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View Full Version : Questions on CDW and CDW+



Bethy
04-08-2014, 04:25 PM
This year we were informed by our rental car company that the CDW insurance ($11 per day) does not cover theft, vandalism etc.. In order to be covered for theft, vandalism, fire, flood etc. we need to pay an additional $19 per day for CDW plus insurance. So the total would be $30/day and a $565.00 deductible.

And then even with the CDW plus insurance we will only be covered if we can produce a police report proving that the we had not left any valuables in the vehicle and had put the key away in a safe place. (is this pretty easy to get?)

I just wanted to see from other Bonaire Talkers if this the new "norm" on Bonaire when renting a truck? This is the first year that we have seen this added fee of CDW Plus on our truck rental quote.

Thanks!

Bethy
04-08-2014, 04:39 PM
Correction it would be an additional $8 per day for the CDW Plus.

Sparty
04-09-2014, 02:41 PM
Correction it would be an additional $8 per day for the CDW Plus.

Everyone has their own opinion on what is reasonable for car rental and for that matter the total cost of visiting Bonaire. However, for myself, if I am ever "required" to take CDW, I will not be using that agency. I am also aware some renters have been surprised with that policy when they arrived to pick up the vehicle. If it ever reaches the point where all rental agencies adopt that policy, it will be time to find another island to visit.

If you are only going for a week, it may not be that important. However, if you plan on spending a month or more, $600 per month extra for insurance with a $500-$600 deductible is what I consider unreasonable when coverage from a credit card company is either free or, in the case of AMEX, $24.95 a month for their premium coverage with no deductible. We just returned from a two month stay and the cost of AMEX was $24.95 X 2. (AMEX is only good for rentals of 42 days or less so we have to break our stay into two separate rentals and pay the insurance cost twice. Compare that to paying $1200.00 for the rental agencies CDW and STILL HAVING to pay a $500-$600 deductible if you do have an incident.

Bethy
04-10-2014, 08:06 AM
Thanks for your response Sparty,

I agree, we travel to Bonaire for a month in February and then another 2 weeks in July, so these CDW fees are really starting to add up. I am going to look into getting an AMEX.

I originally discounted the AMEX card because of the 2.7% foreign transaction fee, it may be worth paying the 2.7%. Do you know if there an AMEX card that does not charge the 2.7% fee for foreign transactions?

kob
04-10-2014, 09:42 AM
I have a Platinum Delta Amex card which does not charge foreign transaction fees.

Sparty
04-10-2014, 09:55 AM
Check with AMEX to be sure but they have never charged me a foreign transaction fee for Bonaire and last month they sent a letter saying that as of, I think, April 1st they would no longer be charging foreign transaction fees anywhere.

Correction: in my prior post, I said the AMEX fee for the premium Ins was $24.95 a month. That should have been "per rental up to 42 days".




Thanks for your response Sparty,

I agree, we travel to Bonaire for a month in February and then another 2 weeks in July, so these CDW fees are really starting to add up. I am going to look into getting an AMEX.

I originally discounted the AMEX card because of the 2.7% foreign transaction fee, it may be worth paying the 2.7%. Do you know if there an AMEX card that does not charge the 2.7% fee for foreign transactions?

Bethy
04-10-2014, 10:39 AM
Check with AMEX to be sure but they have never charged me a foreign transaction fee for Bonaire and last month they sent a letter saying that as of, I think, April 1st they would no longer be charging foreign transaction fees anywhere.

Correction: in my prior post, I said the AMEX fee for the premium Ins was $24.95 a month. That should have been "per rental up to 42 days".

Great, I just did some research and AMEX has a card called "AMEX Everyday" which has no annual fee and I can enroll that card in the $24.50/month program you were talking about....but with good news comes bad news....

I checked with the rental car company we use on Bonaire and they do not accept AMEX. Their reasons were high commissions and long delays with getting payments into their account. We have been using this company for years and have never had any issues with them, so I hate to take my business away, but on the other hand this could save us a good amount of money.

Bethy
04-10-2014, 10:39 AM
I have a Platinum Delta Amex card which does not charge foreign transaction fees.

