11.29.24 BEST OF: Clark Answers His Critics on Clark Stinks / Clark Rule For Booking Travel

Summary

The Clark Howard Podcast – Episode Summary Episode: 11.29.24 BEST OF: Clark Answers His Critics on Clark Stinks / Clark Rule For Booking Travel Release Date: November 29, 2024

---

In this special "Best Of" episode of The Clark Howard Podcast, host Clark Howard delves into his interactions with listeners, addressing criticisms, sharing personal anecdotes, and providing expert advice on various consumer and financial topics. The episode is segmented into two primary themes: Clark responds to critiques in the "Clark Stinks" segment, and he introduces his "Clark Rule for Booking Travel." Below is a detailed breakdown of the key discussions, insights, and conclusions from the episode.

1. Introduction and Mission

Clark Howard opens the episode by reiterating the podcast's mission to empower listeners with money-saving tips, consumer advice, and strategies to achieve financial freedom. He emphasizes his commitment to providing trustworthy information that benefits listeners' wallets.

Clark Howard [00:55]: "We are here to give you the best information that our head and our heart says is available for you and your wallet."

2. Clark Stinks: Addressing Criticisms

In the "Clark Stinks" segment, Clark confronts listener criticisms head-on, showcasing transparency and humility.

a. Cigarette Smuggling Incident

A listener named Tom criticizes Clark for his past involvement in cigarette smuggling during his college years. Clark acknowledges his mistake, explaining the context and lessons learned.

Tom [02:17]: "I love it. Okay, sorry. Clark, you stink as much as the Virginia cigarettes you sold in another state."

Clark Howard [02:35]: "If I had known then what I know now, I never would have done it."

Clark reveals that he was a two-pack-a-day smoker and unknowingly violated laws by buying cigarettes across state lines, which escalated from personal use to a side business. He expresses regret and underscores the importance of learning from past errors.

b. Cell Service Recommendation for Military

John questions Clark's recommendation of Google Fi for his daughter in the Navy, highlighting the limitations for international use and the necessary verification every 90 days.

John [04:08]: "You recommended Google Fi, which is one option, but you failed to share that..."

Clark Howard [05:03]: "I did not know the tip for people that are on military deployment..."

Clark appreciates the correction, admits his oversight, and commits to providing more accurate information in the future.

c. Diet and Health Concerns

Another caller addresses Clark's diet, urging him to adopt healthier habits, especially after his heart surgery. Clark candidly discusses his ongoing efforts to improve his diet and manage addictions.

Johnny [05:22]: "Please clean up your diet of fast food and soda. What kind of an example are you to your young listeners?"

Clark Howard [06:10]: "I have an addiction problem to Pepsi Zero and Coke Zero... One step at a time for me, please."

Clark shares his journey towards better health, including dietary restrictions post-heart surgery and the support from his family.

d. Clarification on S&P 500

Kevin provides a detailed correction regarding Clark's explanation of the S&P 500, emphasizing its accurate definition as a market capitalization-weighted index.

Kevin [08:01]: "The S P 500 is the S P 500 index, or Standard & Poor's 500 index... It's not an exact list of the top 500 U.S. companies by market cap."

Clark Howard [08:41]: "If I was in a finance class, I would be marked wrong for the answer I give or the way I explain it."

Clark appreciates the precision but explains his intent to simplify complex concepts for better listener comprehension.

e. Safe Deposit Box Security

Cody criticizes Clark's advice on safe deposit boxes, arguing that it inadvertently provides information useful to thieves. Clark acknowledges the feedback and expands on the benefits of credit unions for secure storage solutions.

Cody [09:42]: "You could be more ambiguous on what security you may or may not have while still giving advice..."

Clark Howard [10:17]: "Credit unions are owned by the members and many have safety deposit boxes. It's a viable alternative."

Clark discusses the trustworthiness of credit unions compared to traditional banks and the security they offer to members.

f. Options Trading Misconceptions

Jonathan points out that Clark's portrayal of options trading as solely high-risk is misleading, noting that strategies like covered calls and cash-secured puts can be used to generate income with controlled risk.

