Credit Card Coverages for Rental Car Insurance

Credit card coverages can save you some money!

After checking to see what, if any coverages you have from your personal car insurance, check to see if any of your credit cards offer car rental insurance. Some cards will cover damage or theft to your rental car. The coverage and the coverage amounts will vary depending on the credit card issuer, so you should check carefully to see if you would be covered adequately for the rental that you are looking to take.

There are four credit cards that come with a rental car loss and damage insurance plan. Visa, Mastercard, American Express and Discover. It's important to know that with regards to rental insurance coverage, credit card companies' policies can be very different in regards to who's covered, at what level, in which vehicles and where.

Note:You are not covered just by being a cardholder; you must use the credit card to rent and pay for the vehicle.


Some plans cover accidents only if the cardholder is driving, not the cardholder's spouse!

Credit Cards.com has a great basic overview of credit card coverage. But remember that Before you rent a car, it is best that you call your issuing bank to get information on the specific details of your particular credit card's individual policy plan.



While car rental insurance coverage from your credit card may replace the need to purchase CDW (Collision Damage Waiver) and LDW (Loss Damage Waiver) offered at the car rental counter, check with your card issuer to see what kind of vehicles are covered. Credit card coverages can vary from card to card, and it can also vary based on the issuing bank or credit company that issues the card as well.

Check to see if the coverage from your credit card would be considered primary or secondary. For some companies, its' coverage becomes primary only if you don't have any personal collision insurance of your own, or would only kick in after you had exhausted the limits of your personal coverage.

For example, let's say your personal auto insurance covered you for damages to a rental car up to $5000. If the damages were more and your credit card provided coverage as well, it would only cover the amount NOT covered under your personal coverage.

Most card issuers do not provide coverages for more expensive rentals, or specailty vehicles. It is necessary to call them, or check your credit card benefits package, to see which rental vehicles they cover. Usually they provide coverage for cars and exclude more expensive rentals such as sport utility vehicles (SUV's), luxury cars, exotic cars and vans. Coverages may also not extend to long-term rentals (rentals of more than 30 days) or rentals in a country other than the one in which you live. This restriction is especially important to determine if you are renting while on vacation in another country. You certainly don't want any surprises!

One other thing to check for, or to keep in mind, is that credit card coverage tends to be a reimbursement type coverage. This meaning that any expenses you incur, due to loss or damage of the rental car, will have to be paid by you up front. This includes the deductible, if your own personal automobile insurance is used for primary coverage. Only after all expenses are paid, will you then be able to submit a claim for reimbursement from your credit card.


Some card issuers specify that you must rent from certain rental companies. Make sure to check this requirement before you reserve your car.


The bottom line is check into everything!!



If you don't need to purchase the optional coverages you will certainly save money, but only if you are truly covered.




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