Is there an annual fee for that card?

kob
04-10-2014, 11:55 AM
I think the annual fee is $375 ... I got it for the Delta air miles primarily, but also includes free checked bags, priority boarding, free economy plus seating, etc. We use it whenever possible for all expenses, then just pay off each month.

wwguy
04-10-2014, 01:26 PM
I think the annual fee is $375 ... I got it for the Delta air miles primarily, but also includes free checked bags, priority boarding, free economy plus seating, etc. We use it whenever possible for all expenses, then just pay off each month.

Delta Platinum Amex annual fee is currently $150. It'll be increasing to $195 for accounts opened or renewed after May 1st. Delta offers several cards with varying fees and benefits, but none of them grant free access to Economy Comfort seating. EC seating is only free for for Gold Medallion and higher frequent flyer members, and those travelling on Y, B & M fares.

Delta's Gold Amex card is free the first year and $95/year after that. All 3 Delta cards (Gold, Platinum, and Reserve) include "priority boarding" (after first class, Medallion frequent flyers, and little old ladies) and first bag checked free for you and up to 9 people traveling on the same reservation. That alone can justify the $100 annual fee.

All of the Delta Amex cards also include limited car rental insurance if you decline the rental company's CDW. This coverage is secondary to your personal auto insurance and does not cover trucks or most foreign rentals. You'll need to make sure to enroll your Amex card in the optional American Express Premium Car Rental Insurance program in order to get the $24.95 42-day primary coverage that includes trucks too.

Bethy
04-10-2014, 01:38 PM
Check with AMEX to be sure but they have never charged me a foreign transaction fee for Bonaire and last month they sent a letter saying that as of, I think, April 1st they would no longer be charging foreign transaction fees anywhere.

Correction: in my prior post, I said the AMEX fee for the premium Ins was $24.95 a month. That should have been "per rental up to 42 days".

Okay hopefully this will be my last question. I was just on the Budget website trying to rent a car for 2 weeks in July. How do you reserve a car with Budget without the CDW included in the price. Their website says that a charge of $14 for CDW is included in the price and that CDW is mandatory.

wwguy
04-10-2014, 02:03 PM
Okay hopefully this will be my last question. I was just on the Budget website trying to rent a car for 2 weeks in July. How do you reserve a car with Budget without the CDW included in the price. Their website says that a charge of $14 for CDW is included in the price and that CDW is mandatory.

I don't think you can. (That's what they mean by "manadatory".)

You need to find a rental company that:
1) Permits waiving their CDW coverage, and
2) Accepts payment via American Express, and
3) Recognizes your coverage by American Express Premium Car Rental Protection policy.

As far as I know Telerin is the only company that meets that criteria.

Bethy
04-10-2014, 03:21 PM
I don't think you can. (That's what they mean by "manadatory".)

You need to find a rental company that:
1) Permits waiving their CDW coverage, and
2) Accepts payment via American Express, and
3) Recognizes your coverage by American Express Premium Car Rental Protection policy.

As far as I know Telerin is the only company that meets that criteria.

I understand the meaning of the word "mandatory" that was not my question.

I have read that other Bonaire Talkers have been able to rent via Budget and Avis with their AMEX while declining the CDW, so I wanted to know how to do it. I am thinking that perhaps they used the corporate web site instead of the Bonaire site, but I am not sure....which is why I asked.

wwguy
04-10-2014, 05:26 PM
I guess I either didn't understand your question or your response to my reply, or perhaps both. If you already understood that Budget CDW was mandatory it seems you wouldn't have been asking how to get around it. My reply was simply that it appears you can't avoid it.

This previous post about rental companies that take Amex may be helpful to you.

http://www.bonairetalk.com/forums/showthread.php?74621-Truck-Insurance-Summary-and-Amex-Premium-Coverage&p=438096#post438096

Good luck.

Sparty
04-11-2014, 05:37 PM
While not directly related to renting on Bonaire, one thing AMEX Premium Ins. users might keep in mind is the fact that AMEX Premium ins is primary. Although I have never used the premium coverage to rent vehicles in the U.S., it is only because I have not rented vehicles there for a number of years. However, for infrequent renters, it might be a good idea to utilize it in the U.S. as well, even though your domestic car insurance covers rentals. My insurance agent recommends using the AMEX because, if you have an accident with a rental vehicle and file a claim with your car insurance company, your premium will increase much more than the AMEX rental charge. Of course if you rent frequently, the accumulated $24.95 charges will soon exceed what ever premium increase you may incur by relying on your own car insurance.

kob
04-14-2014, 07:05 AM
Sparty -- I am not sure I understand your comment about recommending using it in the US ... the insurance kicks in automatically every time you rent a car, doesn't matter where. We rent in Seattle a lot to drive to my wife's family in BC and it kicks in the same as if we're renting from Poppy on Bonaire or in LA or wherever. Am I missing something?

