elizadoo

I'm all ears.

I've got a 3 week trip planned to South Africa in early July and I'm trying to reserve a rental vehicle through carhire3000 or novacar. The base rates are great, it's the MANDATORY insurance that is the killer.

Not only that, they have huge "excess" amount--I think excess means deductible?--so I wanted to purchase Amex premium car insurance for only $24.95, 42 days coverage. It covers tires, windshield, animals, everything.

However, the Amex insurance requires that I decline all insurance in the rental country (South Africa) so that Amex insurance automatically becomes my primary.

But, by law I cannot decline the Mandatory basic insurance in South Africa. I MUST have it, and it must be a policy purchased through the rental car company at the time of rental. Therefore, Amex becomes my secondary.

What would you suggest? Two different reps from Amex told me that their (Amex) policy would still be in effect even if I declined LDW (CDW) because it was the law in SA. But, being a lawyer's wife, I'm cautious on this.

l etoile

I'm confused by your question. You must buy the third-party liability insurance and fire insurance through the rental company as it is mandatory in South Africa. Amex will not cover you for liability even with their premium coverage.

Here's the Amex page. You'll note they offer no liability coverage. Their coverage with the premium was really no better than what I get through my Chase Visa.
https://www295.americanexpress.com/p...age/home.do#01

jackal

For overseas rentals, yes, that is typically the case. Though I tend to find some small comfort in dealing with a product I've paid for versus one offered for free--it seems Amex's PCRP folks are a touch more responsive than the folks that run the free CDW programs for Visa and MC.

As to the OP:

Yes, "excess" = "deductible."

If I understand it, you're being required to purchase liability insurance through the rental company (although is it itemized separately or included in the rate? Most countries outside the U.S. include it in the rate and don't break it out as a separate charge), but that is separate from CDW. Amex simply requires that you decline CDW from the rental company. It does not specify (at least the last time I looked) anything about liability, especially (as l'etoile said above) Amex does not include any form of liability insurance.

elizadoo

The South African law requires mandatory LDW (Loss Damage Waiver) on all rental cars and it is incorporated into the total rental car rate--BUT on the quote it is broken down as a separate fee: there is the car rental rate, car insurance, and taxes and fees. The mandatory insurance MUST be purchased through the car rental company.

Additional (optional) insurance covers such things as the excess (deductible) which is very high in SA, and excess medical payments. However, and most important: the majority of the optional insurance programs do NOT cover tires, windshield, or undercarriage. The AMEX premium does cover all of those items as well as animal damage--very important when you are on a 3 week self-drive safari, and you are in areas where cattle are running onto the roads at all hours of the day and night. .

I ended up purchasing the AMEX premium insurance, as theirs was the only product I could find which included animals. I was told by numerous reps--I called more than once-- that if the country of car rental requires that one purchase LDW at time of rental--meaning I cannot decline the LDW/CDW--then Amex will deal with that as needed; their requirements do not supercede national law. I am not the first to be in that situation and nor will I be the last.

overrun

My own take on the matter is that in South Africa, you rent the insurance and the car gets thrown in for free.

I once (moment of frustration) walked into the rental car office and announced I was there to pick up the insurance. I ignored all discussion about the car and basically signed to acquire the insurance. The staff looked a little perplexed, but not completely phased.

PS - I was right. I did buy the insurance and the car was a cheap extra.