Originally Posted By: MoneyJohn
I will start a new thread if its needed.
Few questions,
- Everyone says credit card has auto insurance coverage. Any time I have tried using that I was told that it is a secondary coverage. (I have tried Chase Freedom, Costco AmEx, AmEx Blue Cash and Discover. I have gotten the same answer for all of them.) Since my auto insurance does not cover rental, they ask what insurance coverage I would have? Hence, every time, I end up buying their insurance, primarily because I do not want a headache if anything happens.
(I don't rent that often so I don't mind some 10-20 just for the insurance but will happily save if I know more.)
- Somebody above mentioned that hopefully, OP didn't buy their insurance. Is it the case that their insurance does not cover the windshield?
I never really understood the concept.
Again, if this is going to hijack OP's thread, I will make another thread so that it is sorted out.
Ultimately you need to read the fine print of the CDW, but MOST do act as primary insurance if you don't have any other forms of insurance. The rental companies will try to scare you into buying their coverage because that's how they make profit.
In order for the CDW to act as primary insurance, you need to do exactly what the fine print states. This usually means you decline ALL of the rental company's coverage, and your own auto policy does not include rental coverage. You must also pay for 100% of the rental cost with the covered credit card.
NOW, keep in mind that the CDW is ONLY for collision damage! It does not cover bodily damage, property damage, or personal theft. It's really only good for minor collisions like someone dented the door, you rip the front bumper off due to a parking bump, or in this case a rock chip on the windshield.
If you are in a rental, only have the CDW, and get into a huge t-bone wreck at an intersection that kills the other driver and it's your fault, then you are truly screwed. (although your personal auto insurance might cover the non-collision aspects of it, depends on the policy)
The same goes for: you rent a car with only CDW, and then your bag of $20K work laptops is stolen from the vehicle while you're inside a restaurant. The CDW won't cover this.
If you don't rent often, you might be better off asking your insurance agent to add rental coverage for the time you are on your vacation or whatever. It is usually cheaper than the rental company's coverage and would have better customer service.
So bottom line: The CDW will protect you from damage claims, and that's it. But since most rental horror stories involve the rental company trying to go after customers for dents or scratches, then it provides adequate coverage for that type of thing. I would recommend you look up the number of the claims admin for your CDW and just call them one day and chat. They'll tell you exactly what to do to be covered.
