability coverage above and beyond our standard insurance policies (home and auto, etc,) and other extenuating circumstances.


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## WinniWoman (Mar 12, 2012)

AKE said:


> Each car rental company is different and the countries that a car is allowed into also differ between car rental companies.  In Europe, especially the eastern part, THEFT INSURANCE is a must.  I dont know if a credit card covers this, and especially outside the US/Canada.  As well, some car rental companies will not accept your credit card insurance; others will until you have an accident and then all types of exclusions will kick in.  I have also heard that passports can be confiscated until the damages are covered and on and on.  For peace of mind just get their insurance if you are outside of US/Canada.



This is what we did. I cancelled my original rental car reservation (made many months ago)and re booked for a $45 discount with the same co. (Hertz). We added GPS and took out the insurance and then we will take out the SUPER coverage at the rental counter with the Personal Injury and no deductibles, etc. (You can only take it out at the rental counter). Although our Capital One World Mastercard has good coverage with no deductibles and theft included, the fine print states no coverage on diminution of value and depreciation, rental car co. fees, etc. After reading the posts here and like 1000 posts on Trip Advisor and over the internet, and consulting with my hubby, who works as an auto claims adjuster for a major auto insurance company, this is what we decided. With the cost of gas in Scotland, this is a very expensive option for the one week there, but we don't want to take any chances since we have never been there (or anywhere overseas) or driven on the left side of the road, etc. We still have time to change our minds until June if worse comes to worse and just take cabs/day tours or whatever....We did spring for the weekly GPS rental, too!


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