<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=1700626273582757&ev=PageView&noscript=1" />

Hsbc premier credit card rental car insurance

Renting a car? Know whether your card adds insurance

Benefits may let you refuse costly collision damage waiver coverage

By Michelle Crouch

Dollar a day car insurance in vineland nj Nicolette Neish/iStock /Getty Images Plus/Getty Images Can a car be insured twice Nicolette Neish/iStock /Getty Images Plus/Getty Images

You’re standing at the car rental counter, anxious to get on your way, but first you have to deal with the representative who’s pushing you to sign up for the agency’s car rental insurance “just in case.”

Should you?

Most Americans have no idea what to do when offered collision damage waiver (CDW), the expensive add-on coverage offered – often forcefully – by rental car agents. Given the tricky exclusions listed in the fine print of most credit card policies, chances are, they’re even more confused about what their credit cards cover.

We have answers to your big questions – and the questions you need to ask – so you can make an informed decision about whether to pay for the rental company’s coverage the next time you rent a car.

What does my personal auto insurance cover?
If you own a car, your personal car insurance will likely provide collision and theft coverage, says Michael Barry, spokesman at the Insurance Information Institute, but the coverage isn’t perfect. Most auto insurers won’t cover you if you rent a car overseas, for example, or if you’re using the rental for business. So it’s important to call and ask about exclusions. Many policies also decline to pay some of the additional fees that rental car companies typically tack on to the collision bill, potentially leaving you on the hook for hundreds of dollars. Not to mention that you’ll be responsible for paying the deductible. So that’s where your credit card comes in.

What does my credit card cover?
As a perk of membership, many credit cards offer some kind of rental car protection. Generally speaking, they do not cover things such as personal injury or personal liability, although you may have that coverage through your auto insurance and health insurance. But they do typically cover collision damage and theft protection.

For most cards, the coverage is secondary, meaning that if you have car insurance, you have to file a claim there first (and your premium may go up). But your credit card should step in and pick up where your auto insurer leaves off, paying the tab for your deductible, towing charges and other fees. However, as many frustrated cardholders have learned, the fine print can be tricky. Credit card companies have their own restrictions and exclusions and they, too, often refuse to pay some types of fees levied by car rental companies.

For all those reasons, it’s important to check your coverage in advance. For details, see “Which cards are best for renting a car."

When car rental companies are almost out of cars, they may think they’re doing you a favor by giving you a Mercedes instead of the big Ford or Chevrolet you reserved. But because the Mercedes is valued at over $50,000, it may not be covered.

– Jim Tennant
The Tennant Group

Do any cards offer primary coverage?
If you have a card with primary coverage, that’s the one you should use to book your car, says Jonathan Weinberg, founder of AutoSlash, an online booking engine for car rentals. “Then you don’t have to report the accident to your car insurance,” he says, “so there’s no chance your rates will rise.” Only a few cards offer primary coverage. As of October 2015, they include: the United Mileage Plus Explorer, United MileagePlus Club, Fairmont Visa Signature, Discover Escape, Ritz Carlton Visa Signature and the Chase Sapphire Preferred card.

If you have an American Express card, you can get primary coverage by enrolling in the company’s premium rental car protection program. Once enrolled, you pay a flat rate of $19.95 to $24.95 ($15.95 to $17.95 for California residents) per rental. The program, which also includes some property damage and injury coverage, can make sense for longer-term rentals, Weinberg says, since you would pay one fee per rental rather than a daily rate like the one charged by rental car companies.

If you don’t have personal auto insurance or if you’re renting a car in a country where your personal auto insurance isn’t in effect, then any card that offers secondary coverage becomes primary, so it should theoretically cover the entire cost of the damage.

What do I need to do to make sure I’m covered?
Most credit cards require that you do the following in order for their coverage to kick in:

  • Decline the rental company’s collision damage waiver (CDW/LDW).
  • Be the primary renter of the car.
  • Pay for the car in full with the card that provides the protection.

Before you rent, Barry of the Insurance Information Institute recommends you ask your card issuer to send you its rental car policy in writing “because that will make it easier to resolve any disputes down the line.” Check for the following common exclusions to make sure they don’t apply to your situation:

Exclusion No. 1: Length of the rental
Most credit cards won’t cover car rentals that extend beyond 30 or 31 days; some have just a two-week limit. If you’re planning a long-term rental, you can break up your rental period into shorter chunks of time to make sure you stay covered. The chart below provides some general limits by issuer. Individual cards may vary, so always check by calling the number on your card.

