Comments on: Loss of use? Get lost. http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/ Living the first class life -- at coach prices Sun, 21 Mar 2010 15:49:12 +0000 hourly 1 By: atom http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-33416 atom Tue, 02 Feb 2010 17:24:41 +0000 http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-33416 Do the math. CDW coverage is insurance. Insurance is a bet that you make that something bad will happen. If your standard auto insurance and cc cover everything but loss of use, then the entire risk you are insuring against is this loss of use charge. Say the rental car company got you for a month at $30 dollars a day... $900. How much would it be worth to insure against that expense? If cdw coverage is offered at $25 a day, then you'd be betting that you have an accident that results in 30 days loss of use once every 36 days you rent a car. If you don't expect to have one accident (or stolen car) every 36 days, then decline the insurance and save money in the long run. Just make sure you have an emergency fund in case the worst does happen. Do the math. CDW coverage is insurance. Insurance is a bet that you make that something bad will happen. If your standard auto insurance and cc cover everything but loss of use, then the entire risk you are insuring against is this loss of use charge. Say the rental car company got you for a month at $30 dollars a day… $900. How much would it be worth to insure against that expense? If cdw coverage is offered at $25 a day, then you’d be betting that you have an accident that results in 30 days loss of use once every 36 days you rent a car. If you don’t expect to have one accident (or stolen car) every 36 days, then decline the insurance and save money in the long run. Just make sure you have an emergency fund in case the worst does happen.

]]> By: Beyond points: Choosing a credit card with which to buy big-ticket items | Upgrade: Travel Better http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-33365 Beyond points: Choosing a credit card with which to buy big-ticket items | Upgrade: Travel Better Mon, 01 Feb 2010 22:43:51 +0000 http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-33365 [...] consideration is rental car coverage. Because of Visa’s more generous loss-of-use coverage in the case of damage to the car, I always use a Visa when [...] [...] consideration is rental car coverage. Because of Visa’s more generous loss-of-use coverage in the case of damage to the car, I always use a Visa when [...]

]]> By: Evan http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-26818 Evan Sun, 15 Feb 2009 13:47:08 +0000 http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-26818 love what mark ashley posted you know if he had just listened to that advantage guy that he hated so much he would have avoided that issue. lol. its not like the advantage guy did it for a living or anything. let me pose this question. lets say you have a 700 dollar credit limit on a bank of america, capital one, or other visa card....and you never use it. you still have an active CDW policy on that card...but you pay them nothing for it. why in hell would they pay for the full cost of a 20,000 dollar car, and expensive loss of use charges, towing, storage fees, etc. they wouldnt, they would find some reason not too. just dont be cheap, be safe, buy the stupid coverage, and dont worry about it. You shouldnt go on vacation unless you can afford to do so. love what mark ashley posted

you know if he had just listened to that advantage guy that he hated so much he would have avoided that issue. lol.

its not like the advantage guy did it for a living or anything.

let me pose this question.

lets say you have a 700 dollar credit limit on a bank of america, capital one, or other visa card….and you never use it. you still have an active CDW policy on that card…but you pay them nothing for it.

why in hell would they pay for the full cost of a 20,000 dollar car, and expensive loss of use charges, towing, storage fees, etc.

they wouldnt, they would find some reason not too.

just dont be cheap, be safe, buy the stupid coverage, and dont worry about it. You shouldnt go on vacation unless you can afford to do so.

]]> By: Matt http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-21453 Matt Wed, 16 Apr 2008 22:47:13 +0000 http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-21453 Too funny to read the various comments. Insurance companies don't like hypotheticals like LOU. Nice to see the follow up with info on the credit cards. Unfortunately, most still don't pay attention. Too funny to read the various comments. Insurance companies don’t like hypotheticals like LOU. Nice to see the follow up with info on the credit cards. Unfortunately, most still don’t pay attention.

