When you rent a car, the rental company will offer you insurance. It’s usually a good idea to buy it, but credit card rental car insurance is also available sometimes. So, what’s the difference? And which one should you buy? This article will look at what credit card rental car insurance covers, how it works, and when you should use it.
What Does Credit Card Rental Car Insurance Cover?
Credit card rental car insurance generally covers damage to the rental car, theft of the rental car, and liability if you cause an accident in the rental car. However, it does not cover things like towing, loss of use (the money the rental car company loses while the car is being repaired), or personal belongings left in the car.
How Does Credit Card Rental Car Insurance Work?
If you have an accident in a rental car, you should first call your credit card issuer to let them know. They will then contact the rental car company to begin the claims process. You will likely have to pay a deductible, and then the credit card issuer will reimburse you for the rest of the damage up to your limit.
When Should You Use Credit Card Rental Car Insurance?
If you have personal auto insurance, it’s generally a good idea to use that instead of credit card rental car insurance since it will likely be cheaper. However, if you don’t have personal auto insurance or if your policy has a high deductible, credit card rental car insurance can be a good option. It’s also good to use credit card rental car insurance if you’re renting a car in a foreign country since your auto insurance might not cover you.
What Type of Coverage Does it Offer?
Credit card rental car insurance offers a variety of coverages. Here are some of the most important:
Coverage for Damage to the Rental Car
This coverage can help you pay for repairs if you have an accident in a rental car. It can also help if the car is damaged by weather or vandalism. Unfortunately, this is the most important type of coverage, and it’s generally the most expensive.
Coverage for Theft of the Rental Car
This coverage can help you pay for a replacement rental car if your rental car is stolen. It’s typically cheaper than coverage for damage to the rental car. Theft coverage is especially important if you’re renting a car in a high-crime area.
Liability Coverage
This coverage can help you pay for damages if you cause an accident in a rental car. It can also help you pay for legal expenses if you’re sued. This is the most important type of coverage if you don’t have personal auto insurance.
When Should You Get It?
There are many good reasons for getting credit card rental car insurance. However, here are some of the most important:
You Don’t Have Personal Auto Insurance
Credit card rental car insurance can be a good option if you don’t have personal auto insurance. It can help you pay for damages if you have an accident in a rental car.
You Have a High Deductible on Your Personal Auto Insurance
Credit card rental car insurance can be a good option if you have a high deductible on your personal auto insurance. In addition, it can help you pay for damages if you have an accident in a rental car.
You’re Renting a Car in a Foreign Country
Credit card rental car insurance can be a good option if you’re renting a car in a foreign country. It can help you pay for damages if you have an accident in a rental car.
You’re Renting a Car in a High-Crime Area
Credit card rental car insurance can be a good option if you’re renting a car in a high-crime area. It can help you pay for a replacement rental car if your rental car is stolen.
What are the Drawbacks?
There are some potential drawbacks to credit card rental car insurance. Here are some of the most frequently cited:
It’s Usually More Expensive Than Personal Auto Insurance
Credit card rental car insurance is typically more expensive than personal auto insurance. Credit card companies generally charge higher rates than auto insurance companies.
It Might Not Cover Everything
Credit card rental car insurance might not cover all of the damages if you have an accident in a rental car. For example, it might not cover medical expenses or personal belongings left in the car.
It Can Be Difficult to Get
It can be difficult to get credit card rental car insurance if you have a bad driving record. This is because credit card companies are risk-averse and don’t want to insure high-risk drivers.
It Might Not Cover All of the Rental Car Companies
Credit card rental car insurance might not cover all of the rental car companies. This is because not all rental car companies accept credit card insurance.
It Might Not Cover All the Countries
Credit card rental car insurance might not cover all the countries. This is because some countries have restrictions on using credit card insurance.
FAQs About Credit Card Rental Car Insurance
Here are some frequently asked questions about credit card rental car insurance:
Is Credit Card Rental Car Insurance Worth It?
This is a difficult question to answer. It depends on your circumstances. For example, if you don’t have personal auto insurance or rent a car in a foreign country, it might be worth it.
How Much Does Credit Card Rental Car Insurance Cost?
Credit card rental car insurance typically costs between $5 and $15 per day.
What is the Best Credit Card for Rental Car Insurance?
The best credit card for rental car insurance is the one that offers the coverage you need at a price you can afford.
What is the Best Way to Get Credit Card Rental Car Insurance?
The best way to get credit card rental car insurance is to compare quotes from multiple companies. This will help you find the best coverage at the best price.
Final Thoughts
Credit card rental car insurance can be a good option if you don’t have personal auto insurance or rent a car in a foreign country. However, it’s typically more expensive than personal auto insurance, and it might not cover all of the damages if you have an accident in a rental car.