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Update: As readers have pointed out, it’s very important to consider adding liability coverage as well, which is typically not provided as a component of credit card car rental insurance.
But what about renters who are not only devoid of any personal auto, theft or damage insurance, but also hold a card that offers only secondary insurance on car rentals? Should they still decline the CDW when initiating the rental? The answer is a resounding yes — they can still decline the waiver offered by the rental agency because secondary coverage simply becomes primary in their case.
Secondary Car Rental Coverage
I’m a frequent car renter and don’t have any personal auto insurance policy since I don’t own or lease a vehicle. After canceling my Chase Sapphire Preferred Card — which offers primary rental coverage — last year, I switched most of my travel spending over to the Citi ThankYou Premier Card,which only offers secondary coverage through MasterCard, albeit on any car rented in any location. Upon mentioning this at the desk of a car rental agency, the rep insisted I buy the waiver from them since secondary coverage for uninsured people was insufficient. Skeptical about this statement, I whipped out my phone and called the card issuer to confirm how it would work in my case. Both Citibank and MasterCard agents confirmed that the secondary car rental insurance would function as primary in my case, and quoted me an excerpt that can also be found in the MasterCard Guide to Benefits:
Upon checking with Visa, I was referenced a similar statement, which can be found in its own guide to credit card benefits:
The same is also indicated for American Express cards that offer secondary or “excess” Car Rental Loss and Damage Insurance, confirmed by customer service:
However, one thing to note is that both primary and secondary coverage only insure damage to the rental vehicle and are not all-inclusive. Things such as personal injury, personal liability and damage to other vehicles and personal property are not covered under either car rental benefit. As per various sources (as well as agents at the car rental desk), apparently the only card that offers liability coverage on a rental by default is the American Express Centurion (Black) Card. Even American Express’ optional Premium Car Rental Protection doesn’t cover liability.
Additionally, even though secondary coverage is as good as primary in the discussed scenario, in both cases you should still check with your card issuer about the terms and extent of this feature, as they tend to vary between banks and payment networks. For example, the Citi ThankYou Premier Card covers any vehicle rented in any location up to $100,000, whereas MasterCard lists exclusions to both vehicle type and location, covering up to only $50,000.
Bottom Line
Even if you lack your own auto insurance, you can rent most cars in most locations with the confidence that as long you use a card which offers at least secondary coverage, you’re insured for damage to the rented vehicle in the event of an accident. Just make sure you research the specifics of your card’s coverage if you’re unsure of anything before renting a car.
Source: thepointsguy.com