(I started to post this to a thread supposedly about accommodations at the Plaza, which had wandered off into truck rental info, but I thought it might be more useful to post it here, in its own thread.)

A note about Amex's "deluxe" insurance. If you have an Amex card, even the no-fee Amex Blue, you can enroll in either a $19.95 plan or a $24.95 plan, the primary difference being the automobile coverage limits: $75,000 for the $19.95 plan, $100,000 for the $24.95 plan. (These plans also include other insurance - theft of personal property, accidental death and dismemberment, but they're just window dressing in my opinion.)

Once you have enrolled with Amex in either of these plans, you are enrolled from then on until you actually cancel your enrollment. After you have enrolled, EVERY time you rent a vehicle anywhere using your Amex card, your Amex account is charged the $19.95 or $24.95 fee, and that rental is covered (for up to 41 days).

The Amex extra fee insurance does cover trucks and large vans rented for non-commercial use. Amex also has "free" CDW coverage that, like the CDW coverage from Visa or MasterCard, covers passenger cars and minivans, but not large vans or trucks. One big difference between Amex and Visa and MC: Visa and MC will pay rental companies for validated loss of use after an accident; Amex will not, whether it's the free CDW coverage or the $19.95/$24.95 deluxe insurance. This may be part of the reason that some local Bonaire car rental agencies don't accept Amex.

Another consideration: Coverage from Amex (fee or free), MC, and Visa covers vandalism, theft, and malicious mischief. I haven't checked all Bonaire car rental agencies, but both AB and Netties, for example, cover only collision, not V&MM in the "CDW" that they sell you for $10 or $11 per day. To get the broader coverage you have to pay AB another $8 per day, or Nettie $5 per day. Even then, the coverage you buy in Bonaire leaves you with a $572 deductible under their basic CDW. The deductible is smaller if you buy their extra insurance, but it's still over $100 (varies between rental agencies). In contrast, assuming that your own US auto insurance doesn't cover you in Bonaire, then the coverage by Amex (fee or free), Visa, or MC has a zero deductible!

Now, I would like to say, "Trust me, I've got this right", but these litigious days I feel I have to say instead that this is what I understand to be true, but I make no warranty as to its applicability to your circumstances. Anyone who reads this should verify before taking any action based upon what I have written. I'm not a software producer, so I'll stop the disclaimer here instead of spinning it out for a few more pages.

David

One concern that I have always had is whether a U.S. credit card will cover your collision damage waiver in Bonaire. Next question is whether the Bonaire rental agency recognizes this coverage from a foreign agency. Even if you could get the U.S. card issuer to eventually cover a claim I suspect that you would have a major hassle getting off the island until you had covered any damages on the spot.
Does anyone have any knowledge or experience in this area?

Richard,

Mastercard offers a "free" policy with a 15 consecutive day rental time limit. Call 1-800-MC-ASSIST for details. One of the stipulations for coverage is to decline the rental agency's CDW insurance.

My question:

What is the difference between being covered by your own Credit Card (Visa or Mastercard) and a Bonaire car rental's CDW policy? How does the policy offered by MC or Visa stack up to the Amex policy regarding coverage?

I know that with my Mastercard, it is ONLY the vehicle that is covered along with the authorized drivers identified by the contract. What I consider important items such as bodily injury (personal and others) or the other vehicle (if it were an accident) are not covered by the "MasterRental" policy. For instance:

SOME of the things that are NOT covered by MasterRental("free" Mastercard insurance program):

theft of contents
personal injury
personal liability
personal property
someone else's injury or property
everything....if you can not produce the keys
damage sustained on any unpaved surface (dive sites?)
theft or damage to an unlocked car!