Jonathan [11:26]: "It is extremely misleading to imply options are only used to obtain leverage and increase risk."

Clark Howard [11:54]: "I painted it as only high risk. It is high risk for people who think it's a get-rich-quick scheme."

Clark clarifies that while options can be sophisticated tools for managing investments, they are not suitable for everyone, especially those seeking quick profits without understanding the risks involved.

3. Clark Rule for Booking Travel

Introducing his "Clark Rule for Booking Travel," Clark provides listeners with strategies to navigate the volatile travel industry, ensuring they protect their finances when booking trips.

a. Managing Travel Bookings Amid Industry Instability

Clark discusses recent shutdowns of travel companies, including a notable cruise line, highlighting the risks involved in advanced travel bookings.

Clark Howard [19:20]: "When you buy a tour or a cruise, never ever pay with a debit card... because debit cards do not protect you like credit cards do."

He advises using credit cards that offer trip cancellation and supplier default insurance to safeguard against financial losses if a travel provider fails to deliver services.

b. Airline Ticket Purchases

Clark emphasizes the importance of purchasing airline tickets with credit cards to ensure protection in case of airline failures.

Clark Howard [24:34]: "Historically, the credit card companies have covered airline tickets even when it's been past 60 days."

He warns against using debit cards for such purchases due to their lack of protection compared to credit cards.

c. Listener Travel Planning Questions

Clark addresses travel-related inquiries, offering insights on booking international flights and choosing between DIY trips versus guided tours.

Daniel from Iowa [25:01]: "I'm debating between doing the trip DIY or going on a tour, specifically a Rick Steves tour."

Clark Howard [25:37]: "Where I'd go would be based on the best deal. Wherever the best deal is, that's automatically my answer."

He recommends monitoring airline route announcements for introductory fares and suggests that self-planned trips might be more cost-effective than guided tours, depending on individual preferences.

4. Additional Listener Interactions

a. Electric Bikes Advocacy

John from Virginia advocates for electric bikes, highlighting their cost-effectiveness and practicality for commuting and errands. Clark supports the trend, noting the affordability and the necessity of safe infrastructure for e-bike use.

Clark Howard [13:43]: "The electric bike market is booming in the United States... it's incredibly affordable transportation."

b. CD Taxation Concerns

Dennis raises concerns about unexpected tax liabilities on long-term Certificates of Deposit (CDs). Clark admits his lack of knowledge on this specific taxation method and commits to researching the matter to provide accurate information.

Dennis [14:22]: "You must come up with the taxes on that five-year CD every year..."

Clark Howard [14:54]: "I'll do some digging on that. I appreciate it very much."

c. Car Rental Protection Tips

Amy shares a success story about protecting herself from erroneous damage claims by documenting rental car conditions with video, following Clark's advice.

Amy [28:06]: "I rented a car... There were scratches... I called your team Consumer Action center... they closed the case."

Clark Howard [29:18]: "Shoot the video, have it and know that you might be hit with a letter months later... your get out of jail free card is your video."

d. Credit Card Rental Coverage

Harsh inquires about using American Express's premium car rental insurance as primary coverage. Clark endorses the option, explaining its affordability and comprehensive protection compared to rental agency offerings.

Harsh [30:04]: "I don't see you mention that as primary coverage..."

Clark Howard [30:34]: "The American Express optional additional coverage is brilliant... It's a viable alternative."

5. Conclusion and Final Thoughts

Clark wraps up the episode by reinforcing the importance of using credit cards for travel bookings, staying informed about travel industry changes, and continuously seeking the best financial strategies to protect and grow one's wealth. He encourages listeners to remain vigilant, document their transactions, and utilize available resources like credit unions and reputable insurance options to safeguard their interests.

Clark Howard [17:19 - 19:20]: Summary of credit card protections and the significance of using credit over debit for travel-related expenses.

Clark signs off by reminding listeners of the podcast's dedication to helping them "save more, spend less, and avoid getting ripped off," ensuring they have the knowledge to make informed financial decisions.

