Car Rental Coverage: CDW with CC, what to do?
Jan 22, 2014, 8:03 am
#1
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Join Date: May 2009
Posts: 95
Car Rental Coverage: CDW with CC, what to do?
I've done quite a bit of reading WRT using a credit card for local and international travel.
After some review, I decided the safest way to go was with Amex premium primary CDW for an additional $24.99 fee. Based on some recommendations, I also brought along the rental car insurance paperwork provided when signing up for the service.
When reserving the car online, I had no issues with skipping the insurance coverage and all seemed set.
Then I arrived at the rental counter in Panama City Panama, this is when things got pretty frustrating.
I spoke with the attendant and he informed me that the credit card insurance was essentially going without any coverage or being an uninsured motorist. I insisted that I was covered by AMEX and showed him the documentation. He refused to even take a look at the documentation and said, no credit card provided car insurance and he would rent me the car, but I would be considered as an uninsured driver. As a result I would also have to put down a $5000.00 deposit for the car.
He explained this would be used in the event there are any issues with the car to cover damages ect. in place of the car insurance. Credit card company takes time to provide claim dollars, instead they'd charge me directly.
I decided to call American Express directly, when I spoke to them before leaving for my trip, they assured me the insurance coverage would be accepted. When I talked to them collect, and explained what happened, they told me that they couldn't help me. To sum up what I was told, We're not responsible for the rental car agencies policies, those are their policies and they can't do anything. I just wanted them to explain that I was in fact "insured", but that wasn't going to happen.
I thought to myself:
Isn't this the whole idea of having insurance? So you won't have to incur these types of charges in the event of an accident?
Anyhow, I wasn't going to buy the car insurance, as this was ridiculous, I decided to go ahead with the deposit since I didn't have time to play with this guy. He'd already taken more than an hour of my time at midnight where my family with young children where tired of traveling all day.
I took a look at the rental agreement fine print and found something interesting. There is a credit card policy section that states: Avis accepts Amex, Master Card and Visa. An additional charge card hold will apply for all car groups, of 300.00 to 5000.00 USD, plus the total amount of rental, depending on protections customer accepts at the beginning of the rental. For additional details, contact reservations.
What have other's done in this situation? Has anyone else decided to go the deposit route and ended up with a "situation" requiring the credit card CDW to kick in? Are we really covered? Is this just another practically useless perk?
Any advice on who to talk to when this kind of issue comes up? I'm Avis First, but haven't ever benefited from this status when renting with Avis. Do they do anything for their "premium" members aside from throwing an occasional discount? Any input would be much appreciated!
Regards,
Mike
After some review, I decided the safest way to go was with Amex premium primary CDW for an additional $24.99 fee. Based on some recommendations, I also brought along the rental car insurance paperwork provided when signing up for the service.
When reserving the car online, I had no issues with skipping the insurance coverage and all seemed set.
Then I arrived at the rental counter in Panama City Panama, this is when things got pretty frustrating.
I spoke with the attendant and he informed me that the credit card insurance was essentially going without any coverage or being an uninsured motorist. I insisted that I was covered by AMEX and showed him the documentation. He refused to even take a look at the documentation and said, no credit card provided car insurance and he would rent me the car, but I would be considered as an uninsured driver. As a result I would also have to put down a $5000.00 deposit for the car.
He explained this would be used in the event there are any issues with the car to cover damages ect. in place of the car insurance. Credit card company takes time to provide claim dollars, instead they'd charge me directly.
I decided to call American Express directly, when I spoke to them before leaving for my trip, they assured me the insurance coverage would be accepted. When I talked to them collect, and explained what happened, they told me that they couldn't help me. To sum up what I was told, We're not responsible for the rental car agencies policies, those are their policies and they can't do anything. I just wanted them to explain that I was in fact "insured", but that wasn't going to happen.
I thought to myself:
Isn't this the whole idea of having insurance? So you won't have to incur these types of charges in the event of an accident?
Anyhow, I wasn't going to buy the car insurance, as this was ridiculous, I decided to go ahead with the deposit since I didn't have time to play with this guy. He'd already taken more than an hour of my time at midnight where my family with young children where tired of traveling all day.
