solarprobe

AMEX is denying a rental car damage claim for the following reason:

"How To Activate Coverage
Coverage for theft of or damage to a Rental Auto is activated when the Cardmember:
Uses the Card to pay for the entire auto rental from the Rental Company at the time of vehicle return;

Consequently, we must respectfully deny any claim you may be considering in this matter."


The method of payment for the rental car was AMEX Platinum card. An AMEX supervisor explained to me that the card was used to pay for taxes only, and that Hertz coupon was applied towards the rental, which constituted (according to the supervisor interpreting the Description of Coverage contract) a different method of payment. Furthermore, the supervisor advised that AMEX Customer Service is open 24/7 and if in doubt, a prospective renter should contact AMEX prior to rental to investigate whether insurance plan coverage would apply.

Here's what the Description of Coverage (sent by AMEX) states:

How To Activate Coverage:

Coverage for theft of a or damage to a Rental Auto is activated when the Cardmember:

1a. presents his or her eligible Card to the Rental Company to reserve the Rental Auto, by making a reservation; or by placing a hold or deposit at the time the Rental Auto is checked out;
1b. declines the full Collision Damage Waiver or similar option (CDW), or pays for a partial collision damage waiver, offered by the Rental Company;
1c. is the primary renter, which is defined as the Cardmember, who is named on the written agreement with the Rental Company as the person renting and taking control and possession of the Rental Auto (Primary Renter); and
1d. uses the card to pay for the entire auto rental from the Rental Company at the time of vehicle return;

Or,

2a. presents a Membership Rewards redemption certificate, and
2b. uses a Membership Rewards redemption certificate at a participating Commercial Car Rental Company.


Which leads me to believe that even if 1a, 1b, and 1c are met during rental car reservation and pick-up, if the rental company applies any kind of dollars-off coupon at time of return prior to paying for rental with an AMEX card providing the Car Rental Loss and Damage Insurance Plan, the insurance is automatically invalidated and the renter is screwed in case of a subsequent claim when relying solemnly on the AMEX Car Rental Loss and Damage Insurance Plan.

Along the same lines, AMEX could be denying any type of coverage (lost-baggage claim, life, warranty, etc.) if a discount was applied towards the full purchase price of any goods or services.

Any class-action lawyers on the board?

-sp

Jaimito Cartero

That sounds quite weaselly. I'd try to get an ombudsman to look into this.

tamerrashdan

This is really odd, I had my Jeep totalled and Geico got me a rental car from Enterprise and paid $30/day so I ended up paying $7/day on AmEx Platinum, Enterprise said there was a scratch so I filed a claim with AmEx and they covered the whole thing even though I didn't pay for the whole rental charge on the card and Geico paid most of it, AmEx paid $534 I remember, it was nice of course not to worry about a scratch in the rental car

platinumPizza

I have always wondered about this.

So you put the reservation on your card and you go to return it and you dont wreck you pay cash.... if you wreck you just put on your amex??

I always put on my amex anyway but this is strange...

Steve M

As implied by the name, this is an actual insurance product. That is, it's regulated by the Insurance Commissioner of your state (or perhaps some other state). Find out who the regulatory authority is, and take the matter up with them.

Is there any problem left in America that can't be solved by immediately filing a class-action lawsuit?

stratofortress

I find this odd as well. Amex paid my claim for a new windshield on an Avis car when some local hoodlum threw a basketball through it. It was in the neighborhood of $600, and I had used a $off coupon on the rental. They didn't bat an eyelash...

mia

Discussion from 2006...

http://www.flyertalk.com/forum/ameri...+rental+coupon

Discussion from May - July, 2009...

http://www.flyertalk.com/forum/ameri...+rental+coupon

solarprobe

Thanks, I was about to cross-reference one of the threads you posted. Didn't find them, earlier enough

-sp.

roder

Just had an interesting conversation with AMEX Rental Car Protection and wanted to give everyone a warning about what I was told.

As is clearly stated in the terms and conditions, you must reserve and fully pay for the car rental with your American Express Card in order to be covered. This condition, I was aware of and have always been very careful to ensure my rentals are set up in this way.

What I was not aware of, is that if you use any Coupons (National Free Days, Avis Free Weekends, Coupon Codes you find on the Internet, etc) and the value of that coupon exceeds more than the cost of one rental day, you ARE NOT Covered by the AMEX Rental Car Protection, and your claim will be denied if you file.

For us frequent renters that have piles of free days and free coupons available, this is quite disappointing since any protection that you think you may have by paying with your AMEX goes out the window once you apply coupons valued at more than one free day to a car rental.

Just thought I would make everyone aware so you don't get caught without coverage when you need it most.

Please note: that the information and conversation I had was given in reference to the 'Standard' Protection and not the 'Premium' Protection. Does anyone know if the Premium protection would cover you in a situation like this?

skofarrell

http://www.flyertalk.com/forum/ameri...-coverage.html

http://www.flyertalk.com/forum/ameri...d-rentals.html

http://www.flyertalk.com/forum/ameri...-coverage.html

roder

Ahh.. Sorry about that, I guess I should have searched first. But I guess I'm not the only one disappointed with the way AMEX handles these insurance claims. I for one will be looking for a better way to protect myself in the future (and diverting my spending elsewhere) as I use National Free day coupons quite regularly.

Too bad I can't get a Diner's Club card

skofarrell

Delta Community Credit Union Visa.

https://www.deltacommunitycu.com/Per...enter/visa.asp

bigsean

Aren't most people covered under their regular auto insurance anyways?

skofarrell

If you own a car.

If you do own a car, with primary card car rental coverage, there's no deductible. Everyone gravitates to the rental car being totaled when you have a claim. A $3,000 fender bender or other minor damage claim is much more common.

Given the state of the auto insurance industry right now, keeping a claim off your car insurance books is always nice too.

CAL PHL FLYER

That is a SCUMBAG move..I was shocked to find that the rental car insurance paid only $500 when I had an accident (cost of the deductable) you better buy that car rental insurance when offered..live and learn..