Rental Cars & Credit Cards

Often the insurance is not good in certain countries. But even if it is they will might put a hold on your card. Call the company you are renting from, but even then you might get one answer and something different happens when you show up . I rarely take the insurance, but as they make things more complicated it might be best to take it.

I have rented cars in Europe recently using AmEx and was still able to use my card for hotels, etc.
I plan to use my AmEx auto insurance when I hire a car in Britain next year.

Some places will recognize a third party insurance and some will not. Those that do not will want to hold the value of the car on your card and you will have to cover any damages and collect from the insurance your self. Some will recognize the third party insurance but place a hold for up to Euro 5000.

You need to email - preferably - or call the local rental agency (not the corporate) and see what their local rules are.

Make sure that your CC company covers rentals in Northern Ireland. Some don't.

I have always used my credit card insurance in lieu of CDW in 25 or so years of renting cars in France, and the hold put on my card was never very high. This last time it was $2,000, which I think was the most ever. There is an additional thing to look out for, which I found out recently renting from Europcar in France. I used a particular credit card to pay for the rental through AutoEurope, then gave the rental agent in France the card when I picked up the car, for the hold and local fees. In the interim between paying for the rental and picking up the car, my credit card company had issued me a new chipped card. The agent refused to accept it because it was a "flat" credit card. It makes no sense, and I argued with her, but it did no good. So I had to use another card, which undoubtedly voided my insurance.

Ok. I would like to say this helps some, but I feel more confused now. So I first need to speak to the credit card company & make sure the insurance is valid in the countries I'm renting and then I need to call directly to the rental location and ask them if they recognize this type of insurance? If they don't then I can still use it but the rental company may place a large hold on my card? This seems so confusing. Last time I used Travel Guard and I wonder if that's just easier or is that only recognized in certain places too? Sorry for all the questions? I just don't want any surprises when I get there. Seems like from the last poster renting in France, he's never had a problem with very large holds placed on his card.

I first need to speak to the credit card company & make sure the insurance is valid in the countries I'm renting and then I need to call directly to the rental location and ask them if they recognize this type of insurance? If they don't then I can still use it but the rental company may place a large hold on my card?

As to the first issue, you should be able to find the answer in either the printed material you have from the bank/credit card issuer, or on their web site. Most European countries are OK, but there are a couple of exceptions. I think Ireland may be one, but I'm not sure about Northern Ireland. As to the second issue, I, personally, wouldn't even worry about it, but maybe that's because I never even thought of it as a potential problem until I saw this post; as I mentioned, it's never been an issue with me, but I've only rented in France. However, I'm not sure you'd ever actually be able to talk to someone at the car agency who could give you an accurate answer. I've always known there would be some type of hold on my card, so I always set aside one card to just be used for the rental and nothing else while I'm there.

You should absolutely get verification from your cc company as to which countries they cover. AMEX excludes Italy, Israel, Jamaica, and Ireland. I think I recently saw Northern Ireland on their list, as well; but I'm not sure.

Regarding holds on cc's: I've never had more than a 2000 euro hold placed on mine. Latest experience two months ago.

I've never heard of the entire value of the vehicle being held on the card, and that would seem to eliminate many people since cars can be quite expensive. You can try and check with the rental agency, but of course their business is to sell you their CDW and may not make it clear and easy to find out. And most definitely check your own card's terms and conditions and excluded countries.

Yes, it is complicated and many people are willing to pay for the CDW on foreign rentals because of the complications. It can also be a lot more paperwork and headaces to successfully get a claim approved if you needed to. Personally, on foreign travels I just pay for the CDW and build it in to the cost of renting a car.

I have been burned by credit card insurance (and have told the story many times here), and I will never again trust it. There are just too many little details that could prevent you from being able to collect if you have an accident. If you accept the rental counter insurance and have zero deductible, you give them back the keys and walk away. It's just too much of a hassle to save a few dollars in the grand scheme of things.

Yes, it definitely is getting more confusing all the time, and while I have rented many times in many European countries, there can be surprises at the last minute. I have bought the Amex insurance that was about $25 or so for the month (this might only be available with Platinum card) If you have Amex card call them.

But, the easiest way (and more expensive) is to just take their dumb insurance as offered and not worry... figure it into the cost and don't even think about it:)

That dumb insurance can be huge. We plan to rent a car for four weeks in Britain. Without insurance, we can find a good car for about $1000, with insurance the cost is about $1300. I have had a claim with AmEx before and yes, there is paperwork, but it does work.

Obviously they are not using an AmEx so that is not relevant. CDW is definitely a big profit maker for the rental agencies and expensive. The other alternative is a 3rd party insurance provider such as Travel Guard. Or accept the hassles and potential risk of relying on a VISA or MCA.

