FROM June 1st, the Republic of Ireland will join Jamaica as one of few countries where American Express (Amex) will not extend automatic insurance cover to US clients using their cards to rent cars.
The company says this is because of its "horrendous" experience with claims arising from car accidents in Ireland.
American holders of Amex premiums enjoy a facility whereby they are insured for damage to a rental car. The insurance does not extend to personal injury. Road accidents involving tourists have become increasingly frequent in counties which attract large numbers of them.
Now, Amex says its US clients will have to buy car damage insurance in Ireland like anybody else.
A spokesman for Board Failte said yesterday it regretted any measure which would increase the cost of car hire, although it did not believe the numbers affected would be very large.
Mr Pat Dooley, marketing director of Dooley Rent-a-Car, said he did not regret the ending of the Amex scheme. According to Mr Dooley, it was arbitrarily reducing the cost of claims from Irish car renters. "A claim for £1,500 for damage to one of our cars could be reduced by half by Amex," he said.