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Author Topic:   Rental car insurance warning
wauhob3

TUG Member

Posts: 1671
From: Valparaiso, IN Christmas Mountain Village week 27 and 30
Registered: May 2002

posted 07-23-2004 10:09     Click Here to See the Profile for wauhob3   Click Here to Email wauhob3     Edit/Delete Message   Reply w/Quote Post A Reply
We usually use our platinum card for the car insurance on rental cars. Unfortunately we did have an accident in the UK this trip. The best rental price I found was at Hertz through BA. It had insurance included for over 500 pounds worth of damage and because we did not refuse this coverage we have to pay the 500 pounds. Mastercard said they would have paid for the whole accident but it's conditional on us declining all insurance. So this "free" coverage which I was happy to get and to be double insured (so I thought)ended up costing us almost $1000 US $. You'd have thought Mastercard would have been happy to only pay 500 pounds instead of the whole thing. I just wanted to let others know in case they didn't know this provision and use the platinum card rental insurance too. The good news is my husband only hit a brick sidewall to the road and not another car and no one was hurt.

[This message has been edited by wauhob3 (edited 07-23-2004).]

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sfwilshire

TUG Member

Posts: 2156
From: Clinton TN
Registered: Jan 2003

posted 07-23-2004 11:44     Click Here to See the Profile for sfwilshire   Click Here to Email sfwilshire     Edit/Delete Message   Reply w/Quote Post A Reply
I have a friend who insists that the "free" insurance on rentals provided by credit cards and your own personal auto insurance is not sufficient because you can be hit with "loss of use" fees. I admit that I rent so seldom I've been lazy and haven't read up on all of this. I know there is a TUGger out there who probably knows all the facts.

Sheila

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bhurley902

TUG Member

Posts: 820
From: hoboken, nj, usa
Registered: May 2003

posted 07-23-2004 16:45     Click Here to See the Profile for bhurley902     Edit/Delete Message   Reply w/Quote Post A Reply
Since I no longer own a car, and therefore have no insurance coverage, I have researched this pretty thoroughly. Under my circumstances, I always take the liability option (only) offered by the rental company. But, if you have good liability coverage, chance are you shouldn't take anything at all.

Someone looking for additional information should read all the information on this mastercard link: http://www.mastercard.com/cardholderservices/guidetobenefits/masterrental_insurance.html

But, here are a couple of highlights for the merely curious:

Decline the Collision/Damage Waiver offered by the car rental company;
...limited to a 15-consecutive-day rental period.
..... after your primary/other insurance has paid its limits, MasterRental will cover:
the insurance deductible, if any
any reasonable and customary repair cost not covered by any other coverage (or your employer's coverage, as the case may be).

Coverage will be provided for:
Up to $50,000 per incident on claims for which the cardholder or any authorized driver is legally responsible to the rental agency:
(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 car rental company for the period of time the car 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.

Which vehicles are covered:
Vehicles with an MSRP of up to $50,000

What is NOT covered:
Items stolen from, in, or upon automobiles or other vehicles.
Coverage is not all-inclusive, which means it does not cover such things as personal injury, personal liability, or personal property. It does not cover you for damage to someone else's vehicle or property, your property, or personal property inside the vehicle. It does not cover you for any injury to any party.

Hope this helps,
Betsy

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JEFF H

TUG Member

Posts: 2286
From: Tucson,AZ
Registered: Dec 2000

posted 07-25-2004 12:15     Click Here to See the Profile for JEFF H   Click Here to Email JEFF H     Edit/Delete Message   Reply w/Quote Post A Reply
This problem is also very common in Mexico.
If you purchase the insurance the rental car company sells you end up with less coverage than if you had just declined it and used your credit card protection.

If you purchase the rental car company insurance your responsible to pay for a high deductible.
The credit card coverage will normally pay the full amount but only covers you if you Decline the Rental car company insurance.

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KProuty

TUG Member

Posts: 430
From: Marblehead, MA
Registered: Feb 2001

posted 07-25-2004 17:46     Click Here to See the Profile for KProuty   Click Here to Email KProuty     Edit/Delete Message   Reply w/Quote Post A Reply
Does anyone know about the extra Amex Insurance? You pay per rental and it is supposed to cover everything that your normal insurance won't....

Katherine

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JEFF H

TUG Member

Posts: 2286
From: Tucson,AZ
Registered: Dec 2000

posted 07-26-2004 01:12     Click Here to See the Profile for JEFF H   Click Here to Email JEFF H     Edit/Delete Message   Reply w/Quote Post A Reply
quote:
Originally posted by KProuty:
Does anyone know about the extra Amex Insurance? You pay per rental and it is supposed to cover everything that your normal insurance won't....
Katherine

All my American Express cards have rental coverage included free of charge.
Is this for Higher Value rentals over $50K or whatever the normal dollar amount Cap is?

Credit card coverage is normally secondary on Domestic rentals and primary on International International rentals. Secondary means it only pays what other insurance you have does not cover. Normally in most cases this would be the deductible.

The best is Diners club card rental coverage as it is Primary coverage on both domestic and international rentals.

Its always important to read the term and conditions and limits on the specific credit card you plan to use and they are not all the same.

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Carolinian

TUG Member

Posts: 5681
From: North Carolina
Registered: Dec 2000

posted 07-26-2004 04:18     Click Here to See the Profile for Carolinian   Click Here to Email Carolinian     Edit/Delete Message   Reply w/Quote Post A Reply
I had the occaision to use the Mastercard gold card insurance on a trip to France, when someone broke out a window on my rental car to try to steal something. It covered everything, and was relatively easy to use.

