Rental Car Insurance Options from Credit Cards

[fosterscik]

Bamaman - my Barclaycard has primary coverage whenever I'm out of the country. I think that's pretty typical for "world" cards. But I have the "mandatory cdw in Italy" problem. Ireland is specifically excluded by the card but Italy is not. I'm going to have to spend some time on the phone to get answers. I'll post what I discover.

FlyBoy - I haven't driven in Italy, but I've certainly heard the stories. I plan to pick up the car away from the big city (Orvieto train station) and drive through the countryside to Siena (Pienza, Montelcino,...) before dropping the car in Florence. Mostly countryside driving - so hopefully not too traumatic! I've done lots of driving in Europe and am used to narrow roads and fast cars (perhaps I'll have a different view after experiencing Italy ).

 

[TheDarkStorm]

I'm currently working with Visa on an accident that I had back in Dec 2015. Nothing finalized as of yet, but I will update once I have more (crossing fingers). I talked a bit about this in my "Hi I am" post.

 

[fosterscik]

Darkstorm's post reminded me I needed to update my earlier post.
I have a Barclaycard arrival+ card (the version which has an annual fee). The rental-car insurance coverage it provides is primary in all overseas locations and does apply in Italy. If I am required to accept a minimal CDW (as appears to be the case in Italy) the card's policy will cover all additional charges due to collision or theft up to the value of the vehicle. It does cover loss of use charges etc. It does not cover content theft, or injuries to me or third parties. I have requested a letter of coverage form the benefit provider and they were happy to agree to mail one to my home address.

It appears I will be able to rent a car from Hertz for 3 days for less than $100. The insurance savings will easily cover my card's annual fee.

 

[audreyh1]

Darkstorm's post reminded me I needed to update my earlier post.
I have a Barclaycard arrival+ card (the version which has an annual fee). The rental-car insurance coverage it provides is primary in all overseas locations and does apply in Italy. If I am required to accept a minimal CDW (as appears to be the case in Italy) the card's policy will cover all additional charges due to collision or theft up to the value of the vehicle. It does cover loss of use charges etc. It does not cover content theft, or injuries to me or third parties. I have requested a letter of coverage form the benefit provider and they were happy to agree to mail one to my home address.

It appears I will be able to rent a car from Hertz for 3 days for less than $100. The insurance savings will easily cover my card's annual fee.

Good info to know. I might need to look into this card.

 

[Sarah in SC]

foster, from what you said, then the Barclay Arrival Plus primary coverage is just for overseas rentals, not those in the US? I have this card, but my car rental needs are mostly in the US and I've been using the Chase Sapphire.

 

[fosterscik]

Sarah - yes it has secondary coverage in the US (but is primary if you have no personal car insurance). I thought that all cards worked the same way. I'll have to look at the sapphire card.

I chose the arrival+ card because it would automatically default to chip and pin whenever signatures were not possible (ticket kiosks, gas stations in Europe). It has worked flawlessly for me on trips to Peru, Bolivia, Spain and France. I would prefer a true chip and pin (it works as chip and signature when a signature can be generated) but I don't have easy access to accounts which offer such a card.

 

[fosterscik]

Sarah - how does the sapphire card handle chip transactions? Chip and signature only; signature 1st, pin 2nd (when signatures not possible); pin 1st, sig. 2nd?

It looks like an attractive card but PIN functionality is really important to me. I would have to call their benefits administrator to see if their CDW works in Italy and would prefer to know their chip policy before doing so.

 

[walkinwood]

AFAIK, the Sapphire card is a chip and signature card. I got the Barclay Arrival+ card just for its chip and pin functionality.

I thought I read somewhere that rental coverage was primary, but I can't see it. There seems to be a lot of old information (from 2014 ) on their site. I'll have to call them to be sure.
https://www.chase.com/index.jsp?pg_...ate-rewards-sapphire-preferred-vs-annoucement

 

[fosterscik]

Walkin: the current Barclaycard benefit statement is dated 2014. The CDW info. is still correct. It states:

Within your country of residence, this benefit supplements, and applies excess of, any valid and collectible insurance or reimbursement from any source. This means that, subject to the terms and conditions of this Guide to Benefits, Auto Rental CDW applies to losses or expenses that are not covered by insurance or reimbursement.

Given the sapphire card is also a "world elite mastercard" it will follow the same basic benefits but all cards have the option to "upgrade" coverage. I've read online that sapphire did this to make coverage primary in the US and essentially void the statement in the 2014 document. I may get this card just for the sign up benefits (and rental car coverage) in the US. I'd really love it if it had true chip + pin (or even defaults to chip + pin). If that were the case I'd close my barclaycard account.

 

[audreyh1]

Sarah - yes it has secondary coverage in the US (but is primary if you have no personal car insurance). I thought that all cards worked the same way. I'll have to look at the sapphire card.

I chose the arrival+ card because it would automatically default to chip and pin whenever signatures were not possible (ticket kiosks, gas stations in Europe). It has worked flawlessly for me on trips to Peru, Bolivia, Spain and France. I would prefer a true chip and pin (it works as chip and signature when a signature can be generated) but I don't have easy access to accounts which offer such a card.

