CDW for car rental in Italy

The one-word answer is "yes." For more detail you might want to read the free guide from Gemut.com, "What you should know about renting a car in Europe." It is a download from their site.

And after you see how they drive in Italy you will be glad you have it.

thank you!

"If you’re renting in either Ireland or Italy you’ll have little choice but to buy the company’s CDW."

http://www.ricksteves.com/travel-tips/transportation/car-rental-cdw

Basic CDW is mandatory in Italy and is built into the rental price

But when I last checked, the price of renting a car in Italy with the mandatory CDW was not much more (and may even be cheaper) than renting the same car for the same time without the CDW in another country.

For example, go to Europcar site and compare renting a Fiat 500 for August 11 -18 from Rome FCO airport and Paris CDG Terminal 1 Airport. Price in italy including mandatory basic CDW is USD$241.57. Price in France without CDW is USD$254.88 and the basic CDW will cost you and extra USD$85.81.

Best thing to do is to get a credit card which will cover the collision damage for you.

PS. Read the fine print of both your credit card and rental agreement.

Best thing to do is to get a credit card which will cover the collision damage for you

Unfortunately if you rely on the possible CC coverage, the rental agency will probably put a "hold" on your CC for the value of the car or a significant portion thereof. If you don't mind an $8,000, $10,000, $12,000 pending charge, go for it.

People can read the RS article on CDWs which is as good an explanation that I have seen. The link is in Laura's post above.

This is all a matter of choice and what you are willing to pay or to risk.

Let's say you are renting a $15,000 car for a week and you demolish it and suffer a total loss.

If you select the CDW, you typically pay an extra $10-20/day or an extra $70-$140 for the week and then you have to pay the deductible which may be about $500-$1000. So you end up paying an extra $570 to $1140 (if you are not in breach)

If you rely on the appropriate credit card, you do not pay any additional charge. The pre-authorized hold is only charged in the event of an accident caused by you. In our example, as a result of the accident, the car rental company will charge the total loss to your card and the credit card company will pay $15,000 to the car rental company. But ultimately you would not pay anything (if you are not in breach)

So the choice is up to you.

Always read the fine print of both credit card and car rental contracts. Let's say you are drunk, speeding, off-roading, doing a jump when the accident happened or you failed to report the accident to the police. Chances are you will be in breach of at least one of the terms of either contract. You will end up paying the $15,000 out of your own pocket because you will have lost your coverage as a result of the breach.

I would buy the extra coverages and avoid a huge hold on the credit card.

In our case we took the extra insurances (not the most expensive one that covered bags and passengers). On our second day, at Val D'Arbia someone tried to get into a parking spot they were too big for and dented and scratched the entire drivers side of the car. There ended up being other damages as well by other drivers who couldn't figure out how to park without playing "bumper cars" but when we turned in the car they looked at the damages and at our contract and said "You have the extra insurances, you're good, you owe nothing". We left and that was that.

The expense wasn't horrible and I would advise anyone renting a car in Italy to get the extra insurances. Just consider it a part of the trip expense.

Donna

Purchase the extra zero deductible coverage just for the peace of mind and it is worth every dime. The rule of thumb for the Italian driver, "Traffic laws are only suggestions." The further south you drive in Italy the more apparent this becomes. Another aspect of the Italian driving philosophy, "Does the red light/stop sign REALLY mean to stop, but certainly not for me."

Most cc will not provide coverage in Italy, Portugal, Ireland, and Israel.

We always rent from Autoeurope and have been quite satisfied with their operation. Not all things are equal; car returns in Italy-they look to see if the car is in one piece and al of the parts are there. In Ireland two or three employees MINUTELY EXAMINE your return for the smallest scratch. I wish my PCP paid this much attention to me during the checkup.

Buon viaggio,

...Best thing to do is to get a credit card which will cover the collision damage for you......

That may not be the best thing to do. Too many postings here about the horrid stories of trying to get the cc company to cover the damage. CC insurance tends to be secondary to your personal car insurance. Our son in the US was burned on cc coverage when his rental was damaged in a parking lot and the claim was refused on very technical grounds. Even the rental company was surprised at the refusal and finally split the cost with him. I would be very cautious about using my cc as insurance coverage in Europe.

Frank opened up another can of worms. Your own car insurance MAY provide the same coverage. I know with mine, I have the option to pay an extra $50-70 for some extra coverage which makes the CDW unnecessary whenever I rent a car.

And just to complete the discussion, you can always go to a third party insurer (auto association, travel agent or travel insurer) and buy optional rental coverage which should be cheaper than electing the car rental CDW/excess option.

So if you want to be extra careful and full peace of mind, you can buy extra coverage back at home through your car insurer, go to a travel insurer to buy their auto coverage, elect the optional CDW/excess deductible option and pay for it all using your Gold Visa with the car rental coverage.

Just remember to read the fine print on all of them because any non-compliance will be a breach of contract and may void your coverage.

Just out of curiousity, some credit cards also provide travellers with travel medical, accident, trip interruption coverage if you book your flight/hotel with the cars. Do you still buy extra travel insurance on top of this?

