How Does Credit Card Car Rental Insurance Work In Barbados

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If you are wondering what we are actually asking here, it is really a question of what happens with your credit card details once you hand them over to your hire car company. We also want to run through with you what will usually happen with regard to your debit card in the event you are involved in an accident which damages the vehicle you have hired. Car rental is not a complicated business in Barbados providing you stick within the tried and tested guidelines.

Obviously you are going to want to avoid having any accidents while in Barbados, and one of the best things you can do is get hold of a copy of the local rules and regulations for driving in Barbados, which will cover such simple things as which side of the road to drive on, to whether or not you have to wear a seatbelt. Believe it or not but they do take road safety very seriously in Barbados, which is good news for those who are renting a vehicle. On one day alone in Barbados, according to Barbados Today, 400 people were fined for traffic offences. (http://www.barbadostoday.bb/2015/11/07/400-charged-with-traffic-offences/)

Now first off, when you agree to hire a car in Barbados you will be required to provide all your credit card details. This is so that the Barbados hire car company is able to receive payment for the renting of the vehicle. However providing your details also allows the hire company to take additional payments in the event you have been involved in an accident. When you rent a car in Barbados you will be offered the option of paying for what is called Collision Damage Waiver. In simple terms your actual car insurance policy will only cover you for the total cost of damage repair, less between US $250.00 and US $1,500.00 depending on who you are insured with. You really should take out a CDW policy to protect yourself for the amount of cover your main policy doesn’t include, which will usually cover you for all but the first US $50.00 or US $100.00 of any claim.

In the event you have an accident, the hire company has the right to use your credit card to make good any balance between the amount of insurance cover you have on your car for lease, and the actual cost of repairs. However the car hire company cannot simply decide how much you have to pay and help them, it has to be a legally justified amount.

In addition, your credit card can be used to make payment in instances where you have not informed the rental company of your actions. In the event you return the car but do not have time to run through everything with the hire car company as you have to catch your flight, the vehicle hire company in Barbados has the right to take payments using your credit card details. Instances where this can happen include:

  • Exceeding the agreed mileage allowance
  • Payment for parking fines accrued while the vehicle was in your possession
  • Payment of fines relating to traffic infringements (speeding, etc.)
  • Undisclosed damage to the car – including the interior
  • Damage to tyres (not wear and tear but damage caused by hitting a kerb, etc.)
  • Late return of vehicle

As a credit or debit card holder you should feel reassured that when using your credit card for paying for a vehicle rental in Barbados, you are not leaving yourself open to being financially abused. Firstly, with a hire car company like Drive Barbados, we depend on our reputation for being fair and honest and we know that it would never pay in the long run to abuse any system that is put in place to protect both the person hiring the car and the company leasing it out. In addition, your credit card company will investigate any unauthorized payment made on your credit card and if they consider that payment breaches the terms of use, then they will make what is called a ‘chargeback’ and credit your card the full amount due.

Here at Drive Barbados we value and respect you, the customer, as without you we would not be in business. As a consequence, we do not look to take advantage of being in receipt of your credit card details, and only ever use them in a totally correct manner. So now you know, make sure you …

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