MAXIMUM LENGTH OF COVERAGE
American Express 30 days (its premium program covers you up to 42 days if you pay the higher rate)
MasterCard 31 days for World and World Elite; 15 days for other types
Discover 31 days (45 if you’re the employee of an organization that provided the card for business use)
Visa 15 consecutive days in your country of residence; 31 days outside

Exclusion No. 2: All vehicles aren’t covered
Most credit card companies exclude trucks, pickup trucks, antique and exotic vehicles, ATVs, motorcycles and large vans and SUVs that seat more than a certain number of passengers (usually seven or eight). But car rental consultant Jim Tennant of the Tennant Group says the exception that tends to cause the most trouble is the limit on expensive cars, since rental agencies are offering more luxury cars than they used to. “When car rental companies are almost out of cars, they may think they’re doing you a favor by giving you a Mercedes instead of the big Ford or Chevrolet you reserved,” Tennant says. “But because the Mercedes is valued at over $50,000, it may not be covered.”

Both MasterCard and Discover specifically note that they won’t cover a car worth more than $50,000; Visa says it doesn’t cover “expensive” cars, and AmEx says its coverage varies by card. If you are planning to rent a luxury car, AmEx’s premium coverage specifically notes that it covers cars worth more than $50,000.

Exclusion No. 3: Some countries aren’t covered
Many card companies have specific countries that are excluded. Check the chart below, but also call your card issuer before you go:

COUNTRY EXCLUSIONS
American Express Ireland, Israel, Jamaica, Italy, Australia and New Zealand
MasterCard Ireland, Israel and Jamaica, and where prohibited by law (World and World Elite have no exclusions)
Discover Escape card: Australia, Ireland, Israel, Jamaica, and New Zealand. No other card has country exclusions
Visa Ireland, Israel,Jamaica, Northern Ireland

If you’re traveling to those places, consider using one of these cards, which have no country exclusions: most MasterCard World and WorldElite cards, Discover cards (except Escape), most Citi travel cards (including Thank You Preferred and AAAdvantage) and all Chase cards.

Weinberg recommends taking a written copy of your credit card rental car policy when you rent outside the U.S. Overseas rental agencies often require you to pay for their CDW unless you have documentation showing other coverage.

Are there other exclusions I should be aware of?
Read the fine print. Some policies won’t cover you if you drive on unpaved or gravel roads; others won’t cover you if you wait too long to file a claim. Also, make sure anyone who may drive the car is listed on the rental contract. “If you rent a car in your name and then your spouse is driving and has an accident, companies will use that as a way to deny coverage,” Weinberg says.

If I have full coverage, will I be responsible for any extra fees?
Unfortunately, it’s possible. Rental car agencies often charge “loss-of-use” fees to cover the revenue they lose while a damaged car is in the shop, and those fees can total hundreds of dollars.

American Express, MasterCard and Visa (but not Discover) say they will pay those fees as long as the rental car agencies provide documentation, usually a “fleet utilization log,” verifying they actually lost money because the damaged car was out of service. Here’s the problem: rental companies consider those logs confidential; they argue that, legally, they don’t have to provide them. So while your rental company and credit card company play the blame game, you can end up on the hook for the bill. (Note: In some states, such as New York and Wisconsin, car rental companies aren’t allowed to charge loss-of-use fees. In others, auto insurers are required by law to pay those fees.)

What about car-share services?

American Express, MasterCard and Discover say their rental car coverage extends to car sharing services such as Zipcar and Getaround under the same terms and conditions as normal rental cars. Visa initially said its coverage did not extend to those services, but changed its policy in March 2015 after it settled a class-action lawsuit filed by a Zipcar user who was denied coverage.

Fortunately, credit card companies have become more willing in recent years to pay loss-of-use fees, rental car claims administrators say. Some now accept repair estimates as documentation instead of fleet utilization logs. “They’ve created standards to determine how much they’ll pay based on the repair cost," says Andrew Sutter, president of damage-recovery company Total Fleet Solutions. “So maybe four hours of damage repair equals one day of loss of use that they’ll pay."