The formula for insurance is: fear + risk = $$$$$.

Just be prepared to have a huge hold put on your credit card if you refuse the extra coverages. This is standard. If you only have the single credit card this could severely impact your trip.

donna

Disputes can arise at any time. For every one story about problems processing a claim with a credit card company, I am sure I can google five worse stories about dealing with a car rental company. People are always claiming scams when they lose coverage as a result of failing to comply with the terms of the contract, whether it be the credit card agreement or the car rental agreement. It may not necessarily be that one contract is better or worse than the other. People need to read the fine print and follow the steps correctly or risk losing the coverage.

Given a choice, I would rather trust and deal with a major credit card company that has been providing me with service for over 30 years and has a head office in my country with English speaking customer service than deal with foreign car rental company with probable language issues over a one -time rental agreement in a different jurisdiction.

You can easily google the terms and conditions of the various credit card and car rental agreements. Personally, i find the credit card agreement easier to understand. One thing i noticed is that the credit card covers both car damage to car and the loss of use. On the other hand, while the rental agreement makes it clear that you are responsible for paying both, the CDW only gives you protection for the car damage and is silent on loss of use. This means tha the car rental company may still reserve the right to claim loss of use against you. That is just my opinion and i could be wrong because i find some of the terms in the car rental agreement to be a bit ambiguous.

I can't personally recall every having a hold put on my creditcard of $10,000 -$15,000, but i cannot say it could never happen. Still I would not let this scare me into buying what I consider to be very expensive and unnecessary coverage when other alternatives are better. First of all, a hold is not a charge. You are not debited unless you actually damage the car. Secondly, my credit limit is high enough on my Visa card that I would have sufficient credit to spare and I also carry a Mastercard. Thirdly, in the case of Italy, the basic CDW is mandatory, so your maximum liability or hold would only be about $500-$1,000 depending on your car. And if you use the applicable credit card, the credit card will pay this deductible for you in the case of an accident or theft, saving you to pay the additional cost for the super CDW/excess protection.

Also, be aware that in this racket, the insurers are always trying to pass the buck. The credit card agreement is very clear in advising the cardholder not to opt for the CDW. If you do, the credit card coverage gets reduced to just paying the deductible and nothing else. Also, if your car back at home already has the extra coverage to cover damage to a rental car, either the credit card agreement or the rental car agreement may have written terms to become secondary coverage and go after your car insurer for coverage. So in the end, you may have paid for all that extra CDW/excess coverage for nothing.

In the end, you just have to choose what makes you feel safe.

There is no right or wrong answer. People should choose the coverage they're comfortable with. If they wish to be covered by their credit card then they should use that coverage, if they prefer to buy coverage at the rental counter then they should do that.

All I can say is in our case the car was damaged (someone scraped us while trying to park) and when we returned it the guy came out to check it, saw the damage, checked our contract and said "you have insurance, there is no charge." It was as simple as that. There were no forums to fill out, no deductible, nothing. Just a thank you and a good bye.

To anyone considering renting a car, be sure to read the terms and conditions of the rental before agreeing to it. All companies have them posted on their websites. These terms and conditions will spell out everything, including what each coverage includes and doesn't include. It will also spell out the "hold" they will put on your card if you decide not to get the extra insurances.

Donna

I thought I would add an account of our recent experience. Our United/Chase Visa Mileage Plus Explorer Card lists insurance against "physical damage" to a rental car one of its benefits. I called their office to make sure I was clear on what was covered and to be sure I followed the correct procedure when renting. (Very important) Basically, you have to use the card for anything to do with the rental, and to decline any other optional insurance.
As luck would have it, I got to test out this benefit. I damaged the side view mirror trying to squeeze past an illegally parked car on an extremely narrow street. No biggie, around $40. However, somewhere or other, someone scraped our rear lower side slightly. There was no dent, just a scratch on the paint. The tab for that was over $400!
We've been back for 9 weeks. I'm sure that I didn't file the claim for several weeks after getting home. Today, a check arrived reimbursing me for the total amount, no quibbles. So kudos to Chase Card Benefit Services for excellent customer service.

After doing searches on Google and Reddit, I see that some people are reporting that car rental places are reversing their policies on credit card holds, especially when customers demand to talk to head office while at the counter. Also, it seems to help if you have a copy of your credit card car insurance coverage policy to show the rental desk person to prove that you have the so called legally mandatory coverage. Having a copy of the agreement with you is a good idea because it contains the telephone numbers and procedures of what to do in the event of a claim.

When a rental desk person claims that the country's law requires that you must pay for the optional CDW or excess coverage, he may be mistaken or may be deliberating trying to scare you to pay extra. Same with the demand for a credit card hold which scares people into thinking that a hold is a debited charge.

IMO, you are much better off taking time to understand and to rely on your credit card agreement than trying to figure out a car rental agreement which have different wordings and pitfalls depending upon the different rental companies, possibly in a different language all while in a rush with people lined up behind you at the car rental counter. Call your credit card co before you leave on your trip and they should be able to explain everything to you.