I took a look at the rental agreement fine print and found something interesting. There is a credit card policy section that states: Avis accepts Amex, Master Card and Visa. An additional charge card hold will apply for all car groups, of 300.00 to 5000.00 USD, plus the total amount of rental, depending on protections customer accepts at the beginning of the rental. For additional details, contact reservations.
What have other's done in this situation? Has anyone else decided to go the deposit route and ended up with a "situation" requiring the credit card CDW to kick in? Are we really covered? Is this just another practically useless perk?
Any advice on who to talk to when this kind of issue comes up? I'm Avis First, but haven't ever benefited from this status when renting with Avis. Do they do anything for their "premium" members aside from throwing an occasional discount? Any input would be much appreciated!
Regards,
Mike
Jan 22, 2014, 4:17 pm
#2
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The deposit policies that a local car-rental agency apply to a renter who declines to purchase LDW from the agency have nothing to do with whether you are covered by Amex or any other credit card. But why would you pay $25 for Amex's premium coverage? Don't you have credit cards that provide free LDW for rentals in Panama? (Note that the free coverage provided by many credit cards is voided if you use a free-day or dollars-off coupon on the rental. So the Amex premium coverage might make sense when using such a coupon on a rental.)
As long as you satisfy the credit card company's terms and conditions regarding LDW coverage, why would you doubt that the coverage applies?
The deposit policies that a local car-rental agency apply to a renter who declines to purchase LDW from the agency have nothing to do with whether you are covered by Amex or any other credit card. But why would you pay $25 for Amex's premium coverage? Don't you have credit cards that provide free LDW for rentals in Panama? (Note that the free coverage provided by many credit cards is voided if you use a free-day or dollars-off coupon on the rental. So the Amex premium coverage might make sense when using such a coupon on a rental.)
As long as you satisfy the credit card company's terms and conditions regarding LDW coverage, why would you doubt that the coverage applies?
Jan 22, 2014, 7:17 pm
#3
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What does your reservation say about all the coverages? When you decline everything, in US reservation it says declined/declined/declined/declined. But on reservation in other countries, the declination may not be available, or some insurance may be included in the rate, etc. So it matters how all those lines about coverage read on your reservation and if there are any "fine print" notes on those.
I have never to Panama, but I have been to countries where it's impossible to decline all coverage: those "Super CDW" countries, where some uselessly small amount of CDW is automatically included in your rate, which precludes your credit card insurance working, and then you have to pay extra (only once your arrive!) to get the "super CDW" which almost (but still often not completely!) removes your collision liability.
Thus the collision insurance varies widely from country to country, and you have to research how it works in a particular country you're going to rent in.
I have never to Panama, but I have been to countries where it's impossible to decline all coverage: those "Super CDW" countries, where some uselessly small amount of CDW is automatically included in your rate, which precludes your credit card insurance working, and then you have to pay extra (only once your arrive!) to get the "super CDW" which almost (but still often not completely!) removes your collision liability.
Thus the collision insurance varies widely from country to country, and you have to research how it works in a particular country you're going to rent in.
Jan 23, 2014, 1:05 pm
#4
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The deposit policies that a local car-rental agency apply to a renter who declines to purchase LDW from the agency have nothing to do with whether you are covered by Amex or any other credit card. But why would you pay $25 for Amex's premium coverage? Don't you have credit cards that provide free LDW for rentals in Panama? (Note that the free coverage provided by many credit cards is voided if you use a free-day or dollars-off coupon on the rental. So the Amex premium coverage might make sense when using such a coupon on a rental.)
As long as you satisfy the credit card company's terms and conditions regarding LDW coverage, why would you doubt that the coverage applies?
The deposit policies that a local car-rental agency apply to a renter who declines to purchase LDW from the agency have nothing to do with whether you are covered by Amex or any other credit card. But why would you pay $25 for Amex's premium coverage? Don't you have credit cards that provide free LDW for rentals in Panama? (Note that the free coverage provided by many credit cards is voided if you use a free-day or dollars-off coupon on the rental. So the Amex premium coverage might make sense when using such a coupon on a rental.)
