CDW - Loss of use coverage provided By State Farm

[manning]

I have just got confirmation from State Farm Home office that they do have a "Loss of use" rider for car rentals

It is endorsement 6033 UNAOC ( I think I got the initials right we were talking fast.)

Cost is around $30.00 or so for a six month period depending were you live.

Again it is for "loss of use".

 

[Newfie2000]

I am so glad that you posted this! I asked my State Farm Agent about Loss of Use coverage and they had no idea what I was talking about. Gee... they could barely figure out whether my full covergae would be extended to a rental car - which leaves me so confused . Did they give you any info as to how to go about getting this? And perhaps you can help me clarify... if I use my regular insurance card from State Farm (we have full coverage on 2 vehicles through them) and rent the car with a major credit card that has rental coverage ins. and then we get the additional loss of use coverage we would be fully covered? Any info you can provided would be so appreciated! Thanks!

 

[manning]

I am so glad that you posted this! I asked my State Farm Agent about Loss of Use coverage and they had no idea what I was talking about. Gee... they could barely figure out whether my full covergae would be extended to a rental car - which leaves me so confused . Did they give you any info as to how to go about getting this? And perhaps you can help me clarify... if I use my regular insurance card from State Farm (we have full coverage on 2 vehicles through them) and rent the car with a major credit card that has rental coverage ins. and then we get the additional loss of use coverage we would be fully covered? Any info you can provided would be so appreciated! Thanks!

I would make reference to the endorsement number I referenced in my post when you talk to your agent. The confusion in the office is what caused me to call the home office.

I called the home office in Bloomington 309-766-2311 and explained what I was looking for. The operator routed me the the right spot. Would you know it, I didn't write it down. The party I talked to also mentioned it was in one of the news flyers they put into the premium notice mailing.

According to the person you can have coverage on your credit card and still be covered with "loss of use". One thing I would check on your credit card is if the insurance they offer is primary, not secondary. I use Diners Club and their insurance is primary.

 

[Newfie2000]

Thank You So Much!

 

[KINGBOBOFTHENORTH]

Manning, thanks for the update. Let us know what the endorsement reads once you receive a copy of it. The concern of many renters is not the repair cost to the rental car itself (since that is covered by your personal collision coverage plus gold/platinum credit card benefits). The main concern is what gets covered if the rental car company claims loss of revenue while the rental car is being repaired. If that endorsement says it covers that, then State Farm has a competitive advantage.

Thanks,
BobK/Orlando

 

[LeslieG]

But don't most credit cards you use to book with give you the loss of use coverage for free?

 

[Newfie2000]

But don't most credit cards you use to book with give you the loss of use coverage for free?

I was thinking about saying the same thing - I spent hours last night researching this fact! I called several different credit card companies including ABOC, Visa Platinum and Mastercard and they all confirmed to me that loss of use coverage was free as long as their card was used to pay the bill in full. Of course you also have to follow their guidelines and rules but almost all of that was pretty normal and self explanatory including only drivers on the rental paperwork would be covered, no coverage in the case of a DUI, etc. The only major difference I could seem to find was Diners Card who has others have said offers primary coverage while the others all seem to be secondary coverage. This being said I think I will let my cc cover loss of use - in the worst case scenario that is one thing State Farm would not have to cover and raise my rates because of!

P.S. I love your name... I am also a Leslie and it's not too often you run across another one!

 

[DVC-Don]

You don't mention which state you are referring to as each of the state insurance depts approves a slightly different policy.

Myself: I don't worry about it as it is covered by the credit card.

I got this when I tried to search internally for your info

Searched for '6033 UNAOC' Search took 0.05 seconds.
New Search

Did you mean: 6033 UNOC


Your search - 6033 UNAOC - did not match any documents.
No pages were found containing "6033 UNAOC".

and

Your search - 6033 UNOC - did not match any documents.
No pages were found containing "6033 UNOC".

