Navigating Credit Card Rental Car Insurance: When you take a car, you are fully responsible for the car, any damage it causes, and any injuries that happen. It is possible to purchase rental car insurance from the company when you check out. If you don’t want to pay for accident damage, you can save money by using the rental car insurance on your credit card to cover damage or theft. Find out what rental car insurance is, how it works, which credit cards offer it, and how to make a claim.
How does insurance on a credit card work when you rent a car?
You must pay for the whole hire with a credit card in order to get the benefits of credit card rental car insurance. For example, if you use a credit card that makes points to book a rental car, you might get extra benefits.
You have to turn down the rental car company’s accident damage waiver when you check out. If not, the rental insurance perks on your credit card won’t work.
Credit car hire protection only covers damage or theft to a rental car that is only being used for a short time. Most of the time, the hire car is covered up to a certain dollar amount or the car’s cash value. It doesn’t cover damage to other cars or property, or harm to people in the car or on the ground.
Depending on your credit card, these rental perks may also cover the cost of towing and loss of use because of the accident. Loss of use pays the rental car company back for the money it lost on that car while it was being fixed or replaced.
Which is better: primary or secondary coverage? What do they cover?
There are a lot of credit cards that cover rental cars, but the perks and restrictions can be very different. The main difference is whether the security is first-line or second-line.
Primary rental car security protects the rental car without involving your own car insurance. You don’t have to send a notice or pay a deductible if you file a claim.
After your own car insurance coverage kicks in, your rental car insurance will cover any extra costs. You can use these benefits to pay your deductible and submit claims that your auto insurance does not cover.
What about coverage for liability?
If your credit card rental car insurance covers theft or damage to the car, it does not cover liability or hospital costs. You’ll need to get extra coverage from the rental car company or use your own car insurance to protect yourself from those risks.
Exclusions for credit card rental car insurance
A credit card’s rental car insurance covers most cases where you need to rent a car. However, this security does not cover all rental cars. It doesn’t cover the following types of rentals:
- Vehicles used for business.
- Transport vans that can hold more than nine people.
- Cars and trucks with an open cargo bed.
- Bikes, mopeds, and motorcycles.
- Rentals and short-term deals.
- Rentals for more than 31 days.
- unusual or old cars.
- Places to rent in some countries.
Does every credit card cover when you rent a car?
Not all credit cards cover you when you rent a car. These perks are mostly found on luxury rewards cards and credit cards for travel. There are a lot of different benefits, exclusions, and protections that come with the different credit cards that give rental car insurance.
How do I find out if the credit card I’m using covers car rentals?
If you want to rent a car with credit card rental insurance, you need to make sure that your card has these features. The following steps will help you find out if your credit card protects rented cars.
Credit card ads and brochures. The marketing pages that your card issuer makes just for your card usually list these perks.
How to get rewards. The card’s guide to benefits came with the card. You can read it on paper or look for “guide to benefits” on the bank’s website.
You can call or text customer help. You can also talk to your credit card company’s customer service about your benefits over the phone or through an online chat, if your bank gives this service.
Even if your credit card protects you when you rent a car, each card has different limits and exclusions. Checking your perks is a good idea before you book a rental car to make sure there aren’t any surprises.
How to get the best credit cards for rental car insurance
With these credit cards, you don’t have to pay extra to get rental car insurance. They offer different annual fees, earning potential, benefits, and other features to meet the wants of cardholders.
Cards with primary coverage
Below are some credit cards that offer main coverage to protect your rental car without involving your car insurance:
| Card name |
Capital One Venture X Rewards Credit Card
|
Chase Sapphire Preferred® Card
|
Ink Business Cash® Credit Card
|
Ink Business Unlimited® Credit Card
|
|---|---|---|---|---|
| APR |
22.24% – 29.24% (Variable)
|
21.49%-28.49% Variable
|
18.49% – 24.49% Variable
|
18.49% – 24.49% Variable
|
| Annual fees |
$395
|
$95
|
$0
|
$0
|
| Credit score |
Excellent
|
Excellent, Good
|
Excellent, Good
|
Excellent, Good
|
Cards that offer extra protection
It’s possible to save money by not getting rental car insurance, even though secondary coverage isn’t as good as main coverage. On this list are some credit cards that offer free extra rental car insurance for second cars:
| Card name |
Aeroplan® Credit Card
|
Chase Freedom Unlimited®
|
The Platinum Card® from American Express
|
American Express® Gold Card
|
|---|---|---|---|---|
| APR |
21.74% – 28.74% Variable
|
20.49% – 29.24% Variable
|
See Pay Over Time APR
|
See Pay Over Time APR
|
| Annual fees |
$95
|
$0
|
$695
|
$250
|
| Credit score |
Good, Excellent
|
Excellent, Good
|
Good, Excellent
|
Good, Excellent
|
Extra support from American Express
American Express has a flat rate for Premium Car Rental Protection, which includes damage or theft to the car. If you use an American Express credit card and register it for this program, you will be covered every time you rent a car that is qualified. Instead of having to pay each rental company every day, you can get coverage for up to 42 days in a row for a one-time fee. Rates vary from $12.25 to $24.95 per rental, based on the type of coverage you choose and the state where you live.
