Understanding Credit Cards and Car Rental Insurance
15 April 1999
Understanding Credit Cards and Car Rental Insurance; American Express Offers Consumer Advice NEW YORK, April 15 -- When you rent a car in the United
States, liability insurance is included in the rental but collision insurance
is not. Some credit cards automatically provide collision damage insurance,
which covers damage to or theft of rental cars ... but policies can vary card-
by-card and country-by-country. American Express offers these tips on
understanding credit cards and car rental insurance at home and abroad:
Are You Already Insured? If you do not have car insurance or if your
policy does not cover rental cars, you may be covered by your credit card. If
so, rent the car using the card providing the insurance and decline the car
rental company's collision damage waiver (CDW), which can cost more than
$15 per day.
Call your card issuer first to make sure you will be covered when you rent
a car. American Express provides Car Rental Loss and Damage Insurance* on
most American Express consumer charge cards as well as on the Delta Skymiles
Card, the Hilton Card, the Sheraton Card and the Golf Card.
Renting A Car Overseas. Rules and regulations on car rental insurance
vary by country and by company. Some countries, such as Australia and New
Zealand, mandate that insurance be included in the car rental fee. Some car
rental companies also require the renter to purchase their insurance. Also,
some credit cards do not provide coverage in certain countries due to
unusually high costs in those destinations. In all of these cases, you are
covered by the car-rental company's particular policy and are subject to their
regulations. If traveling overseas, call the car rental company in advance to
find out about their policy.
Limitations of Coverage. Credit card car rental coverage usually contains
restrictions on expensive, antique and commercial autos, as well as on larger
vehicles, such as trucks, full-sized vans and full-sized sport utility
vehicles. In addition, most credit cards limit the length of coverage,
usually ranging from 15 to 30 days. Other restrictions may include vehicle
damage while being driven off-road, losses involving use by an unauthorized
driver, driving outside authorized rental territory, illegal activity, being
under the influence of drugs or alcohol, and intentional damage.
Additional Coverage. Some premium credit cards offer additional coverage
options. For example, under the Car Rental Loss and Damage Insurance Plan*,
American Express Platinum Cardmembers also receive accidental death and
dismemberment benefits, as well as coverage for loss of or damage to personal
property for Cardmembers or passengers. For detailed coverage information,
call your credit card company or American Express at 1-800-THE-CARD.
Documentation for a Claim. Make sure you keep your rental agreement and
receipt in a safe place because you will need them if you have to file a
claim. Other required documentation for claims may include itemized repair
bills, photos of the damaged vehicle, a police report (if applicable), and a
copy of your driver's license.
American Express Company is a diversified worldwide travel and financial
services company founded in 1850. It is a leader in charge and credit cards,
Travelers Cheques, travel, financial planning, investment products, insurance
and international banking.
* Underwritten by Amex Assurance Company, Green Bay, WI. Coverage is
subject to the terms, conditions and exclusions stated in the policy.
