I said I have a weak point for sob stories because I keep getting drawn to them. Someone on Twitter led me to this story on CreditCards.com:
Kim rented a car from Alamo. She paid with her Discover card. Kim damaged the rental car when she backed it into a pole. Alamo charged her $4,000. Discover paid $3,000 because the card’s rental car insurance doesn’t cover the loss-of-use charges and administrative fees Alamo tacked on.
Now Kim is mad at Discover for not covering her in full.
Don’t they say “don’t look a gift horse in the mouth”? The rental car insurance from the credit card is free. She got $3,000 out of it already. For all we know, the $1,000 loss-of-use and administrative charges may be completely bogus. She should ask Alamo to prove to her there had been loss of use and that she agreed to the administrative charges in the rental agreement.
I don’t understand why Kim doesn’t blame herself for damaging the rental car or blame Alamo for tacking on undisclosed and unsubstantiated charges, but instead she blames Discover, who paid $3,000 on her behalf. Because everybody knows credit card companies are evil? If they are evil, don’t use them!
Knowing that there may be some gaps in a credit card’s rental car insurance, would I still rely on my credit card for rental car coverage? Yes, absolutely. Paying the rental car company’s CDW at $15 per day is crazy. If my auto insurance charges me at that rate I’d be paying $5,500 per car per year.
I’m going to do exactly the opposite of what the title of that article suggested. I will still automatically refuse extra rental car insurance coverage.