NASP 2008 Annual Conference
GOES
SubroSUBRO
Goes Hollywood!
HOLLYWOOD
NASP 2008 Annual Conference
Credit Card Benefits
vs.
Personal Insurance Policies
Helen Mance & Judy Mann
What benefit is typically afforded?
• Comprehensive & Collision benefit for rental
vehicle (i.e., Physical Damage)
• Other Benefits that may be afforded:
– Loss of Use
– Personal Effects Coverage (PEC)
– Accident Death & Dismemberment
– Purchase & Warranty
– Employee Dishonesty
• No Liability
Physical Damage… in what order?
• Generally afforded in a “secondary” position
• The Benefit is paid after any available primary
coverage has been exhausted
• Usually covers only the Renter’s deductible on
their own personal auto policy
Does primary coverage exist?
There are some cases where the credit card will
afford physical damage in a primary position
– Renter holds “high level” card
– Renter holds “corporate” card
– Renter purchased primary benefit
– Renter has no other insurance
What happens when a loss occurs?
• Renter or Card Holder must report loss
• Renter or Card Holder must set-up claim
• Renter or Card Holder must complete claim
forms and submit in a timely manner
The Renter drives the claim….
What else should I consider?
• Both the rental reservation and payment must be
made on the same card
• A valid OPEN and CLOSED rental contract is required
• Terms & Conditions cannot be violated (ie DUI)
• Card Holder must be Primary Renter
• Any Additional Driver(s) must be authorized by the
Terms & Conditions
• Renter must decline CDW/LDW/PDW
Anything else?
Typical exclusions under credit card benefits
include:
– Damage resulting from improper or faulty
maintenance
– Damage caused by off-road use
– Vehicles = >$50,000 MSRP
– Pick-Ups and full-sized SUVs
– Etc.
Other Credit Card Benefits
•
•
•
•
•
Loss of Use or LOU
Administration fees
Diminution of value or DOV
Depreciation
Rental expenses
Other benefits (cont)
•
•
•
•
•
•
Personal Effects Coverage or PEC
Accidental Death & Dismemberment
Med Pay
Purchase & Warranty
Employee Dishonesty
No Liability
When in doubt… check it out!
American Express:
(800) 338-1670
MasterCard:
(800) MC Assist
Visa:
(800) 348-8472
NOTE: Card Holder must be
present when you initiate the
call to the credit card company.
Q&A
• Thank you for your participation!