In addition to loss of use, rental companies may charge two other fees that may not be covered: administrative fees and “diminution-in-value” or diminished value fees, designed to cover the inherent loss of value to the car because it’s been damaged. “Most credit card companies have a cap on administrative fees, and almost none of them pay diminished value,” Sutter says. “I am still having to go back and bill the customer sometimes when we’ve exhausted every other avenue with the credit card company. "

Are some card companies more willing than others to pay those extra fees?
Rental car claims administrators in three different states told CreditCards.com that Visa is the most willing to pay up, followed by American Express. “Visa without a doubt will pay loss of use, and that’s not always the case with MasterCard and AmEx," says Coppere Williams, senior claims specialist at Khoury-Alternative Claims Management, a damage-recovery company based in San Antonio. “They will also cover an administrative fee without batting an eye. They are very reasonable."

What should I do if I’m billed for those fees?
Start by asking the rental car company if it would be willing to waive the fees. Rental car claims administrators sometimes agree to drop some charges if they’ve been paid for everything else. Then go to your insurer and credit card company, emphasizing what a good customer you’ve been. “If you put enough pressure on them,” Weinberg says, “they’ll usually pay out in the end.”

So should I get the rental car insurance or not?
As always, you will have to weigh the risks and benefits. Despite the many exceptions and exclusions, it is possible to get full coverage through your personal auto insurance and credit card, but you’ll need to choose your card carefully, read the fine print and be willing to fight for coverage of any fees. But if all you want is peace of mind, and you don’t mind the expense, the rental car company CDW/LDW coverage may be the way to go.

See related: Renting a car with debit or cash? Expect to try harder

Updated: March 17, 2017

ADVERTISEMENT ADVERTISEMENT Join the discussion We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company's business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.
Three most recent Innovations, features, new products stories:
  • Startups use tech to put cardholders in charge of security – With data beaches on the rise, startup companies are developing new options that help consumers minimize their exposure to a possible hack ...
  • Which banks let you personalize your credit card? – If you've ever wanted to take you favorite pet with you in the in the grocery store or to a fancy restaurant, consider plastering their likeness on a credit card ...
  • Voice assistants begin to answer credit questions – Voice assistants step into personal finance, answering questions about card balances and what you spent on your trip to Chicago ...
CreditCards.com's Newsletter Did you like this story? Then sign up for CreditCards.com’s weekly e-newsletter for the latest news, advice, articles and tips. It's FREE. Once a week you will receive the top credit card industry news in your inbox. Sign up now! SUBSCRIBE

Source


Save with Expedia

Get 10% discount on pre-paid Expedia hotel bookings when paying with an HSBC Premier Credit Card.

Shortcrust pastry cases sainsbury's car insurance Read more

Cardholders also get a complimentary 1 year Expedia+ Gold Membership, which includes top priority on complimentary room upgrades at over 2,000 participating +VIP AccessTM hotels and thousands of extra discounts and special offers to enjoy. Booking must be made on www.expedia.com/HSBCPremierUAE

Book now

Expedia Terms and conditions

Save with Agoda

Book your hotel through Agoda.com with an HSBC Premier Credit Card and get up to 7% off at more than 180,000 hotels worldwide.

Union plus car rental insurance Read more

You'll also receive instant confirmation and best rate guarantee, so you can focus on planning the rest of your trip with more savings to spend while you’re there. Booking must be made on www.agoda.com/HSBCPremierAsia.

Book now

Agoda Terms and conditions

Enjoy a free Uber ride (up to AED 100)

The HSBC Premier Credit Card helps you travel in style. Enjoy a free Uber ride up to AED 100 when you purchase airline tickets (value of AED 5,000 and above) using your HSBC Premier Credit Card.

Contract car hire with insurance Read more

You can use your free Uber ride on any future journey in any location where Uber is available.

How to redeem your free ride

1. Purchase your tickets directly from the airline website or ticketing office using your HSBC Premier Credit Card.
2. We'll send you an Uber promotional code once you've completed your purchase.
3. Enter the code in the Uber app when you're ready to ride and ensure your default payment card is your HSBC Premier Credit Card.
4. The very next trip after you have entered your Promo code will be be free, up to AED 100.
Note that the free ride covers up to AED 100 only. If your ride is above AED 100, the remaining balance will be charged to your HSBC Premier Credit Card. If the ride is less than AED 100, the remaining voucher balance will be forfeited and cannot be carried over to other rides. For applicable exchange rates if the voucher code is used outside of UAE, please click here.

Uber Terms and conditions

New to Uber?

Sign up today and get your first free ride up to AED 60.

