What do you need to know when you use American Express to pay for your rental car?

As spring break is coming up, you might be planning on taking a trip with your family. Wherever you go, you might need to rent a car when you get to your destination. When you hand the rental agency your American Express card, you will need to be cautious not to put yourself into any risk. Here are a few tips that can help you stay risk-free.

First of all, we are more likely to rent large cars or SUVs when we go to a rental service. People say to themselves, we are on vacation and we deserve a nicer ride. When the car rental agency recommends us to take an upgraded SUV, most people take it. Well, think again. Large SUVs are not covered by American Express at all. If the vehicle is damaged while you are trying to find a parking space in a parking lot, the damage will not be covered at all. Your personal auto insurance doesn’t cover it either. You are liable for the damage that occurs to the SUV. If your rental car is damaged, you might be billed for thousands of dollars from the rental service.

Always talk to your auto insurance agent first to understand your own coverage better. In addition to your personal car insurance coverage, American Express offers secondary protection that generally covers any remaining unpaid damages. However, here are the important exceptions:
Green and Gold cards provide secondary coverage up to $55,000.
Platinum card coverage extends to $75,000.
Large SUVs such as Ford Expedition and GMC Suburban are not covered at all.

You may also be billed thousands of dollars for a fee called loss of vehicle use fee. It means that while the vehicle is being repaired at the shop, you will be billed for the agency’s daily loss. This is not covered by American Express either. The bill will usually be mailed to you months later after your vacation is over.

Third, I will give you some tips that can help stop all the hassle. Always rent a smaller vehicle when possible.

If you can, I would recommend you to purchase the “collision and liability damage wavier fee”. It ranges from $10 to $25 a day. It covers all the accidents that might occur. With this policy, you are not liable for any charges. If you want to stay stress-free, this is the right way to go.

Now, you know more about American Express rental coverage. Hopefully, when you go on your spring break, you will be able to enjoy it and not to worry about any incidents.

www.americanexpress.com