Many credit cards now provide rental car coverage that can save both money and time at the counter. With rental car coverage on board, it’s easier than ever to drive off confidently from any lot or parking garage without incurring additional insurance premiums from rental agencies.
Most credit card rental car coverage is secondary, meaning that it supplements your primary auto policy. Please refer to your card’s terms and conditions for further details.
Coverage for Damage and Theft
Though Sears may be facing financial difficulty as a result of retail disruption, its credit card offerings still provide many valuable perks and services – one such benefit being rental car insurance, which can save money when renting a car. Credit cards usually provide secondary coverage so it would be wise to contact your card issuer to see what kind of protection may be offered by them.
Credit card rental car insurance typically provides protection from damages or theft to vehicles rented with credit cards, however this coverage only typically applies outside of their own country. Furthermore, card issuers sometimes restrict which types of vehicles they will cover with their policies; exotic cars and motorcycles typically won’t qualify. It usually only includes rentals that are easily affordable to cardholders.
Not only does rental vehicle coverage include repairs or replacement of the vehicle, but also reasonable towing expenses and liability protection in case of damage or theft of personal items left in the rental car. Furthermore, credit cards often include personal accident protection benefits that cover medical costs in case of an accident in a rental car.
Most credit cards provide secondary rental car coverage, meaning you must first file with your own auto insurer before filing with the card issuer. But some travel rewards cards provide primary coverage, providing far greater value.
Citibank offers primary CDW insurance that will cover up to $50,000 towards either repairs or the cash value of the vehicle, depending on whichever is less, when using an eligible Citi Card as payment for domestic rentals. International rentals will have coverage up to 31 days; please check your auto policy first to apply this coverage.
Cardholders who have utilized this feature report positive experiences with the claims process. One cardholder noted that while his claim approval took time, they received full compensation for any damages sustained.
Coverage for Accidents
At car rental counters, one of the most commonly offered additional policies is collision damage waiver / loss damage waiver coverage, typically offered for an additional daily fee above and beyond rental rate. This coverage waives fees associated with damage caused to the vehicle by accidents, fire, vandalism, severe weather and other perils specified in rental agreements; credit card car rental insurance frequently includes similar coverage but typically excludes coverage for personal items damaged or stolen in vehicle as well as liability from driving recklessly against clear instructions.
Credit cards that provide primary car rental insurance tend to offer primary CDW coverage – kicking in before both the rental agency’s policy and your own personal auto insurance – while some cards only provide secondary CDW coverage, making it important for drivers to understand which card offers what coverage.
Credit cards often cover repairs or cash value up to $50,000 following an accident or theft; other times they will only provide up to a maximum of $10,000 towards repairs or cash value of the vehicle rented. This benefit can be particularly valuable for travelers who rent cars multiple times annually.
Credit cards provide up to $50,000 coverage for vehicle repair or replacement incurred due to something covered under their primary CDW coverage, but this coverage doesn’t extend to deductibles payable under any policies purchased individually or insurance provided through employers.
The Sears Mastercard offers various advantages, including a 3% bonus on purchases at Sears stores and 18-month zero-interest financing of home improvement products like windows, doors and entry door upgrades. Furthermore, exclusive access is granted to their Home Services division that assists in installing these large purchases. Unfortunately, its value has become less useful as Sears attempts to boost its bottom line and remain solvent – the company exchanged debt maturities, borrowed from Eddie Lampert of hedge fund firm Lampert Capital Management as well as auctioning off properties online in an effort to increase cash flow.
Coverage for Loss of Use
Many credit cards provide travelers with in-built car rental protection that can save them money, but it’s essential to know its coverage limits and terms before using this benefit.
Collision Damage Waiver, or CDW, is a popular car rental protection feature. This provides coverage against collision damage or other hazards such as fire or theft and typically has a deductible associated with it. Authorized users with names embossed on their card qualify for CDW coverage.
Citi Card Car Rental Protection policies serve as secondary auto insurance policies, supplementing any other auto policies you might already possess (including your personal auto policy which should always be carried with you while traveling). Most Citi card car rental protection policies cover towing charges to nearby repair facilities for ease of loss-of-use charges while your rental car is out for repairs.
Some cards also offer comprehensive travel accident insurance policies that can help cover medical bills and expenses incurred during an accident while traveling. You may be able to add this as an add-on coverage option on your card’s primary coverage or separately through a travel accident insurer.
Citi card rental car insurance provides global coverage and primary protection outside of the US; however, not everywhere it may be applicable; for instance if renting in Mexico. Be sure to review the specific terms of your card’s auto rental insurance policy to see whether this coverage applies or not.
NerdWallet does not receive compensation from products and services reviewed or mentioned here, including Citibank Car Rental Insurance benefit. Please visit your card issuer’s website for additional details about its terms and conditions related to car rental insurance benefits.
Coverage for Third-Party Liability
Credit card rental car insurance policies provide an additional layer of liability protection between your own auto policy and those offered by rental companies. With daily fees charged, this coverage typically protects against damages to other vehicles or property caused while driving a rental car – also referred to as loss-of-use coverage, these policies can be especially useful if only liability coverage exists on their policy.
The most commonly offered rental car insurance feature is collision damage waiver coverage, which covers repairs to rented vehicles for a daily fee. Some cards also provide additional liability protection against injuries to others caused while renting the vehicle. While most major car insurers provide coverage for rental cars, not all do, so for these cases a standalone policy might be best.
Rental car insurance can save money by enabling you to opt-out of purchasing optional insurance that’s typically included with car rentals – typically between $30-60 a day – that adds extra costs when renting cars. Furthermore, some credit cards provide primary rental car coverage benefits which are especially helpful for frequent travelers.
For maximum coverage from credit card insurance, make sure you book and pay for your rental using only one card – this ensures your policy applies if paid with it! Furthermore, decline any additional coverage offered by car rental agencies as doing so would invalidate its benefits and render your credit card useless!
Some cards only provide primary rental car coverage outside the U.S.; others offer it globally. To determine whether your credit card offers this coverage, read its terms and conditions or log in online – if it offers insurance it should likely be listed under “Benefits” or a similar menu item; some even provide a dedicated section on their website that lists them all! To see whether a specific credit card provides car rental insurance policies you should consult its terms and conditions or log into your account online to see its terms of agreement or log into your online account online to see its offerings; to determine its eligibility check its terms and conditions or log into your online account online to see its benefits; to determine this you need only look up its terms and conditions or log into your online account online to see whether car rental insurance exists it’s easiest if terms / Conditions or log into account online account where benefits section/menu item will appear under their own website that lists their benefits!
