Paul Sanchez
Many credit cards offer rental car insurance, which can cover damage to or theft of the vehicle. This insurance is usually secondary, meaning it kicks in after your personal auto insurance policy. However, some cards offer primary rental car insurance, which allows you to bypass your personal insurance and file a claim directly with the credit card company. When renting a car from Hertz, it is important to note that they offer Loss Damage Waiver (LDW) and Liability Insurance Supplement (LIS) as optional services. LDW waives all financial responsibility for loss or damage to the rental car, regardless of fault. LIS provides additional liability protection, which is especially useful if you do not have sufficient liability insurance or none at all. Before renting a car from Hertz, be sure to check the terms and conditions of your credit card to understand the extent of its rental car coverage and whether it is primary or secondary coverage.
| Characteristics | Values |
|---|---|
| Credit card rental insurance provider | Visa, Mastercard, American Express |
| Rental car company | Hertz |
| Coverage type | Secondary coverage |
| Coverage limit | Up to 14 or 31 days |
| Coverage inclusions | Damage to the rental vehicle, theft, towing charges, loss-of-use charges |
| Coverage exclusions | Luxury cars, recreational vehicles, liability and injury concerns, personal belongings inside the car, medical bills |
What You'll Learn
Hertz's Loss Damage Waiver (LDW)
The LDW covers all vehicle damage to a Hertz rental car, and renters will not need to file a claim with their personal auto insurance. There is also no deductible for the renter to pay to Hertz.
In the event of damage, an Accident Damages Excess (ADE) will apply per incident, regardless of fault. This is the amount the renter contributes toward the loss or damage. The ADE amount varies depending on the car class.
It is important to note that LDW is not insurance and is not mandatory. Renters should also be aware that their own personal insurance may provide protection for loss or damage to the rental vehicle, depending on the state and the type of policy they have. Additionally, some credit card companies provide cardholders with varying degrees of damage protection if the rental is booked using their card and LDW is declined.
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Credit card insurance and Hertz
Many credit cards offer rental car insurance, which can cover damage to or theft of the rental car. This insurance is often secondary coverage, meaning it kicks in after your personal auto insurance pays. However, some cards offer primary coverage, which pays out first, allowing you to bypass your personal auto insurance.
Hertz offers Loss Damage Waiver (LDW) as an optional service, which relieves renters of all financial responsibility for loss or damage to the rental car, regardless of whether they have insurance. The LDW covers theft, vandalism, collision, fire, acts of nature, and towing or storage fees for damaged vehicles. It does not cover liability and injury concerns, such as damage to property other than the rental car or personal injuries.
When renting a car from Hertz, it is important to understand the coverage provided by your credit card and how it interacts with the LDW offered by Hertz. Credit card insurance typically requires you to pay for the rental with the card and decline the LDW. Additionally, the coverage may vary depending on the credit card company and the specific card. Therefore, it is essential to review the terms and conditions of your credit card rental insurance before renting a car from Hertz.
It is worth noting that some states in the US have specific regulations regarding rental car insurance. For example, in California, your financial responsibility for loss or damage to the rental car is limited, and you are not responsible for theft unless it results from your fault. On the other hand, in Illinois, your responsibility for loss or damage related to theft is limited to $2000, unless the theft is a result of your fault.
In summary, credit card rental insurance can provide valuable coverage for damage to or theft of a rental car from Hertz. However, it is important to understand the specific coverage offered by your credit card and how it interacts with the LDW offered by Hertz and any applicable state regulations.
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Primary vs secondary coverage
When it comes to credit card rental car insurance, there are two types of coverage: primary and secondary. Here's how they differ:
Primary Coverage
Primary coverage means that the credit card's insurance will be your first resort in case of any damage or theft of the rental car. You won't need to involve your personal auto insurance policy, and can simply call the number on the back of your card to start the claims process. This is generally considered better as it saves you the hassle of dealing with your own insurance company and potentially facing higher premiums or a cancelled policy. Primary coverage also tends to have more generous terms, covering the full cost of the car, and is offered by premium cards.
Secondary Coverage
Secondary coverage, offered by most credit cards, means that the card's insurance will only kick in after your personal auto insurance policy has paid out. In other words, it supplements your personal policy and covers any remaining costs, including your deductible. This can still be valuable, especially if you don't have a personal auto insurance policy, but it does involve a more time-consuming process of first filing a claim with your own insurance company.
