Rental Vehicle Insurance Excess Question

[Renato1]

Hi Everyone.
The conditions that Allianz puts on Travel Insurance for Rental Vehicle Insurance excess in its policies - both with complimentary and purchased Travel insurance are as follows.

from Bankwest's Allianz policy
" Rental Vehicle Insurance excess
We will reimburse you for any insurance excess or deductible which you become legally liable to pay in respect of a claim under the rental vehicle insurance during the rental period provided:
• the rental vehicle must be rented overseas from a licensed rental agency; and
• as part of the rental agreement you have taken rental vehicle insurance; and
• you have complied with all requirements of the rental organisation under the hiring agreement and of the rental vehicle insurer. "

And from the fully purchased Allianz policy
"Cover is only provided under this section if you have purchased motor vehicle insurance or damage waiver from the rental company or agency you rented the rental vehicle from. This insurance does not cover items such as, but not limited to, tyres and/or windscreens if they are not covered by the motor vehicle insurance or damage waiver purchased from the rental company or agency. This section only provides cover for the excess payable under the motor vehicle insurance or the liability fee payable under the damage waiver specified in your rental agreement up to the limit shown in the Table of benefits under the Plan you have selected."

As I read it, in order to be able to claim the excess from an accident, one has to have purchased insurance from the rental agency.
Does this mean one can get away with buying the minimal amount of insurance, and then relying on the Travel Insurance for the remaining excess? (e.g. excess in Italy is 4000 Euro, I pay insurance for 1000 Euro, then Travel insurance covers me for 3000 Euros).

Or does one have to buy the maximum offered - like the following condition from a Chubb policy states - in which case there will probably be no need for the car excess cover?
"If You become legally liable to pay any Collision Excess in respect of loss or damage to a Hire Car during the rental period stipulated in the Vehicle Rental Agreement, We will reimburse You any Collision Excess that You have paid under that Vehicle Rental Agreement(s) up to $3,000, provided:
1. the Hire Car must be rented from a licensed Car Rental Company; and
2. as part of the hiring arrangement You must take up all comprehensive motor insurance offered by the Car Rental Company, whether discretionary or mandatory, against loss or damage to the Hire Car; and......"

I would appreciate input from people who have had experience with this.
Regards,
Renato

 

[equus]

It means you cannot be totally uninsured (e.g. as is easily possible renting in the US).

As long as you have something like the included CDW, then you are fine. Hint: if "excess" or "deductible" amounts are mentioned - no matter how high, you have almost certainly "purchased" some sort of insurance - if there is no mention, then beware.

It is really a bit of a no-brainer - the coverage is to pay the amount of an excess - and an excess can only exist if there is an insurance policy to have it applied to. The Amex Plat Charge / Centurion offerings are different - they do not cover excess, they directly offer insurance up to a certain vehicle value..

The Chubb wording, on the other hand would require you to purchase the maximum available - including reduction of excess, so would only be of benefit if the hire company didn't offer any way to reduce the excess to zero (and would cover whatever was left, up to the $3,000).

 

[Renato1]

It means you cannot be totally uninsured (e.g. as is easily possible renting in the US).

As long as you have something like the included CDW, then you are fine. Hint: if "excess" or "deductible" amounts are mentioned - no matter how high, you have almost certainly "purchased" some sort of insurance - if there is no mention, then beware.

It is really a bit of a no-brainer - the coverage is to pay the amount of an excess - and an excess can only exist if there is an insurance policy to have it applied to. The Amex Plat Charge / Centurion offerings are different - they do not cover excess, they directly offer insurance up to a certain vehicle value..

The Chubb wording, on the other hand would require you to purchase the maximum available - including reduction of excess, so would only be of benefit if the hire company didn't offer any way to reduce the excess to zero (and would cover whatever was left, up to the $3,000).

Thanks very much for the very thorough explanation.

This hadn't been obvious to me - and I had been wondering if I was wasting money on additional car hire insurance over here. Lucky I did pay it, as it turns out.
Regards,
Renato

 

[Renato1]

Talking to my brother last night, he pointed out that last time he hired a car in Italy, when he paid for it he also had to pay for a complusory small amount of cover for 500 Euros of excess - which was listed in his statement as a separate item. He was told that he would have to pay a lot more money for the really good excess cover to cover the outstanding 3000 Euros excess, though he could pay for lesser amounts of excess cover up to the 3000 Euros.

