Credit card rental car insurance can help you cover costs in the event your rental car is damaged or stolen. Learn about coverage benefits and how they can protect you during your travels.
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Credit card rental car insurance is a popular credit card perk, so accepting a rental car agency’s insurance coverage may be an unnecessary expense for many people.
Before you rent a car, it’s important to understand how your credit card rental insurance works and what it covers. This can help you decide whether you need to buy the coverage offered by the rental agency.
You’re standing at the rental car counter, credit card in hand, ready to pick up your ride and go. But before they hand you the keys, you might find yourself facing a question you’re not sure how to answer: Should you opt in for the insurance coverage for an added fee? Insurance is important because you never know what might happen. For many people, though, accepting the rental car agency’s coverage may not be worth the extra cost – especially if you already have car insurance that may extend to cover rental vehicles. But that’s not all: Your credit card might include rental car insurance, which can come in handy regardless of whether you have a primary insurance policy. 1,2
Many credit cards come with car rental insurance, also known as car rental loss and damage insurance. 1,2 Credit card car rental insurance is a perk that provides insurance coverage for the card member – and typically passengers and other drivers authorized by the rental contract – if they use that credit card to pay for the rental car. 1 Credit card car rental coverage can be valuable and could help provide coverage for many of life’s unexpected events. That’s why it’s important to know how your credit card car rental insurance works, what it covers, and how to use it so you can be sure you’re covered if an incident occurs.
But what if you don’t own a car and therefore don’t have a personal car insurance policy? You might actually benefit from your credit card rental car coverage even more because it may cover more than the coverage offered by the rental agency if the credit card offers primary insurance coverage. 2,5 This will depend on your card issuer and the type of rental car insurance that they offer, so you’ll want to review the terms and conditions carefully before you set out, so you’re clear on what type of coverage you have. 2
Credit card rental insurance may cover damage and theft. 3 Otherwise, coverage will depend on the credit card and card issuer. 2 For example, some cards might offer coverage for damaged or stolen personal items. Others may not. In addition, your credit card insurance might not cover loss-of-use fees – the costs a rental agency might charge you to cover lost business while the car is being repaired.
Other factors that can affect your credit card rental car insurance include:
Check with your card issuer to learn what is and isn’t covered by your credit card. The details are likely listed in the benefits paperwork you received in the mail with your card, but you can also check your account information online or call your card issuer.
If damage to the car does occur, you’ll have to file a claim. It’s a good idea to first contact your card issuer to find out what you’ll need to do. Examples of documentation you may need to provide your card issuer include the following:
If the damage is due to another car or person’s property, or if the car was stolen, you’ll likely need to include a copy of the police report, too.
Your card issuer will be able to inform you of what documentation they require when making a claim.
It depends. If you don’t have a personal auto insurance policy that covers rental vehicles and your credit card doesn’t offer rental car insurance, it may be a good idea to buy the insurance offered by the rental agency. 1 Accidents can happen, and it’s always good to be prepared for whatever can come your way – whether it’s a dinged door in a parking lot or a collision.
Check with your insurance company and credit card issuer to find out whether you’ll have full coverage if damage or theft occurs.
To find out if your credit card offers car rental insurance, review the terms of the card. 2 Read through the benefits paperwork that you received from the card issuer. You could also check your online account or contact your credit card issuer online or over the phone.
