Not to get too deeply into it now (and maybe a blog later) but here are a few points that have come up in my research.
1. The cost of the rental-company provided insurance is nearly always a VERY bad deal.
- It's generally only a collision-damage waiver
- In nearly all domestic instances, it only covers beyond your own insurance, so you may be spending $20 a day to cover only $500-1000 worth of benefit
2. Always check very specifically with the card issuer and your insurance company before deciding which card to use. Ask specific questions: ("I am renting in France for 6 days," not "Do you cover Europe")
- Many cards provide one coverage in the U.S., and a different coverage overseas
- Many U.S. insurance companies have different rules for U.S. and overseas.
- Coverage may be limited to a specific number of days, or change if you cross a border.
3. Primary and secondary: that's a critical question while traveling. In the U.S., card-based insurance is usually secondary to your own policy if you have one, but it makes little difference to you. All the U.S. rental companies know all the U.S. insurance companies. But if you are traveling in Europe, you do NOT want to be involved in three-way negotiations between the card-issuer's insurance carrier, your insurance carrier and a rental company that may not be familiar with either.
- When you speak to the card issuer, be very clear on the primary/secondary issue. If you have cards that say primary, that's the one to use.
- Be specific about the card. For instance, Chase business cards make the insurance primary, but on the consumer cards it's secondary.
- Once you've spoken to the card issuer, talk to your insurance company also.
Okay, now for the personal experience. Last summer, in eastern Normandy, I was too far left and scraped the rental car along a metal road divider. Not much harm, once past the startled phase, and the door was difficult after that. On returning to Paris, I contacted my insurance company (Sorry! don't cover rental cars overseas.) and the carrier for Chase's Ink business card, which we had used for the rental.
On that card they are primary; they sent me forms by e-mail, as did the renter, Sixt. I was able to fill both sets of forms online, and direct them to each other. After that, my role was only to monitor the e-mails they sent me, and finally the notice by the insurer that they had paid, and from Sixt that they had received.
If the Amex plan can guarantee that kind of experience for $25, and if you don't have a card that is primary...take it!
