Credit Card Rental Car Insurance: Essential Guide 2024
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When renting a car, you assume full responsibility for the car, damage to property, and injuries to people. During the checkout process, travelers are offered rental car insurance by the car rental company. You can save money by declining the collision damage waiver and using your credit card rental insurance benefits to protect the car against damage or theft. Learn what exactly car rental insurance is, how it works, which credit cards offer it, and how to file a claim.
To receive credit card rental car insurance benefits on your reservation, you must use your credit card to pay for the entire rental. If youโre booking a rental car using credit card rewards, you may receive benefits when using a card that earns those points.
At checkout, you must decline the rental car companyโs collision damage waiver. Otherwise, your credit card rental insurance benefits will not apply.
Credit car rental protection only covers theft or damage to the rental car for short-term rentals. Generally, the rental car is covered up to the lesser of the car's cash value or a set dollar amount. It does not cover damage to other vehicles or property and will not cover injuries to passengers or pedestrians.
Depending on your credit card, these rental benefits may also cover loss of use and towing charges related to the incident. Loss of use reimburses the rental car company for its lost revenue on that car while it is being repaired or replaced.
Although numerous credit cards offer rental car protection, the benefits and exclusions can vary widely. The major difference is whether the protection is primary or secondary.
Primary rental car protection covers the rental without involving your automobile insurance policy. If there is a claim, you do not have to call your insurance company or pay a deductible.
Secondary rental car insurance benefits apply after your automobile insurance coverage applies. These benefits help to pay your deductible and claims in excess of your auto policy.
While credit card rental car insurance covers theft or damage to the rental car, it does not include liability coverage or medical benefits. To protect yourself against those risks, youโll need to purchase additional coverage from the rental car agency or rely on your auto policy.
Rental car coverage from a credit card covers most rental car situations. However, not all rental cars are eligible for this protection. Here are a few types of rentals that are not covered:
Not all credit cards offer rental car protection. These benefits are primarily found on travel credit cards and premium rewards cards. Among the credit cards that offer rental car insurance, the benefits, exclusions, and protections can vary widely.
If you want to use credit card rental insurance when renting a car, you need to make sure that your card offers these benefits. Not all credit cards include rental car protections, so hereโs how to determine if your card does.
Even if your credit card offers rental car protections, coverage limits and exclusions vary by card. It is a good idea to verify your benefits before booking a rental car to ensure there arenโt any surprises.
The credit cards listed below offer rental car protection at no extra charge. They have a variety of annual fees, earning power, benefits, and other features to meet the needs of cardholders.
These are some of the credit cards that include primary coverage to protect your rental without involving your automobile insurance:
Card name | ||||
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APR | reg_apr,reg_apr_type | reg_apr,reg_apr_type | reg_apr,reg_apr_type | reg_apr,reg_apr_type |
Annual fees | annual_fees | annual_fees | annual_fees | annual_fees |
Credit score | credit_score_needed | credit_score_needed | credit_score_needed | credit_score_needed |
Although secondary coverage isnโt as good as primary rental car protection, it can save money by skipping rental car policies. This list includes some of the credit cards offering secondary rental car protection at no extra charge:
Card name | ||||
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APR | reg_apr,reg_apr_type | reg_apr,reg_apr_type | reg_apr,reg_apr_type | reg_apr,reg_apr_type |
Annual fees | annual_fees | annual_fees | annual_fees | annual_fees |
Credit score | credit_score_needed | credit_score_needed | credit_score_needed | credit_score_needed |
American Express offers a flat-rate Premium Car Rental Protection that covers theft or damage to the vehicle. Simply register your American Express credit card for this program, and youโll be automatically covered every time you rent an eligible vehicle. For a one-time payment per rental, youโre covered for up to 42 consecutive days instead of the daily rate that rental car companies charge. Rates range from $12.25 to $24.95 per rental depending on the coverage option selected and your state of residence.
Like other credit card rental protection benefits, Amex Premium Car Rental Protection does not provide liability coverage for damage or injuries. It provides primary rental car coverage, so you donโt need to involve your auto insurance policy if thereโs a claim.
In addition to rental car protection, many credit cards also include other travel benefits that cover you against unexpected situations. Here are some of the protections your card may provide:
When you need to file a claim for credit card rental car insurance, contact your cardโs customer service right away. Although most benefits allow you to file claims up to 100 days after the incident, you shouldnโt delay any longer than necessary. This keeps the facts clear in your head and minimizes the chances of losing any documentation.
Protection from your rental car is available from more than just your credit card and rental car companies. Here are a few options to consider when renting your next car.
Many travel insurance companies include rental car protection in the price of their policies. You can purchase a single-trip policy to cover one trip or an annual policy that protects you for an entire year. Some travel insurance companies offer standalone policies for rental cars. Review your travel insurance policy to determine if the coverage is primary or secondary.
If you already have auto insurance for your primary vehicle, you can use those benefits to cover your rental car. Many travelers choose this option since theyโre already paying for insurance protection. Before booking your rental, confirm that your auto insurance policy covers rental cars. Be aware that your insurance premiums could increase if you have a claim.
When booking your rental car through an OTA, you may be offered rental car coverage. Depending on the site, coverage may be available at a flat rate or a discounted price versus buying it from the rental car company.
Travelers can save money by declining rental car collision damage insurance and using their credit card benefits instead. With rental car insurance charges of $15 to $30 per day, these costs can quickly add up. In some cases, they're more than the actual car rental. Many travel credit cards include primary or secondary rental car protection. Simply use your eligible credit card to pay for your rental and decline the rental company's insurance to be automatically protected against theft or damage to the vehicle. If your credit card has an annual fee, these savings can help to justify that cost.
With rental car protection available at no charge through your credit card, thereโs no reason to purchase a collision damage waiver from a rental car company. Since this coverage does not offer liability coverage for property damage or injury, you may want to purchase a policy or use your existing auto insurance benefits.
Many travelers donโt have access to credit cards, so rental car companies often accept other forms of payment. When using a debit card, the rental car company may place a security hold in excess of the cost of your rental. For travelers who want to use cash, a money order, or a cashierโs check, other restrictions may apply. In these situations, you may be required to pay the full cost of the rental upfront, provide proof of return travel, submit to a credit check, or pay a security deposit.
Liability coverage is not included in most credit card rental car benefits. Credit card rental insurance focuses on damage or theft and loss of use of the rental car. In order to protect yourself against claims for damage or injury to others, youโll need to purchase additional coverage or rely on your auto policy.
Yes, credit card rental car protection covers all authorized drivers during the rental period. However, an authorized user of the credit card must be on the reservation for the rental. They cannot pay for your rental car and extend benefits to you if they arenโt on the reservation.
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