So the question arises, would that compulsory excess cover satisfy the Allianz requirement to bring their excess cover into effect? Or would one be wise to purchase some more, just in case they got narky?
Regards,
Renato

 

[equus]

Neither of the Allianz wordings requires you to purchase any amount of excess reduction (although you would be wise to make sure that whatever excess you end up with is covered by the amount the policy will pay). You have to have the insurance as part of the rental.

The "compulsory" excess reduction amount that is billed separately sounds rather like a nice little earner for the franchise - not something that is really compulsory at all. If it was compulsory, it would be part of the insurance charge, and there would not be any "reduction" - they would just list the excess applicable.

 

[Renato1]

Neither of the Allianz wordings requires you to purchase any amount of excess reduction (although you would be wise to make sure that whatever excess you end up with is covered by the amount the policy will pay). You have to have the insurance as part of the rental.

The "compulsory" excess reduction amount that is billed separately sounds rather like a nice little earner for the franchise - not something that is really compulsory at all. If it was compulsory, it would be part of the insurance charge, and there would not be any "reduction" - they would just list the excess applicable.

Thanks again for your input,

Clearly, when one hires an Audi, Volvo or Lancia Therma and there is say a 4000 Euro excess, one has paid for some insurance contained within the policy - or one would be up for many tens of thousands of Euros if one trashes the car and one is at fault.

So you see that as sufficient to satisfy the Allianz policy?
I've been thinking of this requirement as having to buy something in addition to that in-built insurance - such that a line statement appears citing additional insurance to reduce the excess.
Regards,
Renato

 

[equus]

Clearly, when one hires an Audi, Volvo or Lancia Therma and there is say a 4000 Euro excess,

If there is an excess, then there is insurance included. Excess only applies to insurance, otherwise there would be no value listed (and probably a statement about you being liable for any and all damage to the vehicle. It is a pretty safe bet that if there is an amount quoted as an excess (or deductible), then there is insurance in place.

as part of the rental agreement you have taken rental vehicle insurance;

It doesn't need to be a separate item to "reduce the excess" - that is not the requirement.

There does need to be something to indicate the presence of insurance, but even that may not be a line item. For many agencies, there is a line item (such as CDW/LDW etc.) with an amount listed, but it may just be bundled into the rate - in which case you just need the details (in the contract) of what is included. As before, the listing on an excess is pretty much stating that.

 

[Renato1]

If there is an excess, then there is insurance included. Excess only applies to insurance, otherwise there would be no value listed (and probably a statement about you being liable for any and all damage to the vehicle. It is a pretty safe bet that if there is an amount quoted as an excess (or deductible), then there is insurance in place.



It doesn't need to be a separate item to "reduce the excess" - that is not the requirement.

There does need to be something to indicate the presence of insurance, but even that may not be a line item. For many agencies, there is a line item (such as CDW/LDW etc.) with an amount listed, but it may just be bundled into the rate - in which case you just need the details (in the contract) of what is included. As before, the listing on an excess is pretty much stating that.

Thanks again for your help.

So it looks as though for hiring cars on the basis that I have been, I need only worry about Terms and Conditions like that in the Chubb one.
Or ones like in various Amex Platinum cards where I am having difficulty finding any provision for rental vehicle excess.
Regards,
Renato

 

[equus]

Amex Platinum cards where I am having difficulty finding any provision for rental vehicle excess.

The Amex Platinum Charge card is different - it doesn't cover for excess, instead it provides insurance.

We will pay any amounts You are responsible for under the Rental Agreement,
including the Deductible, if loss is incurred during a Covered Rental Trip, as a
result of accidental damage, fire, vandalism, theft or loss of use of the Rental
Vehicle. This will apply whether You are responsible or not for the accident.
We will pay You up to:
2. $125,000; or
3. the value of the Rental Vehicle; or
4. the value of the claim;

This is providing cover for any amounts you are responsible for (including a deductible - equivalent of an excess), but regardless of any insurance having to be there.

