posted 01-04-2005 20:05               

Unless I am confused, the question of "primary" insurer only arises where more than one company has insured the rental car. I know my own insurance doesn't cover recreational (or business) rentals, and I would have thought that was true of most individuals' policies. In other words for typical holiday purposes, this issue of "primary" doesn't arise, as there is no insurance other than the card if the renter's coverage is waived.

posted 01-05-2005 01:00               

I called American Express to ask them how I should handle it. They told me that New York State law (where I live) requrres me to make a claim with my own insurance company and Amex will then cover whatever they don't. I called my insurance company and they confirmed this information. They also said that since I have a $500. deductible, I might be better off getting the vehicle fixed myself without making a claim, so that there would be no increase in the premium. We have 3 cars insured on the same policy and if I understood her correctly, the premium could increase for all three. BTY, I made this call anonymously from a pay phone and asked a lot of "what if" questions.

Luckily my cousin has a good friend who owns a repair shop and he took care of it for me. He said it would have ordinarily cost about $750. at his "off the beaten path" shop but the car rental company would probably have milked the situation and charged much more. Plus I would have been billed for the number of days the car was out of service. I lost 3 days of use while the repair was being done. They had to sand and paint it in stages. This occurred at the end of an otherwise wonderful vacation and cast a dark cloud over everything. I'm trying to find a way to prevent a repeat of the situation without having to pay the outrageous price of $23. per day for the CDW provided by the car rental company. If I needed the car for just a week it might be worth it for the peace of mind. But I'll be on vacation for 4 weeks this time.

When I posted a similar question on this bbs awhile ago, and a few good TUGgers mentioned that Diners Club is the only company they know of that provides "primary" coverage. I will be calling my insurance company to re-address the issue. I thought that the problem I encountered was mainly because I'm a NY resident but some TUGgers thought it affects all U.S. reidents.

posted 01-05-2005 02:47               

The secondary coverage provided by some credit cards means they will cover only the amount your own insurance didn't cover.
Most American Express cards are also Secondary but It sounds like you can purchase primary coverage from them.
Diners Club however Is Primary coverage meaning it covers the damage and you don't need to file a claim against your own insurance.

posted 01-05-2005 05:40               

I think you may be correct. Diners is primary except for NYS residents. This comes up on Flyertalk all the time.

Check out this thread, especially the 16th post in it:
http://www.flyertalk.com/forum/showthread.php?t=354083

On the bottom of this page click on "Diners Club Insurance Terms and Conditions" and you'll find the t&c for the Auto Insurance on page 2 of that document.

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posted 01-05-2005 06:29               

quote:

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Originally posted by JEFF H:
I
Most US Automobile policies extend coverage to policy holders when renting a car for vacations. This is normally only true if you have full coverage on your policy.

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Continuing from my previous post:

Yes,my understanding is that I could pay extra and buy coverage from my insurer that would extend to holiday rentals. I don't. I use the card. First, of course, doing so saves the money that I would have had to pay to my own insurer, and secondly it saves me from any "record" with my own insurer in case of accident, as other posts have noted.

posted 01-06-2005 01:17               

quote:

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Originally posted by akaell:
Are you saying that most Americans have the choice and do pay for such coverage?

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posted 01-06-2005 01:38               

It depends on individual state laws and other things. It's not a given in the US that your personal auto insurance policy will cover you in a rental car. (With NYS residents with auto insurance being a key notable exception.)

Anyway, I always charge all my rentals to my Diners Club Card, and then I don't worry about it.

-David

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Visit our Kauai and Maui home page at http://www.flex.com/~dmk/tug/

posted 01-06-2005 21:15               

quote:

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Originally posted by Icarus:
Usually collision and comprehensive coverage is tied to a specific vehicle.

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Just a grace note to this: One exception that I have discovered (rather recently)in my policy concerns rentals that occur when the insured car is being repaired. That is, if my vehicle is shop-bound, the collision in my policy transfers to a rental that replaces it.