Credit Card Rental Car Insurance (split from airport screamer thread)

[dioxide45]

I don't fly United. We fly only Southwest to/from Denver. I used to have that card and had a heck of a time finding flights with awards.

Even if you don't fly United, why pay $200 when you can pay $95? Even if you never use the card for anything but rental cars, I would think that the savings on CDW coverage more than makes up for the few points you lose by sending them to United? Is the miles or points you would earn on the car rental spend through Amex worth $105?

 

[dioxide45]

I don't know the answer to this so I am asking the following question. How do you know Capital One won't ask your insurance company to come up with their share of the cost?

George

Worst case is that the credit card company pays for the damage and the car rental company comes after the renter for the difference. In that case the renter could just settle up with the rental company. In the case of minor damage, the renter usually pays the car rental company for the damage and is then reimbursed by the credit card CDW. So if the renter paid the damage in cash, the credit card company would't care about personal auto insurance.

 

[Luanne]

Worst case is that the credit card company pays for the damage and the car rental company comes after the renter for the difference. In that case the renter could just settle up with the rental company. In the case of minor damage, the renter usually pays the car rental company for the damage and is then reimbursed by the credit card CDW. So if the renter paid the damage in cash, the credit card company would't care about personal auto insurance.

Since the rental car company had the repairs done AND charged us for them (on the credit card used for the rental) I don't think they'd be coming after us for any difference, since they already had their money.

How would the renter pay for the damage in cash?

 

[dioxide45]

Since the rental car company had the repairs done AND charged us for them (on the credit card used for the rental) I don't think they'd be coming after us for any difference, since they already had their money.

How would the renter pay for the damage in cash?

I meant exactly what you said. By cash, I mean the renter already paid for the damages. Usually charged automatically to the same card used for the rental. Then the credit card CDW is just reimbursing the renter.

 

[Luanne]

I meant exactly what you said. By cash, I mean the renter already paid for the damages. Usually charged automatically to the same card used for the rental. Then the credit card CDW is just reimbursing the renter.

Okay, so you're saying the credit card reimbursement may not be for the entire amount. Got it.....I think.

 

[dioxide45]

Okay, so you're saying the credit card reimbursement may not be for the entire amount. Got it.....I think.

Correct. If you had a domestic rental and you submitted your auto policy declaration and your claim was for more than your deductible, I would have expected that they would only reimburse you for your deductible, leaving you to file an additional claim with your personal auto. If you so desired. For a couple hundred dollars, I wouldn't bother filing an auto insurance claim.

 

[csxjohn]

We always carry our insurance card with us but I don't think I've ever been asked for the information.

we also carry a card from our insurance company but not for the rental company but in case I get stopped for a traffic violation. Here in Ohio if you have the registration and proof of insurance you can waive a court appearance for minor traffic offenses. If you can't produce either, you have to appear in person.

 

[Luanne]

we also carry a card from our insurance company but not for the rental company but in case I get stopped for a traffic violation. Here in Ohio if you have the registration and proof of insurance you can waive a court appearance for minor traffic offenses. If you can't produce either, you have to appear in person.

As I said, I can't remember if we've ever had to show proof of insurance when we've rented a car, but I had a friend who was asked when renting a car at SFO. They hadn't brought anything with them and were only able to get the car by calling their agent and having him fax something.

 

[dreamin]

In Manitoba we have government car insurance, not private. When we rent a car in the US we get a rental car policy through the public insurance that covers CDW, no deductible, loss of use, and 5 million third party liability (costs $15 registration fee plus $8 per day). If your credit card companies cover CDW, does your primary insurer cover you for personal injury claims? Some of my family believe that their credit cards will cover them if they are sued for causing injury or death. I understand these claims can be extremely high so I can't imagine a credit card company paying for this. Can someone clarify?

 

[isisdave]

If the damage is less than your own insurance deductible, the credit card insurance would cover you regardless of whether it is primary or secondary. Very few cards have primary insurance. We have used the United Mileage Plus Explorer Card from Chase, which has primary coverage included (no per rental extra charge). Most Chase cards do NOT have primary coverage.

In the only "opportunity" I ever had to try this out, the damage was less than the deductible stated on my evidence of insurance, so Hertz worked with Visa directly and didn't even notify my insurance carrier. I was impressed. They only claimed one day of loss of use. (This was like 1992 and people are less generous now, though.)

 

[isisdave]

No, dreamin, this whole thread is about damage to the car.