 

[manning]

I was thinking about saying the same thing - I spent hours last night researching this fact! I called several different credit card companies including ABOC, Visa Platinum and Mastercard and they all confirmed to me that loss of use coverage was free as long as their card was used to pay the bill in full. Of course you also have to follow their guidelines and rules but almost all of that was pretty normal and self explanatory including only drivers on the rental paperwork would be covered, no coverage in the case of a DUI, etc. The only major difference I could seem to find was Diners Card who has others have said offers primary coverage while the others all seem to be secondary coverage. This being said I think I will let my cc cover loss of use - in the worst case scenario that is one thing State Farm would not have to cover and raise my rates because of!

P.S. I love your name... I am also a Leslie and it's not too often you run across another one!

I have Diners Club. They, along with Mastercard does cover it. Evidently some may not as this question has come up on the board. It is best to check with the card issuer.

Also it would be a good idea to verify if the credit card coverage is primary or secondary. If it is secondary you will have to file claim against your auto insurance and anything they don't pay will have to be claimed against the credit card insurance.

However there are some limits. It probably does not apply to most. The limit is that coverage applies to rentals up to 31 days. I am going to be renting this time around for 37 days. I've got a problem and may have to take the rental company insurance. My insurance only covers rentals up to 21 days.

However for another 32.00 for liability,medical & physical damage and for "loss of use" I will be covered for unlimited rental days for six months.
A heck of a lot cheaper than taking coverage with the rental company. It gets me around the 21 and 31 days time limit for Diners and State Farm.

In the future I'm just going to have to keep rentals down to under 31 days.

I'm in Illinois.

 

[MermaidsMom]

I have Diners Club. They, along with Mastercard does cover it. Evidently some may not as this question has come up on the board. It is best to check with the card issuer.

Also it would be a good idea to verify if the credit card coverage is primary or secondary. If it is secondary you will have to file claim against your auto insurance and anything they don't pay will have to be claimed against the credit card insurance.

However there are some limits. It probably does not apply to most. The limit is that coverage applies to rentals up to 31 days. I am going to be renting this time around for 37 days. I've got a problem and may have to take the rental company insurance. My insurance only covers rentals up to 21 days.

However for another 32.00 for liability,medical & physical damage and for "loss of use" I will be covered for unlimited rental days for six months.
A heck of a lot cheaper than taking coverage with the rental company. It gets me around the 21 and 31 days time limit for Diners and State Farm.

In the future I'm just going to have to keep rentals down to under 31 days.

I'm in Illinois.

Or maybe you could split the rental into two chunks by returning the car and renting it again with a new agreement? That would be a hassle, but maybe cheaper. I have heard of some credit cards that say that you must put the entire amount on their card (like someone earlier posted) try to get out of paying if the customer uses a discount coupon or code when they rent the car. The credit card company then say that they didn't pay the entire amount for the entire rental fee .

 

[Newfie2000]

However there are some limits. It probably does not apply to most. The limit is that coverage applies to rentals up to 31 days. I am going to be renting this time around for 37 days. I've got a problem and may have to take the rental company insurance. My insurance only covers rentals up to 21 days.

However for another 32.00 for liability,medical & physical damage and for "loss of use" I will be covered for unlimited rental days for six months.
A heck of a lot cheaper than taking coverage with the rental company. It gets me around the 21 and 31 days time limit for Diners and State Farm.

In the future I'm just going to have to keep rentals down to under 31 days.

I'm in Illinois.

I am so glad to have you to confer with! I too am from Illinois and once again I just called my State Farm Agent about the loss of use rider... as I expected she knew nothing about it. When I told her that I would then have to contact the Home Office and talk directly with them boy did her tune change. As I type she is working on getting me some answers and will call me back! Finally I am perhaps to the bottom of this?

But I did want to share this with you perhaps it will help you... and definitely call to confirm this with your agent and don't go off of mine alone as they are obviously not aware of all the ins and outs. But according to that newsletter they send out it specifically states " Each car policy you have with State Farm extends coverage for up to 21 consecutive days of rental". When I questioned her on the phone she said that if I have two different car policies I would be eligible for up to 42 days of rental insurance! So if you own multiple cars and are insured through State Farm on them then your 37 day rental should be no problem! I'll have to keep you posted as to what she is finally able to dig up for me.

