In the past, we've always declined the rental agency's insurance, going with our personal car insurance and American Express. Never had a fender-bender doing that so I don't know how that would pan out.

Then last year we went with another couple and they convinced us to go with Auto Europe's insurance to avoid any hassles, and since they would be splitting the driving & costs, I booked the rental with the ins.

There was a small dent in the car when we turned it in but I didn't worry about it since we had the ins. Much to my surprise, when the Amex bill came there was a $300.00 charge for damage. When I called Auto Europe they told me to read the policy....there was a $500.00 deductable.

So, what do all you seasoned travellers do about the CDW?

This traveler declines the rental company insurance and uses the credit card insurance. This year when I did have a single car accident in the UK it was fully covered though it was charged to my credit card and I had to claim from Visa. Both Visa and Hertz were very helpful and prompt in providing the required info.

My personal car insurance does not cover me in Europe (I think that's rather unusual for anyone's U.S. car insurance to do so). AMEX Gold Card used to cover me, but not anymore (read the fine print since about 4 years ago). I use a VISA or MasterCard Gold Card, which covers me completely, and waive the CDW, except when I am giving tours and driving unrelated people around, in which case I insure myself to the hilt.
On the few occasions when I've had a small repair problem (broken headlight, broken hood latch, cracked side view mirror, e.g.), my gold card has covered it with no problem whatsoever (all rentals through AutoEurope). Never received a bill, never saw a line item on my credit card. In all cases, I reported the problem upon returning the car, and in all cases I was assured there would be no problem - and there wasn't. Don't have a clue what that $500 deductible was - I never signed anything that said I was willing to pay a deductible, and I never had to.

Linda,

Funny you should say that.

After reading so many good things about AtuoEurope in Fodors, I was about to book with them. Then I read the fine print which said that a deductible might apply. I decided to rent with Hertz instead.

After reading about your experience, Im glad I went with Hertz.

It depends on what country you're in. In Italy AMEX doesn't cover you at all because the mandatory CDW is supposed to cover you completely. AutoEurope has told me many times that there is no deductible for Italy. For other countries you have to read all the information and ask questions. I use their insurance and the credit card. Was the problem in Italy or another country? If you pay for all the insurances AutoEurope gives you when you rent a car from Hertz, you'll be in the poor house. If you didn't rent in Italy, the AMEX should pick up the $500.

If you are going for more than 17 days, you could also consider leasing. The cars are fully insured and have a zero deductible with 24 road aid and a brand new car.

Dick, The policies at Hertz and AutoEurope look identical to me. What AutoEurope calls a "deductible" Hertz calls a " Non-Waivable Excess."

At the Hertz site, go to Before You Rent> Qualifications & Requirements> Collision Damage Waiver and you see the same policy as AutoEurope. If you choose the rental agency's CDW, there's a non waivable fee applied (and its value varies by country). You can reduce that liability by paying additionally for Super CDW. We took the CDW/Super CDW in the UK last year and it brought the liability down to $250 from $750.

They get you coming and going.

As always, it depends on the country.

Dick, I'm curious why you are so happy you went with Hertz instead of AutoEurope. Do you have the impression there will be a 0 deductible with Hertz? I would be very surprised.

Incidentally we once rented in Finland and took the CDW for full coverage. We did have a fender-bender and when we turned the car in, the attendant told us we were going to have to wait there for an appraiser to come estimate the damage and that we would have to pay the amount immediately and try to make a claim later with our credit card company. Then he realized we did the full coverage and said, "no we could go". I still think of being stuck there for hours and having the paperwork involved with trying to settle the claim with my credit card company back in the states. I always do take the full coverage -- usually with AutoEurope or with AutoFrance for a 17 day or longer least plan (where the full insurance is automatically included).

The incident happened in France, and I never considered trying to get the deductable refunded through Amex. I was under the impression that if you bought the insurance through the rental agency, Amex (or any credit card you used) would not cover it.

Is that correct?

Obxgirl & Patrick,

Hertz had a large deductible, but I knew my credit card would cover the deductible.

In order for the CC company to cover my deductible, must decline the insurance offered by the rental company.

My fear with AutoEurope was that my CC company MIGHT tell me that since I was covered for additional insurance that I would not be eligible for the CC coverage.

Perhaps they might have coveredd me..I just didn't see any reason to take the risk.

OK, now I'm really confused. I just copied this from Rick Steves' web site:

"The car insurance included in the rental cost comes with a very high deductible, often equal to the value of the car! For the peace of mind, if nothing more, you need to buy supplemental Collision Damage Waiver insurance, or CDW. CDW entirely covers the car?s deductible. For around $15 a day, you can walk away scot-free from any accident."

