Rental Car Insurance

Thanks Roy, the more I read about Italy, the more I think I need some sort of additional coverage.

Roy, I came across a great article on this Helpline that guided my decisions on car rental. Very educational. Find it here: http://www.gemut.com/Newsflashes/What-you-should-know-about-renting-a-car-in-Europe.html. There is a download button in the middle of the pgae leading you to a 16 page report. While I have not yet claimed my car in Italy (next month!) this was a very nice company to deal with and had very competitive rates.

I too have used Gemut to rent my car in germany. I was so concerned about insurance. Gemut is a small family broker and they will answer any questions you have regarding insurance, plus they were the most competitive in their rental rates.

I rented through Gemut last spring and will definitely do so again in the future. As for Italy, I would not rent a car there without full CDW from the rental agency, despite the extra expense. My daughter and son-in-law returned a car with a scratch that they were not even aware of and would not even be noticed in the U.S. Wouldn't you know it, the repair came exactly to the amount of the deductible, 300 euros. I have American Express Premium for insurance but AE does not insure vehicles in Italy.

I absolutely agree with the article regarding rental insurance. You should purchase all the insurance and insurance upgrades tossed your way. You want to be able to hand them the keys and walk away. You can't count in credit card insurance to cover you completely and without hassle. Better safe than sorry.

And if you REALLY want peace of mind take the train :-)

Roy, thanks for posting that! The points raised in the article are exactly the reason I use rental cars only when required, and I always accept the full CDW from the rental firm. ¶ While I've used the rental car coverage on my credit cards in the past, I now prefer to get the maximum CDW coverage from the rental firm. The insurance provided by the credit cards is usually provided by a third party (not the credit card company) and the coverage often has numerous "rules" and exclusions (including the fact that driving in some countries isn't covered, as mentioned in the article). It's wise to read the "fine print" carefully!!! I've found it much easier just to accept the coverage provided by the rental firms (and it provides more "peace of mind" in the event there are problems). Cheers!

That's a good article. I don't agree with the suggestion in the comments here that it supports buying CDW from the rental car company other than in countries where credit card issuers don't provide coverage. The article clearly states "Your credit card, provided it offers CDW/theft insurance (be sure to check) is free and zero deductible. Proponents of buying CDW/theft are fond of saying that in the event of damage you "just walk away" at the end of the rental. Not so. You don't walk away until you've paid the deductible. In addition, failure to file a police report is often grounds for invalidating purchased insurance. Some CDW coverage sold by rental companies excludes one-car accidents. In other words, if you get a dented fender while your car is parked and you can't locate the other car's driver, you're on the hook for the repairs. Many CDW policies also exclude damage to the car's roof, windows, wheels, undercarriage and interior." I've rented in Europe numerous times, driven thousands of miles and NEVER bought CDW nor will I unless I rent in Italy. Credit card coverage has saved me a lot of money. Just this summer American Express Premium saved me over $300.

Tex....when we talk about CDW, we also mention that CDW can be purchased to bring the deductible down to zero (the LDW or "super-CDW). Issues like failure to file a police report, etc, can also be grounds for refusal for your CC company as well...this is not unique to rental agency insurance. Many cc will also not cover incidentals suchas cracked windshields or flat tires unless they're the result of an accident. ANd with cc coverage, your auto rental agency may want you to pay for the damage up-front, so you then have to wait for your cash back once your claim is approved by your cc company. In the two accidents I've had in Europe (both relatively minor damage in hit-and run mishaps while I was parked), I've simply notified the rental company, then turned in my keys and walked away when dropping off the vehicle.

I fully understand what CDW insurance does. I'm unwilling to pay more money for what I already have.

AmEx Premium is insurance, not the credit card. It is one of several third-party insurers out there, and you do pay extra for it. It is not perfect, nothing is, but it gives the credit card company less wiggle room to avoid paying a claim. (See the original NYT article, and even better, the Gemut article.) On the peace-of-mind scale, third-party insurance falls between complete reliance on the credit card and paying for full CDW with the rental car company.