---

This episode exemplifies Clark Howard's commitment to transparency, listener engagement, and practical financial advice. By addressing both personal critiques and diverse listener questions, Clark provides a well-rounded and insightful experience for his audience.

Transcript

[Apple Representative]

Apple card is the perfect card for your holiday shopping. You can apply on your iPhone in minutes and start using it right away. You'll earn up to 3% daily cash back on every purchase, including products at Apple like a new iPhone 16 or Apple Watch Ultra. Start holiday shopping for your friends and family today with Apple card subject to credit approval. Apple card issued by Goldman Sachs Bank USA Salt Lake City Branch terms and.

[Ryan Reynolds]

More at applecard.com Ryan Reynolds here for I guess my hundredth mint commercial. No, no, no, no, no, don't. No, no. When I started this, I thought I'd only have to do like four of these. I mean, it's unlimited premium wireless for $15 a month. How are there still people paying two or three times that much? I'm sorry, I shouldn't be victim blaming. Here, give it a [e-mail] save whenever you're ready.

[Voiceover Artist]

$45 upfront payment equivalent to $15 per month. New customers on first three month plan only. Taxes and fees. Extra speed slower above 40 gigabytes. CD tails.

[Clark Howard]

This is a best of addition of the Clark Howard podcast. I hope you enjoy it. We are here to give you the best information that our head and our heart says is available for you and your wallet. Have a great weekend. It's great to have you here on the Clark Howard show. You know, our mission is to serve you with advice and information that empowers you to make better financial decisions in your life. And it's time for me to have some humble pie because it's our weekly Clark stink segment. Also today I have my number one rule coming up later for travel and protecting your money. But right now, let's talk about me messing up, fattening your money or protecting it in today's Clark City? I should have never encouraged you to speak. You must think I'm pretty stupid. You should be ashamed of yourself. Well, maybe I'm wrong.

[Listener/Caller]

Wrong.

[Clark Howard]

Maybe I'm wrong. Maybe you're right, pal.

[Listener/Caller]

Let's talk about me. You're like, let's talk about. Don't you love that line where. What do they say? Enough about me.

[Clark Howard]

Let's talk about what you. What do you think of me? Right?

[Listener/Caller]

I love it. Okay, sorry. Clark, you stink as much as the Virginia cigarettes you sold in another state. I can't believe that you, a college student, did not know that cigarette smuggling is a crime. Were also enabling those with a very unhealthy addiction. I still love your show despite your criminal history. Tom.

[Clark Howard]

Tom, thank you. I think it's really important that I Expose my past, warts and all. And I was at that time I was a two pack a day smoker myself. So it started kind of organically where I'd go across state lines not knowing that was illegal and buy cigarettes for my own consumption at a much lower price. And then I started buying for more and more people and then it became a side business. If I had known then what I know now, I never would have done it.

[Listener/Caller]

Why would you recommend a cell service for the man whose daughter is in the Navy not knowing where she would use it? Why not use Facebook or other free social media to stay in touch with select groups of people and with FaceTime before trying the service you recommended? John.

[Clark Howard]

John okay, so when somebody's at sea, they end up with some time on land. And she was going to be in a variety of ports in the Navy likely. And so by recommending Google Fi, it meant that when she was on land she'd have cell service just like in the United States. And of course on ship she'd be able to use WhatsApp potentially FaceTime. It depends on the security nature of the ship. But on shore obviously would be able to use those various things, but would need an Internet connection or a cellular connection to do so. And Google Fi is just a superior choice for people who travel randomly around the world.

[Listener/Caller]

Speaking of that, what that leads right into this next stinks. Clark I won't say stink, but there was a distinct aroma of ill informed. In your response to the gentleman who called about the best cell phone plan for his daughter who will be serving overseas in the Navy. You recommended Google Fi, which is one option, but you failed to share that Google Fi is set up for people calling from the United States. If Google finds you're primarily using their service from overseas, meaning for longer than 90 days, they will cut off your international data. There is an exception for active duty military and State Department employees, of which I am the latter. But you must go online every 90 days to reverify your employment with the US government. I can't speak to how easy this may be because I've chosen to forego that hassle and just stick with my T Mobile one plan and local sims when I'm posted abroad. I do wish there was a cheaper and easier option. Thank you for all you and Krista do. Listening to your show is one of my favorite parts of the weekend. Teresa.

