mia

This page describes the Auto Rental Collision coverage provided by VISA business cards:

http://usa.visa.com/business/cards/b...to_rental.html

Note this important stipulation:

This benefit is primary and provides reimbursement up to the actual cash value of the vehicle as it was originally manufactured. However, if the rental is for personal reasons, this coverage supplements, and applies excess of, any valid and collectible insurance or reimbursement benefits from any source.

In other words, if you use a VISA Business card for a personal rental it provides only supplemental coverage.

dracs

Mia,

When somebody doesn't have any supplemental insurance( don't own a vehicle, no umbrella coverage, only medical insurance), does it becomes primary coverage then?

I have a visa signature personal card and it says "this benefit is supplemental to, and excess of, any valid and collectible insurance from any other source"

Thanks,

Dracs

mia

That is my understanding. However, remember that the card only covers damage to the rental car. If someone is injured, or there is damage to someone else's property (such as their car), you may still be responsible for those expenses. In most states the rental car company will bear some of this responsibility as owner of the vehicle, but there is variation and in your place I would want to understand the "worst case" scenario and what it would cost to insure against it.

guv1976

Wirelessly posted (BlackBerry8703e/4.1.0 Profile/MIDP-2.0 Configuration/CLDC-1.1 VendorID/104)

dracs, as mia indicates, if you have no other valid and collectible insurance, then the credit card's coverage becomes primary for you. Just be aware that Visa might void the coverage if you use a free-day or dollars-off coupon on the rental. (MasterCard's MasterRental coverage on personal cards explicitly permits such coupon use, as long as at least one full day's rental charges are charged to the card.)

dracs

Thanks Mia and Guv for your replies.

Guv, just out of curiosity , I tried to look at terms and conditions of visa CDW coverage , but I couldn't find at all mention about coupon aspect.

Also does using then airline,hotel cdp and pc codes invalidate the insurance coverage provided by Visa. They normally have this %off or free weekend etc.

Also if I am correct Mastercard does not cover loss of use but Visa do?

I generally try to rent onto my visa signature.

Thanks,

Dracs

guv1976

Wirelessly posted (BlackBerry8703e/4.1.0 Profile/MIDP-2.0 Configuration/CLDC-1.1 VendorID/104)

dracs, it's precisely because the terms of Visa's coverage make no mention of coupon use that there is a problem. The terms of my Visa Signature coverage say that you must "initiate and complete the entire rental transaction with your eligible Visa card." (Emphasis added.) At least in the past, Visa has advised that using a free-day or dollars-off coupon would void the coverage since you would then not be using the Visa card to complete (i.e., pay for) the entire transaction. I assume that use of a rate discount code would not void the coverage, since you are simply getting a reduced rate, rather than using a coupon to pay for part of the rental charge, but I have never actually verified that.

MasterRental does cover reasonable loss-of-use charges with substantiation. The problem seems to be that some car-rental companies are not willing to provide the type of substantiation that MasterCard (and Visa and Amex) require.

I invariably use my MasterCard for car rentals (at least when I'm using a coupon, which is frequently), as it seems like the least risky option. And I always opt for the supplemental liability coverage, as I do not own a car, and have no umbrella coverage for rental cars.

HCA

Thanks mia and guv1976.
Looks like I am going back to use Citi-Professional for car rental.

Happy

The only caveat is, the T&Cs do say that the rental must be for "business purposes". I dont know how they would enforce it when you file a claim. Just want to remind everyone to keep this in mind.

I know when we filed a claim for hailstorm damage with MC (one of the Citicards we used for the rental), the coverage became primary because our own car insurance policy was for liabilities only.

No idea if the card would also provide liabilities coverage if a person does not have any car insurance. My inclination is, the card only covers the damage to the car itself, nothing else.

As for us, we happily pay AMEX $19.95 (it is now 19.95 or 24.95) per rental if we are going to some place with unpredictable weather.

Happy

It is USELESS even when the rental car company provided the documents.

This is from personal experience on a hailstorm damage using a Citicard and therefore claimed coverage with MasterRental. The rental car company's adjuster also told me she had never seen MC paid that portion of the claim among all the claims with CC coverage she processed. At the time I also asked someone in the Avis forum, who was an Avis on-site manager. He told me he never saw that part of claims was successful with his location either.

As far as I know, CC coverage does not cover liabilities, only the damage to the car itself, nothing else. If I do not have a car insurance policy nor an umbrella coverage, I would opt for supplemental liability coverage as well. The last thing you want is someone suing you for bodily injury or property damage and you have 0 coverage, but have assets.

dracs

Thank you Guv for detailed reply.

Dracs

dracs

Point noted Happy.

HCA

Does that mean if my car insurance is liability only then "all kinds of CC's" secondary insurance will become primary for car damage?

guv1976

Wirelessly posted (BlackBerry8703e/4.1.0 Profile/MIDP-2.0 Configuration/CLDC-1.1 VendorID/104)

It should be noted that the different credit cards have different requirements for loss-of-use documentation. MasterRental requires, "a location- and class-specific fleet utilization log." Visa Signature requires, "a fleet utilization log." Amex's free coverage requires, "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."

I do not know what Amex's Premium Car Rental insurance requires as documentation on a loss-of-use claim, but if it is the same as that required by the free Amex coverage, then Happy may be disappointed if she ever has to make such a claim.

TTT103

The new personal Continental Airlines Mastercard that was released last month offers Primary coverage.

HCA

Does anyone know if I use DL marketplace as part of payment (e.g. 10k DL + $100 CC spending), will it void the insurance provided by CC companies?
(I remember I read it somewhere if you use discount code AMEX may avoid the insurance).