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Car Rental Insurance Coverage

Picture of Item Reviewed

Editor's Rating:
Intro Purchase APR Regular APR Annual Fee Credit Needed
N.A. $0 introductory annual fee for the first year, then $175 Excellent
Executive Summary - All credit cards typically come with car rental collision damage waiver insurance and American Express cards are no exception. However, there are differences in this policy between the different networks like Visa, MasterCard and Amex. And even within Amex, there are some subtle differences. This part of our review looks into this feature in greater detail.

This card also comes with car rental insurance that is pretty standard for most Amex cards.

If you ever plan to rent a car, paying it with this card enables you to decline the rental's own collision waiver damage. Instead, Amex provides their own insurance for cardholders.

The coverage applies to the primary cardholder (presumably you) and any additional card holders. It is good for a maximum of up to 30 consecutive days.

  • What it covers - The coverage covers the lesser of 1)the actual cost to repair the auto, or 2) the wholesale book value less depreciation and salvage value or the 3)purchases prices of the auto less salvage value and depreciation cost. The maximum coverage for this is $50,000. The coverage does not extend to vehicles that cost more than $50,000 as they are deemed expensive cars.

    You will also be covered if the auto rental company charges you for loss of you charges. (they do need to provide their fleet utilization logs for Amex to process this).

  • What is not covered - The coverage provided by this card is a secondary coverage. That means that in the event of any damage to the rental car, the primary coverage comes from your own auto insurance. The coverage from the card will cover things like deductibles and any things that is not covered by your main car insurance.

    However, there is no coverage for liability insurance (though this is most likely to be taken care of by your main insurance). As mentioned earlier, 'expensive vehicles' like luxury cars and SUVs are not covered.

  • Overseas Car Rentals Are Not Covered - One of the things you have to be aware of is if you travel abroad and want to rent a car, this card does not provide car rental insurance.

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