]]> By: Thaddeus Buttmunch http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-19484 Thaddeus Buttmunch Sat, 26 Jan 2008 21:32:35 +0000 http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-19484 Some alpha male AA jock in a dodge ram in Rock Hill SC tried to pull the LOU crap on me (figuring as a Doc I could afford it), and I didn't bite. I needed a car b/c I had totalled another and got injured in the process. This is why we need socialism in this country. ...and as for the Gent who went to Mexico... I studied medicine there for two years and Don't ASK!! never again would I go back to those corrupt gringo haters. They shaft each other too which is why they are all getting out and coming here. I registered my car legally and they confiscated it and I needed a lawyer to get it back. And they all new G-D well that the majority of students registered their cars ILLEGALLY as tourists but never did anything to them. What a miserable hypocritical society they have. Some alpha male AA jock in a dodge ram in Rock Hill SC tried to pull the LOU crap on me (figuring as a Doc I could afford it), and I didn’t bite. I needed a car b/c I had totalled another and got injured in the process.

This is why we need socialism in this country.

…and as for the Gent who went to Mexico…

I studied medicine there for two years and Don’t ASK!! never again would I go back to those corrupt gringo haters. They shaft each other too which is why they are all getting out and coming here. I registered my car legally and they confiscated it and I needed a lawyer to get it back. And they all new G-D well that the majority of students registered their cars ILLEGALLY as tourists but never did anything to them. What a miserable hypocritical society they have.

]]> By: James http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-18927 James Thu, 03 Jan 2008 21:28:32 +0000 http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-18927 Just make sure you notify (file a claim) your card holder company as soon as possible after the accident. I was hit with additional expenses two months after the accident, well after I thought the insurance company had it all covered. VISA has a 45 day period to report claims. After that ......... Just make sure you notify (file a claim) your card holder company as soon as possible after the accident.

I was hit with additional expenses two months after the accident, well after I thought the insurance company had it all covered.

VISA has a 45 day period to report claims. After that ………

]]> By: jon mankowski http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-18437 jon mankowski Fri, 07 Dec 2007 00:13:52 +0000 http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-18437 Travel in Mexico.....things really have'nt changed all that much since my first Mexican holiday in 1967 after boot camp. Imagine that: One still has to be ever so careful of the Mexican toristo industry. You can still easily wind up in jail or in great credit-card debt. They know how to screw you just enough so that we keep coming back anyway. Travel in Mexico…..things really have’nt changed all that much since my first Mexican holiday in 1967 after boot camp.
Imagine that: One still has to be ever so careful of the Mexican toristo industry. You can still easily wind up in jail or in great credit-card debt. They know how to screw you just enough so that we keep coming back anyway.

]]> By: Renting a car in Mexico? Better have a high credit limit » Upgrade: Travel Better http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-18403 Renting a car in Mexico? Better have a high credit limit » Upgrade: Travel Better Thu, 06 Dec 2007 02:27:36 +0000 http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-18403 [...] - Loss of use? Get lost. - Reader mail: Why would I want to upgrade my rental car? - Reader mail: What happened to car [...] [...] – Loss of use? Get lost. – Reader mail: Why would I want to upgrade my rental car? – Reader mail: What happened to car [...]

