Personal Finance

AMEX Credit Card - LDW Insurance

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  • Aug 17th, 2013 12:53 am
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Feb 6, 2005
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AMEX Credit Card - LDW Insurance

Hello all,

Just wondering if you have any experience with claiming the LDW insurance that comes with premium credit cards? Like AMEX Platinum/Gold, CIBC Aventura/Aerogold, MBNA Travel etc...

Anything to watch out for?

I have scratched my rental accidentally in parking lot and using my Amex card with LDW and wondering if there are any conditional clauses?
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Nov 18, 2012
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Same question here. Wait for answer.
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Jan 14, 2006
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One of the rental car agency told me that many credit cards don't cover anything over compact size cars.
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Jan 6, 2002
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kasianman wrote: One of the rental car agency told me that many credit cards don't cover anything over compact size cars.
The rental companies will "lie" to get you to buy their LDW, for piece of mind. I think the AMEX cap is cars valued at up to $XX000 --> $85000.

I did a claim through AMEX, no problems... Was about 1500 EUR claim, you pay upfront with the card and then AmEx eventually reimburses you.
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Dec 7, 2011
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Whitehorse
kasianman wrote: One of the rental car agency told me that many credit cards don't cover anything over compact size cars.
The fine print of the insurance that comes with the credit card clearly states the max MSRP of the rental car. And I have observed different values there. For example: Amex Gold has a 85k limit, whereas with WestJet RBC World Elite MasterCard it is 65k.

Furthermore, vehicles who are not cars/SUVs/minivans are usually excluded as well. Kindly refer to your insurance thingy. And keep in mind that the credit card coverages are secondary. So, depending on the circumstances, your car insurance might be the first one that has to cough up.

Gladly, I have not had rental car damage so I can't offer stories about credit card related insurance applications.
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Just to clear it up, AMEX (all Canadian AMEX that has such cover is cap at 85,000 value), this includes AMEX Platinum, Gold, SPG, amongst a few others (that I have not have), it is covered under the same policy it seems.

AMEX also states that it covers "Loss of Use", that is the rental company's charge to you for the time that the car is being put into garage for fixing.

Typically LDW does not cover 3rd party insurance, and that is covered by your own car insurance (or if you do not have such, it has to be purchased from rental company - I think). So this is when you hit somebody's car and you are at fault or involved in certain accident.

In my case, only myself is involved in the damage so it is not 3rd party. The insurance certificate also said that "no to contact your own insurance company" before you report that to AMEX's insurance (i.e. Royal & Sun insurance).

----
So just to update you on what happened. So I opened a claim against AMEX's insurance company and they have asked for a few piece of information (rental agreement, final rental invoice, statement showing that it is paid by the card, damage report from rental company). I think as HOOB has already commented, it has first has to charge to my card prior the insurance will reimburse me.

As far as the rental company goes, I returned my car and they gave me a damage report, however they are not able to give me a final invoice (without getting a quote from their body shop on the actual damage).

In terms of contacting AMEX's insurance, they require you to report it in within 48 hours of the incident and will open a claim. Will update you guys in case anybody have to go thru the experience in the future.
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Dec 7, 2011
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Whitehorse
Yes, please update! I am surprised that Amex/Royal Sun requires you not to contact your own insurance company. Why is that?
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I dug up my old post. If anyone wants to read about my (good) experience with AmEx, albeit from five years ago, see:

gold-card-rental-car-coverage-how-worked-me-660959/

In this case, it was a single-vehicle incident, my own car insurance policy and liability coerages were not in effect at all.

As mentioned, it's important to understand those restrictions that do exist. For example, CC covereage doesn't apply to moving vans and similar... Only personal rental of passenger vehicles used for non-commercial purposes.
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hoob wrote: I dug up my old post. If anyone wants to read about my (good) experience with AmEx, albeit from five years ago, see:

gold-card-rental-car-coverage-how-worked-me-660959/

In this case, it was a single-vehicle incident, my own car insurance policy and liability coerages were not in effect at all.

As mentioned, it's important to understand those restrictions that do exist. For example, CC covereage doesn't apply to moving vans and similar... Only personal rental of passenger vehicles used for non-commercial purposes.
and most CC (or even Car insurance company) will cover only up to 7-seater van, not 12 or 15-seater van for sure; so do call to ask before you rent
Which Credit Cards to sign up? >> Jerry's Mega Thread of Credit Cards Q&A
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Dec 7, 2011
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Whitehorse
hoob wrote: I dug up my old post. If anyone wants to read about my (good) experience with AmEx, albeit from five years ago, see:

gold-card-rental-car-coverage-how-worked-me-660959/

In this case, it was a single-vehicle incident, my own car insurance policy and liability coerages were not in effect at all.
Probably because it happened outside Canada/US. AFAIK, the Canadian car insurances usually cover rentals in Canada and the US, but not beyond. So if it had happened in Canada/US, Amex would probably have asked your car insurance to pay up first. (I might be wrong on this.)
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sokolov wrote: Yes, please update! I am surprised that Amex/Royal Sun requires you not to contact your own insurance company. Why is that?
It's written right in their insurance: https://icm.aexp-static.com/Internet/In ... nglish.pdf

If you contact your own insurance company, then there's no point to use their LDW since your own insurance will increase
Deal Addict
Feb 6, 2005
1797 posts
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Toronto
hoob wrote: I dug up my old post. If anyone wants to read about my (good) experience with AmEx, albeit from five years ago, see:

gold-card-rental-car-coverage-how-worked-me-660959/

In this case, it was a single-vehicle incident, my own car insurance policy and liability coerages were not in effect at all.

As mentioned, it's important to understand those restrictions that do exist. For example, CC covereage doesn't apply to moving vans and similar... Only personal rental of passenger vehicles used for non-commercial purposes.
Thanks for sharing the experience - been looking for this info on the net and much available. Hopefully mine is as easy as yours
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Dec 7, 2011
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vaporize wrote: It's written right in their insurance: https://icm.aexp-static.com/Internet/In ... nglish.pdf
Can you quote the wording? I've read it all and could find nothing that says "don't call your own car insurance".
If you contact your own insurance company, then there's no point to use their LDW since your own insurance will increase
True.
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Dec 7, 2011
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Whitehorse
sokolov wrote: Probably because it happened outside Canada/US. AFAIK, the Canadian car insurances usually cover rentals in Canada and the US, but not beyond. So if it had happened in Canada/US, Amex would probably have asked your car insurance to pay up first. (I might be wrong on this.)
I was wrong insofar, as the Amex insurance is NOT secondary. So there is no need to involve your personal car insurance.

But beware, other credit card insurances than those that come with Amex Gold (and up) might be secondary LDW insurance only.
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Feb 6, 2005
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sokolov wrote: Can you quote the wording? I've read it all and could find nothing that says "don't call your own car insurance".



True.
Page 52 - .The Cardmember and/or Eligible Person has not been indemnified for
damagesorexpensescoveredunderthePolicybyorthroughpersonalinsurance

So if you contacted your personal insurance and get it paid for it, their LDW does not have to pay you
Deal Addict
Dec 7, 2011
3586 posts
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Whitehorse
vaporize wrote: Page 52 - .The Cardmember and/or Eligible Person has not been indemnified for
damagesorexpensescoveredunderthePolicybyorthroughpersonalinsurance

So if you contacted your personal insurance and get it paid for it, their LDW does not have to pay you
I see what you mean. Thank you.

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