Declining LDW and going with Visa coverage?

[bluenosemickey]

Anyone ever had first hand experience with using their visa to cover damage to a rental car? Both my credit cards cover my rental car for collision/ theft and loss of use coverage. It seems stupid not to deny the LDW and just go with the visa coverage, especially when I pay a fee for the cards because of ths coverage, among other things.
But I'm curious if anyone has ever had to use the coverage? What's your experience? I'm renting with Budget.

 

[greenclan67]

We do this every year. Actually 2 years ago, we got a huge crack in the windshield, we used our Mastercard for the rental, (master rental coverage) and it took a couple of weeks for everything to go through, but it was all covered on the cc for the fixing it and loss of use. We even got a letter in writing from them saying that it was all cleared and that there was nothing held against us for rentals. That was through Alamo. I keep the letter in my folder, just in case anything ever comes up or gets flagged on the computer! You should be fine.

 

[bluenosemickey]

Gee thanks! Nice to hear some first hand reports. I used to work at Thrifty going through university, but we never had anyone actually have to go through their cc for damage. I just know it's a huge money maker for the rental industry and wanted to avoid the gouge if I could. I know some people swear by the LDW coverage though. I've heard lots of stories about walking away free and clear from a smashed up rental car. But I just can't let myself get swayed by the easy out.

 

[DebbieB]

I always decline LDW. But I've never had a claim. From what I understand, if you have a personal auto policy, it will cover the claim first and the VISA will pay the deductible.

 

[greenclan67]

We only own a company vehicle, and our insurance is covered through there insurance policy, so we don't even have personal insurance anymore!

 

[bluenosemickey]

I could add rental coverage to my personal auto insurance, but I don't want to. I know that the visa should cover it, I just wondered what kind of hassle it might be to deal with an accident.

 

[KINGBOBOFTHENORTH]

If you decline Collision Damage Waiver and suffer a loss and you paid for the entire rental transaction with a credit card that offers rental protection, then:

1) You have to report the claim to your own insurance because they are primary for Collision and Comprehensive coverage you have through them.

2) The credit card protection is then excess to that. Most of the time this means it's going to cover your deductible from the primary insurance if you have a deductible.

3) If someone else is at-fault in an accident and carries liability insurance, this does not preclude you from trying to get that insurance to pay for everything without having to use 1 & 2 above.

The above discussion applies to people with auto insurance issued in the United States and Canada for rentals in the United States and Canada.

BobK/Orlando

 

[dgkjh]

I had experience last summer with this as we had our rental car broken into while at a restaurant in Washington state, having rented out of Vancouver airport. There was damage to the glovebox and that was all as I had failed to lock the doors - probably the only time in my life I have done that.

Anyway, the process with CIBC Visa and making this claim was quite good and it all worked out fine - I had to send various documents, but did this all via email and attachments. Nothing happened with my insurance as there was no involvement with that - it was all about Budget, the credit card, and the damage.

 

[U2_rocks!]

I've never dared to decline the LDW, but you guys are making me feel a little better about it maybe doing it for our upcoming trip. I got a really good rental deal on alamo UK that includes the insurance, but if I can snag a great deal on the US site without insurance I may dare to take it. My main concern was dealing with the rental company while the claim was being processed i.e. would the rental company want to charge an estimate to the card or would they let us walk away?

 

[jlewisinsyr]

There are only a few of these coverages that are primary (AMEX Premium Coverage is the one that comes to mind the most), so most will go through your personal insurance first (unless it is under your deductible) and then your card. Note, just like LDW, it ONLY covers for damage to the vehicle, it does not cover liability (property or personal injury) or protect you from any lawsuit, for this you need to make sure you carry sufficient personal insurance for claims/lawsuits.

 

[U2_rocks!]

There are only a few of these coverages that are primary (AMEX Premium Coverage is the one that comes to mind the most), so most will go through your personal insurance first (unless it is under your deductible) and then your card. Note, just like LDW, it ONLY covers for damage to the vehicle, it does not cover liability (property or personal injury) or protect you from any lawsuit, for this you need to make sure you carry sufficient personal insurance for claims/lawsuits.

I drive a company car so I have no persoanl insurance. Even if I did, it would not cover a rental car in the United States. So I am assuming that my Visa Gold card would be primary? It's so hard to get hold of the information that relates to my credit card specifically, because it is not a US-issued card.

 

[jlewisinsyr]

I drive a company car so I have no persoanl insurance. Even if I did, it would not cover a rental car in the United States. So I am assuming that my Visa Gold card would be primary? It's so hard to get hold of the information that relates to my credit card specifically, because it is not a US-issued card.

I wouldn't be worried about the coverage on the vehicle, but I would be highly concerned about liability coverage.

 

[U2_rocks!]

I wouldn't be worried about the coverage on the vehicle, but I would be highly concerned about liability coverage.

I would never decline the liability insurance - that's where you can really get dinged if you get into an accident with a third party!

 

[lotus14]

Anyone know if the Chase Disney Visa offers this coverage?

 

[jlewisinsyr]

I would never decline the liability insurance - that's where you can really get dinged if you get into an accident with a third party!

Absolutely, a car is the least of your concerns if you get into an accident in the states. That's why it's important, if you are an American citizen that even your personal car should be insured for well above state minimums for liability.

 

[dgkjh]

I've never dared to decline the LDW, but you guys are making me feel a little better about it maybe doing it for our upcoming trip. I got a really good rental deal on alamo UK that includes the insurance, but if I can snag a great deal on the US site without insurance I may dare to take it. My main concern was dealing with the rental company while the claim was being processed i.e. would the rental company want to charge an estimate to the card or would they let us walk away?

In my case, and obviously I hope not to experience this again, nor do I know what may have happened to others, the rental company was informed of the issue when I returned the vehicle, though I had already contacted my cc company to begin the claim process. The rental car company did charge me an amount at that time and later I was reimbursed by the insurance side of things from the cc company. Budget also had to refund the difference as the amount they charged me was higher than the actual amount put forward by their own adjuster, once an evaluation was done. My issue was quite simple in that it didn't involve anyone else and the damage was such that it did not affect the overall function of the car.

It is very much worth knowing all of the ins and outs of your credit card and what is, and isn't covered. Even in this thread I believe we are dealing with UK, Canada, and USA and there will be differences - across countries, as well as across different credit cards.