Examples of Cards with Primary Coverage
- Chase Sapphire Reserve®
- Chase Sapphire Preferred® Card
- United℠ Explorer Card
- United Club℠ Infinite Card
- Capital One Venture X Rewards Credit Card
- Ink Business Preferred® Credit Card (for business rentals)
- Ink Business Cash® Credit Card (for business rentals)
- Bilt World Elite Mastercard® Credit Card
Tips for Utilising Credit Card Rental Car Insurance:
- Pay for the rental car with the credit card offering protection.
- Ensure the cardholder is the primary renter.
- Decline the rental company's Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW).
- Check the specific terms and conditions of your card, as coverage may vary based on the issuer and your location.
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Hertz's liability insurance
Hertz offers Liability Insurance Supplement (LIS) to its customers. LIS provides $1,000,000 of protection from any third-party claims, including bodily injury and property damage. This also includes uninsured and underinsured motorist coverage. LIS covers any authorised drivers on the rental and is valid in the US and Canada, but not in Mexico.
In California and Florida, the liability protection is doubled to $2,000,000.
LIS does not cover bodily injury to the renter or any authorised operators of the rental car, or to their family members. It also does not cover third-party liability claims if LIS is not accepted at the commencement of the rental, or if the renter fails to pay the charges for LIS. If the rental car is operated in violation of the Rental Agreement, or if the car or LIS coverage was obtained by fraud or misrepresentation, LIS will not cover third-party liability claims.
Hertz's liability protection is secondary to any other insurance coverage available to the renter. If the renter does not have liability insurance, or if the limits of their liability insurance are insufficient to cover claims by others, Hertz, as the vehicle owner, provides liability protection. However, the renter will have to indemnify Hertz for any and all payments made.
The cost of LIS is approximately $18 per day.
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Hertz's Personal Accident Insurance (PAI) and Personal Effects Coverage (PEC)
Personal Accident Insurance (PAI) and Personal Effects Coverage (PEC) are optional insurance packages offered by Hertz at the time of rental for an additional daily charge. They are only available in combination with each other and cannot be purchased separately.
Personal Accident Insurance (PAI) provides accidental death and medical expense coverage for the renter and their passengers during the rental period. The death benefit ranges from $100,000 to $175,000 for the renter and $10,000 to $17,500 for passengers, depending on the state. The medical expense benefit covers up to $2,500 in medical expenses, with a higher limit of $3,500 in Minnesota. The benefits apply to all accidental injuries during the rental period, regardless of whether the insured is in the car. Passengers are also covered, but only for incidents occurring within the rental car.
Personal Effects Coverage (PEC) insures the personal belongings of the renter, additional authorised drivers, and the renter's immediate family members who permanently reside with them and are travelling with them during the rental period. It covers risks of loss, theft, or damage to certain personal items. The coverage limit is up to $650 per person, with an overall maximum of $1,950 for all claims during the rental period. PEC pays in addition to any other insurance policies the renter may have, such as a homeowner's policy. However, the benefits provided by other coverage may be affected by the PEC benefit.
It is important to note that PAI and PEC may duplicate the renter's existing coverage. Therefore, renters should carefully review their own insurance policies or other sources of coverage to understand the extent of their protection and avoid unnecessary overlap.
Frequently asked questions
It depends on the credit card. Many credit cards offer car rental coverage, but it's important to check the specific benefits of your card. Some cards offer primary coverage, which means they will pay out first in case of an accident, while others offer secondary coverage, which kicks in after your personal auto insurance pays.
With primary coverage, you can submit an accident claim directly to your credit card company without involving your personal auto insurance. Secondary coverage, on the other hand, will reimburse you for your auto insurance deductible and other costs not covered by your personal policy.
To ensure coverage, you typically need to pay for the rental with the credit card that includes the benefit and decline the rental car company's collision coverage. Additionally, the driver at the time of the accident must be listed on the rental agreement.
Credit card auto insurance for rental cars typically covers the collision damage waiver or loss damage waiver, towing expenses, administrative fees, and loss of use. However, it usually does not include liability and injury concerns, personal belongings inside the car, or ambulance or medical bills.
Yes, credit card auto insurance coverage for rental cars usually excludes certain types of vehicles, such as luxury or recreational vehicles. It also typically has a limit on the number of days of coverage, often up to 14 or 31 days. Additionally, coverage may vary for international rentals, with some countries being excluded.
