Originally Posted by
yvrcnx
Thank you Seawolf, that is really useful information which I didn't know. I always assumed that because the rental car company puts a hold for a certain amount on the card, it also allows them to charge the card for any damages.
I might revisit the option and use my AMEX to cover my rental car insurance.
When the claim amount is small (probably up to the reserved deposit), the rental company does charge that amount directly. The moment you initiate an insurance claim with your credit card company that amount is put on hold (just like any disputed charge). If the case is resolved in your favor you never hear about that charge again.