A fundamental issue when we rent cars on our trips is undoubtedly vehicle insurance. Every time we go out driving, we must be confident that the insurance we carry is the most complete, since a small distraction can ruin our vacations.
We have already told you in several posts that we have used the insurance, some links: Crashing a rented Car Insurance I need you!, I crashed a rental car (and credit card insurance didn’t cover me), and The insurance I took out paid for the damage I did to the rental car (excellent).
The idea of this post is to explore the rented car insurance included in the three main credit cards that we handle (VISA, Mastercard and American Express) and analyze their characteristics to choose which one would be best for you to use when making your rental.
The most basic
The first thing we have to know is that in all cases the rented car insurance becomes effective if we pay the entire rental with the card chosen by one to reserve.
The coverage provided by the cards is known as CDW (Collision Damage Waiver), LDW (Loss Damage Waiver) or similar, regularly offered by car rental companies. This coverage does not include Civil Liability insurance or damage caused to third parties, “LIS (Supplemental Liability Insurance) / EP (Extended Protection), SLI (Supplemental Liability Insurance) and ALI (Additional Liability Insurance)”, as well as the services of assistance and/or mechanical or similar assistance. Also excluded are those referring to Personal Accidents PAI (Personal Accident Insurance) or Theft of Personal Effects. Of all that it does not include, Civil Liability insurance or damage caused to third parties is essential.
Another very important issue is something that is clearly clarified in the conditions: you must decline the CDW (Collision Damage Waiver), LDW (Loss Damage Waiver) insurance or similar coverage regularly offered by car rental companies, if you want to use the of the card (we see the VISA case later). The name of the cardholder member must be the main name of the contract and the other authorized drivers must appear on the car rental contract as driver(s).
Let’s break down some important details of each of the cards:
VISA
The coverage will be valid for up to thirty-one (31) consecutive days each time a car is rented anywhere in the world (with the exception of the Argentine Republic and the countries excluded by OFAC clause).
Also, for the coverage to apply, the entire rental must be paid with the eligible Visa card. The cards that provide this service are Gold, Platinum and Signature.
This coverage may be primary or secondary depending on whether or not the Visa cardholder can decline the CDW (Collision Damage Waiver) / LDW (Loss Damage Waiver) coverage of the car rental company. Consequently, the coverage will be “secondary” to the coverage of the car rental company if the Visa cardholder cannot waive the coverages detailed above. In this sense, the Visa car rental insurance for eligible cardholders will be responsible for the gap between the coverage of the car rental company and the damages for which the eligible person is responsible.
Mastercard
Mastercard coverage of up to US$75,000 (worldwide except in the Card Issuing Territory) for up to 60 consecutive days (Black and Platinum).
They state: “You must decline any insurance that provides partial or full coverage for collision damage and/or loss damage (CDW/LDW) offered by the rental company.” Mastercard offers a higher amount of coverage, as well as more days, applies to any type of car, including luxury up to the amount covered.
American Express (direct)
American Express the Platinum Card or The Gold Card direct credit cards will have material damage insurance of up to US$50,000, with coverage for up to 31 calendar days per incident and per year, in the event of theft, fire or collision. From what we understand, the direct American Express is the one that offers the least in terms of options. In my case, it would be the last option to use.
