Insurance when renting car with CSR card

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
infotrader
Posts: 146
Joined: Tue Feb 28, 2017 2:39 pm

Insurance when renting car with CSR card

Post by infotrader » Sat Jun 09, 2018 10:37 am

If you rent a car using chase sapphire reserve points but you don't own a car (so you don't have primary insurance to cover liability), what you do with insurance? Or CSR will somehow cover it.

Any suggestions?

stevew7
Posts: 43
Joined: Fri Jan 09, 2009 10:40 am

Re: Insurance when renting car with CSR card

Post by stevew7 » Sat Jun 09, 2018 10:49 am

Chase Sapphire Reserve benefits are covered on their website:

https://www.chase.com/card-benefits/sap ... rve/travel

The coverage provided is primary but only for physical damage to the rental car up to 75k.

If you have no other car insurance, you have a lot of uncovered liability, for example, if you hit a person or damage other property with the car. Those types of coverage are not provided by any credit card I know about. You will need to buy liability coverage from the rental company such as Hertz liability supplement (https://www.hertz.com/rentacar/products ... AreYou.jsp).

So for example, say you run a red by accident, crash into another car, injure the other driver, damage the rental, and also damage a stoplight.

The only coverage you have from CSR is damage to the rental car. The damage to the car you hit, the damage to the stoplight, and the injury to the other driver you would be liable for with no coverage if all you have is CSR.

infotrader
Posts: 146
Joined: Tue Feb 28, 2017 2:39 pm

Re: Insurance when renting car with CSR card

Post by infotrader » Sat Jun 09, 2018 2:00 pm

Thank you so much!

denovo
Posts: 4379
Joined: Sun Oct 13, 2013 1:04 pm

Re: Insurance when renting car with CSR card

Post by denovo » Sat Jun 09, 2018 7:41 pm

stevew7 wrote:
Sat Jun 09, 2018 10:49 am

If you have no other car insurance, you have a lot of uncovered liability, for example, if you hit a person or damage other property with the car. Those types of coverage are not provided by any credit card I know about. You will need to buy liability coverage from the rental company such as Hertz liability supplement (https://www.hertz.com/rentacar/products ... AreYou.jsp).

You are absolutely correct that none of the credit card policies cover liability for damage to other persons or their vehicles.

However, in some states, the car rental company must provide primary liability coverage.

https://www.hertz.com/rentacar/reservat ... S&EOAG=LAX
Hertz provides no liability protection under the terms of the Rental Agreement to the renter from claims of injury by others against you resulting from an accident. Your personal/business insurance may cover your liability. Exceptions: Hertz will provide primary liability protection up to the statutory minimum limits to international customers (driver's license indicates an address outside the USA) renting in California. Please also refer to Liability Insurance Supplement (LIS) below.



If renting in Maryland, Massachusetts, Michigan, New York, South Carolina, Virginia, or West Virginia:
Upon signing the Rental Agreement, Hertz provides primary liability protection. However, such protection is generally no more than the minimum limits required by individual state law.
"Don't trust everything you read on the Internet"- Abraham Lincoln

stevew7
Posts: 43
Joined: Fri Jan 09, 2009 10:40 am

Re: Insurance when renting car with CSR card

Post by stevew7 » Sat Jun 09, 2018 7:50 pm

I would be careful if you think Hertz is providing you "free" state minimum insurance.

There is nothing in the agreement that waives their right to subrogate against you. In fact, there are several cases on flyertalk of someone who assumed a car rental company provided some minimum liability coverage, but was mistaken.

https://www.flyertalk.com/forum/hertz-g ... ility.html

Bottom line - you should get your own liability insurance (either through an insurance agent or buy the rental company's coverage). Chase Sapphire Reserve will protect the rental car as primary, but you really need to get insurance to cover damage you may cause to other property (someone else's car) or someone else's life. Remember, state minimum coverage is a joke (usually only around 20k) - anything other than a minor accident will blow through those limits.

infotrader
Posts: 146
Joined: Tue Feb 28, 2017 2:39 pm

Re: Insurance when renting car with CSR card

Post by infotrader » Mon Jun 11, 2018 5:54 pm

denovo wrote:
Sat Jun 09, 2018 7:41 pm
stevew7 wrote:
Sat Jun 09, 2018 10:49 am

If you have no other car insurance, you have a lot of uncovered liability, for example, if you hit a person or damage other property with the car. Those types of coverage are not provided by any credit card I know about. You will need to buy liability coverage from the rental company such as Hertz liability supplement (https://www.hertz.com/rentacar/products ... AreYou.jsp).

You are absolutely correct that none of the credit card policies cover liability for damage to other persons or their vehicles.

However, in some states, the car rental company must provide primary liability coverage.

https://www.hertz.com/rentacar/reservat ... S&EOAG=LAX
Hertz provides no liability protection under the terms of the Rental Agreement to the renter from claims of injury by others against you resulting from an accident. Your personal/business insurance may cover your liability. Exceptions: Hertz will provide primary liability protection up to the statutory minimum limits to international customers (driver's license indicates an address outside the USA) renting in California. Please also refer to Liability Insurance Supplement (LIS) below.



If renting in Maryland, Massachusetts, Michigan, New York, South Carolina, Virginia, or West Virginia:
Upon signing the Rental Agreement, Hertz provides primary liability protection. However, such protection is generally no more than the minimum limits required by individual state law.

Thank you so much!
The rental company is Alamo, and will rent a minivan in Texas for a week. I wonder if Alamo has similar policy.

lws
Posts: 36
Joined: Tue Apr 25, 2017 6:12 pm

Re: Insurance when renting car with CSR card

Post by lws » Tue Jun 12, 2018 3:56 pm

In my home state, they can not rent you a car if you can not provide proof of liability insurance.

Post Reply