My opinion on this isn't based on stats, but I've always assumed that the risk of damage is higher in Europe. Narrow streets and roads. Tight parking spaces. Smash and grab robberies. Not to mention in some places insane drivers. Throw in the need for accident reports or paperwork from foreign agencies and it seems like a lot of risk to me to rely on a credit card's fine print. That's why I just eat the cost of the CDW.

Today's NY Times has a good article on rental car insurance.
It references this article on cardhub.com.
Here's the AMEX cards eligible for their optional insurance. You have to sign up before you rent to activate the AMEX insurance. I'm guessing you'll have a much higher chance of an accident driving in unfamiliar conditions. Don't underestimate your need.

Ok, this is making more sense. Thank you everyone. No, we are not using AmEx. I do understand that hold will be placed on my card & I don't have any issue with that, my only concern was a hold for the "entire value of the car". I'm sure somewhere that's a possibility, but it doesn't seem like one that is likely used based on the number of people on here using AmEx insurance. One last question regarding Travel Guard. Any reason more don't use that? I know I used it last time I rented in the UK several years ago. It's $9/day with a $250 deductible, which seems very good. Do more people just purchase the CDW for the ease of it and not having to deal with Travel Guard in the event of an accident? Thanks everyone?

April,

Car rental insurance is often provided by a third party and the rules can be confusing. Some credit cards may not provide coverage in Ireland, which means you'll have to accept the insurance offered by the rental firm.

You might find it helpful to have a look at the Gemut.com website, as they have a lot of info on car rentals.

I've been renting cars in France for about 30 years, and I've always used my credit card insurance. I figure that I've saved $10,000 or more by doing that. However, I'm not so sure I'm going to continue doing that, especially now that I'm way ahead of the game. For now, I just got an Amex card to use for just this purpose, based on comments I've read. I still don't relish the thought of paying rental agencies hundreds of dollars for something that I already have.

While the hold on your credit card probably won't be the full value of a car, it could certainly take up much of the available credit on the card. Therefore, it's recommended to have other credit cards available for the other expenses of the trip.

I've never had a hold for the entire car cost put on my credit card. Never.

I'm looking at renting a car in Mexico and it's pretty standard for a week rental to be $300 and the insurance to be over $700 additional. Obviously this is not just a little extra. Planning on bringing both a MasterCard and Amex and both policies in Spanish and hoping either is acceptable to them.

To the OP: I have rented 3 cars in Europe with credit card insurance without a significant (noticeable) hold placed on the card.

The NY Times article makes a big mistake concerning secondary coverage and what that means. The thrust of that article and the credit card summary table linked is for domestic travel so barely applicable to Europe and then only if you know what to disregard.

Secondary coverage is a term that only applies when there is other primary coverage in effect (like in a US rental when you have personal car insurance that already covers your rental car). In that instance yes, the credit card coverage is secondary and just for deductibles. For an international rental the credit card coverage is automatically primary and covers everything collision and theft related and with no deductible. If you bought some third party insurance NOT from the rental company then again the credit card insurance would be secondary.

The $25 Amex policy mentioned is primary but the only advantage to this is it keeps a domestic car rental crash off your insurance driving record.

The Mexican theft and CDW insurance I mentioned above has a whopping $2000 deductible so vastly worse than the free credit card coverage.

I would be interested to hear AutoEurope stories and insurance because they offer primary auto insurance with their rentals and it may be third party insurance that does not invalidate the credit card insurance. And they offer great deals in Mexico!

For an international rental the credit card coverage is automatically primary and covers everything collision and theft related and with no deductible. If you bought some third party insurance NOT from the rental company then again the credit card insurance would be secondary.

The $25 Amex policy mentioned is primary but the only advantage to this is it keeps a domestic car rental crash off your insurance driving record.

Confused. Are you suggesting that the $25 Amex policy adds no value overseas?

That was my initial take. I have since learned that one or both of the Amex policies will pay directly for repairs. MC and Visa run a reimbursement program so you have to pay the file a claim.

I've used the Amex insurance in Spain. My only issue was renting the car from AutoEurope, as I recall. The rental charge wasn't automatically recognized by Amex and the fee wasn't charged. With insurance, no paid premium means no insurance. I called Amex and had them manually add the charge so I'd be covered.

IMO Amex' deal is head and shoulders better than any other card insurance and should be considered.

As always, there are a bunch of exclusions, including where you live (your state's rules) and where you are going. You should check it out carefully before you assume anything. I always call Customer Service and specifically ask if my rental (domestic or international) will be covered.