Quick Tip: Summer Car Rental Tips

July 21, 2010— -- Want to get the best deal when you rent a car this summer? On "GMA" I explained that you can save by searching online for car rental codes at web sites like http://carrentalcodes.com and membership sites such as AAA or Costco that offer exclusive codes.

You should also try to rent from off-airport locations, which tend to be cheaper, especially on the weekends, and pre-pay when you book the rental to get a discount.

What about insurance coverage for your rental? Will the credit card you have give you the coverage you need?

Credit Cards and Car Rental Insurance

All the major cards offer you some form of secondary coverage. If you get in an accident, you file a claim with your auto insurance company and the credit card will cover most extra charges, including deductibles that you need to pay. However, there are many exclusions.

What to Look Out For:

Duration of Rental: If you are renting more than two weeks, check with your credit card company, because many do not apply to extended rentals.

Type of Rental: What type of car are you renting matters. If it's anything other than your standard mid-size or minivan it may not be covered. Luxury cars, trucks, U-Hauls, and antique cars are often excluded by the credit card companies. And if you're renting out of the U.S. or Canada, call and ask just to be safe.

Administrative and Loss of Use Fees: Administrative fees and something called loss of use fees are often not covered by the the credit card companies, so know that you are taking a gamble by declining coverage, but usually these fees aren't going to bankrupt you, only really peeve you.

The best thing to do is take a look at my simplified chart AVAILABLE HERE and on the next page about the coverage offered by all cards which has links to the detailed coverage policies for each individual card.

Credit Card Car Rental Coverage Chart

American Express

DURATION: 30 days or less

EXTRA FEE: If you decline rental car insurance, Amex will charge you a $4 fee per rental period for their supplemental car insurance

COVERAGE: You will file a claim with your primary auto insurance carrier and any additional fees or deductibles will be covered by Amex up to $50,000

EXCLUDED CARS: No coverage for any type of pick-up truck, full sized SUV, luxury van, any exotic sports car and any type of cargo van, truck or U-haul type vehicle.

EXCLUDED AREAS: No coverage is provided for vehicles rented in Australia, Ireland, Italy, Israel, Jamaica and New Zealand.

LIABILITY OR LOSS COVEAGE: No

PREMIUM OPTION:Amex does have a premium coverage option that you have to sign up for in advance. It costs nothing to add this option to your account but each time you rent a car, you will be charged One flat price of $24.95 per rental period, not per day ($17.95 for California Residents). This gives you 42 days of coverage, You can choose not to file a claim with your personal auto insurance company (keeping premiums lower). It provides up to $100,000 of primary coverage for damage or theft of the rental car, up to $100,000 of accidental death or dismemberment coverage, and up to $15,000 for excess medical expenses.

Discover Card

DURATION: 31 days or less

EXTRA FEE: No

COVERAGE: You will file a claim with your primary auto insurance carrier and any additional fees or deductibles will be covered by Discover up to $25,000

EXCLUDED CARS: All trucks, pickups, full-size vans mounted on truck chassis, campers, off-road vehicles, and other recreational vehicles. All sport utility trucks. Trailers, motorbikes, motorcycles, and any other vehicle having fewer than four (4) wheels.Antique vehicles (vehicles that are more than twenty (20) years old or have not been manufactured for at least ten (10) years), or limousines. Any rental vehicle that has a manufacturer's suggested retail price that exceeds $50,000 USD.

EXCLUDED AREAS: Coverage in the US and Canada Only

LIABILITY OR LOSS COVERAGE: No

PREMIUM OPTION: Yes- some cards offer higher coverage amounts like the escape by discover card that offers $50,000 in additional

Visa

DURATION: 15 days or less in your country of residence, 31 days in a foreign country

EXTRA FEE: No

COVERAGE: No cash limit specified. Their policy reads: "reimbursement for damage due to collision or theft up to the actual cash value of most rental vehicles."

EXCLUDED CARS: expensive, exotic, and antique automobiles; certain vans; vehicles that have an open cargo bed; trucks; motorcycles, mopeds, and motorbikes; limousines; and recreational vehicles. However, selected models of BMW, Mercedes-Benz, Cadillac, and Lincoln are covered.

EXCLUDED AREAS: Israel, Jamaica, the Republic of Ireland, or Northern Ireland.

LIABILITY OR LOSS COVERAGE: NO

PREMIUM OPTION: Business level Visa cards offer primary insurance coverage, meaning you don't have to submit a claim to an insurance company.

MasterCard

DURATION: 15 days or less

EXTRA FEE: NO

COVERAGE: No cash limit specified, cars must be valued at $50,000 or less

EXCLUDED CARS: All trucks, pickups, full-size vans mounted on truck chassis, campers, off-road vehicles, and other recreational vehicles. Trailers, motorbikes, motorcycles, and any other vehicle having fewer than four (4) wheels. Antique vehicles (vehicles that are more than 20 years old or have not been manufactured for at least 10 years) or limousines. All sport utility trucks. These are vehicles that have been or can be converted to an open, flat-bed truck (including, but not limited to, the Chevy Avalanche, GMC Envoy, and Cadillac Escalade EXT). Any rental vehicle that has a manufacturer's suggested retail price that exceeds $50,000.

EXCLUDED AREAS: Coverage is not available for vehicles rented in the following countries: Ireland, Israel, or Jamaica. You may be unable to receive benefits in Australia, Italy, or New Zealand. Please contact your vehicle rental agency before you travel.

LIABILITY OR LOSS COVERAGE: NO

PREMIUM COVERAGE: World Cards offer unrestricted locations for car rental coverage and some small business cards extend the duration of rental coverage to 31 days.

More Car Rental Tips:

Hidden Car Rental Fees: CLICK HERE for what you need to know.

For more tips about car rentals, CLICK HERE.

CLICK HERE for more ways to save on summer rentals.