World Mastercard rental coverage

Maureen,

I've encountered this situation in the past, and suggest that you check the "fine print" in your MasterCard card member agreement very carefully.

As I recall, the typical credit card coverage provided for rental cars includes only collision, and you would still have to accept the PL & PD coverage provided by the rental firm. There are usually exclusions, so you need to be very clear on the details. Also, the entire cost of the rental must be charged to that Card.

I found that the credit card firms didn't have much information on rental car coverage, as the car insurance portion of benefits has been "outsourced" to private insurance firms. Therefore I had to phone the insurance company directly to get a straight answer on what was covered and what wasn't.

I recall reading an article in the "Ombudsman" column of one of the travel magazines last year. The situation they described involved someone who had rented a car using credit card coverage, and unfortunately the car was "totalled". In the investigation, it turned out that the renter had unknowingly violated one of the terms of the rental agreement (driving on unpaved roads, I believe). The rental firm eventually agreed that the violation was unavoidable as that was the "public road" in that area and therefore they would "excuse" it. However the credit card firm was adamant and refused to pay. As I recall, the renter was required to pay basically the replacement value of the vehicle (charged to his credit card, including interest).

Violating any of the terms of the rental agreement means no coverage regardless of which insurance method is used. However, given the "hassles" and complexity of credit card coverage for rental cars, I usually just pay the full CDW offered by the rental car firm. It's a lot easier on my nerves!!!

Happy travels!

In 2005 I rented a car through AutoEurope. I read through my World MasterCard Rental Agreement and found a paragraph that said I was covered for driving in Ireland. To be safe, I called MasterCard and asked them to confirm this. They did, and said that I should bring a written copy of the Master Rental Agreement with me to show to the car rental agency, if asked. (I don't remember if I was asked or not.) In any event, I declined CDW coverage and got the basic rate rather than the inclusive rate.

When you rent a car anywhere, in the US or in Europe, liability coverage is provided by the rental company. It's included in the basic rate. MasterCard would not be involved in paying for damages to a car you hit.

Note: Just because my World MasterCard Agreement from 2005 provided collision coverage in Ireland doesn't mean that the same is true today. Keep after MasterCard until you get a definite answer.

Ken's main point should probably be read twice by travelers renting cars in Europe: Once you decline the rental company's CDW--under the assumption that your credit card company "has got you covered"--as far as the rental company is concerned, you're financially liable to them for up to the full value of the car (and these cars don't have that many miles on them), and they have your credit card. Travelers driving in Italy and Ireland have been known to damage their rental cars. Especially in those two countries (but in all countries), you probably want to be very sure your credit card coverage really does have you covered. If not, you're liable for the full value of the car, should something unexpected happen.See Nancy's post, below. Think about what would happen if it's you and it's not a "small accident" like hers was?Or take the train.

I've told my story here many times about Mastercard's "insurance coverage". I verified my coverage before my trip, and they assured me that as long as I declined the rental CDW I would be covered. Turned out not to be true, after I had a small accident and they refused to pay. I will never again trust a credit card for rental car insurance. Take the Super CDW -- the peace of mind will be worth the cost.

Gotcha. Thanks for the advice, seems like for the headache and worry, it's not worth saving the $100 I'd spend on the CDW.

I had an accident and used my World Card. Just got bill from rental car company for 1100€ (a true ripoff). I am waiting to see if MC has gotten all the info to settle it.

John: Anything you can share about how the accident happened? The country? etc

I'm interested to know if Mastercard actually pays the claim.

There are several other things to at least mention.
Some countries or agencies, regardless of what you believe your options are, require you to pay CDW or it's equivalent, not accepting credit card coverage. Yes, you can find another agency, but be clear on what each is most likely to require.
If you are renting for an extended period, week or more, consider third party insurance specifically for rental cars. You will have an easier time determining your coverage and it will most likely be cheaper than the rental agency. If you insist on using Credit card coverage, be prepared to first potentially have a credit hold for the amount of the deductible or value of the car put on your card, and then, in the event of an incident, have the Rental company bill your card until the issue can be resolved.

I just booked my car with Hertz for travelling in Italy. They seem to offer the best rate as compared with others, especially when it comes to one-way rental (I will pick up my car in Rome and drop off in Florence). What's even better is that if you choose to prepay the rental, you will get a discount in rate (in my case it's around $30) and it also includes CDW and theft protection. I called Hertz and asked them about the coverage--was told this will limit my liability to no more than 300 euros. This will definitely make me sleep better at night--as driving in Italy makes me nervous and from I read here, bumps with other cars and theft are pretty common there.
So I would recommend renting with Hertz just for this (CDW and theft coverage) if not for other reasons.
For your reference, I rented a Ford Fiesta 5-door, stick, for $285 a week (July, 2009). This includes a 10% AAA discount, CDW and theft protection.

When renting with CDW verify the coverage. Our CDW had a $1500 deductible. The first $1500 came out of our pocket. You can get super CDW, but it is very expensive. We went CSA Travel insurance that included car insurance...like Nancy, I have shared on more than one occasion how happy we were when they paid our $3200 claim in full.

We're going to Ireland this summer. I'd planned to upgrade to World Mastercard for the CWD coverage, but I just looked at the 2008 version of the World Mastercard Contract and it says that the coverage MAY not be accepted in Ireland and to check with the rental car company. Anybody have any idea what that means? We would be OK with paying for any damages if we knew we'd get reimbursed by Mastercard.

In 2006 Mastercard/World Mastercard covered insurance for rentals in Ireland. In 2007 it did not. Ireland was on a short list of places it did not cover that year. (Not even MC's issued by Barclay's or those bearing the Aer Lingus Logo!) Unless they have changed their minds since then, take their "may cover" as a big fat NO. I know it's so frustrating!

We rented in Ireland last fall, from Europcar. We paid 11 euros a day for the Super CDW. It leaves you with zero liability & no issues with credit card or other third party coverage. For us, the peace of mind was well worth it. It's basically what you'd pay for lunch every day for 2 people.

Don't forget that not all credit cards offer the same degree of coverage. The Visa platinum card we've used in the past, in combination with our own private care insurance, has covered us completely (with the exception of the mandatory coverage in Italy).

We re-verify coverages for each trip, especially credit cards -- they're not our friends so much these days, and rules are changing all the time.

Take written copies of coverage -- both your credit card company and insurance agent will provide these if asked.

For both private insurance and credit card coverage, if you've got higher coverage levels here, you'll be better off. Otherwise, spend the money there.

Seriously, you should only use the Mastercard insurance coverage as a secondary coverage. I would purchase all the upgraded insurance that the rental company tosses your way. Better safe than sorry. If you can't get a straight answer from Mastercard now, just wait until you have a claim!

Thanks for the late replies! We went this summer, decided to go with the rental CDW/3rd party excess coverage. We did have to file a claim, so I was happy to know for sure that we were covered. Can't put a price on peace of mind.