Car Rental Insurance with Credit Card. It Works!!

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We rented a card at Denver Airport on New Year's Eve to get home after flying from LA. For many years I a have declined the extra insurance that car rental firms offer at about $20 per day. I have always used my credit card as my insurance.

Credit Card insurance really works. In November 2008, we spend 3 weeks in New Zealand with a rental car. Before the trip, I called my credit card company, Chase Visa, to see if the insurance was valid in New Zealand and I was told that it was. In New Zealand, if you don't accept the rental company insurance, you are obligated for the first $5000.

We picked up the car in Christchurch and I declined all insurance, and I hoped that it would be ok. About 10 days later I hit a curb going into a parking lot. I had gouged the side of the tire and it was flat. When we checked in the car at the ferry terminal on the south island to go to the North Island, I told them about the flat. They said that they would give me a bill when the ferry arrived at the North Island. The bill was $150.
When we returned home, I called Chase Visa. I fill out the simple forms and attached the bill. I got a check in the mail. Fantastic!

A few years ago, I learned another fact about rental cars. We picked up a car at Fox Rental at LAX, and I was informed that I would need "Loss of Use" insurance. I declined it without knowing what it was. When I got home, I researched it. If you damage a rental car, and it was out of service for 2 weeks, in theory, they could bill you for 2 weeks rentals.

I called a few rental car companies and was told that you are liable for Loss of Use. I called my Chase Visa and was told that Chase visa covers it and it was explicitely stated in their policies. I called American Express and I was told that they do not cover Loss of Use. I now used Chase Visa for all car rentals.
Check with your credit card company to see if you are covered.

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Comments

[luckyjohn]

"Loss of Use"
We always use the insurance from our cards, but I had never heard of "Loss of Use" insurance. Thanks