Chase Freedom Rental Car Insurance

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
mstone3
Posts: 12
Joined: Thu Sep 22, 2016 7:12 pm

Chase Freedom Rental Car Insurance

Post by mstone3 » Thu Nov 30, 2017 4:33 pm

My Chase Freedom card offers rental car insurance (Collision Damage Waiver/CDW) as secondary coverage in the event of damage/theft to the rental vehicle. I will be renting a car for the upcoming holidays and while I am a licensed driver, I don't own a car and therefore don't have an auto insurance policy (or any other insurance coverage) that would classify as primary coverage. In this case, can I assume the secondary coverage from Chase would kick in as the primary coverage? If so, would I be safe to decline the CDW that will by offered by the rental car company at pick-up?

Thanks so much!

iasw
Posts: 165
Joined: Mon Dec 05, 2016 2:02 pm

Re: Chase Freedom Rental Car Insurance

Post by iasw » Thu Nov 30, 2017 4:52 pm

Doesn't sound like you'd have any liability coverage with that setup. Read the Chase terms closely, but it might make sense either pricing out something with your own insurance company (home or renters, maybe?) Or looking at the terms for what the rental place is offering to make sure you are completely covered

jeff1949
Posts: 657
Joined: Mon Mar 05, 2007 10:43 am
Location: Salem, OR

Re: Chase Freedom Rental Car Insurance

Post by jeff1949 » Thu Nov 30, 2017 6:33 pm

If you happen to have an American Express credit card you can sign up for their Primary Insurance coverage which only costs about $25 for the entire rental period up to 42 days. You must use the AmEx Card when you rent the vehicle and as long as you are signed up the insurance is automatic.

Here is the link: https://feeservices.americanexpress.com ... ge/home.do

bawr
Posts: 61
Joined: Thu May 19, 2011 9:10 pm

Re: Chase Freedom Rental Car Insurance

Post by bawr » Thu Nov 30, 2017 6:36 pm

Some time ago, I rented a car with an SPG Amex card, which has secondary loss and damage coverage, like the Chase card mentioned above appears to have. I damaged the car and had to file a claim with Amex. As I had no other policy to cover the damage, Amex's coverage kicked in. Amex paid the car rental company promptly. The process was efficient and painless. Chase's practices and policies may be different.

I also don't have a car, but buy a non-owner liability policy from GEICO, which is valid for any car I happen to be driving.

Katietsu
Posts: 1544
Joined: Sun Sep 22, 2013 1:48 am

Re: Chase Freedom Rental Car Insurance

Post by Katietsu » Thu Nov 30, 2017 8:51 pm

Yes, the Chase coverage will become primary for collision. Depending on the location, you could be responsible for diminished value, administrative and loss of use charges. You avoid these charges by getting the insurance from the rental car company.

To the best of my knowledge, the rental company provides liability based on state law minimums. This can be very little, eg $30,000. Therefore, I would discuss liability coverage offers by the rental car company. You may also wish to look into a non owners liability policy with a conventional insurance company.

tibbitts
Posts: 7935
Joined: Tue Feb 27, 2007 6:50 pm

Re: Chase Freedom Rental Car Insurance

Post by tibbitts » Fri Dec 01, 2017 8:36 am

You're better off not having your own insurance for collision purposes, but do read the terms of your card coverage carefully. Not all forms of losses are always covered, although damage from collisions generally are. You can get the "loss of use" issue no matter what - I'm not sure there's a way to fully protect yourself from that.

I don't know about liability coverage since I do have my own insurance for that.

