Dear Liz: After 36 years in insurance, I don’t have a convincing argument for or against damage waiver “insurance” from rental companies. I know that my auto policy’s coverage usually transfers to the rental car. However, “economic loss of use” to the rental car company while being repaired is typically not a covered loss under the customer’s insurance policy.
That gray area forces us to grit our teeth and recommend that our clients buy the damage waiver endorsement when they rent the car. The rental companies charge an insane daily rate, but what can you do? I personally do not usually follow my own advice and decline the coverage. Maybe I’m ahead, but maybe I’ll be stung some day.
Answer: If you pay for the rental with a gold or platinum credit card, you may well be covered for “loss of use” charges while the car is being repaired.
You’ll want to check the benefits guide that came with the card (if you’ve lost it, ask the issuer to send you a new one). The guide will outline restrictions on coverage, which typically include requirements that you use the card to pay for the entire rental cost, that you decline the rental company’s collision damage waiver option and that the rental be 15 days or less (31 days or less in a foreign country). Credit card coverage also typically doesn’t apply to antique or luxury vehicles (with the definition varying by issuer), motorcycles, trucks and vans.
Social poster
Downloads
- No documents for download.