----------

If any of you have access to the fine print of a CDW or Amex policy, I'd appreciate a comparison.

regards,
b

Okay, let me try to be more precise about some of the differences among the types of insurance you can choose for your vehicle rental in Bonaire

Footnotes first:

The following comparison is based on my reading of these documents, received by me from the issuing agency within the last two months, plus current websites:

1. Visa Standard Guide to Benefits, effective 3/1/04
2. Summary of Additional Program Information applicable to MasterCard cardmembers, Citibank document PL0052, 01/04
3. American Express Credit Cardmember Agreement, document CD 25454 (04/04)
4. American Express Premium Car Rental Protection document PCR2 (undated,)
5. American Express Premium Car Rental Protection document PCR3 (undated)
6. Website, AB Carrental, Bonaire (www.abcarrental.com/)
7. Website, Netty’s Car Rental, Bonaire (www.nettyscarrental.com/home.html)

I’m not a lawyer. In my profession I wrote construction bid documents, plans and specifications, which were legally binding upon contractors. Detailed stuff. So I think I understand these documents. HOWEVER, it’s still entirely up to you to confirm that what I write is applicable to you. I make no warranty. Be especially sure that you hold a “premium” charge card (gold, platinum, what’s next?) that actually offers car rental coverage. Everything I write is from the point of view of a US resident renting in Bonaire.

Coverage in Bonaire: US credit cards (MC, Visa, AmEx) that offer car rental coverage do cover you in Bonaire for the rental of passenger cars, some SUVs, and minivans at no extra charge. Only the AmEx Premium extra cost programs cover pickup trucks, large SUVs, and the larger truck-based passenger vans. Many car rental agencies will try to frighten you into taking their own coverage, on which they make a good profit, by saying that they don’t recognize the credit card coverage. Technically that’s true; the local car rental agencies have no obligation to deal with the credit card companies regarding vehicle damage.

Typically, the rental agencies charge you for any accidental damage, and it's up to you to seek reimbursement from your credit card company. (Do I have to say that you need to use a credit card that has enough of an available balance to cover possible vehicle damage?) Obviously, you have to provide your credit card company with documentation, and your rental agency has an obligation to give you documentation to support their charge to you. PLEASE CONTACT YOUR CREDIT CARD COMPANY AND ASK FOR A COPY OF THEIR CAR RENTAL INSURANCE COVERAGE. (It's typically printed on very thin paper, folds up small and is easy to carry.) You can't count on remembering the documents that your credit card company will require. Carry the coverage info with your travel papers, so you can use it as a checklist if you will need to file a claim. I’m not going to list here what’s required. The details differ among the credit card companies; besides, you’re not likely to have a copy of this post with you. Failing all else, at least have some clear paperwork that shows exactly what is being charged to you, and why. Photos of the damage are always a good idea. After you report to your credit card company immediately on your return home, they’ll give you a reasonable amount of time to gather the additional documents they require; however, the Bonaire car rental agency won’t be under any great pressure to help you at that point.

Extent of coverage:

In Bonaire, Visa CDW coverage is “primary”, that is to say, it’s the first insurance you turn to. The dollar limit of coverage is the actual cash value of the vehicle as it was originally manufactured. The maximum covered rental period is 31 days. “Most private passenger automobiles, minivans, and sport utility vehicles are covered, but some restrictions may apply.” “Coverage is provided for only those vans manufactured and designed to transport a maximum of eight (8) people…” There’s no coverage for “Loss due to off-road operation of the rental vehicle.” Call 1-800-356-8955 if you have questions.

MasterCard CDW coverage is “secondary”, that is to say, you must exhaust any other applicable insurance before turning to MC. If your own auto or other insurance doesn’t cover in Bonaire (a likely scenario), the MC coverage becomes primary. The dollar limit for MC is current market value of the vehicle or $50,000, whichever is less. The maximum covered rental period is 15 days. Coverage includes “all minivans and sport utility vehicles that are designed to accommodate nine passengers or fewer…” There’s no coverage for “Damage sustained on any surface, other than a bound surface such as concrete or tarmac.” Call 1-800-MC-ASSIST if you have questions.

AmEx’s free CDW coverage is also secondary (they call it “excess” insurance), as described above for MC. AmEx will reimburse up to “the lesser of: 1) the actual cost to repair the Rental Auto, 2) the wholesale Book value minus salvage and depreciation costs, or 3) the purchase invoice price of the Rental Auto minus salvage and depreciation costs.” The maximum covered rental period is 30 days. Coverage includes “Passenger mini-vans with factory-specified seating capacity of eight passengers or less….”, also “Compact sport/utility vehicles…..when driven on paved roads.” No vehicle operated off-road is covered. (Does this mean that you’re covered driving an automobile or minivan on unpaved roads, but not an SUV?) 1-800-38-1670 is the phone number for AmEx’s car rental loss and damage claims unit.