Like other rental security benefits that come with credit cards, Amex Premium Car Rental security does not cover damage or injuries that happen at the rental car company’s fault. It covers the rental car itself, so you don’t have to use your own car insurance in case of a claim.
More ways that credit cards can pay for your trip
Besides rental car insurance, a lot of credit cards come with other vacation benefits that protect you in case something goes wrong. Your card may help you in the following ways:
Trip cancellation or interruption. This benefit pays back the costs you paid if you had to cut short your trip and go home early. If you have to cancel your trip, trip cancellation also covers tickets that you have already paid for and can’t get back.
Delay on the trip. If your flight is late or you have to stay the night, you will be reimbursed up to a certain amount for acceptable costs of food, lodging, and transportation.
Lost or broken bags. Pays visitors back if their bags or the things inside them get lost, stolen, or damaged.
Luggage was late. It pays for fair costs up to a certain amount of money for each day your bag is late.
How to make a claim on rental car insurance with a credit card
Need to make a claim on your credit card rental car insurance? Call the customer care number for your card right away. You can make a claim for most benefits up to 100 days after the event, but you shouldn’t wait any longer than necessary. You’ll remember the facts better and be less likely to lose any paperwork this way.
Find out more about what happened. Get information about what happened, like the date, time, place, and other specifics. Get pictures of the damage and a copy of the repair estimate and bill that breaks down each part of the fix.
Talk to customer service. You can get in touch with your card’s rental car insurance providers when you call customer service. You can call the provider directly if you have the guide to benefits on your card. It has the claim number on it.
If you need to, file a police report. In different places, the rules for calling the cops are different. Get in touch with the police in your area to find out if you need to make a report. Write down who you called, their phone number, and when you called, even if you don’t have to make a report.
Put in your claim. You have 120 days from the date of the incident to send in your finished claim form.
Send in all the information asked for. The claims company might ask you to send them proof of your claim. Most of the time, you can send your submission by fax, email, or paper. You may have up to a year to send in your paperwork, but it depends on the claims supervisor.
Take care of any other needs. If the claims source asks for more information or proof, you should respond as soon as possible to keep the claim process moving forward.
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Alternatives to rental car insurance with a credit card
You can get insurance for your rental car from more than just your credit card company and the rental car company. When you rent a car next, here are some things to think about.
Get better trip insurance
Many travel insurance plans cover damage to rental cars as part of the price of the plan. A single-trip policy will cover one trip, and an annual policy will cover you for the whole year. There are travel insurance companies that offer separate plans for rental cars. Check the coverage of your travel insurance to see if it is main or secondary.
Make use of your car insurance
You can use the insurance perks for your rental car if you already have insurance for your main car. A lot of travelers choose this choice because they already pay for insurance. Make sure that your auto insurance covers rental cars before you book your trip. If you file a claim, you should know that your insurance rates may go up.
A website for booking trips
If you book your rental car through an OTA, you might be able to get rental car insurance. Coverage might be offered at a flat rate or a lower price than if you bought it from the rental car company, depending on the site.
Stamp of time: Credit card rental car insurance perks can save you money
People on vacation can save money by not getting collision damage insurance for their rental cars and using the benefits of their credit cards instead. These costs can add up quickly when you consider that rental car insurance costs $15 to $30 per day. They are sometimes more than the rental car itself. A lot of travel credit cards offer main or secondary insurance for rental cars. To be protected against theft or damage to the rental car, all you have to do is pay for it with a credit card that is accepted, and decline the rental company’s insurance. If your credit card charges a fee every year, these saves may help make up for it.
FAQs
Should I get insurance when I rent a car?
Rental car security is free through your credit card, so there’s no need to buy a collision damage waiver from the car rental company. Since this coverage doesn’t cover damage to property or injuries, you might want to buy a separate policy or use the benefits of your current car insurance.
What do you do if you can’t pay with a credit card?
You can pay for rental cars in a number of different ways, since many tourists don’t have credit cards. If you pay for your rental car with a debit card, the company may hold more money as security than the renting cost. There may be other rules for visitors who want to use cash, a money order, or a cashier’s check. In these cases, you might have to pay the full rental price up front, show proof of how you’ll get the car back, go through a background check, or put down a security deposit.
Does my credit card protect me from third-party claims?
The liability policy that comes with most credit cards does not cover rental cars. Credit card rental insurance covers damage, theft, and loss of use of the hire car. You’ll need to buy extra coverage or rely on your auto insurance to protect yourself against claims for damage or injury to other people.
Can I add another driver to my credit card insurance?
Yes, all approved drivers are covered by credit card rental car protection while the car is being rented. But the reservation for the rental must be made by someone who is allowed to use the credit card. If they aren’t on the ticket, they can’t pay for your rental car or give you good deals.