It makes me a bit worried when she kept using phrases like "if you are really that worried I can look into it", what are you talking about loss of use?"... I do not think I will except anything she has to say unless she can prove it to me in writing.

 

[KINGBOBOFTHENORTH]

My MBNA Mastercard comes with "MasterRental Insurance". This is a platinum card. It is only valid for 15 consecutive days or less. Any security deposit plus the rental bill itself must be charged to this credit card. Promotional rates are ok and free day coupons are ok as long as at least 1 day gets charged to the credit card. CDW must be waived. The cardholder must rent the car; you can't rent it for someone else. My card is secondary; I'd have to use my insurance first and the credit card company would cover my deductible. It mentions that in some states damage to a car you rent is covered by the LIABILITY portion of your personal auto policy. In that case your insurance pays the whole thing as there is no deductible under liability coverage.

It does not address multiple back-to-back rentals under separate contracts. I think if I had to do that to go beyond 15 days I'd rent the second vehicle using a different gold or platinum credit card, just to play it safe. It does not address loss of use but it does say it does not cover Diminution of Value (when the rental company says their car has lost value because of the collison), administrative and other fees. I would guess that since it does not say loss of use is covered, that it's probably not....under MasterRental.

If Diners Club is primary and also covers loss of use, a frequent renter would be wise to carry that card.

BobK/Orlando

 

[Newfie2000]

I would guess that since it does not say loss of use is covered, that it's probably not....under MasterRental.

If Diners Club is primary and also covers loss of use, a frequent renter would be wise to carry that card.

BobK/Orlando

I have a copy of Mastercard's MasterRental Insurance Benefits in my hand dated 10-2006. It came from a platinum mastercard also. This is the exact wording under the The Kind Of Coverage You Receive:

"Reasonable loss-of-use charges imposed by the vehicle rental company for the period of time the rental vehicle is out of service".

So I think due to the date maybe MasterRental coverage has changed! I feel pretty safe in saying this is the most recent version of benefit statements available as it was printed only one month ago. So relax those of you with MasterRental Ins. through your Mastercards, call to doublecheck but you should be covered!

 

[manning]

It is sad when you have to literally kick someone in the butt to get something accomplished.

When I started out all I wanted to do was make sure I was covered for loss of use. Because of the reaction I got from the office staff at the agency I was motivated to check further. When I walked out of the office yesterday I was under the impression that the $32.00 got me the loss of use. I remember the comment of 21 days coverage. That caused me to call the home office and the credit card company for clarification. That's when I discovered the 31 day limit. I'm renting for 37 days. Now how to get around it. Yes I could have split the rental but it would be two one ways. That increases the rental rate and washes out any savings.

Back to the insurance agency and another staff member. She checks things out and comes back with no time limit on rental for an additional $25.00. I'm now up to $57.00, $32.00 + $25.00. I guess she wasn't satisfied and did more checking and calls me back and says it will cost me a total of $32.00 not $57.00. It turns out that the rider the girl added to my policy yesterday covered everything and the break down was $25.00 for the liability, collision and $7.00 for loss of use for a total of $32.00

 

[manning]

I am so glad to have you to confer with! I too am from Illinois and once again I just called my State Farm Agent about the loss of use rider... as I expected she knew nothing about it. When I told her that I would then have to contact the Home Office and talk directly with them boy did her tune change. As I type she is working on getting me some answers and will call me back! Finally I am perhaps to the bottom of this?

But I did want to share this with you perhaps it will help you... and definitely call to confirm this with your agent and don't go off of mine alone as they are obviously not aware of all the ins and outs. But according to that newsletter they send out it specifically states " Each car policy you have with State Farm extends coverage for up to 21 consecutive days of rental". When I questioned her on the phone she said that if I have two different car policies I would be eligible for up to 42 days of rental insurance! So if you own multiple cars and are insured through State Farm on them then your 37 day rental should be no problem! I'll have to keep you posted as to what she is finally able to dig up for me.

