Driving Out Of Bounds - big cars and insurance - Brief Article

Kiplinger's Personal Finance Magazine, Oct, 2001 by Ed Henry

INSURANCE | Your credit card may not cover that FANCY RENTAL CAR.

EVER GET TIRED of renting an oh-so-sensible sedan when you're on vacation? Wouldn't a brawny SUV or sporty little number better project the real you?

Before you upgrade, be aware that your credit card might not go along for the ride. Although card issuers routinely provide rental-car insurance when you decline the rental company's collision-damage waiver (CDW), coverage doesn't extend to all cars.

Exotic vehicles, such as the BMW M3 and Mercedes-Benz SL roadster, are usually excluded. American Express and Diners Club won't cover big SUVs, such as the GMC Yukon or Lincoln Navigator. Smaller SUVs, including the Ford Explorer, are usually covered if they're not taken off-road.

For the card issuers, it's a simple matter of cost control. "We exclude exotic cars and full-size SUVs because the vehicles can be prohibitively expensive to fix," says Monica Beaupre, a spokeswoman for American Express.

If you're tempted to rent an out-of-the-ordinary set of wheels, check with your card issuer to see if the regular rental-car coverage will apply. If not, you may need to pay up to $21 or so a day for CDW--or settle for that sedate sedan.