[Clark Howard]

Teresa thank you. I did not know the tip for people that are on military deployment that you just have to notify Google Fi every 90 days. Didn't even know that procedure existed. And thank you very much for pointing that out and making my answer much more accurate.

[Listener/Caller]

And thank you for your service to the State Department. Of course, as a loyal member for over a decade, I hope you consider giving up soda or at least switching to regular soda with real sugar versus diet sodas with fake sugars. All us Clarkies wish you the best and want you to live a long and healthy life. So please clean up your diet of fast food and soda. What kind of an example are you to your young listeners? I'm a current owner of a first generation Scion XB with over 225,000 miles that I bought because of you. And it's still running strong, Johnny. And lots of people wrote in about.

[Clark Howard]

Your diet and you're thrilled when they do. Because if you want to know something, my eating has caused more stress and angst for you, Krista. I mean, you.

[Listener/Caller]

Your family had an intervention with you at one point.

[Clark Howard]

They did. And I do. I should let you know I eat much better than I did before, especially after my heart surgery. I'm on a restricted diet. I'm eating a lot of fruits and vegetables. I'm eating significantly better. I have an addiction problem to Pepsi Zero and Coke Zero. It's true. It's something I really enjoy. One step at a time for me, please. I'm doing so much to improve how I eat. And I'll tell you, my wife is the most surprised person there is at how much I've modified my diet since my heart operation in December. It put a pretty good scare into me. And so it did make a difference. And Johnny, I miss my Scion XP so much. I bought it used in 2005, and every time I see one, I go over to it like I'm admiring, I don't know, some beauty or something. Even if it's got dents all over it. I thought that was the most brilliantly designed car ever. And I miss it so much. And I paid $10,500 for it. New had it for nine years.

[Listener/Caller]

I thought you bought that used because.

[Clark Howard]

That's right, I bought it used. 10,500 used. It was nearly. It was. Somebody bought it and hated it and it ended up on a used car lot. That thing is just fantastic. And boy, do I miss it. But you close the doors and it really sounds like. You know how you take a soft drink can and you can crumple them and it's like that crinkle sound. That's what closing the door on the SC was like.

[Listener/Caller]

All right, we had a couple about this one. Clark defined the S P 500 as the top 500 publicly traded companies in the U.S. not exactly correct to quibble. Quoting Investopedia. The S P 500 is the S P 500 index, or Standard & Poor's 500 index. It's a market capitalization weighted index of 500 leading publicly traded companies in the U. S. The index actually has 503 components because three of them have two share classes listed. It is not an exact list of the top 500 U.S. companies by market cap because there are other criteria that the index includes. It's a distinction without much difference. Keep up the almost perfect. Good work, Kevin.

[Clark Howard]

Thank you, Kevin. It's one of those things. It is a horseshoes kind of thing because I'm trying to explain a concept verbally and it's the easiest way to explain an S&P 500 fund. I worry that if I get into the kind of caveats that make it an exact proper answer that I kind of lose people as they're walking or driving or running or whatever activity they're doing, working out while they're listening. So that's why you'll hear me sometimes speak in generalities that are not 100% correct, but communicate the point. You're right. If I was in a finance class, I would be marked wrong for the answer I give or the way I explain it. But it explains the gist that the whole idea of AN S&P 500 fund is that it is a proxy for the 500 largest publicly traded companies in the country. And then we could add a little asterisk to it.

[Listener/Caller]

Clark, you smell like a payday to would be thieves. On your last episode, you mentioned how you have a safe that requires three strong men to carry off. You've given a thief valuable info on how to abscond with your valuables in the future. You could be more ambiguous on what security you may or may not have while still giving advice to the listener. Cody.