I wouldn't be relying on this as the entire insurance though (although it is good if there is basic insurance already include - i.e. using this to cover excess). The coverage is limited to the value of the rental vehicle, which won't be much help if you are driving a $20,000 Hyundai and are at fault when you collide with a $120,000 BMW.

 

[TheRealTMA]

Thanks again for your input,

Clearly, when one hires an Audi, Volvo or Lancia Therma and there is say a 4000 Euro excess, one has paid for some insurance contained within the policy - or one would be up for many tens of thousands of Euros if one trashes the car and one is at fault.

So you see that as sufficient to satisfy the Allianz policy?
I've been thinking of this requirement as having to buy something in addition to that in-built insurance - such that a line statement appears citing additional insurance to reduce the excess.
Regards,
Renato

It’s essentially not possible to hire a car without the car being insured by the hire company, usually called CDW. All you are responsible for is the excess. You can pay an extra fee to reduce this excess if you wish but this is what’s normally covered by TI rental car excess policy.

 

[equus]

It’s essentially not possible to hire a car without the car being insured by the hire company

Generally speaking that is the case, but not necessarily so in the United States. Be awry only of CDW (without LDW) - CDW on its own won't help you if the hire car is stolen.

 

[Renato1]

The Amex Platinum Charge card is different - it doesn't cover for excess, instead it provides insurance.



This is providing cover for any amounts you are responsible for (including a deductible - equivalent of an excess), but regardless of any insurance having to be there.

I wouldn't be relying on this as the entire insurance though (although it is good if there is basic insurance already include - i.e. using this to cover excess). The coverage is limited to the value of the rental vehicle, which won't be much help if you are driving a $20,000 Hyundai and are at fault when you collide with a $120,000 BMW.

Thanks, the most expensive Amex cards have the $125,000 insurance.
But I can't find it or rental excess insurance in these three less expensive cards, which more people would have.
https://web.aexp-static.com/au/content/pdf/cardmember/platinum-edge-card/Platinum_Edge_Insurance.pdf
https://secure.cmax.americanexpress...l/shared/files/Platinum_Rewards_Insurance.pdf
https://www.americanexpress.com/au/content/pdf/insurance/platinum-reserve-Insurance.pdf

Regards,
Renato

 

[TheRealTMA]

BTW: Renato, if you want a car for more that a month, consider leasing a Peugeot, Renault or Citroen. These leases are fully inclusive of all insurance with no excess.

Peugeot Europe Car Leasing | Peugeot Europe

 

[TheRealTMA]

Thanks, the most expensive Amex cards have the $125,000 insurance.
But I can't find it or rental excess insurance in these three less expensive cards, which more people would have.
https://web.aexp-static.com/au/content/pdf/cardmember/platinum-edge-card/Platinum_Edge_Insurance.pdf
https://secure.cmax.americanexpress...l/shared/files/Platinum_Rewards_Insurance.pdf
https://www.americanexpress.com/au/content/pdf/insurance/platinum-reserve-Insurance.pdf

Regards,
Renato

Not all cards include rental excess. Perhaps see this - Ultimate Guide To Rental Car Insurance — The good, the bad, the ugly

 

[Renato1]

It’s essentially not possible to hire a car without the car being insured by the hire company, usually called CDW. All you are responsible for is the excess. You can pay an extra fee to reduce this excess if you wish but this is what’s normally covered by TI rental car excess policy.

Sorry for the tardy reply - I wound up being out for much of the day.

What you say is what I always thought until I read the CBA/Allianz T&Cs which got me puzzled, though Equus has provided some clarification with respect those T&Cs' likely applicability to USA car hire.

BTW: Renato, if you want a car for more that a month, consider leasing a Peugeot, Renault or Citroen. These leases are fully inclusive of all insurance with no excess.

Peugeot Europe Car Leasing | Peugeot Europe

Yes thanks - someone else told me about Peugot some years back and I've clicked on the link and remembered why I haven't followed them up in the past. They don't have a pick-up/drop-off point at Venice airport, only at Milan and Rome, which is no good for me.