I know many of you are against unnecessary tipping. If you have alternative and adequate coverage, why buy the optional coverage and give the car rental company what may amount to a 50-100% tip on top of your basic rental charge?

Here is a nice article:

http://www.gemut.com/bestors-blog/38-car-rental-in-europe/4065-consumer-warning-booking-online.html

CDW is mandatory in Italy. Where they really get you is adding an additional insurance on theft of your personal possessions--ripoff.

The Italian CDW's are much cheaper than the U.S. That would lead me to believe that the government has regulations on the cost that rental companies can charge for CDW. It's a much better deal than other countries.

But the biggest fallacy is that large auto rental companies pocket CDW funds and never pay outside insurance companies to insure their rental cars--self insured. Most renters' personal insurance on their automobile will pay for damages in foreign countries and they'll go back on a Gold Card as a secondary insurance if the auto policy from home will not cover the repair. And then, they'll come back on you for the time the car was in the shop--not being rented.

(I worked with a major auto manufacturer managing the largest lease fleets in the U.S.)

Yes, the basic CDW in Italy is mandatory. And once every car rental company in Italy made the basic CDW part of the base rental fee, the total price in Italy is actually was no more (maybe less) than renting the same car in France WITHOUT the CDW. Like David, I think that the whole CDW and extra coverage options are just extra profit generators and not an actual expense recovery for the car rental companies.

When I first rented a car in Europe 25 years ago, if the renter opted to pay for CDW, it was a full waiver of all damages. If you got into an accident back then, you did not have to pay anything. Over the years, the car rental companies have found creative but perfectly legal ways to add layer upon layer of charges.

Nowadays, if you get the basic CDW (mandatory in Italy), you still need to pay a deductible up to $500-$1000 if there is damage to the car. You can pay extra for the optional "super" CDW or excess coverage to bring the deductible to zero, but that still does not cover your tires, windshield, mirrors. If you pay another extra $2-5 per day for the latter protection, you will be presumably be fully covered for all damages. However, you may still get an administrative charge of $20 to process your accident depending upon which company you are dealing with. Also, note that all of that some coverage does not expressly cover "loss of use" which you are contractually liable for and may still be claimed by the car rental co. But with all the money you have paid, they probably just don't bother. Also, have they actually suffered any loss of use if they have a large fleet and can rent out a different car while yours is being repaired?

Clearly, i have a personal aversion to paying extra to the car rental companies and always encourage others to explore their options before buying.

Bookings with AutoEurope and Kemwel have always come with a zero deductible based on my personal experience. And their prices are highly competitive.

Well, I have the same question as jarrardd. But after reading the replies I'm still pretty confused. Will a car rental company in Italy require me to sign up for and pay for CDW when I pick up the car? Will they actually rent me the car if I refuse? I do have CDW coverage through my credit card. I did have to put through a claim one time and although it took a while the credit card company eventually reimbursed me. I just hate having to pay extra for something for which I'm already covered. Any further advice would be much appreciated. Thanks.

Kay

1. You can go to a car rental website (pick big co like Avis, Hertz or Europcar etc. as opposed to some little known company ) and test reserve so you can see what is going on. You should see that the BASIC CDW is mandatory in Italy. In Italy, the CDW is included, no extra charge and you cannot remove it. You should also be able to see that if you get into an accident, you will have to pay a deductible of say $500.

2. What you should also see is the OPTIONAL "super CDW" (or "excess coverage", "premium coverage" or "zero deductible") and maybe another extra option to cover windows mirrors and tires. If you buy this optional coverage, you won't have to pay the $500 deductible in paragraph 1 if you have an accident. This optional coverage will cost you an extra $15-25 per day. If you have the appropriate credit card, i would recommend refusing these charges.

3. Finally, check out your credit card agreement. My visa says that if the CDW is selected (which is mandatory in Italy as I say in paragraph 1) then Visa will cover the $500 deductible for me in the case of an accident. So, if you have the right credit card, you will save on having to pay the extra dailiy charges by refusing the optional coverage described in paragraph 2.

4. All of the above applies to Italy. If renting in say France, you should see that the basic CDW is optional (as well as the additional super, excess etc coverage as additional options). You have a choice to pay for it or refuse it. In that situation, my visa card advises me to refuse all the optional CDW and my visa would cover any damage or loss of use.

You can call the car company and the credit card company before you book to verify all of this before you commit. Or talk to your insurance agent.

Kay, they won't refuse to rent you the car if you refuse the extra coverage (the basic CDW is included in the rate and cannot be refused) but they will put a hold on your credit card for possible damages. If you are already covered by your credit card then just refuse the extra coverages but be sure to have enough space on your card for the amount they will hold. Usually it's thousands of euros.

We paid for the extra insurances, not the one that included luggage and injury, and were glad we did after other drivers damaged the car. There were no forms to fill out upon return and no waiting for reimbursement. We just handed over the keys, the attendant looked at the car and our rental agreement and said we were good to go because we had the additional coverage. It was well worth it to us not to have to deal with any type of possible paperwork and the costs were really not much at all. We consider it just part of the cost of a vacation.

Donna

Thanks for the further clarification. I will dig out my credit card agreement and check a large auto rental company online.