Exploring the Benefits of Credit Card Rental Car Insurance

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.

If your credit card offers car rental insurance, it usually kicks in automatically when you pay for your rental car with that credit card – so you’ll probably have to pay with that card to get the insurance.¹ You’ll also have to decline the rental car agency’s offered coverage for the credit card’s insurance to take effect.^1,3 Beyond that, exactly how your credit card car rental insurance works can depend on whether your card offers primary or secondary coverage:^2,4,5

• Primary coverage: This type of coverage pays for claims before your personal car insurance kicks in. This means you can avoid paying your deductible and possibly prevent any premium increase due to accidents or damages.

   

• Secondary coverage: This coverage won’t go into effect until your personal auto insurance first pays for the damages.² Then, your credit card rental car coverage will reimburse your deductible and possibly other costs not covered by your personal policy.² It’s more common for credit cards to offer secondary coverage than primary.⁴

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:

• 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.⁵

   

• Location: Depending on the card issuer, coverage might be excluded in some countries.³

   

• Rental duration: Coverage may only last for a certain amount of time, usually anywhere between two weeks and a month, depending on the card.³

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:

• A copy of the damage report from the rental company.

   

• Photographs taken by the rental agency.

   

• The repair estimate.

   

• A copy of the rental agreement.

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.