Comments on: Credit Card Rental Car Insurance Policies

By: Sharon B

Sharon B — Wed, 29 Dec 2010 14:49:26 +0000

John F: Just a note to let you know that I call my auto insurance co before renting. I decline all coverage with the rental company in the states and pay for an additional binder with my insurance company for loss of rent. It runs me about $5 for 30 days. Since I don’t rent ofter enough..it’s worth me calling in…otherwise it runs about $50 a year.

By: Dora F.

Dora F. — Tue, 29 Jun 2010 15:43:31 +0000

I was in Hawaii two years ago and had my passenger window broke into and back-pack stolen. You must notify AMEX within a short time period — I called them immediately, only to find out when I dropped off the car that the agency said they would not have reported it as a courtesy to me – but the damage was done when AMEX sent a letter to Hertz asking about the charges. That said, no, my back pack and the contents were not covered — nor were the Hertz Administrative charges of $80. However, when I called Hertz, they immediately, without question, reduced it to $40.

By: David C

David C — Mon, 28 Jun 2010 01:39:51 +0000

@ #5 Kelly
Are you sure it was the rental coverage that was dropped? I recently received an updated benefits pamplet and “Collision Damage Waiver Insurance” is clearly still in it. The Travel accident insurance was cut in half from $500K to $250K, and “delayed luggage” insurance was completely dropped.

@ #8 Sandy
You should check your card’s specific policy, but my Chase Freedom’s covers the “…United States and most foreign countries. No benefit is provided for motor vehicles in Israel, Jamaica, the Republic of Ireland, or Northern Ireland.”

By: Sandy

Sandy — Thu, 24 Jun 2010 19:56:37 +0000

I always forget about the extra coverages that paying with a credit card provides. This is one worth looking into and comparing against what the car companies offer. I don’t have cause to use a rental vehicle often, but when I do it’s often out of the country. Does the same apply when used internationally?

By: Marc

Marc — Thu, 24 Jun 2010 17:33:49 +0000

This is an excellent tip.

However, before you decline that waiver, you really should read the actual wording of your credit card contract. The contract will spell out exactly what is and is not covered. It can be different for each type of card, and for each issuing company.

You can get this information on the company website, or you can just call them and ask. But I’d still get it in writing.

You don’t want to make a wrong assumption about something like that — it can cost you a lot of money.

By: John French

John French — Thu, 24 Jun 2010 11:19:12 +0000

Just finished paying $706 for tree limb damage to a rental from Alamo; that’s my $500 deductible from Liberty Mutual plus $106 for “loss of value” to the car plus $100 “administrative fee”. Loss of use, probably the only reason I’d have sprung for insurance thru Alamo (and thus almost double the daily rate for car rental) was covered by Liberty. I had charged to my Discover card, which basically covers nothing unless you total a Hummer stretch limo…

By: kelly

kelly — Wed, 23 Jun 2010 22:15:15 +0000

I just received a letter about my Chase Freedom Visa. They are ending Car rental insurance coverage as well as changing their purchase protection coverage in August. I expect more banks will follow their lead.

This is fine for me. I pretty much stopped using their Freedom card after they changed the rewards program at the end of last year. It’s no longer worth using to me.

Chase’s credit cards aren’t that great anymore.

By: Paul

Paul — Wed, 23 Jun 2010 18:26:04 +0000

Nickel, I currently have a mastercard. Do they cover little things that the car insurance companies will try to nit-pick for? Such as a little crack on the windshield, a small mark on the bumper, a small tear on the seat, etc? I fell victim for something like that once, and have always bought the extra “insurance” every time I rent a car to avoid it. Does Mastercard cover that instead?

I really appreciate all your help.

By: Amy

Amy — Wed, 23 Jun 2010 17:25:02 +0000

I’ve also wondered about this and this is one of the reasons I love this blog…

I wonder, for anyone who has had to deal with it, if the rental companies ever dinged anyone for loss of use. That’s one of the arguments they are always using on me when I rent a car.

By: Ace @ aceofwealth.com

Ace @ aceofwealth.com — Wed, 23 Jun 2010 16:48:16 +0000

Nickel this is a great tip, because I know tons of people that pay for that very insurance at rental car companies, then pull out their Visa or Master Card to pay for it. I think I’ve even done that! I will definitely remember this the next time I need a rental.

By: BankVibe

BankVibe — Wed, 23 Jun 2010 10:54:48 +0000

I can personally vouch for the Visa’s handling of rental car insurance. I was also unaware of the coverage that automatically was included if you paid for the rental with your visa card until we rented a small hatchback in southern California and had a slight problem with parallel parking. The damage wasn’t significant but still into the few hundred dollar range. A rep from my cc company handled the conversation with the rental company as well as the damages!