Question
Hi,
I was just reading the fine print regarding car rental coverage from my CO Presidential Plus MC. Any vehicle with an MSRP that exceeds $50,000 is not covered. Well, what happens if you're renting a Hertz Prestige Collection vehicle?
Seems like this card, or perhaps its MC in general, puts a monetary value cap on the vehicle being rented. This seems a bit strange to me.
Eric
Answer
How many people rent cars that don't already have cars with insurance? Even with bare cones coverage most people should have at least 100K-200K. Perhaps this is a big deal for people in NYC or other non-driving areas. But for most of the country the rental coverage on the car is worthless as it's only good for liability not already covered.
Answer
...most people should have at least 100K-200K...
Two different concepts. ekwang is referring to Collision Damage Waiver (CDW) coverage provided by credit card. This covers damage to the rented vehicle only, and is void if the MSRP of the vehicle exceeds $50,000.
motytrah is referring to $100,000 Liability insurance, which covers damage to other property or injury to other people. Credit cards typically do not provide any Liability protection.
In any event, the CDW protection provided by most personal credit cards is secondary to the renters own automobile insurance coverage, although it is often primary when travelling outside the USA and the $50,000 restriction can be unexpectedly exceeded when the US Dollar is weak.
One exception to these generalizations is Diners Club Mastercard which provides primary CDW for all rentals, and applies a $75,000 cap. However, Diners does not provide Liability coverage which means it is likely you will still need to file a claim with your own insurance if another vehicle is involved. Business Mastercard and VISA products also provide primary CDW if the rental is for business purposes.
There are many, many, threads on this topic on Flyertalk, and I doubt we have anything new to add. Fresh thread from MilesBuzz..
http://flyertalk.com/forum/showthread.php?t=660073