Most credit cards offer some type of rental car coverage. Unfortunately, the terms of these policies are often difficult to find and poorly spelled out. In addition, this coverage contains numerous limitations and exclusions that diminish its value and utility. Thankfully, holders of some credit cards have another option when it comes to rental car coverage. American Express offers an optional, Premium Rental Car Insurance plan. This is a paid plan that all of its card holders are eligible for.
How It Works
Any American Express cardholder can sign up for Premium Rental Card Coverage with no initial fee. Once enrolled, customers who rent a car with their American Express card will automatically be charged a one-time fee of $24.95 per rental of up to 42 consecutive days. California residents are charged only $17.95. Customers will be charged for each rental paid with the enrolled card until they choose to terminate their enrollment.
For that price, customers will receive up to $100,000 in primary theft and damage coverage, with no deductible. Cardholders will also receive $15,000 in excess medical coverage per person, and $100,000 of accidental death and dismemberment coverage ($250,000 for California Residents). Coverage is valid anywhere, except for vehicles rented in Australia, Ireland, Israel, Italy, Jamaica, and New Zealand. Unlike the standard policy, this Premium plan covers many types of SUVs, pickup trucks, and luxury vehicles.
Who This Plan Is For
People who have sustained damage to a rental car, or those who understand the difference between primary and secondary insurance, will appreciate this plan. Because American Express is offering primary insurance instead of secondary, customers will not have to pay the deductible of their own insurance policy first. This is also a great plan for people who like to rent more than just the typical four door sedan, as standard policies will exclude most trucks, vans, and premium cars.
Finally, this plan represents an excellent value. Because the coverage is based on the entire rental period, not on a daily rate, the $24.95 surcharge can be averaged out over vehicle rentals as long as 42 days. This compares favorably to the coverage offered by rental car companies that offer similar plans at prices between $10-$32 per day.
The free, standard rental car coverage offered by most credit card issuers is a decent deal. Nevertheless, these are still secondary policies that includes numerous restrictions. By taking advantage of American Express’s optional Premium Rental Car Coverage, travelers can purchase maximum protection for a reasonable price.