User avatar
TeamArgo
Posts: 107
Joined: Fri Jul 22, 2016 8:18 am

Re: Chase Freedom Rental Car Insurance

Post by TeamArgo » Fri Dec 01, 2017 9:13 am

I heard a comedian the other day, suggesting that you should take the rental car company's insurance, and then hit 6 or eight of their other cars as you drive back in to return your car. Hand them the keys, and go on about your day.
I haven't read the fine print, but off-hand I can't see an obvious problem with that scenario. :P
"A man hears what he wants to hear, and disregards the rest" -Paul Simon (The Boxer, 1970)

jeff1949
Posts: 657
Joined: Mon Mar 05, 2007 10:43 am
Location: Salem, OR

Re: Chase Freedom Rental Car Insurance

Post by jeff1949 » Fri Dec 01, 2017 10:30 am

TeamArgo wrote:
Fri Dec 01, 2017 9:13 am
I heard a comedian the other day, suggesting that you should take the rental car company's insurance, and then hit 6 or eight of their other cars as you drive back in to return your car. Hand them the keys, and go on about your day.
I haven't read the fine print, but off-hand I can't see an obvious problem with that scenario. :P
what a great idea! LOL :sharebeer

TravelGeek
Posts: 2213
Joined: Sat Oct 25, 2014 3:23 pm

Re: Chase Freedom Rental Car Insurance

Post by TravelGeek » Fri Dec 01, 2017 10:57 am

TeamArgo wrote:
Fri Dec 01, 2017 9:13 am
I heard a comedian the other day, suggesting that you should take the rental car company's insurance, and then hit 6 or eight of their other cars as you drive back in to return your car. Hand them the keys, and go on about your day.
I haven't read the fine print, but off-hand I can't see an obvious problem with that scenario. :P
:shock: :twisted:

CDW protects you from damage claims for the car you rented, but isn’t liability insurance covering other damage or injuries.

rooms222
Posts: 325
Joined: Fri Feb 22, 2013 2:12 pm

Re: Chase Freedom Rental Car Insurance

Post by rooms222 » Fri Dec 01, 2017 11:54 am

Certain states allow car rental companies to not have to provide minimal liability coverage to renters. I believe those states include Texas, California, and, if disclosed in a specific fashion, Arizona.

These laws are subject to change. Hertz's current rental agreement terms says US-licensed drivers renting in California are the only ones without liability coverage. https://www.hertz.com/rentacar/reservat ... OAG=MSPT11

You would have to buy liability insurance from the rental car agency in California, even with a CDW credit card, if you own no insured car and do not have a non-owner's liability policy and are a US licensed driver.

student
Posts: 2511
Joined: Fri Apr 03, 2015 6:58 am

Re: Chase Freedom Rental Car Insurance

Post by student » Fri Dec 01, 2017 12:23 pm

TravelGeek wrote:
Fri Dec 01, 2017 10:57 am
TeamArgo wrote:
Fri Dec 01, 2017 9:13 am
I heard a comedian the other day, suggesting that you should take the rental car company's insurance, and then hit 6 or eight of their other cars as you drive back in to return your car. Hand them the keys, and go on about your day.
I haven't read the fine print, but off-hand I can't see an obvious problem with that scenario. :P
:shock: :twisted:

CDW protects you from damage claims for the car you rented, but isn’t liability insurance covering other damage or injuries.
I think they also offer liability insurance.

TravelGeek
Posts: 2213
Joined: Sat Oct 25, 2014 3:23 pm

Re: Chase Freedom Rental Car Insurance

Post by TravelGeek » Fri Dec 01, 2017 12:27 pm

student wrote:
Fri Dec 01, 2017 12:23 pm
I think they also offer liability insurance.
Correct.

killjoy2012
Posts: 1033
Joined: Wed Sep 26, 2012 5:30 pm

Re: Chase Freedom Rental Car Insurance

Post by killjoy2012 » Fri Dec 01, 2017 12:33 pm

Just to be clear, I don't think Chase offers any CDW/rental coverage -- Visa does. To my knowledge, the Visa coverage is tiered a bit based on which if their products you have. The base & Signature are one thing, and Infinite is handled a little differently.

Speaking as someone who had to deal with 2 Hertz damage claims on international rentals through Visa Signature & Infinite.

p0nyboy
Posts: 102
Joined: Wed Aug 30, 2017 1:37 pm

Re: Chase Freedom Rental Car Insurance

Post by p0nyboy » Fri Dec 01, 2017 12:51 pm

I was on a vacation 5 months ago...last day of the trip I backed the rental into a metal sign...busted the back tail light, lol. I returned it early in the morning...never received a bill. I was lucky no one saw it. I dont worry about rental insurance...im above the law.

Post Reply