LA Times weighs in on car rental insurance

Note that the article is specifically directed to US rentals only. Do not assume the information applies to any rental in Europe ( or Canada or anyplace else outside the US).

You'd need to either check the terms of your credit card, or call ahead of your trip to verify what coverages you have. You'd also want to call your home auto insurer to see if they cover primary rental coverage, which many do. Credit card coverage will just about always be secondary coverage to your auto insurer.

I recently changed my Visa to a Capital One Venture card--paying 2% back on travel related expenses plus it credits 400,000 miles to the account if $3,000 is charged within the first 90 days. Close examination of the terms shows not one word of rental car insurance coverage. I'd have to use another credit card if using it for rental car coverage overseas.

When you purchase Collision Damage Waiver (CDW) from rental car companies, those funds are not forwarded to an insurance companies. The rental car companies are self insured--and CDW is a profit department for them.

The good advice is to know what your credit card auto rental insurance covers. Examples:

Master Card's MasterRental® Car Rental Collision Damage Waiver Insurance:
http://www.mastercard.com/tt/personal/en/findacard/credit_cards/gold/gold_mc_master_rental.html

MasterRental Insurance pays for covered damages to the rental vehicle
when the eligible MasterCard card is used to initiate and pay for the
entire rental transaction.

The MasterCard cardholder and those designated in the auto rental
contract as authorized drivers are covered. The cardholder must rent
the car in his or her own name and decline the collision/loss damage
waiver offered by the car rental company.

Covered damages provided for include:

Physical damage and theft of the vehicle up to its market value, not
to exceed the limits described in the complete MasterRental terms and
conditions. Reasonable and customary charges imposed by the rental car
company for the period of time the car is being repaired (“Loss of
Use” charges) that are substantiated by a Fleet Utilization log.
Reasonable and customary towing charges to the nearest qualified
repair facility imposed by the rental agency on a covered loss.
Certain terms, conditions, limitations, and exclusions apply. Please
see the MasterRental terms and conditions for complete program
details. The information contained herein is provided solely for
general informational purposes. It does not intend to be a complete
description of all terms, conditions, limitations, exclusions, or
other provisions of any program or insurance benefits provided by, or
for, or issued to MasterCard. For any questions please contact
MasterCard Assistance Center at "1-800-307-7309".

Capitial One Venture Visa:
https://www.capitalone.com/media/doc/credit-cards/benefits-visa-signature.pdf

AUTO RENTAL COLLISION DAMAGE WAIVER What is this benefit? When certain
terms and conditions are met, the Visa Signature Auto Rental Collision
Damage Waiver benefit (“Auto Rental CDW”) provides—at no additional
charge—reimbursement for damage due to collision or theft up to the
actual cash value of most rental vehicles. In your country of
residence, this benefit is supplemental to, and excess of, any valid
and collectible insurance from any other source. Here are answers to
some commonly asked questions about the benefit. Who is eligible? You
are eligible only if you are a valid cardholder whose name is embossed
on an eligible U.S.-issued Visa Signature card. Only you as the
primary renter of the vehicle and any additional drivers permitted by
the auto rental agreement are covered. What is covered? Subject to the
terms and conditions in this Guide to Benefit, Visa Signature Auto
Rental CDW reimburses you for the deductible portion of your personal
automobile insurance, valid administrative and loss-of-use charges
imposed by the rental car company, as well as reasonable towing
charges resulting from covered damage or theft of the rental vehicle
while it is your responsibility. If you do not have personal
automobile insurance or any other insurance covering this loss, this
benefit reimburses you for the covered damage or theft as well as
valid administrative and loss-of-use charges imposed by the auto
rental company and reasonable towing charges. Only vehicle rental
periods that neither exceed nor are intended to exceed fifteen (15)
consecutive days within your country of residence or thirty-one (31)
consecutive days outside your country of residence are covered.

A key thing for credit card coverage to be in effect, and both examples shown above state it, is that the card MUST be used for the initial reservation (if applicable) and for the rental. A few people here have reported that they got push back from their credit card on a claim because they used a different card to reserve the car than the one they used on arrival to rent the car.

And NEVER let someone drive your rental car that isn't authorized. Your insurance is null and void if you do that, no matter who is covering you.

Some countries have different laws and policies on rental car insurance that will override any personal or credit card coverage you may think you have. It's a very good idea to understand those, or just grit your teeth and take the rental CDW to be safe.

David - 400,000 miles ?

That's not so much, Stephen, just 13 or so orbits of the Earth!

Or just short of a round trip to the moon. Maybe if it is especially close you could get back.....