If you have hired cars, it is best that you are aware about certain points. It is a good idea to reject the (CDW) insurance clause by the car rental service. It can run up to $45 per day. The costs would be much more if the rental car is involved in an accident with another car. In one specific case involving a car rental Iceland Airport, the cost was $791 when the parked rented car was hit by another. However, he later learned that the damage was indeed covered by the credit card that he owned.
As a result of the accompanying paperwork, the payment took about three months to get completed from his Visa card to Hertz, he lost no money from his pocket. It is indeed a good idea to know what coverage a credit card offers in case of car rentals. Typically, consumers are covered for car accidents by credit cards many of them are unaware of the coverage as in above case. Regular car owners have auto insurance for their cars in case of accidents. However, if you do not own a car, it is vital to know that the credit card covers your accident expenses as in this case.
Credit Cards “What is the Coverage Offered”
Different credit cards offer different types of coverage. Visa cards cover theft, towing charges, damage charges to the car in case you do not own personal auto insurance. According to nerd wallet, Visa does not cover personal injury or damage to other cars or property damage. This is true with MasterCard as well. In case you do have personal auto insurance, Visa does bear deductibles and some other charges that the insurer does not cover.
In case of MasterCard, the coverage varies according to the bank that issues the card. As an example, a MasterCard – USAA World offers almost the same coverage as Visa. However, they have an upper limit of $500 as the amount that can be reimbursed. Some of the credit cards that offer primary coverage, that is, they cover expenses even if you own a car are Chase Sapphire (Preferred), Discover Escape, and United Mileage Plus (Explorer). In such cases, you can remain protected from a premium hike in your car insurance. Otherwise your insurance premium rates can be hiked as much as 40% in case you make a claim at some point in time.
With an American Express Card, you can change coverage from secondary to primary by paying a one-time fee of as little as $16 or $25 either through online access or by calling them. According to Robert Harrow, an insurance research analyst, says that credit card companies requires consumers to say no to the CDW insurance to keep the coverage possibility active. In some cases refusing CDW insurance becomes difficult if the reservation clerk is not aware of all the possibilities.
It is important to be aware of the following exclusions. This list is not exhaustive.
– Only physical damage to the rented vehicle is covered (through collision or theft); injuries to you or any other persons that are involved are not covered. This is typically covered by the auto insurance that you possess. If you do not have auto insurance you can either purchase the non-owner liability insurance that auto insurance companies offer or opt for the car rental company’s personal injury coverage option. – Personal items if lost are not covered.- Credit card coverage is not available in certain countries Australia, Jamaica, Italy, Israel, Ireland and New Zealand. It is good to be aware of this when traveling overseas. – The credit card used to pay the bill has to be in the name of the card holder and has to be used to pay for the entire rental amount.
Collecting Your Insurance Claim
Whereas some credit card companies pay up the reimbursement to the car rental company, others make the payment to the cardholders. It takes some amount of time to get the reimbursement. This is because the claimant has to submit the filled up claim form in detail, photographs, and get past other bureaucratic requirements.