AmEx’s $19.95/24.95 Premium Car Rental Protection seems to be primary, since it isn’t described otherwise. The limit of coverage is as quoted above for AmEx’s free coverage, with an additional limit of $75,000/$100,000, depending upon which plan you purchase. The maximum rental period covered is 42 days. Pickups, trucks, truck based vans, and large SUVs are covered. There’s no coverage for any vehicle when operated off-road. Please see my previous post for the implications of enrolling your AmEx card in either of these Premium programs, with their automatic fees. (I called them “deluxe” instead of “premium” in the previous post – sorry for any confusion.)

Local CDW coverage purchased for $10 or $11 per day from a car rental agency on Bonaire provides poorer coverage than US credit card insurance, although it does cover whatever vehicle they are renting you and, if it is a truck or four-wheel-drive vehicle, it does cover you on the unpaved roads in Washington Slagbaai Park (I think). Presumably, there is also no limit of days of coverage; you can keep on paying forever. With the local CDW, you are liable for a $572 deductible, whereas you pay zero deductible under US credit card insurance when it is primary. The local CDW covers only and strictly collision damage to the rental vehicle – no coverage for theft or vandalism. The US coverages pay whatever you are obligated to pay for damage or theft of your rental vehicle, including vandalism. For yet more money - $8 per day from AB, $5 per day from Netty’s, you can extend coverage to include theft and vandalism and reduce your deductible to $169 (AB) or $300 (Netty’s). The matrix of coverages with local so-called full or extra insurance is complicated, and the on-line descriptions aren’t completely clear, so it’s best to check carefully in Bonaire to find out what you will really get for your daily payment.

Don’t be surprised about tire damage – no one insures you for it. The US coverages will cover tire damage if it’s the result of some other event that they do insure; I’m not sure whether the Bonaire insurance will do that.

All of the coverages mentioned above are solely for damage or loss to the vehicle that you rent. If you accidentally damage another vehicle, property, or people, that’s covered by liability insurance. Liability insurance is provided by the car rental agency in accordance with regulations. Generally, if you cause damage that someone other than the rental agency could sue you for, you are covered by the rental agency. For example, from ABCarrental: "Our cars are insured for liability only. That means that damage to third parties is covered, with a deductible." (The Bonaire deductible is $572, unless you purchase local extra insurance.) This should be spelled out on your rental contract, usually in grey print on a slightly lighter grey background. Don't try to read it with your sunglasses on.

If there's vehicle theft and you can't produce your key(s), you're in deep trouble, regardless of whose insurance you are using.

Only the Amex Premium insurances cover theft of property from a "secured" vehicle, subject to limits ($2500 or $5000, depending on whether you bought $19.95 or $24.95 coverage). Only the Amex Premium insurances include coverage for your own "excess medical expenses".

I've never heard of any insurance coverage problems in parking areas, paved or not. If you drive down the bluff to the beach at Andrea and damage your vehicle as you try to get back up the ramp, that's probably at your expense, though.

"Unlocked vehicle" - I'm not going to touch this can of worms. Search elsewhere on BT for info and opinions about that.

My conclusions: If I rent a vehicle (car or minivan) that can be covered by no-charge credit card CDW insurance, I’ll decline all local coverage and use the credit card insurance. If I plan to rent a truck for more than a day, I’ll rent it from an agency that accepts AmEx, enroll in the $19.95 Premium insurance program in advance, and decline local coverage. If I rent a car or minivan most of the time, but switch to a truck for a one-day visit to Washington Slagbaai Park, I’ll pay for the Bonaire agency’s CDW and extra insurance for that day.

If someone wants to take this info and put it in a spreadsheet, that would be great!

