Car rental coupons and credit card insurance coverage
 

I've sometimes converted $20 in Discover Card cashback bonus to a $40 discount on Alamo, and the rental does not have to be charged on the Discover card. Whenever I've rented in the U.S., I've understood that the credit card I use will give me insurance coverage that will let me decline the CDW from the rental company. Now I think I've seen some statements that, if a coupon is applied towards a rental, the card issuer says the card isn't fully paying for the rental so their insurance coverage does not apply. Any confirmation of this? Is this also a risk if I want to use the Amex plan that gives primary coverage for around $25 a rental?

I also have a notice of a class action settlement for Alamo and National rentals in Nevada that offers a coupon for a free rental day. If I use that, am I not covered by insurance with the card I use for incidentals or extra days?

According to the T&Cs of all credit cards that offer primary insurance on car rentals, which I'm aware of, the credit card should be used to pay the TOTAL rental cost.

This means no coupons, no points (Hertz), no free days (National)!

Car rental coupons and credit card insurance coverage
 

I do not believe that to be the case. unless it is an award (free) rental. It is my understanding the total cost IS the final cost, inclusive of any coupons and discounts.

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Most credit cards now void the free LDW coverage when you use a free-day or dollars-off coupon. MasterCard's MasterRental coverage used to contain language saying that use of such a coupon would not void the free coverage, as long as at least one full day of rental charges were charged to a qualifying card. But that language disappeared -- and MasterCard's policy changed -- a year or two ago.

My understanding is that the paid Amex Premium Car Rental coverage will apply as long as any part of the rental is charged to an enrolled Amex card.

In these matters, it is always best to review the terms and conditions of one's own credit-card coverage, and to clarify any ambiguity by contacting the card's insurance services department.

Are you saying that the credit card companies won't allow use of a coupon? That is, if Hertz or Budget provide you with a $ off weekly or weekend coupon and you use it - that the credit cards will not honor CDW coverage (per the T&C's)? I find that highly reprehensible if true. I mean Attorney General should look into it reprehensible.

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"Are you saying that the credit card companies won't allow use of a coupon? That is, if Hertz or Budget provide you with a $ off weekly or weekend coupon and you use it - that the credit cards will not honor CDW coverage (per the T&C's)?"

That's exactly what I'm saying. You can call your own credit-card issuer and see what response you get.

I don't know if it's still the case, but I think that Amex used to allow you to use an Amex-sponsored free-day or dollars-off coupon without voiding the free coverage. But using someone else's coupon (AARP, Costco, Entertainment Book, etc.) voided the free coverage.

Here is Visa's CDW policy... I don't see anything on here that disqualifies the rental if you use a coupon: http://usa.visa.com/personal/card-be...ion-waiver.jsp
I simply do not believe using a $30 coupon invalidates the whole rental for CDW.

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To avoid future disappointment, I suggest you speak with the Visa Benefits Administrator and ask them how they interpret the policy. Please let us know what they say.

Unless things have changed, I expect they will tell you that when you use a free-day or dollars-off coupon, you are not completing the "entire" rental transaction with your Visa card. If they tell you something different, get it in writing.

I'm just off the phone with Amex about their primary insurance coverage at $24.95 per rental. I would think that, if they collect that charge on a rental that had a discount coupon, it implies that they're providing the coverage. This agent said clearly that it's sufficient for the rental to be put in part on the card for the coverage to be valid.

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(Deleted.)

Exactly. It makes no sense whatsoever for a company to deny coverage because you rented a $350 rental, used a $30 weekly coupon provided by that company on their website and paid the full balance of $320 on your card (whatever card that is). Of course please don't read the prior sentence as me implying companies always make sense! Still, not offering CDW in this example would simply be absurd (as it would be so misleading it could warrant an Attorney General lawsuit). I understand if you do an award rental where the total amount is free except some marginal taxes and fees - that would be something different. But using a $20, $30 coupon and then VISA/MC or AMEX telling you no go, I simply find it impossible to believe (unless of course it was explicitly stated in the T&C's, which it is not).

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As I indicated in Post #4, the paid Amex Premium Rental Car coverage is a very different animal than the free LDW coverage that Amex also offers.

If you assume that the rules regarding coupon use on the paid coverage are identical to the rules on the free coverage, you do so at your own risk. If you plan to rely on the free coverage, call and ask about coupon use before you rent.

A contract is a contract and its enforcement should not depend on common sense. All of my credit cards provide CDW insurance for rental cars if the full amount of the rental is charged to the card. Unless stated otherwise, this means that no reduction vouchers can be used for this to apply.

This said, where would you draw the line? How big would the "marginal taxes and fees" need to be for it to "make no sense whatsoever for a [credit card] company to deny coverage"?

I do not disagree - a contract is a contract and if a car rental company wants to contract with us to provide CDW but deny it if a $30 weekly coupon is used, then they can do this.

What I am saying is that I find it unlikely that is what they are doing. It is not listed in their T&C's. And it makes no sense that this is their intent. Car rental coupons are provided directly by the car rental companies themselves. And almost all car rentals provide some sort of discount off the "regular rate". AAA for example at Hertz provides a discount (albeit not in the form of a coupon). So this could also be considered - not charging the full rate. What people on this thread are suggesting is that unless one pays "rack" rate they will not honor the CDW insurance. I find that premise ridiculous. What is meant by full amount of the rental is charged to the card is that you pay whatever the rental cost you to the card. That you do not pay 90% in cash and then put the remaining 10% on the card just to gain access to insurance.

If the cc's do intend what you are all suggesting - then they are playing a game. One intended to mislead the majority of consumers who use any sort of discount code or coupon. And I simply do not find that tenable.

Does anyone have more recent insight on this? I plan on using a free weekend day coupon from National, sponsored by Visa, using my Saphire Reserve Card. I suppose in this instance, I could argue that the entire cost was paid by Visa. Hopefully I don't end up being the test case though.