Which credit card offers the best coverage when renting a car? Do any of the credit card companies (for example, AMEX) have insurance which assumes primary responsibility for physical damage to the car, liability, and medical expenses?

Things have changed a bit since I've used this in the past. I know some of you travel a lot, and I want to be sure there is not something I am missing.

I am not sure whether my insurance coverage would cover my rental car, but I prefer to pay whatever fees I have to pay to not involve my own company in any event.

Thank you for your help.

I found that my two primary business cards (AMEX and MC) only cover my deductible in an accident. My auto insurance would be required to cover the rest. As such, I always buy the offered rental car coverage on all my rentals. I don't want my insurance having to cover an accident.

bigdeal, have you ever had to use the insurance? I read your post and called Amex. They told me they are primary, so that is confusing.

The best by far is the Chase Sapphire Reserve (and Sapphire Preferred) as it is primary insurance and not secondary like most of the other are.

Amex is secondary unless you purchase additional primary coverage. The standard benefit is secondary. My Amex Platinum Card is not used for renting cars as it is only secondary insurance, my personal insurance would be primary.

The Sapphire Reserve is the only card I use for my car rentals.

You also need to be aware that credit card provided "rental insurance" doesn't include liability or medical coverage for yourself. Credit card coverage only covers the rental vehicle.

quote:

Originally posted by Ackks:
bigdeal, have you ever had to use the insurance? I read your post and called Amex. They told me they are primary, so that is confusing.

You can find the current policies by card here:

https://www.americanexpress.co...insurance-terms.html

Sure enough, the policy for the platinum card says it is secondary.

quote:

Originally posted by Ackks:
bigdeal, have you ever had to use the insurance? I read your post and called Amex. They told me they are primary, so that is confusing.

Once a long time ago, and that was an especially huge cluster. Since its part of the business expenses I write off, I just opt for the rental company offered coverage and try and keep my insurance out of it.

How many days are you renting? If it's one or two days, it may be worth the $15/day.

See the policy with the CC you intend to use. It will show how (or how little) insurance they provide.

quote:

Originally posted by Russ59:
How many days are you renting? If it's one or two days, it may be worth the $15/day.

I agree.

quote:

Chase Sapphire Reserve

I have never heard of a cc with primary coverage, but a quick look seems to show that the above is described as just that as was posted. I'm going to go find the actual detail and make sure, but if so I'm personally looking into that card...

quote:

Originally posted by hrcjon:

quote:

Chase Sapphire Reserve

I have never heard of a cc with primary coverage, but a quick look seems to show that the above is described as just that as was posted. I'm going to go find the actual detail and make sure, but if so I'm personally looking into that card...

The Sapphire Reserve is a fantastic travel card. It does have a large annual fee, however, there is a $300 travel credit that gives most of the annual fee back to you. Effectively that leaves the annual fee at $150 but that is made up for in the other benefits of the card (airport lounge access, rental car insurance, reward points, national rental car executive status, etc.). Not to mention, the sign up bonus is worth $750 in travel or $500 in cash back.

If you don't want that large of annual fee the Sapphire Preferred is a good card with primary rental car insurance but without the $300 travel credit and some of the other benefits. It has the same sign up bonus but it isn't worth quite as much.

I don't understand why anyone cares about their personal insurance being primary. You're no more likely to get in an accident in a rental vehicle than your own vehicle. If you get in an accident, let your insurance do what you have insurance for.

If you think it's a good idea to pay $15/day to not have to use your insurance, would you pay an extra $15/day ($450/month) for a supplemental insurance policy so you'd never have to use your first insurance policy?

Would you pay an extra $15/day for a second supplemental policy so you wouldn't have to use the first supplemental policy you got for $15/day?

If a credit card gives a little extra coverage for free that covers deductibles and such, than that is a nice bonus. But really, why does anyone care if their insurance has to pay a claim?

quote:

Originally posted by honestlou:
But really, why does anyone care if their insurance has to pay a claim?

Because, at least in my experience, after insurance pays a claim, rates go up much more than the claim paid out. It is true you can have accident forgiveness, but that generally only works once. It depends on your risk tolerance. One does what one feels comfortable with.

I prefer not to turn a claim in because I look at insurance as catastrophic insurance. For example, I would not turn in a homeowner's claim under 10K. Maybe even 20K. But I would turn in a 50K or 100K claim. I knew a guy once who had a leak in his basement and turned in a homeowner's claim. He felt the damage was worth about $5K, but the insurance company paid out $22K or so. For a time the guy bragged he had made money on the deal. About six months later, the guy's homeowners premium went up a lot. The increase was more than $6K/year. It went up enough the insurance company had the money they paid out for the claim back in less than 4 years. Then the higher rate continued. It wasn't as if he could switch and get away from it. The claims record would affect rates at other insurance companies.