Here’s what you need to do:

1. Download the Uber app
2. Sign up for an account with your HSBC Premier Credit Card
3. Enter the promotion code 'HSBCUAE'
4. Set up your location details, choose 'Request' and your driver should arrive within the period of time

The key to over 750 airport lounges worldwide

Enjoy membership to the LoungeKey programme, providing access to over 750 airport lounges worldwide.

Aviva car insurance quick quote Read more

Enjoy the convenience of an airport lounge including complimentary refreshments, newspapers, television and business facilities.

Eligible cardholders simply need to present their HSBC Premier Credit Card at the participating lounge and pay the discounted fee to gain access.

To view the list of lounges to which you have access to, please click here.

Please note that lounges charge USD 27 per person (including guests) for each visit.

LoungeKey Terms and conditions

Free Airport Lounge Access

You can enjoy free access to select airport lounges

Premium choice car insurance claim number Read more

Whether you're travelling for work, pleasure or a combination of both, your HSBC Premier Credit Card gets you access to airport lounges which provide the service and amenities you need to make your air travel more enjoyable.

Take a break from the hectic demands of travel and relax in comfort while waiting for your flight.

Country City Lounge and Location Eligible for cards
issued in

UAE

Dubai

Marhaba Lounge
Terminals 1,2,3 at Dubai International and Terminal 4 at Dubai World Central

UAE, Egypt, Qatar,
Oman, Jordan, Lebanon,
Bahrain, Saudi Arabia

UAE

Abu Dhabi

MasterCard Diamond Lounge
VIP Terminal of Abu Dhabi International Airport

UAE, Egypt, Qatar,
Oman, Lebanon,
Bahrain, Saudi Arabia

Kuwait

Kuwait

Pearl Lounge
Terminal 1
Kuwait International Airport

UAE, Egypt, Qatar,
Oman, Jordan,
Lebanon, Bahrain,
Saudi Arabia & Kuwait

Saudi Arabia

Jeddah

First Class Lounge
North Terminal (Foreign Airlines)
King Abdulaziz International Airport

UAE, Egypt, Qatar,
Oman, Jordan, Lebanon,
Bahrain, Saudi Arabia & Kuwait

Saudi Arabia

Dammam

First Class Lounge
King Fahd International Airport

UAE, Egypt, Qatar,
Oman, Jordan, Lebanon,
Bahrain, Saudi Arabia & Kuwait

Egypt

Cairo

First Class Lounge – Terminal 1
Exclusive Service Lounge – Terminal 3
Cairo International Airport

UAE, Egypt, Qatar,
Oman, Jordan, Lebanon,
Bahrain, Saudi Arabia & Kuwait

Jordan

Amman

Petra Lounge
at
Queen Alia International Airport

UAE, Egypt, Qatar,
Oman, Jordan, Lebanon,
Bahrain, Saudi Arabia & Kuwait

Qatar

Doha

Oryx Lounge – Departure Terminal
Doha International Airport

UAE, Egypt, Qatar,
Oman, Jordan,
Lebanon & Bahrain

Bahrain

Bahrain

Dilmun Lounge
Bahrain International Airport

UAE, Egypt, Qatar,
Oman, Jordan,
Lebanon & Bahrain

Oman

Muscat

Plaza Premium Lounge
Departure Section
Muscat International Airport

UAE, Egypt, Qatar,
Oman, Lebanon
& Bahrain

Mexico

Mexico City

Mexico International Airport.
Terminal 2, landside.

UAE, Egypt, Qatar,
Oman, Jordan, Lebanon,
Bahrain, Saudi Arabia & Kuwait


* Policy excludes Guests - fees will be charged as per respective country's lounge management offices

We've got your Wi-Fi covered

HSBC Premier Credit Cardholders can enjoy unlimited Wi-Fi through Boingo at over 1 million hotspots worldwide.

Tatarov car insurance Read more

Connect up to four devices at airports, hotels and popular places around town, and never worry about data caps, roaming fees or unreliable network coverage.

How to get connected

Before you travel, simply register your HSBC Premier Credit Card number at hsbcuae.boingo.com . Once confirmed, you'll be asked to create a Boingo account at no added cost. Whenever you need Wi-Fi while travelling, just connect your device to a Boingo network at the nearest available hotspot. Find the nearest Boingo hotspots by downloading the Wi-Finder App to your laptop, tablet or smartphone.

