CDW - Loss of use coverage provided By State Farm

[U2_rocks!]

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

Visa definitely does.

 

[KINGBOBOFTHENORTH]

U2, regarding liability insurance, that will vary depending on the state you rent the car in. In most states the owner of a vehicle HAS to carry liability insurance and in many of those states, the amount of coverage they have to carry is a large sum...at least $100,000. However, that is not the case in Florida. Florida does not require anyone to purchase Bodily Injury Liability coverage, only Property Damage Liability coverage of $10,000. In addition,
Florida law allows rental car companies to shift primary liability coverage to the renter's insurance. It has to be in bold face type on the front of the rental contract and you have to put your initials next to the language shifting responsibility.

If you're from outside the U.S. (except Canada) you probably should buy Supplemental Liability coverage unless you have purchased coverage elsewhere before you arrive, that covers you in the United States.

I don't believe buying Liability coverage would effect your credit card's Collision coverage. Read the brochure they faxed you, but I believe it will say you have to decline CDW on the contract. It shouldn't matter to them if you purchase coverage besides CDW.

BobK/Orlando

 

[U2_rocks!]

U2, regarding liability insurance, that will vary depending on the state you rent the car in. In most states the owner of a vehicle HAS to carry liability insurance and in many of those states, the amount of coverage they have to carry is a large sum...at least $100,000. However, that is not the case in Florida. Florida does not require anyone to purchase Bodily Injury Liability coverage, only Property Damage Liability coverage of $10,000. In addition,
Florida law allows rental car companies to shift primary liability coverage to the renter's insurance. It has to be in bold face type on the front of the rental contract and you have to put your initials next to the language shifting responsibility.

If you're from outside the U.S. (except Canada) you probably should buy Supplemental Liability coverage unless you have purchased coverage elsewhere before you arrive, that covers you in the United States.

I don't believe buying Liability coverage would effect your credit card's Collision coverage. Read the brochure they faxed you, but I believe it will say you have to decline CDW on the contract. It shouldn't matter to them if you purchase coverage besides CDW.

BobK/Orlando

The brochure seems to indicate that the CDW should be declined - but they don't actually come out and say that you can accept other insurances, nor do they say ONLY CDW needs to be declined. I guess that's good enough though.

I'm definitely going to take the SLI coverage - I'd be completely uncovered otherwise. Still debating the CDW - it's a LOT of money for a 2 week rental, and I don't really want to spend it if I don't have to. I posted a thread on the UK board asking for their experiences both taking the CDW and relying on credit card coverage - I figure they are all in the same boat as I am. If it seems like the credit card is a major pain (re paying upfront and claiming back etc.), then I might just suck up the cost of CDW.

 

[manning]

Don't forget the issue about primary and secondary coverage.

Some credit cards coverage is primary and some are secondary.

If it is primary all claims will be against credit card company, your insurance company will not see the claim.

If it is secondary, you will have to make a claim against your auto insurance policy first. Anything they don't cover then has to be claimed against the credit card company.

The important part here is if you have to claim against your insurance there is the possibility your premiums will go up.

 

[U2_rocks!]

Don't forget the issue about primary and secondary coverage.

Some credit cards coverage is primary and some are secondary.

If it is primary all claims will be against credit card company, your insurance company will not see the claim.

If it is secondary, you will have to make a claim against your auto insurance policy first. Anything they don't cover then has to be claimed against the credit card company.

The important part here is if you have to claim against your insurance there is the possibility your premiums will go up.

In my case I don't have insurance that will cover me to drive in the US, so the credit card by default will have to cover everything.

Bob made a good point earlier - if you had an accident at home in your own car, your own insurance policy would be your only means of protection and if you claimed on it your premiums would likely go up too. So you're no worse off in a rental car. In fact, if you have credit card coverage you could be better off, because your credit card would cover your insurance policy's deductible!!!

As long as my credit card will cover me for rentals at least as much as my own policy would for driving at home, then I figure I'm not taking a greater risk by relying on that. The only other consideration would be factoring in the increased risk of driving in unfamiliar surroundings, and in my case, on the other side of the road! But I've driven in Orlando by myself before and found it easy, so I don't think that will be an issue.

So, given all my facts - no personal insurance, credit card that covers loss of use as well, plans to take out the SLI insurance, and high comfort level driving in Orlando - would you guys recommend I decline the CDW? Would you in my shoes?

 

[KINGBOBOFTHENORTH]

That, U2, is a decision only you can make. But it looks like you've added up the facts correctly. And I can tell you I've NEVER purchased CDW insurance, even the many, many times I've rented cars in Europe.

BobK/Orlando