While this is not entirely a happy story, it does illustrate what I have done to save money. For rentals in some countries there is mandatory basic insurance built into the rental rate. Some worry that this negates the free credit card coverage, but it doesn't. In this case the free credit card coverage covers the deductible, as long as any collision or theft waivers are not purchased. I have done this for rentals in Mexico and New Zealand.
Posted by
Kirkland
215 posts
If you want to keep it real simple, register an American Express card for their premium rental coverage, then use that card to make and pay for your rental. Provides primary coverage, zero deductible, and costs $25 ... not per day, but $25 for the ENTIRE time of the rental (up to 30 days). Google it for more detail. Also note that no car rental insurance (that I know of) provides liability coverage, so please make sure you understand that risk and, hopefully, have some sort of personal umbrella coverage that provides liability coverage for international risk.
Posted by
OP
4529 posts
I’ve had issues with the Amex policy. I used to use it, then dropped it. Problems:
You can't easily use it with AutoEurope, if you want to. These charges go thru in advance, and are not coded as a car rental, so you have to call and initiate the Amex fee as an extra step. Also the charge and the rental may be 6 months apart so good luck with a claim trying to tie those 2 charges together.
A lot of countries are excluded by Amex, none are excluded by Chase Sapphire.
It costs money, other credit card insurance is free.
If there are after-charges like transponder generated tolls or drop fees then each of those generates an additional $25 charge.
Note that I don't use AutoEurope any more, either, but it is popular here.
Posted by
Duluth 🛶
6397 posts
Tom, thanks for this - very informative and helpful! I will be using my Chase Sapphire Reserve card to pay for my car rental in Scotland this year and will keep this info handy, just in case (knock on wood!). :)
Posted by
Huntsville, AL, USA
8158 posts
My Capital One card has European rental car coverage, however not in Italy or Ireland. There, PMI insurance is required by government mandate. I found the PMI coverage in Italy to be very reasonable in cost but less so in Ireland. Go online and read your credit card's list of terms and conditions.
What most people don't realize is that the big car rental companies are self insured--except on liability coverage. PMI is another profit department for them.
In North America, the car rental company would hit my Allstate policy for repairs first if I had any damages. Then they'd hit my credit card up for any shortages. And any PMI coverage I paid for would be third in line. Almost seems like the PMI for me in the states is not worth the expense.
Other quirks on renting a car: Some rental companies won't rent to anyone over 70 years old. And some car rental companies don't allow their cars to go to certain countries. There again, check out the countries you're going to visit before you get fined for taking their car somewhere not authorized. GPS's tell where you are and where you've been today.
Posted by
Los Angeles, CA
515 posts
My credit card used to cover rental insurance, but then a few years ago, they stopped it. So always ask your CC company to be sure before you go.
Posted by
OP
4529 posts
David: I think PMI stands for Private Mortgage Insurance? You have the wrong acronym.
Some think or worry that credit card insurance is invalid when there is mandatory collision or theft included in the rental, but here is proof that it is still valid.
Posted by
Huntsville, AL, USA
8158 posts
Excuse me Tom. I have too many acronyms in my head. Comes from being in the military too long.
It's LDW--Loss Damage Waiver.
Read the list of terms and conditions online of a car rental operation. It's an eye opener.
Unfortunately not all car rental companies are the same. Some are better than others. Many big name car rentals are franchise operations. I read the other day Avis is in the process of buying the European Avis rental companies.
I prefer to do business with a car rental operation that's not a franchise.