Travel

Credit Card Collision Insurance Exclusions

  • Last Updated:
  • Jan 15th, 2019 2:39 pm
[OP]
Deal Fanatic
Oct 6, 2007
6504 posts
2595 upvotes
Kootenays

Credit Card Collision Insurance Exclusions

There's a very interesting thread in the Automotive forum right now and I'm sure many people that frequent this forum don't visit Automotive. need-help-damage-rental-car-insurance-m ... o-2255768/
As a bit of a PSA, here's the story in a nutshell.
A lady had reserved a Dodge Durango with Alamo. She declined the additional collision insurance since her platinum Visa covered it. Alamo wasn't able to give her a Durango, as they didn't have one on hand. They upgraded her to a Nissan Armada. She took a trip north and slid off the road in icy conditions, damaging the Armada and setting off the airbags. She realized after the fact that the 2019 Armada has a MSRP of $65,498 and almost all credit cards in Canada have a limit where they will only cover damage on a vehicle with a MSRP of less than $65,000. (apparently Amex is the exception, with a limit of $85,000) I use my auto policy with BCAA for my collision insurance on rentals, which will cover any passenger car, no matter the MSRP, but only to a maximum of $60,000. The OP in the thread will possibly be on the hook for the entire cost of the car, as it has been deemed a write off, and the associated expenses of it being out of service.

I called the insurer that covers my business MasterCard, Allianz Global, and indeed, this is the limit on my card, too. The rep said that virtually all cc companies in Canada enforce the same policies. So in a nutshell, if you rent a vehicle with a MSRP above $65,000, take the rental companies coverage, because your credit card will pay $0 if there's any damage, not the first $65,000.

During my inquiries, I also learned that pick-ups and Uhauls are never covered either.

In the past few years, I've declined coverage on a Uhaul and upgrades to a BMW SUV and an Audi SUV. Thankfully, nothing happened.
19 replies
Deal Addict
User avatar
Feb 14, 2009
1193 posts
443 upvotes
Thanks for sharing.

I guess it can be some (weak?) excuse that original order
was on cheaper car and it was involuntary upgrade.

Cheers!
Deal Addict
User avatar
Jan 11, 2004
4805 posts
406 upvotes
Victoria
I hadn't thought of that! I'd better check what ICBC's roadstar is like for this situation! BTW pro-tip re ICBC is that you can up your liability, pay the difference and then put it down again and get the pro-rated difference back.
Sr. Member
Oct 23, 2017
544 posts
279 upvotes
GTA West
Interesting story.

I change credit cards from time to time and currently have 3 cards that I may use for different vacation purposes. It takes quite a bit of time to review the insurance policies that come with them, with tons of fine print.

So I always depend on the rental car endorsement I have on my home auto insurance policy, which is not expensive. I have read it and discussed it with my agent so I know what it covers.
Deal Addict
User avatar
Jan 31, 2006
4105 posts
551 upvotes
Toronto
it's all written in the credit card policy already. Nothing new, just need to read it to see what type of cars are covered and you will be fine.
My Heatware no posting contact info in your sig
Deal Expert
Aug 22, 2011
24495 posts
10831 upvotes
Ottawa
marktang wrote:
Jan 14th, 2019 9:50 am
it's all written in the credit card policy already. Nothing new, just need to read it to see what type of cars are covered and you will be fine.
Type of car wasn't the issue, but rather the max MSRP coverage.
Deal Addict
User avatar
Jan 31, 2006
4105 posts
551 upvotes
Toronto
vkizzle wrote:
Jan 14th, 2019 9:59 am
Type of car wasn't the issue, but rather the max MSRP coverage.
ya it's stated can't be more than $65k MSRP. So when you book your car, just check if the car is $65k or more than you will be fine.
My Heatware no posting contact info in your sig
[OP]
Deal Fanatic
Oct 6, 2007
6504 posts
2595 upvotes
Kootenays
marktang wrote:
Jan 14th, 2019 10:02 am
ya it's stated can't be more than $65k MSRP. So when you book your car, just check if the car is $65k or more than you will be fine.
When I called Allianz Global, the CSR said "Just ask the rental desk agent the MSRP of the car and they will know them all." I somehow doubt that will be the case! Best to do your own homework here, I'd say.
Deal Expert
Aug 22, 2006
18323 posts
4856 upvotes
marktang wrote:
Jan 14th, 2019 9:50 am
it's all written in the credit card policy already. Nothing new, just need to read it to see what type of cars are covered and you will be fine.
As someone that reads all the fine print but knows squat about cars, this would have bit me in the ass too.
I honestly didn't think that a rental agency would have a car that's $65k MSRP that wasn't a specialty car.
[OP]
Deal Fanatic
Oct 6, 2007
6504 posts
2595 upvotes
Kootenays
death_hawk wrote:
Jan 14th, 2019 5:46 pm
As someone that reads all the fine print but knows squat about cars, this would have bit me in the ass too.
I honestly didn't think that a rental agency would have a car that's $65k MSRP that wasn't a specialty car.
Especially if, like the OP in the Auto thread, you were offered a "free" upgrade.
Deal Guru
Jun 26, 2011
11607 posts
1872 upvotes
Markham
Excellent thread. Had never thought about the u haul as well possibly being excluded
Deal Addict
Dec 7, 2011
1883 posts
406 upvotes
YYJ/YXY
smacd wrote:
Jan 14th, 2019 12:42 pm
When I called Allianz Global, the CSR said "Just ask the rental desk agent the MSRP of the car and they will know them all." I somehow doubt that will be the case! Best to do your own homework here, I'd say.
Yeah, I've tried that, and all I got was "???". They have no clue.
Deal Addict
Dec 7, 2011
1883 posts
406 upvotes
YYJ/YXY
It is also with noting that Amex has removed the rental car insurance benefit from the Simply Cash card at the beginning of the year. This affects existing card holders as well, no grandfathering for loyal customers.

So be sure to remove that card from your rental car profiles.
Deal Addict
Jan 15, 2017
1870 posts
1292 upvotes
The OP posted a portion of her contract in the forum. One clause that I took notice of was the last line which basically stated that should you return your vehicle to the company after hours that you will still be responsible for any damages that may occur to the vehicle until the vehicle is accepted by staff the next day. I have only dropped off one rental after hours and used the drop off key slot but I incorrectly assumed that I was finished with the rental when I did this.
Deal Addict
User avatar
Jan 31, 2006
4105 posts
551 upvotes
Toronto
death_hawk wrote:
Jan 14th, 2019 5:46 pm
As someone that reads all the fine print but knows squat about cars, this would have bit me in the ass too.
I honestly didn't think that a rental agency would have a car that's $65k MSRP that wasn't a specialty car.
smacd wrote:
Jan 14th, 2019 11:21 pm
Especially if, like the OP in the Auto thread, you were offered a "free" upgrade.
you don't need to know anything about cars. Once they tell you what car it is, just google how much it is. it is not that hard to do. I was offered a free upgrade when i was in Iceland. Rented a Rav4 but got a Land Cruiser instead. For sure the Land Cruiser was more than $65k. I opted out the insurance in the beginning but when back to get the insurance from the rental once i saw what car i got.
My Heatware no posting contact info in your sig

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)