Credit Cards and Car Rental Insurance | Travel to Germany, Austria, Switzerland by Rental Car or Train

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Credit Cards and Car Rental Insurance

Relying on a Credit Card for Car Rental Insurance

When renting a car in Europe, by all means use your Visa gold or platinum, Mastercard gold or platinum, Diners Club or American Express card to avoid the expensive collision damage waiver (CDW) insurance charged by rental companies. You can save anywhere from $10 to $30 per day provided your card includes such coverage.

However, you should know that if you rely on a credit card for CDW, and the car is damaged, you will be required to pay for that damage. You then ask your credit card company for reimbursement and there is plenty of fine print that can disqualify you. Here is language, some of it paraphrased, from an American Express notice on the subject:

You must decline the CDW or similar option offered by the car rental company to activate coverage for a particular rental.
Coverage is limited to cars rented from a "commercial car rental company," which, in the U.S. is 15 specifically designated companies. Outside the U. S. commercial car rental company means "any commercial car rental agency which regularly rents rental autos, expect those in Italy and New Zealand, where no coverage is provided."
Car Rental Loss and Damage Insurance covers most rental cars including many foreign cars, when they are rented on a daily or weekly basis for no more than 31 days (ed. note: this means if your rental contract is for 32 days or more [or, in the case of most Mastercards, which have a limit of 15 days, 16 days] you have zero coverage for the entire rental). The card member must provide appropriate documentation that the damage/loss was incurred within the applicable time period above, under an agreement from a commercial car rental company.
Certain vehicles are not covered such as off-road vehicles, motorcycles, mopeds, recreational vehicles, trucks, campers, trailers, certain vans and four-wheel drive sport/utility vehicles when driven off-road. Minivans are covered when used for personal or business use.
Coverage does not extend to "losses caused by or contributed to by operation of the rental car in violation of the terms and conditions of the rental car agreement (including but not limited to losses occurring when a person not permitted to operate the vehicle pursuant to terms of the rental agreement was in possession or control of the vehicle); intentional damage; illegal activity; preexisting conditions, damage or defect; being under the influence of intoxicants or drugs; war or military activity; radioactivity; confiscation by authority" and on and on.
A card member must notify American Expresss Car Rental Loss and Damage Claims unit within 48 hours or as soon as reasonably possible following a loss. If such notification is not received, coverage may be denied. Written proof of loss, including completion of a claim form provided by American Express, must be received by American Express within 60 days of the date of loss or coverage may be denied.

Among the items required to document the loss:

Copy of the drivers license of card member or authorized driver.
Copy of card members auto insurance coverage.
Itemized repair bill.
Claim form.
Copy of the rental agreement.
Police report if the damage exceeds $500.

If the foregoing documentation is not received within 180 days of the date of loss (except for documentation which has not been furnished for reasons beyond card members control), coverage will be denied.

And, finally, this disclaimer:

"This document is not the policy or contract of insurance. The benefits described in this document are subject to all of the terms, conditions and exclusions of the policy issued by the underwriter. This document replaces any prior description of coverage under the policy which may have been furnished to the card member. The coverage may be changed or terminated."

Other card companies have similar rules. We suggest you become familiar with them

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Gemütlichkeit: The Travel Letter for Germany, Austria, & Switzerland