As long as you satisfy the credit card company's terms and conditions regarding LDW coverage, why would you doubt that the coverage applies?
I knew Amex provided primary and according to the description of the policy, it provides a better level of coverage that the freebie MC and Visa.
Regards,
Mike
Jan 23, 2014, 2:13 pm
#5
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"I knew Amex provided primary and according to the description of the policy, it provides a better level of coverage that the freebie MC and Visa."
The Amex Premium coverage does provide a higher level of coverage (covering certain higher-value cars that the free coverage does not), but unless you need that higher level of coverage, it's probably a waste of money.
Some credit cards (like the Chase/UA Explorer card) provide primary LDW in the U.S. and overseas; some credit cards provide primary coverage overseas, but only secondary coverage in the U.S.; and some credit cards only provide secondary coverage wherever their coverage applies. But as noted in the other thread, even secondary coverage can become primary for a particular rental, if you have no other collectable insurance for that rental. So, for example, if you have a personal auto insurance policy which only provides coverage in the U.S. and Canada, your policy would not cover you in Panama, but your credit card's "secondary" coverage would. Or, if you did not own a car and did not have personal insurance that otherwise covered you for rental car loss/damage, your credit card's free "secondary" coverage would cover you, even for a rental in the U.S., as long as you satisfied the terms/conditions of the free coverage.
"I knew Amex provided primary and according to the description of the policy, it provides a better level of coverage that the freebie MC and Visa."
The Amex Premium coverage does provide a higher level of coverage (covering certain higher-value cars that the free coverage does not), but unless you need that higher level of coverage, it's probably a waste of money.
Some credit cards (like the Chase/UA Explorer card) provide primary LDW in the U.S. and overseas; some credit cards provide primary coverage overseas, but only secondary coverage in the U.S.; and some credit cards only provide secondary coverage wherever their coverage applies. But as noted in the other thread, even secondary coverage can become primary for a particular rental, if you have no other collectable insurance for that rental. So, for example, if you have a personal auto insurance policy which only provides coverage in the U.S. and Canada, your policy would not cover you in Panama, but your credit card's "secondary" coverage would. Or, if you did not own a car and did not have personal insurance that otherwise covered you for rental car loss/damage, your credit card's free "secondary" coverage would cover you, even for a rental in the U.S., as long as you satisfied the terms/conditions of the free coverage.
Jan 23, 2014, 4:57 pm
#6
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"I knew Amex provided primary and according to the description of the policy, it provides a better level of coverage that the freebie MC and Visa."
The Amex Premium coverage does provide a higher level of coverage (covering certain higher-value cars that the free coverage does not), but unless you need that higher level of coverage, it's probably a waste of money.
"I knew Amex provided primary and according to the description of the policy, it provides a better level of coverage that the freebie MC and Visa."
The Amex Premium coverage does provide a higher level of coverage (covering certain higher-value cars that the free coverage does not), but unless you need that higher level of coverage, it's probably a waste of money.
Jan 23, 2014, 5:56 pm
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Insurance is never a waste of money, IMO.
It is when you can get all the coverage you need for free.
Originally Posted by sz2628
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"I knew Amex provided primary and according to the description of the policy, it provides a better level of coverage that the freebie MC and Visa."
The Amex Premium coverage does provide a higher level of coverage (covering certain higher-value cars that the free coverage does not), but unless you need that higher level of coverage, it's probably a waste of money.
"I knew Amex provided primary and according to the description of the policy, it provides a better level of coverage that the freebie MC and Visa."
The Amex Premium coverage does provide a higher level of coverage (covering certain higher-value cars that the free coverage does not), but unless you need that higher level of coverage, it's probably a waste of money.
Jan 23, 2014, 8:36 pm
#8
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Regards,
Mike
Jan 23, 2014, 8:41 pm
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You do get some additional value add coverage in the form of injury coverage. Note it's not liability.
Regards,
Mike
Yes, that's true. And you have to decide if that additional coverage is worth the premium that Amex wants for it.
Originally Posted by panamamike
Regards,
Mike