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travelnut

TUG Member

Posts: 729
From: Fremont, CA, USA Pono Kai, Kauai Beach Villas, Riviera Oaks (MGV pts.)
Registered: Dec 2000

posted 07-26-2004 23:06     Click Here to See the Profile for travelnut   Click Here to Email travelnut     Edit/Delete Message   Reply w/Quote Post A Reply
Check to see if your homeowners' insurance will cover the costs of personal items stolen from your car.

We had to pay for mandatory insurance when we rented a car in NZ.
I scratched the hub caps on a bridge support that extended out onto a narrow bridge, and the top of the console broke off. We were charged for these 2 items, Visa paid all.

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Northern Willy

TUG Member

Posts: 723
From: Swampscott, MA, USA
Registered: May 2002

posted 07-27-2004 04:13     Click Here to See the Profile for Northern Willy   Click Here to Email Northern Willy     Edit/Delete Message   Reply w/Quote Post A Reply
Diner's Club has the best rental insurance. It is primary insurance, not secondary like most cards. Here is a snippet of the policy:

Primary and Full Value Rental Car Collision/Loss Damage Insurance*

The Diners Club program provides automatic primary full-value coverage worldwide, any time the entire cost of a car rental is charged to a Diners Club Card. To qualify, you must decline the rental agency's collision damage waiver (CDW), thereby saving you up to $16 per rental day. The Diners Club program pays for covered damages up to the full-value of the rental car. There's usually no need to file a claim with your own insurance company, so your personal premium won't be affected.

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Carta

TUG Member

Posts: 203
From: Pa. USA
Registered: Feb 2002

posted 07-27-2004 04:20     Click Here to See the Profile for Carta   Click Here to Email Carta     Edit/Delete Message   Reply w/Quote Post A Reply
When I use a rental car, my personal car insurance (Allstate) covers me wherever I go. I nomally have a $500 deductable; but when I travel using a rental, I change it to $100 deductable. The cost is 42 cents per day. When I return from vacationing, I change it back to the original $500 deductable.

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wauhob3

TUG Member

Posts: 1671
From: Valparaiso, IN Christmas Mountain Village week 27 and 30
Registered: May 2002

posted 07-27-2004 04:44     Click Here to See the Profile for wauhob3   Click Here to Email wauhob3     Edit/Delete Message   Reply w/Quote Post A Reply
quote:
Originally posted by Carta:
When I use a rental car, my personal car insurance (Allstate) covers me wherever I go. I nomally have a $500 deductable; but when I travel using a rental, I change it to $100 deductable. The cost is 42 cents per day. When I return from vacationing, I change it back to the original $500 deductable.

You may want to check if you are really covered in foreign counties. We have similar coverage for USA rentals but State Farm said there is no coverage outside the USA.

Thanks all who responded now I know to decline insurance of any type free or not in foreign countries if I want Mastercard coverage. What would have happened though if we did some damage to a car, property or worse a person? It looks like Mastercard is only covering the rental car.

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Carta

TUG Member

Posts: 203
From: Pa. USA
Registered: Feb 2002

posted 07-27-2004 13:08     Click Here to See the Profile for Carta   Click Here to Email Carta     Edit/Delete Message   Reply w/Quote Post A Reply
Wauhob3....I was covered when I went to Grand Cayman this past March.

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JEFF H

TUG Member

Posts: 2286
From: Tucson,AZ
Registered: Dec 2000

posted 07-28-2004 01:46     Click Here to See the Profile for JEFF H   Click Here to Email JEFF H     Edit/Delete Message   Reply w/Quote Post A Reply
quote:
Originally posted by wauhob3:
What would have happened though if we did some damage to a car, property or worse a person? It looks like Mastercard is only covering the rental car.

Credit Card rental coverage as well as Collision Damage waiver you would purchase from the rental car Company only covers damage to the Rental Car.
Liability insurance covers the damage to others and there property.
Most rental car companies are required by law to carry liability insurance on any car they rent. There insurance company can then go after you for the damages. Your own Insurance Policy however should cover you for Liability.
Extra Liability coverage is normally offered by the Rental car companies.
many also offer a personal property coverage you can purchase.

Im not sure how these issues would be handled in No Fault Insurance state. Anyone know the answer??

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BillMorrow

TUG Member

Posts: 235
From: Middlebury, VT
Registered: May 2001

posted 07-28-2004 03:47     Click Here to See the Profile for BillMorrow   Click Here to Email BillMorrow     Edit/Delete Message   Reply w/Quote Post A Reply
A couple of points:
1. As others have stated Diners Club is primary to your regular auto insurance in the US. Note that Diners Club only covers damage to the rental vehicle and loss of use. It does not cover damage to other vehicles or property (voice of experience speaking).
2. Always, always verify that you are covered when renting internationally. All credit cards do not provide coverage in all countries. I know, specifically, that Diners does not provide coverage in Spain.

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Northern Willy

TUG Member

Posts: 723
From: Swampscott, MA, USA
Registered: May 2002

posted 07-28-2004 04:51     Click Here to See the Profile for Northern Willy   Click Here to Email Northern Willy     Edit/Delete Message   Reply w/Quote Post A Reply
Many cards do not provide coverage in Ireland. You really need to check.

The DC card is good to shield your main policy from a claim on the auto you rented. If your rental car gets damaged you just point the agency to DC and they haggle about it.

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