Boingo Terms and conditions

A world of possibilities with HSBC Premier Privileges

Discover the vast possibilities while traveling with HSBC Premier Privileges, a unique collection of special discounts and experiences for HSBC Premier Credit Card customers.

Assurance car insurance phone number Read more

HSBC Premier Privileges provides access to a variety of travel, dining, shopping, and entertainment offers around the world when paying for them with your HSBC Premier Credit Card.

Flying made more enjoyable with Premier Traveler

With Al Rostamani Travel and Holidays, you can enjoy special privileges at Dubai, Sharjah and Abu Dhabi International Airports.

Car insurance group 7 uke Read more

  • Return airport transfers
  • 'Meet and Assist' service on departure and arrival
  • Access to designated airport lounges

Just spend over AED 2,500 and book you and your travel companion's next trip with your HSBC Premier Credit Card through Al Rostamani Travel and Holidays

To book call 800 278
Offer Terms and conditions apply

We're there when you need us most

As an HSBC Premier Credit Card customer you can enjoy a preferential service in any of our worldwide branches. If anything unexpected happens you'll receive the emergency assistance you need.

Cheapest car insurance ncb Read more

For example, if your credit cards are lost or stolen, we can replace them within 24 hours. Or if your cash is lost or stolen, we can arrange an emergency cash transfer up to USD 2,000.

Call our 24-hour emergency support line on +1-908 PREMIER.

HSBC Credit Card Agreement Terms, Balance Transfer Terms and Conditions, fees and charges apply. A processing fee is applicable, please refer to the Schedule of services and Tariffs for further details.
Privileges and rewards:
Expedia , Agoda, Uber, Boingo, LoungeKey, Entertainer, Valtrans, VOX Cinemas, and Air Miles terms and conditions apply in relation to these offers.

Source


Return to page header

Language options:

  • English
  • Français
  • 繁體中文
  • 简体中文

Return to page header

HSBC Global websites:

Asia-Pacific

  • Australia
  • Bangladesh
  • Brunei Darussalam
  • China | 中国
    • English
    • 简体中文
  • Hong Kong | 香港
    • English
    • 繁體中文
  • India
  • Indonesia
    • English
    • Bahasa Indonesia
  • Japan | 日本
    • English
    • 日本語
  • Korea | 한국
    • English
    • 한글
  • Macau | 澳門
    • English
    • 繁體中文
  • Malaysia
  • Maldives
  • New Zealand
  • Phillipines
  • Singapore
  • Sri Lanka
  • Taiwan | 台灣
    • English
    • 繁體中文
  • Thailand | ประเทศไทย
    • English
    • ภาษาไทย
  • Vietnam | Việt Nam
    • English
    • Tiếng Việt

Return to page header

Europe

  • Armenia | Հայաստան
    • English
    • Հայերեն
  • Czech Republic | Česká republika
    • English
    • Česky
  • France
    • English
    • Français
  • Georgia | საქართველო
    • English
    • ქართული
  • Germany
  • Greece | Ελλάδα
    • English
    • Ελληνικά
  • Guernsey
  • Ireland
  • Isle of Man
  • Jersey
  • Malta
  • Poland | Polska
    • English
    • Polski
  • Russia | Россия
    • English
    • Русский
  • Slovakia | Slovensko
    • English
    • Slovensky
  • Spain | España
    • English
    • Español
  • Switzerland
  • Turkey | Türkiye
    • English
    • Türkçe
  • United Kingdom

Return to page header

Americas

  • Argentina
  • Bermuda
  • Brazil | Brasil
    • English
    • Português
  • Canada | 加拿大
    • English
    • Français
    • 繁體中文
    • 简体中文
  • Chile
    • English
    • Español
  • Mexico | México
    • English
    • Español
  • United States
  • Uruguay

Return to page header

Middle East & Africa

  • Algeria
  • Bahrain
    • Conventional Banking
    • Islamic Amanah Banking
  • Egypt
  • Jordan
  • Kuwait
  • Lebanon
  • Mauritius
  • Oman
  • Qatar
    • Conventional Banking
    • Islamic Amanah Banking
  • Saudi Arabia | السعودية
    • English
    • عربي
  • South Africa
  • United Arab Emirates
    • Conventional Banking
    • Islamic Amanah Banking

Return to page header

Source

Add comment

This e-mail already registered. or enter another.

Error

Sorry.
↑↑↑↑↑↑↑