You will need to use your credit card to rent a car. Many people don’t know that their credit card can cover at least part of the cost of car rental insurance.
There are four types car rental insurance you should know about when renting a car. These may be covered by personal car insurance, your renter or home owner policy, or your insurance. You may also find that your credit card can pay some of the cost of rental car insurance. There are four types of insurance coverage: (1) Liability Insurance, (2) Comprehensive and Collision Insurance; (3) Personal Accident; and (4) Personal Property.
Certain credit cards companies, particularly the Platinum and Gold cards, will cover your collision and comprehensive coverage. Credit card companies won’t usually pay for liability insurance or any other coverage. You will need to pay for additional coverage, or consult your agent to determine if you are covered.
Your credit card may provide car rental insurance. However, this coverage may not cover all your needs or the vehicle you rent. Not all luxury vehicles or SUVs are covered. Some credit card companies will only cover the deductible of your personal auto insurance. If you are a teenager or have high-risk factors, some credit cards may not cover you. To find out your coverage, you should contact your credit card company. To find out the coverage you have, call the 1-800 number located on the back your credit card.
These are the different types of coverage that you’ll need when you rent a car:
Supplemental Insurance: Car rental agencies are required to offer minimum liability insurance. This is included in the rental agreement. If you are in an accident, however, the minimum liability insurance will not provide enough coverage. Additional insurance can be purchased from your car rental company. Your personal car insurance policy should cover you when renting a vehicle. This coverage will not be provided by your credit card.
Collision damage waiver: This covers rental vehicles that are involved in an accident, or stolen. This coverage is available on many Gold and Platinum credit cards, but it can vary from one card to the next. Check with your credit card company.
Personal accident insurance: personal accident insurance covers medical benefits if you are involved in an accident. Your personal auto insurance policy may also cover you. Some states require that the rental agency provide insurance, while others do not. This depends on where you are renting your car. Your credit card will not cover this.
Personal effects coverage: This covers you in case of theft from your car like your laptop or luggage. Your renter or home owner insurance may cover you. Check with your agent before making your trip. If you bought the stolen items with your credit card, this may be covered.
You will need rental car insurance if you don’t own a vehicle or have an older vehicle. Your credit card may not provide the same coverage or coverage you require. Keep in mind that your credit card does not provide enough coverage. You could save up to $20 per day by using your credit card for coverage. It is worth considering.