Do people rely on rental vehicle excess coverage on credit cards?

[JJmelb2024]

I've always purchased zero excess insurance coverage from rental car providers but I know that my card (Westpac Qantas Black) has excess coverage but never relied on it. Do people generally use and rely on this coverage or still purchase extra insurance through the car rental provider? Appreciate people's experience or advice

 

[kerfuffle]

I did when I was renting cars while I was waiting for my new car to show up. Westpac Velocity Platinum. Luckily for me, I never had to actually use it.

 

[p--and--t]

I've always purchased zero excess insurance coverage from rental car providers but I know that my card (Westpac Qantas Black) has excess coverage but never relied on it. Do people generally use and rely on this coverage or still purchase extra insurance through the car rental provider? Appreciate people's experience or advice

Not purchased excess, ANZ Black, not needed to use it so far.

 

[QF029]

I had needed it about 4 years ago and used my amex plat charge. It took a few months but they covered about $5k from memory.

 

[VPS]

Either that or I generally have a domestic travel insurance

 

[UP4014]

Have done both over time.

Remember, reading the fine print reveals that basically they, the car rental and the credit card provider can get out of paying.

 

[RB]

Have done both over time.

Remember, reading the fine print reveals that basically they, the car rental and the credit card provider can get out of paying.

That is a very bold statement, can you tell us specifically which terms to look out for?

 

[justinbrett]

It depends on the excess. Generally outside of the US the excess is max around A$6K so even if the worst happened and the credit card didn't pay not a life changing event (for me at least).

US is a different ballgame, you have to be really careful with how your booking is made, as usually a US booked rate won't include any insurance so it's really dangerous not to pay for LDW. Booking via Australia (eg via QF) the rate will usually include LDW, and if that happens usually you don't have any excess at all.

Have done both over time.

Remember, reading the fine print reveals that basically they, the car rental and the credit card provider can get out of paying.

Basically this. Even the same rental company in two different US states will have wildly different terms, let alone different countries. Just make sure you have some insurance as some companies have no problem renting to you without any insurance and if the worst happens, you'll wish you had the option of A$6K excess!

 

[JJmelb2024]

Thanks all for your input and comments. Rookie question, but does the LDW include third party damage in the event of an at fault accident?

 

[UP4014]

Insurance is a promise to pay, not a guarantee of payment.

 

[Cynicor]

Amex plat have covered me before.
I use mostly them or my other TI.
Unlike BAM I have no concerns about insurance obtained in Aus not paying out. The AFCA are pretty decent

 

[justinbrett]

Rookie question, but does the LDW include third party damage in the event of an at fault accident?

No, LDW doesn't cover third party.
However Third Party (by its various names) is often mandatory by law and in most cases either included in the base rate or bundled with LDW.

This is a rental I have next month in the US (Avis), booked through QF with no optional extras (the included items came with base rate):



If I made a new booking on the US site for the same location, I get this option:


Just need to remember most US drivers insurance is valid on rental cars so the system isn't setup for foreigners - that's why rates booked through places like QF bundle it with the rate.

 

[tdimdad]

Credit card and/or travel insurance here. I've never taken a policy out from a car rental company.
So far things have gone well enough for me to never need the cover (knocking wood) so no real-life experience on how things will go, when needed. But the CC or TI I choose also partially so that it offers sufficient cover for the customary $5k or $6k excess.

 

[k_sheep]

Hmm I've never bought excess reduction ... yikes? Luckily never needed it yet.

Using commbank ultimate for an upcoming trip, guess I'd better read that PDS

 

[bashworth]

I haven't bought car company excess in over 20 years.

I did have a small scratch about 8 years ago and the car rental guy who came to inspect the car couldn't believe I owned up to it before he had checked the car.

I sent it to the credit card company who paid up!

I also had a cracked screen on a lap top replaced without any problem.

 

[lovestotravel]

Generally I rely on the Amex insurance, but when hiring overseas I'm usually in a car that exceeds the $125K limit so I purchase the all inclusive insurance with Avis Prestige (there is still an excess of $1000/$2000) or no excess with the other majors

 

[Dr Ralph]

No

 

[Andyc]

I don't pay for any extra insurance and lean on my AMEX Platinum insurance (or work insurance for work bookings).

I did have one incident in MEL a few years back. As it happened, it was the rare occassion my car my upgraded to a Mercedies! Someone rammed a shopping trolley into the side of it whislt at a shopping centre car park.

AVIS said they usually charge the credit card immediately for an estimate of the cost. But in my case (can't remember if it was due to status or my well-known employer's brand being noted in the discount code) they said they'll wait til the cost is known.
I lodged an insurance claim imediately.
Despite the damage being done in Jan, it was May before Avis sent the invoice (for works noted as completed in Jan) and charged my card for the repairs. AMEX's insurance provider (Chubb) immediately reimbursed me.

All in all, it was a very good experience with AMEX/Chubb and confirmed that I'll continue to rely on AMEX for my insurance.

 

[Chicken]

A skip brushed the side of my car last year (like an auto carwash with brushes), then took out the rear mud guard and bumper last year in SA. I didn't take up any excess insurance when I collected the car, and my AmEx Reserve insurance paid out in full.

I have seen some credit card insurance has coverage as low as $2200 and $2700 (Citi), so read the PDS. My Amex Reserve is $100k coverage

 

[ioz]

No, LDW doesn't cover third party.
However Third Party (by its various names) is often mandatory by law and in most cases either included in the base rate or bundled with LDW.

This is a rental I have next month in the US (Avis), booked through QF with no optional extras (the included items came with base rate):

View attachment 367490

If I made a new booking on the US site for the same location, I get this option:
View attachment 367491

Just need to remember most US drivers insurance is valid on rental cars so the system isn't setup for foreigners - that's why rates booked through places like QF bundle it with the rate.

Very good points @justinbrett --

I've also noticed (having both AUS business and personal USA rental car company loyalty accounts that when booking directly (say) a US car using my AUS profile -- they include LDW and 3rd party cover "free" and visa-versa. Same rental company, car, dates, and discount codes when using my local profile then LDW is usually ~$35/day extra. I often do multi-week or monthly rentals -- so this can REALLY add up. I value the rental vendor's included cover as it seems less "dispute-able" and ALL credit card insurance polices (even my AMEX Plat) have gotten more restrictive and less likely to cover all (or most) losses.

I also find that the higher status I have with Budget or Hertz (when booking direct) -- the higher my rental rates are. Oddly, if I use a private browser window (or clear my cookies first) then do a search NOT logged in -- I get a much (usually 10-25%) cheaper rate quoted. Only then do I log in (the lower rate stays in place) and then my RapidRez or Presidents Circle benefits apply. (I note this as when booking direct with Qantas -- seems its a request only comment field and the hire company may or may not link your status account details).

Oh, a sordid and complex points and price world we live in!