[Clark Howard]

Thank you, Cody. You actually echoed something my wife said. Use much more interesting words than you did. For why in the world would I give such a complete description of where we put our valuables?

[Listener/Caller]

Clark, after your explanation about safety deposit boxes, I realized why you smell like a no facilities trucker outhouse along the interstate in July. I waited and begged for you to talk about credit union facilities, but your stench blocked your mouth from giving us info. Credit unions are owned by the members and many have safety deposit boxes. Please elaborate on this as an option rather than have everyone trying to put a 1000 pound safe in their house. P.S. just kidding on the stench, Mike. And a lot of people said it's not safety deposit, it's safe deposit. I got a lot of people writing about that just so you know.

[Clark Howard]

I appreciate that. So safe deposit boxes, gosh. There was another story since I talked about that about the problems with safe deposit boxes and Gilti is charged. I didn't think about the credit union angle where they would not just wash their hands to you and say yeah, who are you? We don't know you. That is a viable alternative. It is a real problem that the banks have broken their trust with the American people and treat us as adversaries. And that's the beauty of a credit union is its own by its members.

[Listener/Caller]

While I agree with your sentiment that options trading is not a fit for 99% of investors who have little hope for managing Delta Gamma Theta or Vega exposure, it is extremely misleading to imply options are only used to obtain leverage and increase risk. The simplest option strategies, covered calls and cash secured puts have less risk and stock ownership and can be used to generate income with slightly less risk than just buying stock. Thank you for all the information you provide for us Jonathan.

[Clark Howard]

Jonathan, thank you. And there are certain situations with people who this gets to esoteric but people that are exercising stock grants that employers offer that then the stocks restricted for a period of time who will use options to protect against downside risk and things like that. But it is a more sophisticated kind of tool to get involved in options. And what I'm worried about is people who are being pitched these programs that are able to use options to create these shockingly large returns on their money. And pitched is things with like no risk involved. You know, if it doesn't work out you just let the option expire, blah blah blah. They are not something for someone to just buy a software package or some Internet thing and suddenly feel like they can make a zeal trading in options. It's too hot to handle. And I appreciate your post that I painted it as only high risk. It is high risk for people who think it's a get rich quick scheme.

[Listener/Caller]

Clark is the man, but on this issue he's also the man who smells a little bit. Clark talks about almost every week about how EVs are great as a second vehicle for a family to run errands near the house. But not once have I heard him mention electric bikes. E bikes are a small fraction of the cost of cars, can be charged inside, can store a lot of groceries with Just a few accessories added and are just so much fun. We are a 2 kid, 1 car and 1 e bike family living in the Virginia suburbs of DC and love it. I commute to DC for work on the E bike and use it to do a lot of quick errands around town. Clark, please advocate for getting off of four wheels and on to John.

[Clark Howard]

John, thank you. We have two electric bikes and I love riding my electric bike and the electric bike market is booming in the United States. The price points coming down on electric bikes but you got to have a certain commute corridor to live in where it's safe to ride electric bikes in a lot of places they're not bike friendly. It's not safe for a manual bike or an electric bike. So as long as it fits your commute pattern and it's a safe journey for you. Absolutely. It is incredibly affordable transportation.

[Listener/Caller]

They have those great paths along the highways and from Virginia into dc. Just amazing what they've done there. Okay, it's not you, but those stinking five year CDs that you think smell so sweet. The truth is you must come up with the taxes on that five year CD every year before you can even touch the money in a five year cd. That's what happened to me. I had to come up with the taxes I owed on that CD before it was due, which was a lot of money. So now I only do one year CDs. Please explain why this is done this way. Other than that, you're just stinking cute. Dennis.

[Clark Howard]

Okay, Dennis, I'm going to have to do some research because I have not experienced having a current tax bill on longer term CDs. I don't know the particulars of how you end up being taxed. I know like the Series I savings bonds, you can choose to be taxed every year on imputed income. But Krista, what are you saying? The interest you earn on long term CDs or those with terms longer than one year or tax in the year it's accrued is even if you don't withdraw the interest from your CD account? I have never. Maybe I'm a tax dodger. I will correct that on the podcast. I'll do more reading. I don't want to just go with.

