At face value, it appears that the Visa’s protection extends only to the direct physical damage to the rental vehicle. Does anyone know whether this “coverage” would pay for loss of use while the rental car is repaired?
I would have to agree with Tom. The insurance provided by CC are some what misleading. In all cases the loss of use of the rental car is not covered. Consumers have a false security that they are 100% covered and decline insurance from the rental company when in fact they will be left holding the bag regarding loss of use.
VISA, AMEX, MC and all other credit card companies need to make this clear. It is misleading and the average consumer has no bloody idea what is covered.
After reading both comments, I thought that it sounded really odd that people still believe that loss of use is not covered. I have researched this in the past. So I went to Visa’s website and got this information under “what is covered”.
Covered losses are:
Physical damage and theft of the covered rental vehicle.
Valid loss-of-use charges imposed and substantiated by the rental agency through a fleet utilization log.
Reasonable and customary towing charges, due to a covered loss, to the nearest qualified repair facility.
So, I guess based on Visa’s website, I would say loss of use is covered. Please note that this is all secondary coverage if you are a U.S. Citizen and are renting a car in the U.S. The coverage is only primary if you rent in another country.
Many auto rental companies are charging renters for “diminished value” of the car when it’s been in an accidents. Credit cars and Personal Auto policies don’t cover this. The only way to protect against it is to buy the CDW, not reject it to activate your VISA coverage.
If a rental car company tried to charge me for diminished value, I think they would have a hard time collecting. With recent court decisions going in favor of the carriers on this one, and in my opinion, a rental car has diminished value once they place it into service. I applaud them for trying to keep their cars in the best shape possible, but we all know and we are all probably guilty a little, bit, that when you use a rental car, you have a tendency to drive it a little harder than your own car.
For the Visa debit question, that is a really good question. I guess maybe when they say “debit or credit”, I would choose credit to be on the safe side. This may be on a bank by bank basis as well.
Regarding diminished value, the courts are finding against agencies for this. Secondly, re: “credit vs debit” with VISA logos, since a debit card is actually a check card, most agencies may not accept for car rental, since an agency would want the ability to charge card immediately for damages, if damages occur, as VISA is considered more “merchant” friendly and agencies prefer to collect and let renter file for reimbursement under CC insurance programs.
In the reading I am doing this coverage is only secondary. Credit card coverages only kick in once your own personal insurance limits have been reached. The collison damage waiver does add a cost to the car but it does eliminate possible headaches down the road. Please read all that is involved in order to get you Credit card to cover the loss.
Rental contracts hold one responsible not only for the damage to the vehicle, but loss of use, diminished value and administrative fees. Again, consumers are often mislead about what their credit cards will or won’t do. There are restrictions as to type of vehicle, value of the vehicle, length of rental, etc. And, as has been pointed out, it is secondary (with the exception of Diner’s Club.) In addition, not all damage to a rental vehicle will typically be covered by credit card coverage. As insurance professionals we owe our clients sufficient information to allow them to make an informed decision as to decline/accept the LDW or CDW. We should not be offering counsel as to what their credit cards will or won’t do; they should be directed to their credit card company to obtain specific information. We should be offering risk management techniques such as thoroughly inspecting the vehicle before leaving the site, take the time to read the rental agreement especially with regard to permitted drivers and prohibited use, etc Personally, I buy the CDW/LDW making sure to comply with the rental agreement. I want that peace of mind, the ability to walk away.
We should also be aware that some states through legislation have limited the financial consequences to people renting vehicles. Also remember that under some auto policies, damage to the rental car is covered under the property damage liability; therefore, insureds with this policy should make sure they have adequate pd limits that will not only cover the pd they cause to others, but also the damage to the rental car.
At face value, it appears that the Visa’s protection extends only to the direct physical damage to the rental vehicle. Does anyone know whether this “coverage” would pay for loss of use while the rental car is repaired?
I would have to agree with Tom. The insurance provided by CC are some what misleading. In all cases the loss of use of the rental car is not covered. Consumers have a false security that they are 100% covered and decline insurance from the rental company when in fact they will be left holding the bag regarding loss of use.
VISA, AMEX, MC and all other credit card companies need to make this clear. It is misleading and the average consumer has no bloody idea what is covered.
After reading both comments, I thought that it sounded really odd that people still believe that loss of use is not covered. I have researched this in the past. So I went to Visa’s website and got this information under “what is covered”.
Covered losses are:
Physical damage and theft of the covered rental vehicle.
Valid loss-of-use charges imposed and substantiated by the rental agency through a fleet utilization log.
Reasonable and customary towing charges, due to a covered loss, to the nearest qualified repair facility.
So, I guess based on Visa’s website, I would say loss of use is covered. Please note that this is all secondary coverage if you are a U.S. Citizen and are renting a car in the U.S. The coverage is only primary if you rent in another country.
Many auto rental companies are charging renters for “diminished value” of the car when it’s been in an accidents. Credit cars and Personal Auto policies don’t cover this. The only way to protect against it is to buy the CDW, not reject it to activate your VISA coverage.
I’d like to know if VISA will provide car rental insurance to those consumers using debit cards with the VISA logo.
If a rental car company tried to charge me for diminished value, I think they would have a hard time collecting. With recent court decisions going in favor of the carriers on this one, and in my opinion, a rental car has diminished value once they place it into service. I applaud them for trying to keep their cars in the best shape possible, but we all know and we are all probably guilty a little, bit, that when you use a rental car, you have a tendency to drive it a little harder than your own car.
For the Visa debit question, that is a really good question. I guess maybe when they say “debit or credit”, I would choose credit to be on the safe side. This may be on a bank by bank basis as well.
Regarding diminished value, the courts are finding against agencies for this. Secondly, re: “credit vs debit” with VISA logos, since a debit card is actually a check card, most agencies may not accept for car rental, since an agency would want the ability to charge card immediately for damages, if damages occur, as VISA is considered more “merchant” friendly and agencies prefer to collect and let renter file for reimbursement under CC insurance programs.
In the reading I am doing this coverage is only secondary. Credit card coverages only kick in once your own personal insurance limits have been reached. The collison damage waiver does add a cost to the car but it does eliminate possible headaches down the road. Please read all that is involved in order to get you Credit card to cover the loss.
Rental contracts hold one responsible not only for the damage to the vehicle, but loss of use, diminished value and administrative fees. Again, consumers are often mislead about what their credit cards will or won’t do. There are restrictions as to type of vehicle, value of the vehicle, length of rental, etc. And, as has been pointed out, it is secondary (with the exception of Diner’s Club.) In addition, not all damage to a rental vehicle will typically be covered by credit card coverage. As insurance professionals we owe our clients sufficient information to allow them to make an informed decision as to decline/accept the LDW or CDW. We should not be offering counsel as to what their credit cards will or won’t do; they should be directed to their credit card company to obtain specific information. We should be offering risk management techniques such as thoroughly inspecting the vehicle before leaving the site, take the time to read the rental agreement especially with regard to permitted drivers and prohibited use, etc Personally, I buy the CDW/LDW making sure to comply with the rental agreement. I want that peace of mind, the ability to walk away.
We should also be aware that some states through legislation have limited the financial consequences to people renting vehicles. Also remember that under some auto policies, damage to the rental car is covered under the property damage liability; therefore, insureds with this policy should make sure they have adequate pd limits that will not only cover the pd they cause to others, but also the damage to the rental car.