Tex....and others would prefer to pay for the convenience of not having to pay out what could be a large sum of money, then wait to have it (hopefully) paid back by their cc company.

Hey it's your money, so spend it like you want. I pay American Express $25 PER RENTAL for first dollar cover. The chance that Amex would reneg on the contract is zero.

Again, and with more feeling, you can't count on a credit card company to go to bat for you. They are not in the business of selling insurance; it is an extra perk (carrot) that they provide in order to get you to sign up for their card. If you don't dot every "i" and cross every "t", they have an out and then you will be left holding the bag. Who wants to spend hours on the phone with a credit card company long distance while overseas, trying to initiate and complete the process? Meanwhile, the rental company will put a hold on your credit card for the amount of the damages. It is far better to pay for the extra insurance up front and then pay a deductible, if applicable, rather than get stuck with the entire bill.

@ Tex, not everyone has American Express.

I hadn't fully calculated the savings on our month-long trip to France this summer from using American Express Premium insurance at $25 for the entire rental period and refusing CDW/theft coverage from Sixt. I've now done so; it comes to over 550€ or around $725. The contract with Sixt stated that the deducible on the car without CDW/theft purchase was 1500€, not the full value of the car which is another reason I like Sixt in addition to the low rental rates. If need be, the deductible would've been charged to my American Express card and Amex would've handled the matter. To save that kind of money time after time when renting in Europe, I'm quite willing to accept that I might get involved in paperwork with respect to a claim. btw this summer's savings pays for a few years of Amex yearly fees.

Tex....I hate to tell you, but you're being ripped off by Sixt if they were going to charge you that much for CDW-Theft protection, even for a month. I'm not saying cc coverage isn't an option for some. But so is rental car coverage, with the convenience it offers. What I do find problematic are your stated "facts" about auto agency insurance that aren't facts.

Well, Norm, if you will reread my post you'll see I wasn't "ripped off" by Sixt as I didn't pay for CDW/theft coverage as Amex handled the risk for 25 bucks. And if you'll reread all my posts you'll see I haven't stated any "facts" about insurance cover from auto agencies. That was done in the gemut article. Not sure what all the emotion is about on this subject - it's just what makes sense economically.

Tex....if they were going to charge you that for your CDW-Theft, then I hate to think what you paid them for the rental. Your savings are illusory if it was a rip-off rate in the first place. You're right, you did quote extensively from an article....an article which made incorrect statements. I assume you agreed with them...my apologies if you do not. And yes, it does involve what makes sense, economically. We've had posters here whose claim to their cc was denied. I prefer to go with a system where I, too, have had an accident and been able to walk away without the risk of the claim being denied. That's what makes economic sense to me.

I think everyone would like to know what is incorrect in the gemut article, Norm. It was written by experts. Please elaborate. And please tell us from which company you've rented and what you've paid per day in Europe for CDW/theft coverage so others can benefit from your experience.

Tex....read my earlier posts.

I've driven in Italy and survived without a scratch. I'm not willing to bet, however, on keeping a car in one piece in Italy. I was glad that the leased car we drove included CDW in the price..................... If I rented, I would make sure I could hand someone the key and walk away...........................Credit card coverages work as long as you understand exactly what you are getting (and not getting) and pay attention to your responsibilities (for example letting your card issuer no you have a claim within their time limits).

I am comfortable with using my Amex for CDW especially with the $24 premium coverage. The rules are laid out in their contract and it is a matter of following them and they will pay. I have not had to make a claim but have done much research and found a number of examples where AMEX paid the claim without any hassle. I have not found anyone who, if they abided by the rules, had a claim denied. They were complimentary of the way their claim was handled. If I know what they(AMEX) require when I enter into the contract I make sure that I play by those rules. Like many things we discuss here where we have different opinions and comfort levels, it becomes a personal thing on how to travel with the least amount of worries. I'm good with the AMEX coverage and others are not. I understand and respect their decision to go the other route.