Sparty
04-14-2014, 01:15 PM
Sparty -- I am not sure I understand your comment about recommending using it in the US ... the insurance kicks in automatically every time you rent a car, doesn't matter where. We rent in Seattle a lot to drive to my wife's family in BC and it kicks in the same as if we're renting from Poppy on Bonaire or in LA or wherever. Am I missing something?


i was referring to someone who may choose to use another brand of credit card in the U.S., to avoid paying the Premium Insurance Charge to
AMEX, because they are already covered by their personal auto insurance in the U.S. Since the AMEX coverage is primary, by using it, you would not have to report the claim to your domestic insurance company and run the very real chance of a premium increase.

kob
04-14-2014, 08:42 PM
OK, thanks for the clarification ... and actually I was incorrect earlier ... this came in my email today from Amex ...

New Card benefit coming soon: No foreign transaction fees

Starting May 1, 2014, enjoy a new reason to use your Card: American Express will no longer charge foreign transaction fees on the purchases you make with your Platinum Delta SkyMiles® Credit Card outside of the United States.

jendiver
04-14-2014, 11:55 PM
Can anyone walk through the pros and cons of doing both Amex insurance and taking CDW? We are renting with Poppy and trying to decide if we should do both or if that will mess everything up....

Bethy
04-15-2014, 02:06 PM
While not directly related to renting on Bonaire, one thing AMEX Premium Ins. users might keep in mind is the fact that AMEX Premium ins is primary. Although I have never used the premium coverage to rent vehicles in the U.S., it is only because I have not rented vehicles there for a number of years. However, for infrequent renters, it might be a good idea to utilize it in the U.S. as well, even though your domestic car insurance covers rentals. My insurance agent recommends using the AMEX because, if you have an accident with a rental vehicle and file a claim with your car insurance company, your premium will increase much more than the AMEX rental charge. Of course if you rent frequently, the accumulated $24.95 charges will soon exceed what ever premium increase you may incur by relying on your own car insurance.

Sparty,

My husband and I were just discussing this and I agree, you make a great point about the premium increase. Thank you for all the information, we have been going back and forth with our car rental agency on Bonaire trying to work this out. Every year we rent two rental trucks for the month of February and then another truck for 2 weeks in July. These CDW fees are really starting to add up. So fingers crossed we can reach an agreement where both sides will feel comfortable.

Bethy
04-15-2014, 02:08 PM
OK, thanks for the clarification ... and actually I was incorrect earlier ... this came in my email today from Amex ...

New Card benefit coming soon: No foreign transaction fees

Starting May 1, 2014, enjoy a new reason to use your Card: American Express will no longer charge foreign transaction fees on the purchases you make with your Platinum Delta SkyMiles® Credit Card outside of the United States.

that is great news...2.7% in savings

Bethy
04-15-2014, 03:13 PM
Can anyone walk through the pros and cons of doing both Amex insurance and taking CDW? We are renting with Poppy and trying to decide if we should do both or if that will mess everything up....

Jen,

I am just trying to sort this all out myself. My concern would be that if I had two CDW policies, AMEX would consider their policy secondary or possibly void, so I would be subject to the deductible etc. of the Bonaire CDW policy and then AMEX would cover any residual charges. I am not sure if this is true...but I will let you know

As far as pro & con, the Bonaire-based CDW is between $11-$14 per day and a $500 ish deductible, while AMEX is only $24.95 for the entire rental period and there is no deductible.

jendiver
04-15-2014, 04:01 PM
I understand the pro of doing the Amex over the rental company CDW (this is why a got an American Express prior to this trip and use Poppy), just not if there would be any gain in doing both or not really, and if like you mentioned one cancels each other out, etc or other terrible ideas to just do both.

