How Your Credit Card Could Protect You From Rental Car Damage
Posted by: Staff Writer | Jul 15,2007
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A tough way to learn about something is to have it happen to you, as I did in Paris when I had a fender-bender with a rented car. I'd heard something vague that by using the right credit card when I rented the car, I didn't have to take the extra Collision Damage Waiver (CDW). That extra bit of insurance that covers the costs from a car accident that your insurance doesn't.
So, I'd declined the CDW and was now hoping I wouldn't have to pay anything. The right driver's side headlight was crushed. Would my credit card cover the expense?
Almost A Year After the Collision
When I returned home I contacted my credit card company and told them what had happened - eleven months later. Somehow, I had gotten distracted with work and life, and I'd forgotten all about the rental car. Plus, I'd never heard anything from them either, so perhaps everyone had just forgotten about it.
The credit card company, Visa, told me I had up to a year to file a claim, so time hadn't expired yet. Also, I learned that the paperwork from a rental company overseas often takes up to a year. The rep was right, as a letter soon arrived. Visa paid for everything though and it didn't cost me at all.
The Credit Card Company Rules on CDW Now I decided it was time to learn the rules, and here they are:
Credit cards will pick up the difference between what your insurance pays and doesn't cover when you rent a car here at home in the U.S. However, when you rent a car overseas, the credit card will be your primary insurance. This is true for most countries, anyhow, but not all of countries in the world.
It seems that credit cards that are categorized as gold cards or higher offer this coverage. Check with yours to be sure of the policy because you can definitely save some money by declining CDW, which often will add anywhere from $15 to $30 a day to the price of your rental car. Always check with the rental car agency about any areas of insurance not covered by your credit card. Also if you are going to go abroad and are planning to rent a car, take it from me, you'll have a lot more peace of mind if you check your credit card's policy first before you have a fender-bender in the City of Lights.
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