Renting Car With Credit Card? Make Sure To Read Fine Print

It’s time for auto renters to take a fresh look at the fine print when it comes to collision-damage waivers, or the credit-card benefit that circumvents them.

There haven’t been major changes since a raft of them went through in 1993, but there have been enough small ones to cause confusion.

One area of confusion has resulted from the popularity of four-wheel-drives, vans and sporty cars. My friend Rita rented a four-wheel-drive Suzuki Sidekick from an independent agency in New Jersey for a trip to the Adirondacks in February.

She told the agent she did not want the collision-damage waiver, which relieves the renter of repair costs to the car in the event of an accident, because she was charging the rental to her American Express card, which provides this coverage as a benefit.

The agent said that American Express would not cover the Sidekick, and insisted that Rita buy the waiver, with a $1,500 deductible, at $15 a day, or $105 for a week’s rental. Unsure and concerned about conditions in the mountains, she complied. She had to sign a pledge not to drive the car off the road.

When she returned home, Rita called American Express, which said it did cover such cars so long as they were not driven off the road. She then protested the CDW cost. American Express removed the charge from the account while it investigated, and the dispute remained unresolved in mid-summer.

With the boom in vans and four-by-fours, credit cards that provide coverage for damage to rental cars are making increasingly fine distinctions as to what vehicles they cover. Very expensive cars are normally excluded, as are antique cars, trucks, cargo vans, customized vans, pickups and any vehicle used for hire or to carry cargo.

The July American Express issue of F.Y.I., a publication for card holders, summarizing changes in benefits, gives examples of “exotic cars” it excludes. It then says: “Compact sport/utility vehicles, including but not limited to Chevrolet S-10 Blazer, Ford Explorer, Jeep Cherokee, Nissan Pathfinder and Isuzu Rodeo are covered when driven on paved roads.” (These vehicles would include Rita’s Sidekick.)

On the other hand, gold Mastercards cover minivans but not “trucks, sport utility vehicles (e.g. Jeep Cherokee), full-sized vans mounted on truck chassis, campers, off-road vehicles (e.g. Jeep Wrangler) and other recreational vehicles,” as well as other exotic or expensive cars. Mastercard suggests calling (800) 622-7747 to see if a particular vehicle is covered.

Visa gold cards cover vans “that are standard vehicles with standard equipment” designed to carry up to eight people. The language does not mention sport utility vehicles beyond saying the policy will not cover vehicles operated off the road. It recommends calling (800) 847-2911 to learn whether a vehicle is covered. An employee at this number said that a Sidekick would be covered.

People planning to rent cars outside the country should check with the credit card company in advance, because some of the costly cars not covered in the United States will be covered overseas.

The American Express flier includes other changes. The company’s collision-damage coverage for car rentals in the United States, like that provided by Visa and Mastercard, has for some time been “secondary” or “excess,” meaning that it will pay only repair costs not covered by the renter’s own auto insurance; if the renter has no auto, the credit-card coverage is primary.

As of Sept. 1, American Express also removed itself to the secondary position for rentals in Canada; the other companies have not followed suit. All the companies take the primary position for overseas rentals if they cover them at all. None cover rentals in Australia, Italy or New Zealand.

American Express also reduced its maximum coverage period for a single rental from 31 days to 30 days. Visa’s maximum is 15 days in the United States, 31 days elsewhere. Mastercard’s limit is 15 days in the United States and overseas.