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American Express offers car rental insurance coverage as a benefit to many of its cardholders. This coverage provides protection against damage or theft when you use your eligible American Express card to pay for a rental car.
American Express car rental insurance acts as secondary coverage, meaning it kicks in after your primary insurance policy limits are reached. For example, if you have auto insurance with a $500 deductible, American Express would cover the deductible amount under its rental car policy.
Understanding how American Express insurance works for rental cars can ensure you have sufficient coverage when traveling and renting vehicles. This article will break down the key details including coverage amounts, eligibility, activation, claims process, and tips for maximizing benefits.
Contents
Most personal and business auto insurance policies in the US offer primary coverage for rental cars. This means they kick in first in the event of an accident or theft.
American Express rental car coverage acts as secondary insurance. It provides extra coverage above and beyond your primary insurance limits.
For example, if you cause $5000 worth of damage to a rental car, your primary insurer may cover the first $3000 under its collision coverage. American Express would then handle the remaining $2000 as the secondary insurer.
American Express policies include the following protections:
CDW covers damage to the rental vehicle from an accident or vandalism. It will pay for repairs or reimburse the rental company for the value of the vehicle if it’s totaled.
If the rental car is stolen, American Express insurance will reimburse the rental company for the value of the vehicle (minus any applicable deductible).
Towing and loss-of-use charges are covered if they result from a covered loss, like an accident or theft. However, make sure towing coverage is not voided by driving the rental vehicle off-road.
Choosing American Express rental coverage over the car company’s insurance provides several advantages:
While American Express policies are quite comprehensive, some exclusions apply:
Be sure to review the full policy terms to understand exclusions specific to your card.
The American Express policy only covers damage to the rental car itself. It does not apply to liability coverage for injuries to other people or damage you may cause to other vehicles or property. You’d need to ensure your own car insurance policy or the rental company’s liability insurance covers such scenarios.
Here are some cards that include car rental loss and damage insurance:
Consult your card’s benefits guide to confirm. Terms vary across card versions and countries.
You need to take the following steps to activate the rental car insurance with American Express:
Following this process confirms the transaction and policy details with American Express before driving off the lot.
Since the coverage comes standard with eligible American Express cards, there is no separate application process. As long as you have one of the cards that includes the rental car policy, you can take advantage by following the activation steps when renting a vehicle.
The insurance is free for eligible cardholders. There are no extra forms to fill out or applications to submit outside of activating the coverage for each rental car transaction. As long as you use the correct card to pay, the benefits will apply.
Properly utilizing American Express rental coverage involves a few best practices:
When renting your vehicle, be sure to:
If the unfortunate does occur, be sure to follow these steps:
Submitting an insurance claim with American Express for rental car damages involves gathering some key documentation:
Be prepared to provide:
Having this information ready will help facilitate the claims process.
You can expect:
Contact American Express immediately to start the process and avoid any delays.
How does coverage from American Express compare to other rental car insurance options? Here are some key differences:
American Express policies tend to provide higher coverage limits compared to some other credit card rental car benefits. For example, Visa’s coverage may max out at around $35,000 while American Express goes up to $50,000 or more.
However, American Express does not provide liability protection. Credit cards like Visa and Mastercard may offer supplemental liability in addition to collision/damage coverage.
Declining the rental company’s CDW/LDW and using American Express coverage often makes the most financial sense. You can avoid markups of $10-30 per day added to the base rental rate.
For longer rentals or business travel, the savings really add up compared to paying each time. American Express coverage also tends to be more comprehensive in terms of included countries and vehicles.
Follow these best practices to make sure you get the most value from American Express rental car benefits:
Don’t wait until you’re at the counter to understand your coverage. Read through the policy so you know key details like eligible vehicles, coverage limits, exclusions, and activation requirements.
Save your rental agreement, receipt showing American Express payment, and any police reports or documentation from the rental company regarding damages/theft. This provides proof for your claim.
Notify American Express and the rental agency ASAP in the event of any accident, damage, theft, or loss involving the vehicle. Quick reporting looks better when filing a claim.
American Express rental car insurance provides valuable protection for cardholders when renting vehicles. Taking advantage of this free coverage just requires having an eligible card, declining unnecessary options from the rental agency, and understanding how to activate and file a claim. Following the tips above allows you to rent with confidence knowing you have comprehensive protection against unexpected incidents.
1. How Does American Express Rental Car Insurance Work?
American Express rental car insurance provides secondary coverage that kicks in after your primary auto insurance is exhausted. It covers damage or theft when you use an eligible card to reserve and pay for the entire rental. You must decline the CDW/LDW offered by the agency.
2. What Does American Express Car Rental Insurance Cover?
Typical covered losses include:
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