The Benefits of Credit Card Rental Car Insurance

Credit card car rental insurance, also known as car rental loss and damage insurance, is a benefit that may provide coverage for the card member (and, in some instances, additional drivers authorized by the rental contract) when that credit card is used to pay for the entire rental car contract.

Protection varies by credit card type and issuer, which is why it’s important to know how your credit card car rental insurance works and what it covers. It’s also smart to how to use it so you know how to file a claim if an incident occurs.

If your credit card offers car rental insurance, it may kick in automatically when you pay for your rental car with that credit card. Note that you may need to pay for the entire rental using the credit card, so contact your card issuer to discuss coverage if you intend to split the expense between multiple cards.

You may also need to decline the rental car agency’s offered coverage for the credit card’s coverage to take effect.³ Beyond that, exactly how your credit card car rental insurance works can vary depending on whether your card offers primary or secondary coverage.⁴

• Primary coverage
  This type of coverage may pay for claims before your personal car insurance kicks in. This means you may be able to avoid paying your deductible and possibly prevent any premium increase due to accidents or damage.
• Secondary coverage
  This coverage may not go into effect until your personal auto insurance first pays for the damages. Then, your credit card rental car coverage may reimburse your deductible, and, with some coverage, other costs not covered by your personal policy. It’s more common for credit cards to offer secondary coverage than primary.⁵

If you don’t own a car and therefore don’t have a personal car insurance policy, you might assume you’re at a disadvantage, but in fact, you may reap even more benefits from your credit card rental car coverage. If your credit card offers primary insurance coverage, it may cover more than what is offered by the rental agency.⁶ This depends 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 so you’re clear on what type of coverage you have.

Credit card rental insurance offers protection from damage and theft, but what exactly it covers depends on the credit card and card issuer, so it’s important to check the terms for your particular card. For example, some cards might offer coverage for damaged or stolen personal items if the car is burglarized. In addition, your credit card insurance may or may 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:

• Type of vehicle
  Exotic cars, antique cars, cargo vans, or limos might not have the same coverage as an economy car or a standard SUV. This will vary, depending on your credit card’s rental car insurance policy.
• Location
  Depending on the credit card issuer, coverage might be excluded in some countries.
• Rental duration
  Coverage may only last for a certain amount of time, such as one month. This will vary, depending on the card.⁷

If you’re planning a trip and thinking of renting a car, be sure to check with your credit card issuer to learn what is and isn’t covered by your credit card. The details are often 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.

Keep in mind that only certain credit cards include rental car insurance. Many cards don’t offer any car insurance at all. American Express^® offers rental car coverage on certain Eligible Cards that are enrolled. Note that coverage will vary from card to card. The Credit Card must also be used to pay for the rental car in full.

For example, The Platinum Card^® offers secondary rental car insurance. To receive this benefit, you must reserve and pay the full price of the rental with your Eligible Card, and you must decline the collision damage waiver (CDW) at the Rental Company counter. Note that important terms, conditions, and exclusions apply, and not all vehicle types or rentals are covered.

What about other American Express Cards? Learn more about rental car benefits on different American Express Cards. Select the Card from the list and read the full Policy for Car Rental Loss & Damage Insurance related to that Card. To validate your coverage, you’ll need to call the number on the back of your Card.

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.⁸ 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 something more serious.

Check with your insurance company and credit card issuer to find out whether you’ll have full coverage if damage or theft occurs.