Fidelity CC Drops Rental Car Coverage and Extended Warranty Benefits

[travelover]

I got a message from Fido saying that after 3/31/2020 they don't provide free rental car insurance coverage anymore. Additionally, the doubling of product warranties up to a year is also kaput. That sucks.

 

[Onward]

I got that notification too. Doesn't affect me though because I don't rent cars.

 

[CoolRich59]

Thanks for the heads up. I recently got the Fidelity card and was not going to renew my Chase Sapphire.

Now, I'll probably hold on to it. The Chase card's car rental insurance coverage sure came in handy when my rental car caught a rock in the windshield.

 

[JoeWras]

Yep. Same with my credit union's Visa. Dropping both benefits May 1.

It was a quiet announcement.

 

[H2ODude]

It's been years since I rented a car, always declined all the (what seemed incredibly expensive) coverages offered. I've never really investigated exactly what exposure that means for me. Since I have only the Fido card and a CU MasterCard (which I have not checked into for coverages) what does standard auto insurance on my personal vehicles likely cover on rental cars? Not inclined to dig out the 1/4" thick policy and read through it all, just wondering what is usually covered by standard policy. IIRC one of the offered coverages was their "loss of use" of the vehicle while being repaired.

 

[ncbill]

If you rent cars regularly you really want to add an "unlimited non-owned vehicle" rider to your auto insurance, assuming you have auto.

That rider would cover "loss of use" to a damaged rental, which no credit card rental insurance covers in practice.

 

[smihaila]

I got a message from Fido saying that after 3/31/2020 they don't provide free rental car insurance coverage anymore. Additionally, the doubling of product warranties up to a year is also kaput. That sucks.

That's really bad news. So Fidelity is now taking the same route as Citi's DoubleCash. Not that Fidelity was something to really brag about, especially with their forex conversion fees.

I've been looking for a long time for a 2% Cash back replacement to my Citi DC, especially one with good rental car collision damage waiver, or even some sort of travel insurance (accidental death and/or lost luggage).

The only credit cards surviving the "lowering the benefits bar" game, seem to be those issued by smaller Credit Unions. Things like SDFCU, AODFCU, RBFCU, and a 4th one which I forgot its name about (something with "Signature" or "Signals" Credit Union"). But unfortunately I never get lucky getting approved with Credit Unions, because more often than not, they are obtuse with non-citizens / legal resident alien applicants :-(. They simply do not understand financial, and IRS regulations in terms of what "legal resident for tax purposes" can mean, and hence they end up being discriminatory - simply due to a lack of knowledge.

 

[RobbieB]

I never even considered any warranty extensions, car rental or airline stuff.

Just the cash back. And that even wouldn't matter, just need a credit card to buy stuff.

 

[smihaila]

I never even considered any warranty extensions, car rental or airline stuff.

Just the cash back. And that even wouldn't matter, just need a credit card to buy stuff.

Use a debit card then, especially if you wish to live within your means and not borrow (even for a time as short as a month).

What I'm looking for instead, is the (tangible) perks and the cash back.

 

[dmpi]

I suspect very few people used these CC perks. My CC recently recently reduced the fee they would cover for using a non-network ATM. I sense banks being under pressure to cut cost. After all they can't lower the savings or checking interest rate when it's already essential zero.

 

[smihaila]

I suspect very few people used these CC perks.

You're entitled to have you opinion, but you could be wrong. The CDW was quite a staple feature, and many people, myself included, were using it.

Let's not try to find excuses for the banks and credit card issuers.
Now we can wipe our bottoms with the so-called "World Elite" LOL.

What's next? We'll have to pay to have a CC I guess? Also negative interest rate for the bansters to do us a "favor" for taking ... ahem, keeping our money?

 

[Bamaman]

The rental car coverage not offered any longer was actually secondary to your primary personal car insurance in the U.S. They'll file on your personal car insurance policy first.

Out of the country, your personal car insurance is null and void so the credit card auto coverage would be primary except in Ireland and Italy (in most cases) where CDW coverage is mandatory. Some countries in Eastern Europe are not covered either.

What most people don't realize is that CDW purchased domestically from rental companies won't pay until they make a claims on your personal auto insurance policy or against the credit card coverage. And in most cases, CDW charges are straight profit for rental car companies because the big rental companies only have liability insurance--no collision or comprehensive coverage on their cars.

In other words, losing the credit card coverage may not be a big deal anyway.

In our case, Capital One still gives coverage (for now), and we seldom even rent a car unless it's in Europe. The only vehicle we've rented locally is a pickup truck, and Capital One's secondary coverage excludes U Haul type trucks and pickup trucks.

 

[smihaila]

Out of the country, your personal car insurance is null and void so the credit card auto coverage would be primary except in Ireland and Italy (in most cases) where CDW coverage is mandatory.

Add also Israel to that list of exceptions.

Some countries in Eastern Europe are not covered either.

I haven't seen that with any standard CDW policies from credit card companies.

What most people don't realize is that CDW purchased domestically from rental companies won't pay until they make a claims on your personal auto insurance policy or against the credit card coverage. And in most cases, CDW charges are straight profit for rental car companies because the big rental companies only have liability insurance--no collision or comprehensive coverage on their cars.

In other words, losing the credit card coverage may not be a big deal anyway.

Can you please clarify more on that? The underlined sentence seems to be in conflict with the last sentence, unless I'm not understanding it correctly.

In our case, Capital One still gives coverage (for now), and we seldom even rent a car unless it's in Europe. The only vehicle we've rented locally is a pickup truck, and Capital One's secondary coverage excludes U Haul type trucks and pickup trucks.

Back in Canada, in certain highly-dense city areas that were very pedestrian and public transportation-friendly, I actually didn't own any car. And I was heavily relying on car rentals for domestic vacations or day trips.

 

[braumeister]

The Chase Sapphire Reserve Visa card is pricy, but gives you primary coverage. It's the only one that does AFAIK.

Provides reimbursement for damage due to collision or theft for most rental vehicles when traveling within the U.S. and abroad.

• It is primary coverage which means you do not have to file a claim with any other source of insurance before you can receive coverage under this benefit
• Initiate and complete the entire rental transaction using the covered Chase card and decline the rental company’s collision damage waiver or loss damage waiver

 

[tulak]

What most people don't realize is that CDW purchased domestically from rental companies won't pay until they make a claims on your personal auto insurance policy or against the credit card coverage. And in most cases, CDW charges are straight profit for rental car companies because the big rental companies only have liability insurance--no collision or comprehensive coverage on their cars.

This is why I use a CC that offers primary coverage (Chase Sapphire Reserve). Prior to that, I paid AMEX $25 per rental for primary coverage. I don't know if they still offer that benefit.

In general, I like to have two CCs: one that is good for travel benefits and another that gives a good cash reward. Fidelity works well for cash rewards.

 

[ncbill]

If you rent vehicles frequently you really should add an unlimited non-owned (UNOC) rider to you auto insurance so you're covered for a "loss of use" claim by the rental company.

i.e. they can bill you the highest daily rate while the vehicle is out of service being fixed after an accident.

 

[Retired Expat]

Lot’s of cards are cancelling that benefit and others. My Black Citibank executive AA card did the same. Amex seems to be better at keeping their benefits but the annual charges just keep going up. But alas where I am almost no stores or restaurants take Amex, many will only take Visa.