[Listener/Caller]

Yeah, I just read another one that said the same thing, but I'll keep checking.

[Clark Howard]

Okay, so I may stand corrected. It also means that I'm a tax cheat because I haven't been doing that and I'm sure that the feds will catch up on me and I'VE not gotten a 1099 from the credit union. I have some long term CDs with. Okay, I'll do some digging on that. I appreciate it very much. Just as everything else in all the variety of topics you hear every week on our Clark Stink segment. Because I will make mistakes. You know, I'm a human and I can't remember everything and I'll what's that expression politicians like to use? I'll misremember something. And so thank you so much for setting me straight and we'll follow up if in fact I was wrong about the five year CDs and when you're taxed on them. So remember if there's something you hear on our podcast you feel like, huh, what's wrong with Clark? Doesn't he know better than that? Go to clark.com clarkstinks and post away. Coming up straight ahead, Another cruise line bites the dust. Another airline bites the dust, both in the same week and People's Money at Risk I want to tell you what you need to know with the instability that continues in the travel industry.

[Apple Representative]

This podcast is brought to you by Progressive Insurance. Fiscally responsible financial geniuses, monetary magicians. These are things people say about drivers who switch their car insurance to Progressive and save hundreds because Progressive offers discounts for paying in full, owning a home and more. Plus, you can count on their great customer service to help you when you need it. So your dollar goes a long way. Visit progressive.com to see if you could save on car insurance, Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states or situations. Apple Card is the perfect card for your holiday shopping. You can apply on your iPhone in minutes and start using it right away. You'll earn up to 3% daily cash back on every purchase, including products at Apple like a new iPhone 16 or Apple Watch Ultra. Start holiday shopping for your friends and family today with Apple Card subject to credit approval. Apple Card issued by Goldman Sachs Bank USA Salt Lake City Branch terms and more at applecard.com when it comes to smart money management, one of the best pieces of advice is to make your money work for you. Well, Discover is accepted at 99% of places that take credit cards nationwide, and you automatically earn cash back on all your purchases. That means there's plenty of opportunities to make that money work. So shop smarter, not harder. Basically, anywhere you go nationwide, it pays to Discover. Based on the February 2024 Nielsen report. Learn more at discover.com creditcard this episode.

[Voiceover Artist]

Is brought to you by United Airlines. When you want to make the most of your vacation, book with United. They're an airline that cares about your travels as much as you do. United is transforming the flying experience with Bluetooth connectivity, screenshots, power at every seat, and bigger overhead bins to help fit everyone's bag. And with their app, you can skip the bag check line, get live updates and more. Change the way you fly. Book your next trip [e-mail] I briefly.

[Clark Howard]