No US issuers that I am aware of offer chip and PIN cards with PIN priority. The handful of US issuers that issue chip and PIN cards are all signature priority - something that was apparently decided years ago.

It's a bit of a pain, but for this reason I usually just use my chip and signature cards in Europe (they have better rewards) unless I encounter the occasional kiosk I need to use. My batting average with kiosks is not high - about half the time they won't accept my card because it's "invalid" which I think is code for it's a foreign issued credit card. Can't do anything about that short of opening a European bank account.

 

[audreyh1]

I'll have to look more closely at how the United Mileage cards handle European car rentals. It would be primary of course, but I need to look specifically into restricted countries and some of the limited collision coverage required to carry. One of these days I'll look into it....

I'm not planning to rent any time soon - enjoying the public transportation too much. But who knows.....

 

[Sarah in SC]

fosters, thanks for the additional info. I admit to being exhausted just by reading all the T&Cs on these cards and trying to determine what they actually mean! I carry the Sapphire always, but have had the Barclays once before and just picked it up again for the spend bonus.

I carry liability only coverage on my old cars, and lots of it, but always worry just a bit with a rental car and try to rent using the card that has primary coverage for damage to the car itself, not liability. There's that pesky "loss of use" fee that they threaten you with when you decline coverage, but I'll have to cross that bridge if I ever come to it.

DH will be on public transportation (the Marrakesh express, it looks like) during his upcoming trip to Morocco in April/May. But I will probably send him with the Barclays card because of the chip/pin ease and no foreign transaction fees.

 

[walkinwood]

I thought I read somewhere that rental coverage was primary, but I can't see it. There seems to be a lot of old information (from 2014 ) on their site. I'll have to call them to be sure.

I really have to learn to write more clearly. The above was meant to be about the Sapphire card.

 

[ivinsfan]

I think some of the cards with "primary" benefits have a list of excluded countries as well. Mexico and for some reason Ireland come to mind. It's all about the fine print and there is always a lot of fine print.

 

[SteveNU]

We went to Alaska years ago and rented a vehicle for a week. Ended up with a small pickup truck which was nice for driving around there. I declined the insurance thinking I would be covered by the credit card but later found out that pickup trucks are not covered. Gotta read the fine print!

Sent from my XT1049 using Early Retirement Forum mobile app

 

[fosterscik]

I think some of the cards with "primary" benefits have a list of excluded countries as well. Mexico and for some reason Ireland come to mind. It's all about the fine print and there is always a lot of fine print.

I think that's very true - I would always call the benefit administrator before relying on a card's coverage (Israel, Jamaica and Ireland (both)) are excluded in the online document for my card. Many cards exclude Italy, so I called to check and was told all was OK there. Mexico is not mentioned in my agreement, but I'd certainly call before renting there.

We went to Alaska years ago and rented a vehicle for a week. Ended up with a small pickup truck which was nice for driving around there. I declined the insurance thinking I would be covered by the credit card but later found out that pickup trucks are not covered. Gotta read the fine print!

My policy excludes "vehicles that have an open cargo bed" too. It pays to check!

The downside of a misunderstanding could be huge, so calling is very wise. The Barclaycard's administrator was easy to contact (800-348-8472; a collect number if you are overseas) and was extremely helpful and efficient. They asked for my card number (to make sure there were no confusions about my policy) and confirmed it would have all the necessary coverage in Italy, that it was OK to have the mandatory CDW and quickly dispatched a letter of coverage for my rental (to ease any arguments about why I will decline an up-sell on the CDW and to have in writing my coverage). I will always call before any future planned rentals.

As an aside, I really like the Barclaycard. The 2% cash back, no foreign transaction fees, true PIN (when necessary), and travel insurance are very nice. I also like the 90 day return protection and 1-year warranty extension (although I've yet to use these features). I will probably get the sapphire card too based upon the comments on this thread. I can always use another intro bonus offer .

 

[simple girl]

I carry liability only coverage on my old cars, and lots of it, but always worry just a bit with a rental car and try to rent using the card that has primary coverage for damage to the car itself, not liability. There's that pesky "loss of use" fee that they threaten you with when you decline coverage, but I'll have to cross that bridge if I ever come to it.

They pulled that on me the last time we rented. I wasn't prepared and went ahead and got the stupid insurance. But, as luck would have it...someone hit our rental car! Can you believe it? The one time I pay for their coverage, we actually ended up using it! I was never so happy that agent was so pushy, lol! That's karma!!!

Anyways, I digress. My reason for replying is afterwards I studied up on our American Express coverage. Apparently it DOES cover loss of use:

The coverage also reimburses the Cardmember for reasonable charges (those charges incurred at the closest facility that are usual and customary in the vicinity in which the loss or disablement took place) imposed by the Rental Company, such as towing or storage and Loss of Use.

“Loss of Use” means the unavailability of a Rental Auto and consequent loss of revenue by the Rental Company due to damage or theft.