This doesn't always happen, but it does happen. There is also the possibility the insurance company might pay the claim, then drop the customer. That can be worse than a simple rate increase.

It's not that I'm afraid to turn in claims. Insurance is a business, and I keep it to protect from losses I wouldn't feel comfortable with.

OK let's try this. Assuming you are a rational person in most insurance markets you are likely carrying deductible in the $1000 to $2000 range. So if my own car is in a tiny little parking lot incident that dents a door when I'm not there to see who did it I'm never never making a claim. I might live with it or get it fixed but its not an insurance matter. When you rent every single thing is an insurance matter. I rent in places that I don't normally drive. You know like big cities etc. My risk of an incident is hundreds of times bigger than where I live which is in a completely rural area. I know as a practical matter on an actuarial basis (since once upon a time I did live in they types of areas I now rent) that the difference in rates is more than $15/day. Of course you can't actually get primary coverage from a rental company for $15, but what the heck.
So if you can get a cc that gives primary coverage that's a big deal to me. And more problematic to your argument is that once you have a claim your rate is going up. It might be a little or a lot it depends on your insurer and the market. I know that for me personally I had a claim last year. The first one I have had in over 40 years. My fault. My insurance company paid I was out the deductible ($1000 which wasn't too bad) but also my rate went up on all my vehicles to the sum of $1850/year for effectively 3 years.
SO yes I would gladly pay $15/day to avoid all that.

Christmas Eve I rented a car. Got the rental insurance, which I never do. 20 min after leaving, I got T-boned in a mall parking lot. I limped back to Enterprise. The look on the other customer’s faces was priceless.

At the counter, they smiled, gave me a new rental. An upgrade. Best $7.99 I ever spent.

quote:

Originally posted by Spokane228:
Christmas Eve I rented a car. Got the rental insurance, which I never do. 20 min after leaving, I got T-boned in a mall parking lot. I limped back to Enterprise. The look on the other customer’s faces was priceless.

At the counter, they smiled, gave me a new rental. An upgrade. Best $7.99 I ever spent.

Imagine what it would cost you in the grand scheme of things if you hadn't spent that $7.99.

quote:

Originally posted by honestlou:
I don't understand why anyone cares about their personal insurance being primary. You're no more likely to get in an accident in a rental vehicle than your own vehicle. If you get in an accident, let your insurance do what you have insurance for.

If you think it's a good idea to pay $15/day to not have to use your insurance, would you pay an extra $15/day ($450/month) for a supplemental insurance policy so you'd never have to use your first insurance policy?

Would you pay an extra $15/day for a second supplemental policy so you wouldn't have to use the first supplemental policy you got for $15/day?

If a credit card gives a little extra coverage for free that covers deductibles and such, than that is a nice bonus. But really, why does anyone care if their insurance has to pay a claim?

It is my understanding that rental car company's don't just charge for damage to the rental car if you have an accident. They also charge loss of use since they can't rent the car anymore...I don't want my personal insurance paying for the car and the loss of use.

Also, a rental car is often times parked in places that are of more risk than my garage at home. I also drive them in places I'm not familiar with and probably at more risk of an accident.

A rental car company is also more likely to claim I damaged the car when I did not. I drop my rental cars off when I'm done and leave the keys in the car. There is no one there to inspect the car when I drop it off. They could very easily say I left the car damaged. The lot monkey could wreck it after I drop it off for all I know. Heck, it could go missing after I drop it off with the keys in the car.

I don't want all that risk on my personal insurance.

If I get to drive for a week or more with less risk on my personal insurance that is financially to my benefit. If I have an accident and my personal insurance pays...my rates are going up for at least three years.

I have $1000 deductibles on my autos but have not filed two small collision claims with my kids driving that were less than $2000. My rates would go up much more than the $2000 X 2 that I paid. Having any claim (especially when you have teenagers driving) is a sure fire way to go broke paying auto insurance premiums. Or get dropped.

I get not turning in a small claim; but if you ding the rental and it’s $1000, you can pay it out of pocket just like you could on your personal vehicle. I still don’t see a difference. The only thing that makes sense is a couple of you stated that your risk is higher because you drive a rental in areas you don’t normally drive. If you really feel you are at greater risk I understand wanting supplemental insurance. I’ve never felt at greater risk in a rental, but if you do that makes sense.

I rented a truck a few years ago. Uhaul. Checked w/my auto insur co. Not covered. Not an 18 wheeler but small uhaul truck. Always check your insurance policy.

The real reason to pay for the rental insurance is so they don't pull some bs where your primary pays for the collision repair but then the rental company claims you owe them $35 a day for the two weeks the car was being repaired and not rented out.

You can enroll your Amex accounts in a supplementary rental insurance policy. When you do, you pay something around $25 per rental -- for the entire rental period, not per day -- and Amex becomes the primary insurer. You pay only when you rent. It cost nothing to sign up.