Rental Car Insurance in foreign country

Old Nov 14, 18, 2:19 am
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Rental Car Insurance in foreign country

Got a question guys. If you are in a foreign country, do you always just pick up the wicked expensive insurance they offer ($25-$35/day)? I know Citi offers something that would take care of the liability, but what about the car?

Thanks
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Old Nov 14, 18, 6:03 am
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Use a credit card with free LDW. Chase is generally considered the best for two reasons, no country exclusions and primary coverage. The primary coverage is an added benefit only in the US, for foreign countries all the cards provide primary coverage since your domestic car insurance will not be valid.
There are other ways to get coverage, you can buy coverage from AmEx and others, but free is hard to beat.
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Old Nov 14, 18, 1:25 pm
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Originally Posted by mattack4000 View Post
Got a question guys. If you are in a foreign country, do you always just pick up the wicked expensive insurance they offer ($25-$35/day)? I know Citi offers something that would take care of the liability, but what about the car?

Thanks
You've got it backwards: many U.S.-issued credit cards offer free rental-car LDW, which covers loss or damage to the car, but which provides no third-party liability coverage. In some foreign countries, third-party liability coverage is automatically provided at no extra charge on all rentals.

As noted by the prior poster, there's no need to get a (usually expensive) credit card that provides primary LDW when renting abroad: the secondary coverage provided by many U.S.-issued credit cards will become primary coverage for U.S. residents renting in a foreign country.
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Old Nov 14, 18, 2:42 pm
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I have a policy added on my Homeowners/Auto Insurance to cover my in any rental. I also use a credit card which covers limited items. Luckily have never had to test either.
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Old Nov 14, 18, 4:22 pm
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Originally Posted by zebranz View Post
I have a policy added on my Homeowners/Auto Insurance to cover my in any rental. I also use a credit card which covers limited items. Luckily have never had to test either.
Does your added policy cover you for rentals outside the U.S./Canada? I believe that Chubb offers an umbrella policy that does so, but I think that such international coverage is fairly rare among U.S. insurers.
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Old Nov 14, 18, 8:51 pm
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Originally Posted by guv1976 View Post
Does your added policy cover you for rentals outside the U.S./Canada? I believe that Chubb offers an umbrella policy that does so, but I think that such international coverage is fairly rare among U.S. insurers.
Yes, my rental coverage is global. I have an umbrella policy too which just increases limits. I have always used more commercial insurers and do not know about the "normal" State Farm, Allstate, Farmers, etc.
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Old Nov 16, 18, 2:13 pm
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I feel like the insurance on cards like Citi Prestige only covers the car but not liability or vice versa. Do they actually cover both?
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Old Nov 17, 18, 1:47 pm
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Originally Posted by mattack4000 View Post
Got a question guys. If you are in a foreign country, do you always just pick up the wicked expensive insurance they offer ($25-$35/day)? I know Citi offers something that would take care of the liability, but what about the car?

Thanks
In some countries, that collision insurance is not even total like it in the USA. It can have a huge deductible, and a "super" version which lowers the deductible from "huge" to "big".
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Old Nov 17, 18, 1:52 pm
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Originally Posted by mattack4000 View Post
I feel like the insurance on cards like Citi Prestige only covers the car but not liability or vice versa. Do they actually cover both?
No. Third--party liability insurance on rental cars is not a feature of any U.S.-issued credit card, as far as I know.
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Old Nov 17, 18, 2:45 pm
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Liability is generally not included with the credit card, just loss damage waiver. However there is often some liability coverage included in the rental contract. The car rental companies canít just send people out there as uninsured motorists. Also it is a good idea for most people to have an umbrella liability policy and that should cover foreign car rental.
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Old Nov 17, 18, 6:49 pm
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Originally Posted by Hornetcoach View Post
Also it is a good idea for most people to have an umbrella liability policy and that should cover foreign car rental.
Just because something is called an "Umbrella policy" doesn't mean it covers foreign car rentals (or anything else).

Umbrella policies written by US insurers vary widely as to territory of coverage and whether and how liability claims arising from auto rentals are or aren't covered.
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Old Nov 18, 18, 10:26 pm
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I tend to agree, people think it covers the liability part. I don't know if US based liability policy covers foreign rental, I don't think it does.
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Old Nov 19, 18, 9:01 pm
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Originally Posted by mattack4000 View Post
I tend to agree, people think it covers the liability part. I don't know if US based liability policy covers foreign rental, I don't think it does.
Again, it depends on the insurer and the specific policy. I have an "umbrella" policy that both 1) covers liability for injury and damage to 3rd parties when I rent an auto world-wide and 2) doesn't require my underlying (US) auto liability policy to also cover liability in foreign countries. However that feature required comparing lots of policies to find.

While comparing US insurer based "umbella" policies, I saw ...

-- Policies that only provided "umbrella" coverage for auto rental liability in the US

-- Policies that were marketed as providing world-wide "umbrella" auto rental liability coverage, but required your underlying policy to do so as well.

-- Policies that were marketed as providing world-wide "umbrella" auto rental liability coverage, but would only defend court cases related to incidents in the US and Canada.

-- Policies with lots of country exceptions.

It takes reading the actual policy, not the marketing material, to determine what you would be getting with an "umbrella" policy. For example, be aware that some companies with good reputations and policies for underlying insurance have pretty lousy "umbrella" policies. (I'm looking at you, USAA)
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Old Nov 29, 18, 10:31 pm
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I am guessing most people just use their credit card and skip on their insurance based on the response?
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Old Nov 30, 18, 12:17 am
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Two points.
(1) In Europe, rental companies will never deal directly with credit card insurers. If you suffer some damage, the rental company will charge your card and it's down to you to reclaim that from your card insurance policy. The system works - but if you need to rely on your policy there is an overhead of form filling to deal with and you take a short term hit on your card account.
(2) In Europe, damage policies are strict, so strict that it can cause a sharp intake of breath for North American customers not accustomed to this. You should check the car with a fine toothcomb on pick up and ensure all existing damage is already noted on the damage sheet.
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