Rental companies in the US are required to provide the minimum third-party liability coverage, but this may be woefully inadequate ... like in California, it's only $30000 and I don't think it's been raised since 1956. Of course it DOES obligate the insurer to defend a claim, but if you don't own a car and have insurance that provides coverage on whatever car you drive, you need to get non-owner liability coverage instead.

Also, none of this will cover damage to YOU or your family if you're in an accident, so your own health coverage will have to pay that. There MIGHT be coverage for a non-family-member in your car (say you're driving your child's teammate to a game) but they (their health insurer) might have to sue you to collect.

 

[csxjohn]

...
Also, none of this will cover damage to YOU or your family if you're in an accident, so your own health coverage will have to pay that. There MIGHT be coverage for a non-family-member in your car (say you're driving your child's teammate to a game) but they (their health insurer) might have to sue you to collect.

Not true, the AMEX per rental coverage does have personal injury coverage. I opted for the higher priced option to get better and higher injury coverage.

 

["Roger"]

Let me start by noting that I never have had to file any sort of claim on a rental car, and, the more I read, the more I hope I never have to ...

... Some of my family believe that their credit cards will cover them if they are sued for causing injury or death. I understand these claims can be extremely high so I can't imagine a credit card company paying for this. Can someone clarify?

The credit card companies, regardless of whether providing primary or secondary coverage, only cover CDW. They do not include liability. As someone mentioned, the rental car companies provide some liability coverage, enough for fender benders, but you could be in trouble if you run over a billionaire. You need to check to see what your own personal auto insurance covers with regard to liability with rental cars.

Not true, the AMEX per rental coverage does have personal injury coverage. I opted for the higher priced option to get better and higher injury coverage.

Just to add, this personal injury coverage is listed as secondary.

*****

One further note, and this comes from a TUG thread eons ago. Someone either totaled a car or had a car stolen (can't remember which) while in Ireland. He had primary insurance on his credit card and was covered, but ...

The insurance division was separate from the credit card division (and I think this is always true, not sure), so the insurance division ran up a charge against his credit card and this was not removed until the insurance claim was settled. That meant he was fully covered, but his credit card was maxed out for several months while the claim was being processed. Bottom line, when you travel, carry two credit cards.

 

[Gaozhen]

... Bottom line, when you travel, carry two credit cards.

This. And not just for car insurance purposes…always good to carry several just in case you lose a wallet, or get mugged, or something else unfortunate happens. I usually keep one in my wallet, one in my suitcase, and one in whatever additional bag(s) we have (backpack, carry-on, etc). I just feel better having a backup, and usually keep it - along with a back up debit card for cash access - hidden in my bag somewhere with a copy of my passport/ID.

 

[LisaRex]

FYI, Chase Sapphire offers primary coverage as part of its $95 annual fee, and in order for it to be in effect, I have to decline the Collision Damage Waiver/Loss Damage Waiver offered by the rental agency:

Answer: Your Sapphire PREFERRED® credit card offers Auto Rental Collision Damage insurance. Your card provides primary insurance coverage both inside and outside of the United States for damage due to collision or theft up to the actual cash value of most rental cars. You must secure and charge the entire eligible rental to your card, and decline the Collision Damage Waiver/Loss Damage Waiver offered by the rental agency. Coverage is provided to you and other authorized drivers as permitted by the rental contract. Additional terms and conditions apply.

I love my Chase Sapphire. It has a great signing bonus now, 50,000 too, if you spend $4000 in 3 months. It has excellent rates (in terms of points or cash and points) for rental cars.

https://creditcards.chase.com/credit-cards/sapphire-preferred-card.aspx?CELL=6TKX

 

[Born2Travel]

FYI, Chase Sapphire offers primary coverage as part of its $95 annual fee, and in order for it to be in effect, I have to decline the Collision Damage Waiver/Loss Damage Waiver offered by the rental agency:

Answer: Your Sapphire PREFERRED® credit card offers Auto Rental Collision Damage insurance. Your card provides primary insurance coverage both inside and outside of the United States for damage due to collision or theft up to the actual cash value of most rental cars. You must secure and charge the entire eligible rental to your card, and decline the Collision Damage Waiver/Loss Damage Waiver offered by the rental agency. Coverage is provided to you and other authorized drivers as permitted by the rental contract. Additional terms and conditions apply.