It makes me a bit worried when she kept using phrases like "if you are really that worried I can look into it", what are you talking about loss of use?"... I do not think I will except anything she has to say unless she can prove it to me in writing.

You may need a different agent.

 

[2infinityandbeyond]

A bit OT, but this idea of "loss of use" irks me. Before a rental company can assert a loss of use claim, do they have to prove actual loss of use? That is, that every vehicle in the class of the damaged car was rented, and because the damaged vehicle was being repaired, they lost income?

 

[manning]

A bit OT, but this idea of "loss of use" irks me. Before a rental company can assert a loss of use claim, do they have to prove actual loss of use? That is, that every vehicle in the class of the damaged car was rented, and because the damaged vehicle was being repaired, they lost income?

Yes, they have to produce a log to prove all the cars in the class damaged have all been rented out.

The reason I'm willing to pay the $36.00 is that it becomes the hassle of my insurance company to get them to produce it before they pay. At my time in life time is more important than money and I'm willling to pay the little bit extra to gain more quality time, but not the amount the rental company tries to high jack you for.

The rental situation I have coming up if I was to take the rental company's coverage would cost me 10 times more than what I am getting with my insurance company. That's a lot. Also I get the pleasure of telling the Alamo/National type companies what they can do with their CDWs when they try to give a hard sell. I would like to see their reaction when they try to collect loss of use and I tell them they have to deal with my insurance company.

 

[U2_rocks!]

Is anyone familiar with the renter's insurance that is provided with Visa Gold cards?

 

[KINGBOBOFTHENORTH]

Manning, good job in creating this thread that has led to a lot of information car renters need to know about.

A word of warning though on being smug with the car rental companies. When you decline CDW they have the right to come after you personally for the damage to their rental car. You may try to steer them to the insurance company for the person that hit you (assuming someone else is at fault for the damage to the rental car) or you may try to steer them to your insurance company or you may try to steer them to your credit card company's protection policy, but the fact is they can just bill your credit card for the damage if they want to. And that's a scare-tactic that the rental car counter employees are taught to say when you rent. And many people fall for it....because they can do it.....but as a practical matter probably won't.

I've always recommended that even if you rent once a year, join the major rental company frequent renter programs where you can DECLINE all the optional coverages one time when you sign up and then never be hasseled again when you rent because your rental contract is pre-printed with your selections. That, and stay away from the smaller rental companies whose low rates beat the majors but they then make up for it by hard selling and scaring you on CDW, PAI and the other money-makers. And those counter-people get a piece of the action on any coverages they sell which is why they're so aggressive.

Again, good discussion!

BobK/Orlando

PS- This discussion is for U.S. renters renting in the U.S. If you're from outside the U.S. you'd need to check with your insurance company to see if they cover you driving in the U.S. (except for Canadians, probably not) and/or whether your gold or platinum MasterCard/Eurocard/Visa provides insurance protection and what the limitations are.

 

[U2_rocks!]

I got my bank to fax me the rules for my Visa Gold coverage, and they seem to be identical to what Visa USA has on its website. I would be covered for damage to the vehicle and loss of use.

Question: the rules are that I have to decline the CDW, which makes sense - but can I take the supplemental liability? Being from a little island in the Caribbean where people don't sue each other, I don't carry any personal liability insurance, so I always take it when driving in the US in case I injure a third party and get sued. I will continue to do so, but I don't want it to impair my ability to collect on my Visa card insurance.

I don't personally care if the car rental company wants to put damages on my card - they will get capped at my card limit, won't they? And we have a Mastercard with a high limit that we can use for everything else on, so I don't care if we can't use the Visa for a while. Or am I missing something?

I am also going to check into a liability insurance rider (that I can add to an existing policy) that will cover me while in the US - it may work out to be cheaper than taking the liability insurance from the car rental company.