David

In the post above, I forgot to thank Jake Richter for bringing AmEx's Premium insurance plans to the attention of the BT community in this thread: http://www.oldbonairetalk.com/newsgroup/messages/32/184087.html?1105767306

Checking back to his original post, I notice he had a different phone number for AmEx Premium insurance: 800-858-5947.

David

David,

Outstanding research. I am in awe and grateful for your contribution.

masha danki,
bob

Robert,

Well, you asked nicely.

David

One further note based on my experience with Amex Premium Car Insurance. Once enrolled, every time a car rental charge appears you are charged $19.95 and the coverage kicks in. However, if your rental car on Bonaire is part of a package (for example, Buddy Dive's Drive and Dive, or similar packages offered by other resorts), there is no car rental charge per se on your Amex card, and the insurance will not kick in. What you need to do is to charge the resort's package deal to your Amex card, and then call Amex to explain to them that this charge includes a car rental and that you want to be charged the $19.95 and have the insurance kick in. Both times I have done this it required some persistance and patience while on the phone to Amex, since the operators generally did not understand what I was trying to accomplish. Ask for a supervisor, and be patient as you are transferred from one person to another for what seems like an eternity.

David:
An amazing job dissecting and explaining that information. Thank you so much!

Thanks, Toby and Sandy.

I just finished reading a post (http://www.oldbonairetalk.com/newsgroup/messages/24/200685.html?1109005508) by the former AB Carrental manager, Han Sjoerdsma, which I think needs to be summarised in this thread.

As Han describes it, if you are paying AB $19 per day for supposedly "full" insurance, you are covered without deductible for any damage to a locked vehicle resulting from theft, UNLESS you happened to have left some of your own valuables inside (whether visible or not). If your own stuff gets stolen also, not only do you lose your stuff but your deductible goes up to $169! Incredible!

Another good argument, I believe, for trying to avoid buying coverage on Bonaire.

David

Not to disagree with my good friend Scott Phillips, but I just called AMEX on another matter and then asked about the Premium Car Insurance, and was directed to 1-800-326-2078, where I spoke with Nathan, in the company in Ohio that is actually the car insurance affiliate for AMEX. According to Nathan, all-inclusive packages like Dive-and-Drive at Buddy Dive do NOT require a special call to AMEX to tell them you've rented a car, nor does the charge need to be put through in advance of using the car. That is, you just rent using the AMEX card, everything goes on account, and if there is a problem and AMEX gets this huge bill from Buddy Dive, then they call Buddy Dive and get copies of all paperwork and evidence it really was an AMEX change, and it proceeds from there.

I'll be there next in May (tenth trip!) and hope I never have to test this info.

- Mel Briscoe

Not to disagree with my good friend Mel Briscoe (the man responsible for a rousing chorus of Happy Birthday sung to me on my birthday in 2003), but I somehow wonder if taking that approach might turn into a battle with AMEX. My thoughts are that AMEX would not want to cover you under those circumstances, since you were never charged for the insurance ahead of time. If they allowed this policy, then no one would ever pay the $19.95 unless they needed to file a claim, and they would never make any money! I've personally gotten a LOT of conflicting info from AMEX on this, so who knows!

Not to disagree with myself, it does seem that this whole thing is getting complicated and perhaps not worth the efforts. When I come with a group to Buddy Dive, the customers pay my Local Dive Shop, which pays the travel broker, which pays Buddy Dive. Even if the customers pay the LDS with AMEX, what does that have to do with Buddy Dive and a truck rental? Since it is $10/day x 7 days = $70 to purchase the CDW directly from Buddy Dive, and $20 for the week from AMEX (if it were possible), the savings (for my trips) are only $50....

- Mel

Does anyone know how this is arranged with European creditcards. I called Visa in the Netherlands and they claim the cdw is not covered by a Dutch Visa card. I'm not sure with Mastercard, but maybe someone already has experience with this?

Thanx

To the best of my knowledge european cards do NOT cover any car insurance nor is there an option to do so. This is definitely true for AM EX sweden. Generally our "fringe" benefits are much less than Americans enjoy. This is true even for DAN insurance!
Carter

As of today (4-28 2005) the Amex premium is still available, and saves me a couple hundred $$ for my trip.