I love my Chase Sapphire. It has a great signing bonus now, 50,000 too, if you spend $4000 in 3 months. It has excellent rates (in terms of points or cash and points) for rental cars.

https://creditcards.chase.com/credit-cards/sapphire-preferred-card.aspx?CELL=6TKX

Do you need to book through Chase for it to cover a rental?

 

[dioxide45]

Do you need to book through Chase for it to cover a rental?

Any time you want credit card CDW coverage to be in effect, you have to use that credit card for all parts of the rental process. Usually that just means you use it to pay for the rental. But don't use one card when you check in for the rental and another when you return the car. If you do that, CDW on either card won't cover you.

 

[LisaRex]

Do you need to book through Chase for it to cover a rental?

No. You have to pay for the rental with your Chase credit card.

 

[dioxide45]

I was just reading through the benefits guide for my wife's AAdvantage card from Citi. In it it indicated the following;

This means that if you have another insurance policy that will cover the cost of damage or theft to your rental car, this benefit will cover only the amount your other policies do not. Worldwide Car Rental Insurance does cover deductibles you may have to pay under your other insurance policies (or that your employer may have to pay, if you rented the car for business reasons).

The bolding is mine. So if you are in an accident and paid for your rental with this card, it would basically be useless in the United States where its coverage is secondary?

 

[bogey21]

As I said, I can't remember if we've ever had to show proof of insurance when we've rented a car, but I had a friend who was asked when renting a car at SFO. They hadn't brought anything with them and were only able to get the car by calling their agent and having him fax something.

My recollection is that this happened to me once picking up a car at the Orlando Airport. After that I always carried proof of insurance with me. I don't recall how many times I had to produce it but it was more than once.

George

 

["Roger"]

I was just reading through the benefits guide for my wife's AAdvantage card from Citi. In it it indicated the following;



The bolding is mine. So if you are in an accident and paid for your rental with this card, it would basically be useless in the United States where its coverage is secondary?

Just got an email about changes with regard to my Hilton Citibank card. Same wording. I read it the same way -- no benefit if you are in the US (presuming your personal auto insurance covers rentals).

Even before this posting, I was wondering if credit cards might change their terms. When they first started offering car rental insurance, people commonly had deductibles of $100 or $250. Now you see $500 and $1,000 deductibles. That had to have been costing them a lot more money than when they initiated the coverage.

On a different topic, both of my credit cards offer trip insurance that looks pretty much what people are paying separately for. I wonder is some people are paying for unnecessary trip insurance.

 

[dioxide45]

I was just reading through the benefits guide for my wife's AAdvantage card from Citi. In it it indicated the following;



The bolding is mine. So if you are in an accident and paid for your rental with this card, it would basically be useless in the United States where its coverage is secondary?

Just got an email about changes with regard to my Hilton Citibank card. Same wording. I read it the same way -- no benefit if you are in the US (presuming your personal auto insurance covers rentals).

Even before this posting, I was wondering if credit cards might change their terms. When they first started offering car rental insurance, people commonly had deductibles of $100 or $250. Now you see $500 and $1,000 deductibles. That had to have been costing them a lot more money than when they initiated the coverage.

On a different topic, both of my credit cards offer trip insurance that looks pretty much what people are paying separately for. I wonder is some people are paying for unnecessary trip insurance.

I think I read it too fast or something. Have another regular Citi card and it indicated does cover deductibles. I went back and re-read my post and it is the same. So it would cover any deductible my personal auto insurance would not. I was somehow reading does not.

 

[easyrider]

I think I read it too fast or something. Have another regular Citi card and it indicated does cover deductibles. I went back and re-read my post and it is the same. So it would cover any deductible my personal auto insurance would not. I was somehow reading does not.

The deductible being paid by your regular auto insurance means that your regular auto insurance pays the first portion of the claim. So that would mean your regular auto insurance pays the entire claim and the credit card insurance reimburses you for the deductible, which means this isn't even really secondary.

AMEX pays the entire claim as primary.

Bill

 

[elaine]

Our Delta AMEX is secondary unless you sign up for the $24.95 per rental coverage (which we did) and then it is automatic.

 

[csxjohn]

Our Delta AMEX is secondary unless you sign up for the $24.95 per rental coverage (which we did) and then it is automatic.

Correct, automatic as long as you use the AMEX card for the entire rental and refuse the CDW at the rental agency counter.

You can get the $25 or the $20 coverage if you wish. I also chose the $25 option.