]]> By: Mark Ashley http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-16656 Mark Ashley Sat, 06 Oct 2007 01:08:21 +0000 http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-16656 Interestingly, Ed Perkins (who wrote the article originally referenced in this post, back in February 2007) revisits the issue of loss-of-use this week, 8 months later. Here's the link: http://www.smartertravel.com/travel-advice/beware-gaps-in-credit-card-coverage-for-rental-cars.html?id=2442326 I'm quoting the most relevant parts of Ed's article below: <blockquote>For decades, other travel writers and I have advised not to buy overpriced CDW (collision/loss damage waiver) from the rental company, and to use your credit card's no-cost coverage instead. Given the high (and unjustified) cost of CDW—up to $25 a day—travelers who have followed it have paid a lot less for their rental cars than those who bought CDW. But the current situation calls that advice into question, at least in some cases. Many versions of AmEx, MasterCard, and Visa offer no-cost collision coverage when you use one of their cards for the rental. All of the card agreements I've seen say that the card includes LOU coverage. But card coverage isn't as foolproof as it sounds: * Visa says compensation for each LOU claim is "evaluated on the specific circumstances and merits of the claim. The policy's underwriter will work hard on behalf of the cardholder to reach a fair and equitable settlement such that the LOU amount is considered reasonable and therefore covered by the policy." * AmEx and MasterCard, on the other hand, say they do not pay LOU charges unless the rental company provides a vehicle log. Because some rental companies, including Hertz, say they do not and will not share that information with the card issuers, renting with either of those cards presumably risks not being compensated. [...] Should you succumb? Unless you're sure your rental company will provide fleet logs, you'll be better off with Visa than either AmEx or MasterCard (including Diners Club). Cautious renters will probably now opt for the CDW, no matter how expensive. Gamblers may prefer to risk the loss-of-use charge as long as the vehicle damage is covered, which it is by many credit cards.</blockquote> Interestingly, Ed Perkins (who wrote the article originally referenced in this post, back in February 2007) revisits the issue of loss-of-use this week, 8 months later. Here’s the link:
http://www.smartertravel.com/travel-advice/beware-gaps-in-credit-card-coverage-for-rental-cars.html?id=2442326

I’m quoting the most relevant parts of Ed’s article below:

For decades, other travel writers and I have advised not to buy overpriced CDW (collision/loss damage waiver) from the rental company, and to use your credit card’s no-cost coverage instead. Given the high (and unjustified) cost of CDW—up to $25 a day—travelers who have followed it have paid a lot less for their rental cars than those who bought CDW. But the current situation calls that advice into question, at least in some cases.

Many versions of AmEx, MasterCard, and Visa offer no-cost collision coverage when you use one of their cards for the rental. All of the card agreements I’ve seen say that the card includes LOU coverage. But card coverage isn’t as foolproof as it sounds:

* Visa says compensation for each LOU claim is “evaluated on the specific circumstances and merits of the claim. The policy’s underwriter will work hard on behalf of the cardholder to reach a fair and equitable settlement such that the LOU amount is considered reasonable and therefore covered by the policy.”
* AmEx and MasterCard, on the other hand, say they do not pay LOU charges unless the rental company provides a vehicle log. Because some rental companies, including Hertz, say they do not and will not share that information with the card issuers, renting with either of those cards presumably risks not being compensated.
[...]
Should you succumb? Unless you’re sure your rental company will provide fleet logs, you’ll be better off with Visa than either AmEx or MasterCard (including Diners Club). Cautious renters will probably now opt for the CDW, no matter how expensive. Gamblers may prefer to risk the loss-of-use charge as long as the vehicle damage is covered, which it is by many credit cards.

]]> By: Quinton Bryson http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-16654 Quinton Bryson Fri, 05 Oct 2007 18:41:01 +0000 http://www.upgradetravelbetter.com/2007/02/25/loss-of-use-get-lost/#comment-16654 Ok first Jon sorry about the name calling greatly applogize. Next In most cases if its bigger than a Quater or Pierces the paint you will be charged for the damage and loss of use. No logs are needed because when we send the bill to your ins. co. it is listed in the Itimized statement. Next think of it this way if damage a windshiled on a new car to the market and car mfgs. have not started to produce the part we cannot rent the vehicle w/ a busted windshield. We have to wait untill the windshield comes in. Oh and by the way if you read the fine print on most if not all rental contract it states about loss of use. We can have the argument all night long if this is a correct practice or not but it still comes down to this dont want to pay down time take CDW Ok first Jon sorry about the name calling greatly applogize. Next In most cases if its bigger than a Quater or Pierces the paint you will be charged for the damage and loss of use. No logs are needed because when we send the bill to your ins. co. it is listed in the Itimized statement. Next think of it this way if damage a windshiled on a new car to the market and car mfgs. have not started to produce the part we cannot rent the vehicle w/ a busted windshield. We have to wait untill the windshield comes in. Oh and by the way if you read the fine print on most if not all rental contract it states about loss of use. We can have the argument all night long if this is a correct practice or not but it still comes down to this dont want to pay down time take CDW

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