I use Hertz in my parents; home town who so far have done a great job in keeping me supplied with automatic cars - which qppear to be a rarity in Italy. Though they keep selling them out from under me - last trip they sold my Opel and then my Volvo SUVs and finally I wound up with a Ford SUV, which was a very annoying vehicle as it kept jumping on me when I started accelerating. Oddly enough I saw something in the news tonight about Ford being fined for transmission problems.

Not all cards include rental excess. Perhaps see this - Ultimate Guide To Rental Car Insurance — The good, the bad, the ugly

That means that the Complimentary Credit Card Travel Insurance of the most popular Amex Platinum cards would be incredibly deficient for someone who hires vehicles overseas - be they cars or motorbikes or scooters.

Super-good coverage for the most expensive cards, and zilch coverage for the less expensive.

Informative article thanks, I've book marked it. Interesting that the writer too is puzzled by the CBA cards' T&Cs, where the writer says,
"You must have purchased motor vehicle insurance or damage waiver from the rental company. (So why would you need second insurance if you spent $50 per day on the offered insurance?)."
Regards,
Renato

 

[TheRealTMA]

Sorry for the tardy reply - I wound up being out for much of the day.

What you say is what I always thought until I read the CBA/Allianz T&Cs which got me puzzled, though Equus has provided some clarification with respect those T&Cs' likely applicability to USA car hire.



Yes thanks - someone else told me about Peugot some years back and I've clicked on the link and remembered why I haven't followed them up in the past. They don't have a pick-up/drop-off point at Venice airport, only at Milan and Rome, which is no good for me.

Last time I was in Italy earlier this year, there were many methods of transport between Venice and Milan MXP

Leasing is by far your best bet. Includes everything. Worth the effort to get between Venice and Milan.

That means that the Complimentary Credit Card Travel Insurance of the most popular Amex Platinum cards would be incredibly deficient for someone who hires vehicles overseas - be they cars or motorbikes or scooters.

See other thread. Get another Platinum card such as one from Westpac which included TI and rental excess.

Super-good coverage for the most expensive cards, and zilch coverage for the less expensive.

Informative article thanks, I've book marked it. Interesting that the writer too is puzzled by the CBA cards' T&Cs, where the writer says,
"You must have purchased motor vehicle insurance or damage waiver from the rental company. (So why would you need second insurance if you spent $50 per day on the offered insurance?)."
Regards,
Renato

That doesn't mean 'purchasing' a full insurance cover etc from the rental company buy simply means the CDW insurances included with European rental cars.

 

[lovetravellingoz]

Remember too there is insurance and insurance. Not all cover theft, undercarriage, tyres, lost keys, wrong fuel etc..


I am paying a little extra with a third party to cover the excess gap and these things. Plus policy last a year and covers any hire in that period.

 

[TheRealTMA]

Remember too there is insurance and insurance. Not all cover theft, undercarriage, tyres, lost keys, wrong fuel etc..


I am paying a little extra with a third party to cover the excess gap and these things. Plus policy last a year and covers any hire in that period.

That’s why you lease for longer periods. All covered including personal liability and theft with no excess.

 

[Renato1]

Last time I was in Italy earlier this year, there were many methods of transport between Venice and Milan MXP

Leasing is by far your best bet. Includes everything. Worth the effort to get between Venice and Milan.

See other thread. Get another Platinum card such as one from Westpac which included TI and rental excess.

That doesn't mean 'purchasing' a full insurance cover etc from the rental company buy simply means the CDW insurances included with European rental cars.

Interesting how you think it's worth going to Milan for the car deal. I look at it as self-inflicted torture, as that section of Autostrada between Milan and Padova is the most high stress, dangerous piece of tollway with the most nutters I have ever seen anywhere in Italy or Europe. You are braver than me!

The rental excess is taken care of with my wife's CBA Platinum Card - I'm just disappointed that Amex appear to have shirked such an important feature on many of their less expensive Platinum cards.

Regards,
Renato

 

[PLANT]

Anyone know how much a flat tyre repair will be Europe in a Europcar????
Have total protection insurance with another mob.