Any thoughts?

Dick, I think we have a fundemental disconnect.

If you turn down the the rental agency CDW and assume coverage by your CC, you are on the hook for the full value of the damage in the event of an accident and/or theft . Deductibles are not an issue.

A deductible or non-waivable excess comes into play when you've taken the agency's CDW and you have a mishap. Then you're on the hook for the first $300-$750 (depending on the country) of cost before the CDW insurance kicks in.

Both Hertz and AutoEurope (as well as the other car rental biggies I assume) offer a Super CDW which will (for an additional fee) reduce but not eliminate your liablility. I'm not endorsing this practise (in fact I think it's a bit stinky) but the policy is stated.


Linda431, I looked briefly at the Rick Steve's website but couldn't easily find the info you referenced. I think the website must be out of date as the major auto rental places do spell the "deductible" business at their on line sites. You do have to ferret the info out but it is there.

obxgirl,
Here's the link to Rick Steves' article http://www.ricksteves.com/rail/carrent.htm

I checked AutoEurope's policy and they said that the CDW "may" have a deductible and that it and other details would be revealed in the policy when you pick up the car.

You're pretty much stuck if you don't get to read it until you get to the rental counter and there's a line of people behind you. Not to mention getting there bleary eyed after an overnight flight.

But, since our auto insurance has a $1000 deductible, I guess I shouldn't complain. It's just that in the case of the rental, you're at the mercy of the agency if something goes wrong. You'll be 3000 miles away by the time you find out how much it's going to cost you, and no chance for getting another estimate either.

I always use the credit card insurance. I've never had to file a claim but I know several people who have and they all say the credit cards (especially VISA) come through great. Two things to keep in mind.

When using the credit card for the collision/theft insurance, the car rental company will put a "hold" of a few hundred dollars on your account when you take the car. If you return it OK that charge never appears on you bill, but if you have a very small credit line and have already charged a lot, then it could be an issue. Also, if you do have damage they will charge that to your card until all the paper work is filed (which takes a few weeks). So that could max out your card. These are worst case scenarios. You get around them by having a second credit card (MC or AMEX) to use to continue your trip with.

The other thing to remember is that the car rental company's CDW insurance usually has a deductible of about $500. So in addition to the extra per day that you are paying for the insurance, if you do have even minor damage you will be responsible for the first $500. If you want to get rid of the deductible you pay even more per day. On a week or so rental it's usually hundreds of dollars more to take their insurance. The credit card company's insurance has no deductible, they pay the whole thing. For that amount of money I'll chance having to file a bunch of paper work and wait a few weeks to have the charge removed from the credit card.

Thanks, Linda431, for pointing out the quote from Rick Steves' site. Someone should contact him/them to say the info is very misleading.

I know these are pretty stupid suggestions but I'll make them anyway.

1. Call your credit card company and inquire what they cover in case of an accident with a rental car and if you do have an accident what procedures to follow.

2. Call your automobile insurance company or agent and request the same info. You do pay hundreds if not thousands of dollars a year for the insurance so why not get the answer from them.

3. Call your homeowners insurance company to see if they cover theft from a rental auto. Again, you are paying.

Why do we ask questions of strangers but not of the professionals we're paying who know the answers?

linda,

Rick Steves may say, "For around $15 a day, you can walk away scot-free from any accident." ...but he isn't an attorney. Some car rental policies exclude coverage for driving under the influence of drugs or alcohol while breaking the law. I read where some people found out they had no coverage because they used prescription drugs or were speeding. The fine print in a contract is generally written to protect the one who wrote the contract.

obxgirl,

My CC company will cover the cost, including the full value of the car. Depending on the country, they may use my auto insurance first(if there is coverage) and cover the deductible...otherwise they are the primary insurers.

However, in order to have the CC company cover me, I must turn down the collsion damage insurance from the rental company.

I had my car broken into in Kauai. My CC company covered all damages including a rental company processing fee and the cost of "lost of use" while the car was being repaired.

Perhaps I have an exceptional insurance company, but I checked with them and they extend my coverages to a rental car stateside, and for a very nominal premium, will extend that coverage to Europe. I'm glad I checked so now I will know to get the extended coverage if I plan to rent in Europe. The CDW offered by the rental companies always seemed like a bad deal because it was expensive, and has a reputation of being fraught with exceptions, and you don't have time to read the contract carefully when you are picking up the car.