Mentioned last week that a discount airline that flies in North America, US And Canada, only small one, shut down and said, huh? So paid with a credit card, go to them. And was silent on what happens if you paid with some form of debit card or anything like that. And they were silent because you just lose your money, you just become a claimant where there's no assets. And the travel industry has a lot of instability to it. Through history, greatest instability has been tour operators. And a lot of times in the tour operator business, they face what's called big hold back from the credit card companies who want to hold on to the money that consumers pay until the tour is completed. So the credit card company is not on the hook when the tour operator ceases to exist. Now we have a cruise line that has canceled all its cruises, shut down. Hopefully they'll find a buyer and they'll be able to come back to life. The American Queen cruise line has been around a long time and there's been a number of small cruise operators that have shut down, a number that have gone poof along with people's money. The big news stories last year were about the multi year cruise that people paid a fortune to go on that never left port and people's money did. So know that the travel industry, so much of it lives on running its current operations on money that people have paid for future travel and you have limited rights with a credit card that covers you as a general rule, pretty solid for 60 days. After that it becomes more of a question mark because the credit card regulations are somewhat fuzzy past 60 days because you have rights when someone fails to deliver goods or services. Obviously when a cruise line, a tour company, an airline, something like that goes bust, they fail to deliver the service right. So depending on the credit card in which of the competing federal regulations they look at, they're like, yep, we're with you, here's your money, or nope, it's been too long, we're not with you. So know that when you buy a tour or a cruise, not necessarily an airline ticket, when you buy a cruise or a tour, you Never ever, ever with any travel want to pay with a debit card or an electronic funds transfer or a check or anything like that. Because a tour or cruise you're buying way in advance. Usually they live off your money to run. Currently they run out of money. Your money took a one way trip, you never took it. And there's something else though. Even if you pay with a credit card for a cruise or a tour far in the future, you need to use a credit card that includes with it, as many do now, supplier default. It's known as trip cancellation, trip interruption insurance. That will also have a paragraph covering supplier default. So even if the federal rules don't cover your money, the protection that comes with that individual card protects you. Many cards do offer these because travel bookings are really profitable for credit card companies. They offer this as a way to get you to use that card. It's a lure because then you've got peace of mind with the trip insurance. Just make sure it covers supplier default. Now let's go to airline tickets. Airline failures in recent years have been very rare. It doesn't mean there won't be ones in the future. And some of the discounters may not make it. Paying with a debit card is rolling the dice. Don't do it. Pay with a credit card. As airlines have failed at various times over the years, it's been a clear demarcation. People who pay with a credit card are protected. People who pay with a debit card are not. Remember that debit cards are called by me pieces of trash, fake visas and fake mastercards for a reason. They are an illusion. They are like seeing a mirage in the desert. They have the Visa or MasterCard logo to tease you, but they do not protect you like a Visa or MasterCard credit card. They are fool's gold when it comes to protecting you when you don't receive goods or services you've paid for.

[Listener/Caller]

And is there the 60 day rule no matter what you do?

[Clark Howard]

That's a great question. Historically, the credit card companies have covered airline tickets even when it's been past 60 days. And again, that's subject to interpretation by the banks. But they've always covered. I'm not aware of any exception. They've always covered airline tickets paid with a credit card. And I think it's because that business is so valuable to them.

[Listener/Caller]

All right, I have some travel questions for you. Clark Daniel in Iowa says you're my go to travel guru. My girlfriend and I haven't been to Europe in a few years and are thinking about going in September 25th, I'm debating between doing the trip DIY or going on a tour, specifically a Rick Steves tour. I'm debating between Italy, small villages and our Tuscany or Berlin, Prague and Vienna. Do you have a preference of one tour over another? Also, when should I look for flights? Since I'm looking at 18 months out, I plan to look at a flight from Des Moines to New York City area airport the day before. Then a direct flight from Europe. Thank you.

[Clark Howard]

Okay. I love that you plan so far ahead. Daniel as far as the tickets for international, the cycles have not truly the patterns have not truly established a logical buying cycle for international like there used to be. And I'm finding that tickets can get to a really cheap point unusually early these days on international there's a lot of new international service airlines are offering. You might find a sweet spot much earlier than I would have recommended in the past for international as much as half a year ahead. So like in, let's say March of 25 would be when you'd really want to start focusing on what is available from New York or even from your hometown. For airfares, I think about our staff trips we take every year. We bought the last two years much earlier than we historically have and the affairs never went as low again after we bought. One of them was like seven months out, another was five months out much earlier than when we've seen low price points in the past. But there are lots of announcements airlines do of new routes. When you see a new route announced, that's when you want to look closely when we get into 25 and see if there's an introductory special because the best deals International almost always post with new route announcements from an airline because it takes a while for people in a market to know that that new route exists on an airline. On the tour question I'm the wrong one to ask. I'm not a tour person. Don't do it for me. So you have to decide how anxiety producing it would be for you just to plan your own thing and do your own thing. It's pretty easy in Europe and with Google Translate language is not the burden it used to be as you travel. Where I'd go would be based on since you name so many destinations, wherever the best deal is, that's automatically my answer because where I go is always determined by where the best deal is.

