SeeBuyFly

I am sure this has been discussed here, but I am not sure how to find it.

I have a credit card with primary LDW outside the US, no deductible. If I pay for the minimum level of coverage from the renter (Europcar), which comes with a high deductible (~$1400) and does not cover wheels/tires/lights, is that a Catch-22? What I mean is, would it actually cost me more money if there are any losses, since I haven't followed the CC requirement to decline rental company's coverage?

m907

Only way to find out is to check the terms and conditions for your credit card.

garykung

Assuming the CC honors the primary LDW coverage, there is no need to purchase another LDW coverage from the rental.

Nevertheless, subject to applicable T&Cs, the following should happen in case when the LDW coverage is triggered:

1. Car rental's own LDW coverage has the highest priority (because the car rental company will never bother working with others).

2. If there is any amount that the car rental LDW does not cover, the credit card will take care the rest.

cestmoi123

Generally, no, it won't. The typical terms and conditions for credit card CDW specify that it's only valid if you decline the rental company's CDW. If you take the rental company's coverage, then the credit card CDW won't apply at all.

SeeBuyFly

I have, it just says I should decline the coverage. It does not state what happens if I don't. Both my current credit cards (from different issuers) have the same language.

I guess I don't feel entirely comfortable having no AutoEurope coverage; they say I am on the hook for the full price of the car. Some reports say AutoEurope is aggressive about finding flaws that they then bill you for---the CC will pay but it's a hassle.

Anyway, I know can just buy full (zero duductible) coverage if I want; I was just curious about how it works.

garykung

Read again:

guv1976

If the credit-card insurance terms say that you must decline the rental-car company's LDW to trigger the credit card's coverage, why would you assume that the card's coverage will be triggered if you purchase an optional, partial LDW from the rental-car company?

If you don't want the hassle of dealing with the credit-card's insurer in the event of an accident, then you can pay the rental-car company's fees for LDW coverage -- either full or partial, depending upon your risk tolerance.

guv1976

Can you cite even one credit card whose rental-car coverage terms and conditions state that purchasing optional, partial-LDW coverage from a rental-car company will not void the card's coverage? I'm not saying that no such card exists, but I've never heard of a credit card whose coverage would still apply if a cardholder were to purchase optional LDW coverage from the rental-car company.

guv1976

As the rental-car companies -- at least in the U.S. -- are quick to point out, LDW (loss/damage waiver) is not insurance; it is simply a waiver of the rental-car company's right to pursue the renter in the event that loss or certain types of damage occur while the car is rented to the renter.

See, for example:

https://www.nationalcar.com/en/suppo...ge-waiver.html

and

garykung

While it is true that many car rental companies will not consider optional coverage as insurance, the reality is LDW coverage works exactly like insurance. Just because a car rental company says it is not, it does not mean it is not insurance.

Also - for each location that sells optional coverage, the car rental personnel selling the coverage must be licensed by the state's insurance regulatory agency. They are usually known as rental car agent or limited line agent.

cestmoi123

It isn't insurance. It functions LIKE insurance, but it isn't insurance. It's a WAIVER, under which the rental car company agrees, for an upfront fee, not waive any claims they might have against you for damage to their vehicle.

This is because the liability insurance that rental car companies sell actually IS insurance. They sell liability insurance (typically dubbed SLI or something similar) under which the rental car company is providing you with insurance against claims by a third party. They also sell personal accident insurance, personal effects coverage, etc. In all these cases, the rental car company is agreeing (or their partner insurer is agreeing) to cover your losses or someone else's losses. This is insurance. LDW/CDW when provided by the rental car company isn't insurance,

cestmoi123

Chase and Citi are very clear that their credit card coverage only applies if you decline the CDW from the rental company. Amex will apparently let you pay for a partial CDW from the rental car company, although I've never seen one of those in the US market.

For Chase: "If you accept the collision damage waiver offered by the rental company, you will not be eligible for Auto Rental CDW."

For Citibank: "We will cover you up to $50,000 toward the cost of repairs or the cash value of the car, whichever is less, if a covered accident or theft occurs when you pay for a rental car with your Citi card and/or ThankYouŽ Points and decline the rental company’s collision loss/damage insurance."

For Amex: "Coverage for Theft of or Damage to an eligible Rental Vehicle is activated when...You decline the full collision damage waiver (CDW) or similar option, or pay for a partial collision damage waiver, offered by the Rental Company"