I had heard that if you do the Amex one then if something happens you have to pay out of pocket for the damage, theft, etc and then Amex pays you back. That is what scares me being out a large amount and not having that money right then on our trip, like if the whole truck gets stolen or totaled. However since CDW doesn't cover theft if the whole truck gets stolen isn't that still the case that I would have to pay for the whole truck out of pocket right then?

I guess I should ask Amex/Poppy these questions, but then where would wild speculation live?:eek:

Bethy
04-15-2014, 04:18 PM
I understand the pro of doing the Amex over the rental company CDW (this is why a got an American Express prior to this trip and use Poppy), just not if there would be any gain in doing both or not really, and if like you mentioned one cancels each other out, etc or other terrible ideas to just do both.

I had heard that if you do the Amex one then if something happens you have to pay out of pocket for the damage, theft, etc and then Amex pays you back. That is what scares me being out a large amount and not having that money right then on our trip, like if the whole truck gets stolen or totaled. However since CDW doesn't cover theft if the whole truck gets stolen isn't that still the case that I would have to pay for the whole truck out of pocket right then?

I guess I should ask Amex/Poppy these questions, but then where would wild speculation live?:eek:

Gotcha Jen, now I understand. The rental agency we use on Bonaire charges $11 for CDW and $19 for CDW plus, which includes theft. I am okay with the paying out of pocket and getting reimbursed by AMEX if I can decline these fees. We rent 2 trucks for a month in FEB and then 1 truck for two weeks in July. So that adds up to $1,330.00 in insurance charges. If we could just do the AMEX insurance it would only be $75.00.

Let me know what you find out and I will do the same...

wwguy
04-15-2014, 05:12 PM
I understand the pro of doing the Amex over the rental company CDW (this is why a got an American Express prior to this trip and use Poppy), just not if there would be any gain in doing both or not really, and if like you mentioned one cancels each other out, etc or other terrible ideas to just do both.

I had heard that if you do the Amex one then if something happens you have to pay out of pocket for the damage, theft, etc and then Amex pays you back. That is what scares me being out a large amount and not having that money right then on our trip, like if the whole truck gets stolen or totaled. However since CDW doesn't cover theft if the whole truck gets stolen isn't that still the case that I would have to pay for the whole truck out of pocket right then?

I guess I should ask Amex/Poppy these questions, but then where would wild speculation live?:eek:

Telerin's perspective (from the rental paperwork): "Renter is responsible for all loss and/or damage to the rented vehicle. This liability may be reduced to US$500.00 by purchasing the CDW for an additional daily charge of US$11.43. CDW does not cover theft, vandalism, and/or OFF ROAD driving." All bold font and capital letter emphasis is as it appears on the form.

So Telerin's CDW gets you off the hook for collision and other incidental damage above your $500 deductible. As noted, you're still liable for damage caused by theft or vandalism.

Amex Premium coverage covers it all, but that's an agreement between Amex and you rather than between Amex and the rental company. And of course there's always a risk that Amex might deny or reduce your claim. But if you're willing to accept that risk and have the financial means to pay the rental company for damages in the short-term this policy covers everything the rental CDW does and more.

If you want to pad your bets and ease the burden of handling a claim you can do both. You'll have the convenience of Telerin's CDW for collision damage and the protection of Amex for theft or vandalism. There's nothing in the Amex terms and conditions that says anything about CDW insurance coverage canceling the benefits of Amex coverage. But you should be aware that both policies will try to force as much of a claim as possible on the other if they're aware of redundant primary coverage. If you use both policies you're also paying twice for the same collision damage coverage and you'll be out the $500 deductible if you use the more convenient CDW policy in event of a collision claim. I haven't specifically asked Amex about this, but I think it's unlikely Amex insurance will reimburse you for the $500 CDW deductible.

From my perspective I don't see a "perfect" solution. Everyone has to weigh their available options and then make their decision based on their tolerance for risk and out-of-pocket expense etc. For me, theft and vandalism coverage is mandatory nowadays. Too many trucks and/or parts of trucks have gone missing in recent years. I don't want to waste vacation bandwidth worrying about being responsible for replacing them. If I couldn't leverage the Amex coverage at Telerin I'd have to look at an alternate rental company that offered full-coverage insurance.

jendiver
04-15-2014, 05:56 PM
Thanks Guys - very helpful!