[Listener/Caller]

Amy in Connecticut says, I just wanted to say thanks. I'm a longtime listener, Clarkie, and I've tortured my own children with your podcasts in the car on trips.

[Clark Howard]

How mean of you.

[Listener/Caller]

On your recommendation I always video the exterior, interior and gas gauge of a rental car at pickup and drop off. I don't delete the video, mostly because I forget about it, but this time it came in handy. I rented a car Nov. 8 of 23 from a local dealer, well it's a national dealer and dropped it off at LaGuardia Airport the next day to save on long term parking working. There were scratches on the vehicle that we documented in the video and with the worker and the paperwork at the time of pickup. In the dark I might add. In January of 24, almost three months later, I got a letter thing.

[Clark Howard]

You don't hear from them for three months and then what happens?

[Listener/Caller]

I got a letter billing me $1800 for damages. They had no record of the damage from the paperwork. We filled out at the local dealership and I called.

[Clark Howard]

You can say there's only Avis.

[Listener/Caller]

I called your team Consumer Action center and was helped by your wonderful staff. I called the company and emailed them the video and they closed the case. Thanks for all your knowledge and advice. I've shared this experience with my family and friends as a psa.

[Clark Howard]

So I wanted you to name Avis because we got Avis, we got Hertz and we have Enterprise. They own all the brands of car rentals in the United States except for the small market share the European renter 6 has. And so they have become brutal on this. As I talked about recently on the podcast. Trust me on this, shoot the video, have it and know that you might be hit with a letter months later demanding payment and your get out of jail free card is your video and you're going to have something that 99.9% of car renters aren't going to have and they're fighting from behind every time there's a claim like this. Good job.

[Listener/Caller]

Harsh in Tennessee says my wife and I have a lot of upcoming domestic travel and will be renting cars. I've been looking at car rental coverage through credit cards. I read your article about credit card coverage for rentals and have a question. I've read many people saying using premium car rental insurance from American Express is great where you pay a flat fee for a car rental, but I don't see you mention that as primary coverage for car rental insurance or coverage. What are your thoughts on using American Express premium car rental insurance if you're.

[Clark Howard]

Tempted to buy the coverage from a car rental agency? The American Express optional additional coverage is brilliant. It is very affordably priced it comes in two levels. It's good. Obviously in the United States and most countries in the world, there are a handful that you can't use it. It is something that provides meaningful peace of mind in return for you paying a premium that I think is per rental, not per day per rental, 20, 25 bucks somewhere in there. If you sign into your American Express member portal, you'll be able to see the terms and conditions of their optional rental coverage. You must pay for your entire rental with the Amex card. They trigger the premium that they will charge you for that rental and each rental you have. So if it's like a one day rental, it's not much of a deal. If it's one week rental, it's a screaming deal. And in between it gets to be a good deal at about three days that it's saving you a ton versus the. Well really two days it saves you a ton versus the car rental agency. So it is a very viable, effective option for people who are like on the fence. Should I pay the rental car company their extortionate prices for rental car semi coverage or should I pay American Express? And no, I've got them hopefully standing behind me when the chips are down. Why do I say hem and haw? Because I hear every scenario where somebody feels like they're covered, feels like they're protected, feels like they're insured, and then they have trouble asserting their rights to get that money taken care of. So you always have to be in the travel world. You have to document and you have to be assertive to protect yourself. And thank you so much for joining us today. I wanted to add as an annex on the travel thing, domestic airfares are dropping all over the place. And I mentioned the new routes for international. The same thing is happening right now with domestic. There's a lot of new routes popping up and unusual routes all over the country avoiding the American, United and Delta mega hubs. And a lot of these new routes have crazy cheap airfares being offered as introductory fares. Keep your eyes and ears open for these bargains. And who knows where in America you'll end up on some kind of great bargain airfare. Have a great day. Remember what we're devoted to you learning ways to save more, spend less and avoid getting ripped off. Have a wonderful weekend.