Credit Card Rental Car Insurance: How It Works and Which Cards Offer Primary Coverage
Renting a car can be a convenient and cost-effective way to get around when you’re traveling. However, one thing that can put a damper on your trip is the fear of damaging the rental car and being stuck with a hefty repair bill. That’s where credit card rental car insurance comes in.
What is Credit Card Rental Car Insurance?
Credit card rental car insurance is coverage provided by your credit card company to pay for damage to a rental car that you rent with the card. It acts as a secondary insurance policy, meaning it kicks in after your primary auto insurance policy pays out. This can help save you money by avoiding the need to purchase the expensive insurance offered by the rental car company.
How Does Credit Card Rental Car Insurance Work?
When you rent a car using your credit card, you may be eligible for rental car insurance coverage. However, it’s important to note that not all credit cards offer this benefit, and the coverage terms can vary widely between different cards.
To be eligible for credit card rental car insurance, you typically need to decline the rental car company’s insurance coverage and pay for the entire rental transaction using your credit card. It’s important to read the terms and conditions of your credit card agreement to understand the specific requirements and limitations of the coverage.
In the event of an accident or damage to the rental car, you would need to file a claim with your primary auto insurance provider first. Once your primary insurance pays out, you can then file a claim with your credit card company for any remaining costs not covered by your primary insurance.
Which Cards Offer Primary Coverage?
While most credit cards offer rental car insurance as a secondary coverage, there are a few cards that provide primary coverage. Primary coverage means that the credit card insurance policy will be the first to pay out in the event of an accident or damage to the rental car, without involving your primary auto insurance.
Chase Sapphire Preferred and Chase Sapphire Reserve are two popular credit cards that offer primary rental car insurance coverage. These cards provide up to $75,000 in coverage for theft and collision damage for rentals of up to 31 consecutive days. It’s important to note that certain types of vehicles, such as luxury cars and off-road vehicles, may not be covered.
Another card that offers primary rental car insurance is the United Explorer Card from Chase. This card provides up to $50,000 in coverage for theft and collision damage for rentals of up to 31 consecutive days. However, it does not cover certain types of vehicles, such as motorcycles and recreational vehicles.
In addition to these cards, some premium travel credit cards, such as the American Express Platinum Card and the Citi Prestige Card, also offer primary rental car insurance coverage. However, the coverage limits and terms may vary between different cards, so it’s important to review the specific details of each card’s policy.
Final Thoughts
Credit card rental car insurance can provide valuable coverage and save you money when renting a car. However, it’s important to understand the terms and limitations of your credit card’s coverage before relying solely on it. Be sure to read your credit card agreement and contact your credit card company for any additional information or clarification.
Remember, credit card rental car insurance is not a substitute for a comprehensive auto insurance policy. It’s always a good idea to have your own primary auto insurance coverage in place to protect yourself in case of an accident or damage to the rental car.
Next time you’re planning a trip and need to rent a car, consider using a credit card that offers primary rental car insurance coverage. This way, you can enjoy your journey with peace of mind, knowing that you’re protected against unexpected expenses.