Unless otherwise required by law, the Rental Company must submit a fleet utilization log indicating that during such time:

1. no other Rental Auto was available; and
2. there was a demand for a Rental Auto.

 

[Sarah in SC]

Wow, you sure are lucky in the rental car department! Now I'll be sweating it next time I so cavalierly say no thanks!

Interesting about the loss of use coverage on Amex. I wonder how the back and forth on that "availability and demand" paperwork works out between the rental agency and the card's insurance?

Foster, I have used the extended warranty on the Sapphire before, a couple of times, and must admit, it is very easy. Now, when I buy something on Amazon that I think will be likely to break (basically anything for the damn automatic gate opener), I skip the 5% cash back Amazon Prime card and pull out the Sapphire. It also makes it easier for me to remember which card I bought what on, since I burn through a lot of bonuses and cards in the course of a year. Always the Sapphire on anything with moving parts!

 

[simple girl]

Interesting about the loss of use coverage on Amex. I wonder how the back and forth on that "availability and demand" paperwork works out between the rental agency and the card's insurance?

I know. I kinda wonder if Am Ex refuses to pay if the rental car company would still pursue me for charges. At least maybe Am Ex would wear them down, and I could get the paperwork and fight them with the same reasoning. Or, maybe I just will have great luck and will never have damage occur to a rental again!

 

[JoeWras]

They pulled that on me the last time we rented. I wasn't prepared and went ahead and got the stupid insurance. But, as luck would have it...someone hit our rental car! Can you believe it? The one time I pay for their coverage, we actually ended up using it! I was never so happy that agent was so pushy, lol! That's karma!!!
[/I]

How that that go? They promise if you have their coverage, they pretty much handle everything without much hassle. The thing about credit card and your own insurance is you have a few more levels of paperwork to deal with.

Was it as easy at they say?

 

[audreyh1]

Most companies won't turn over their use logs to credit card insurance companies to determine if a car would have been rented, and a recent court case says that they aren't obligated to turn over such records. This is somewhat perceived as giving some credit card companies an "out" in terms of covering the loss-of-use claims from a car rental company.

However, after reading several stories on the 'net, including at flyertalk.com and discussions at the end of articles on car rental insurance, it seems that the credit card insurance will eventually cover at least some of the loss of use. Some cards are better than others. Amex more of a stickler saying they won't cover it because they didn't get logs from the car rental company, VISA being more accommodating. You might be haggling over some of it with a car rental damage recovery company. But it sounds like things usually get figured out eventually, it might just take longer.

I'm going to be sure to take photographs of any damage when I receive the car. And additional photos afterward when I return it. This is the first step in fighting a claim if necessary. It's not unheard of for someone to get a claim for either damage that was already on the car, or damage that occurred after they returned it, sometimes long after.

I plan to use a card where the credit card company provides primary car rental insurance so I only have to deal with them, and not my home car insurance company.

On loss-of-use for damage that I was responsible for - I'll then just let the car rental credit card company hash it out, and if there is something not covered for whatever reason, I'll just have to deal with it then.

 

[ivinsfan]

Between the hassle and cost of flying, the cost of rental cars, (and don't get me started on all the taxes and add-ons to the quoted price) , the confusion over insurance and possible liability, my DH and I have decided we would just take the time and drive our own car to where we want to go. It's a lot easier if you are ER'd.

 

[audreyh1]

Between the hassle and cost of flying, the cost of rental cars, (and don't get me started on all the taxes and add-ons to the quoted price) , the confusion over insurance and possible liability, my DH and I have decided we would just take the time and drive our own car to where we want to go. It's a lot easier if you are ER'd.

Good luck driving to Hawaii!!

 

[simple girl]

How that that go? They promise if you have their coverage, they pretty much handle everything without much hassle. The thing about credit card and your own insurance is you have a few more levels of paperwork to deal with.

Was it as easy at they say?

Unbelievably easy.

We pulled the car in. They started the inspection. We told them there was damage, and that someone must have hit us when we were parked somewhere. We didn't notice it until filling up the gas.

She seemed quite concerned and started pulling out a binder to start taking info - until we told her we had purchased full insurance coverage from them. She then immediately relaxed, we filled out a simple form, and drove off. That was in January - haven't heard anything from them since! Knock on wood!

 

[JoeWras]

Unbelievably easy.

We pulled the car in. They started the inspection. We told them there was damage, and that someone must have hit us when we were parked somewhere. We didn't notice it until filling up the gas.

She seemed quite concerned and started pulling out a binder to start taking info - until we told her we had purchased full insurance coverage from them. She then immediately relaxed, we filled out a simple form, and drove off. That was in January - haven't heard anything from them since! Knock on wood!

Thanks. That's what they promise.

I carry huge deductibles on my personal insurance, so I know if I had to use them, I'd also have to include the credit cards. It just sounds like a lot of hassle. For weekend jaunts, the $30 or so seems worth it to me. For 2 week trips, well, maybe the hassle would be worth it.