Which is the Best Car Insurance to use While Traveling?
Written by the Kosher Itinerary professional
Good news! At this point, you have the ability to use your Chase Credit Card, which now provides the coverage for your Car Insurance on rental vehicles, as opposed to going through your company.
As some background information: There are 2 major sorts of car rental insurance. The first category includes CDW, which is Collision Damage Waiver (also referred sometimes as LDW – loss damage waiver) and the second category is Liability. Liability occurs when the car renter hits another person’s property or injures someone. If this scenario occurs, the insurance will cover it. This brand of insurance is mandatory by the government, which means that the rental agency is not allowed to rent a car out without this coverage. Therefore, it is normally included in the rental quote (even though some agencies may break down the rate to make it look cheaper). A rental company may also offer higher liability coverage for more money. (Also known as a Supplemental Liability Coverage). This means that a person can elect to purchase a coverage that is more than the minimum liability coverage, and is covered on higher amounts of liability, however this is completely the renter’s decision. As a heads up, they apply strong persuasion skills to encourage you to buy this brand, and that it is a must.
The real question arouses basically when we are referring to the first category-the CDW. This involves a situation when the renter is responsible to any damage or theft to the rented vehicle. As we have mentioned in the first paragraph of this article, it is a now a valid option to use the Chase credit card coverage for your rental vehicle, as well as coverage which now being offered by all major credit card issuers. (Visa, Master Card, American Express, etc.) These cardholders now are able to cover the CDW insurance, however, please read on to keep these next few conditions in mind:
- Even when accepting the credit card coverage, most cards refer their coverage that they offer as “secondary.” This means that if you own a vehicle with insurance they will require you to claim it as your first, which may result in a higher premium coverage to the rental. However, there is an exception to this aspect, specifically to a few cards, including the Chase United Explorer and other cards that are primary coverage.
- Most cards don’t cover rentals in Israel, Ireland, and Italy. American Express also disqualifies coverage in Australia and New Zealand). For Israel there are some Worlds Master Card that cover’s rentals (but not all World master Cards), but it may still be a hassle, as our office -“Plan It Rite”, received an email from Adi Eldar Hertz who is an Israel sales manager in USA; that even when the renter claims that his credit card covers CDW, he will need to provide a written proof of the damage, or the agency will call to verify. (This is same is with other European countries) The process also may be much more difficult to arrange it before, in order to save a couple dollars specially if it’s a rental for just a few days. The Chase cards listed below however, all provide coverage to the countries listed above.
- Certain vehicles are not covered, which includes high end luxury or exotic. American Express doesn’t cover certain SUV`s; not bigger than 7 passenger vehicles, and no commercial vehicles. Rentals may not be able to be covered for more than 30 days.
- Care should be taken to apply the full rental charge to the specific credit card, and decline the rental company’s offer of CDW.
- When you use your credit card insurance and something happens which causes a need to claim insurance, you will be in the position of the middle man, collecting and filling paper work. You may even have to carry the full cost of the damage until you are reimbursed, but with the rental car’s insurance it’s normally a simple process.
- In some countries, such as France, England and Italy the CDW (or LDW) often doesn’t cover damage to a car’s windshield; for that you will have to buy a separate policy.
- Basic CDW in some European countries (regarding Israel, that depends on the type of vehicle) has an extremely high deductible. For example, in Italy, you may liable for over $3000.00 in damages. In order to bring the deductible down, you will have to pay for a special top/super coverage, but in contrast to credit cards coverage, there are usually no deductions.
- In certain countries like Israel and Italy, purchasing CDW on your rental vehicle is mandatory so it’s hard to decline their coverage. Keep in mind that proof of your credit card coverage will help in Israel, but not always in Italy where you are required to buy the CDW direct from the rental company. The question at this point is only if your credit card will reimburse you for the deductions.
According to some opinions, they claim that Visa pays it back. (Rental agencies will do everything in their power to get you to purchase their insurance, its sheer profit for them. Keep that in mind!
Note: Just to be sure, always make sure to check the fine print of your credit card coverage. If you can’t find the small print, call the number in back of your card and the rep will contact you the right department.