MasterCard Car Rental Coverage

Daniel asks:

This question is about my Mastercard car rental coverage. I have a Citibank Mastercard that I will use to rent a car later this month. I called a rep from the company and they said that I'm covered for the car rental insurance as long as I don't accept the CDW/LDW from the rental company. This will save me about $25 a day.

I was just wondering if there are any hidden fees that I would be charged, even if I'm covered through my credit card? If something happens to the rental car, I don't want any out of pocket expenses.

My Response:

While I wouldn't use the term "hidden fees", there are some things that you need to be 

aware of when using your Citibank Mastercard car rental coverage. The best way to get all the details, terms, conditions, limitations, exlusions, etc about your particular coverage is to either carefully review the terms and conditions (in the benefits package that you received with your card) or by contacting Mastercard for details: MasterCard Assistance Center 1-800-307-730

Below are just some standard terms and conditions that you should be familiar with, before you decide to use this coverage and decline the car rental insurance from the rental company.

Key points:

1. You must initiate and pay for the entire rental with your mastercard (you can't use a different credit card for the hold at the beginning of the rental).

2. The rental period must not exceed 31 days.

3. There is a maximum coverage offered by Mastercard... the rental car must be of that value or less.

4. Certain vehicle types may be excluded from coverage.

5. The Mastercard car rental coverage is secondary. This means that if you automatically have some rental car coverage through your own personal automobile insurance policy, MasterRental will only pay for costs NOT covered by your own insurance (example: a deductible) This means that if you do have personal coverage, any claim would have to go through your own insurance first.

6. Your mastercard coverage will not cover "Depreciation, diminishment of value, administrative, or other fees charged by the vehicle rental company. " With regards to the "other fees"... you should check to see if the Mastercard car rental coverage, covers Loss of Use (this is a fee charged by the rental car companies for every day that the damaged vehicle is unable to be rented). It also does not cover "Value-added tax, or similar tax, unless reimbursement of such tax is required by law."

I hope this helps!

*Note: Credit card companies can modify policy and coverage benefits at any time; I make every attempt to maintain up-to-date info, but always check with an individual company to verify any policy or coverage details. See: Disclaimer

Pages from this site, relating to this topic:

Personal Auto Insurance Coverage

CDW and LDW Coverages

Car Rental Credit Card Coverages

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