How does rental car insurance offered by credit card companies (when you use the card) work?

How does rental car insurance offered by credit card companies (when you use the card) work?

I have credit cards which say they cover me for rental car insurance when I use the card to make the full payment for the rental. How does that work? Are there any catches? Does it make sense for me to get the additional insurance from the rental agency (like Avis)? If I am in an accident, will the Credit Card insurance cover everything or will it also be charged to my regular car insurance company?


Every card is different, and the card companies can change their insurance carriers without notice. Most of them give collision damage waiver only. If you have an accident, they will cover repairs over and above the rental company insurance, but they do not cover the cost of a replacement rental for you to drive. Very few of them cover liability. The most complete coverage may be offered by your insurance company, for a lower fee than the waivers offered by the rental companies. In Manitoba, for instance, we sell (to Manitobans) a rental car policy that gives $50 deductible for damage, loss of use coverage, and 5 million dollars liability coverage, and this package can be bought to cover a rented car anywhere in Canada or the US. So, before you rely on your credit card, read the wordings booklet, then talk to you auto insurance agent.


yes there is a catch.. most cc will only cover only after you have exhausted your car insurance.. and yes you should get coverage from the rental agent. why? beacuse when you get into an accident or if the vehicle is stolen they cover the car 100% no deductibles to you, even if the car was vadilized in the parking lot.. you don't have to report it your insurance co so no high rates and no deductibles.. insurance co tell you not to buy it beacause when you file a claim they make money off of your deductible.. so when you cover the car from the rental you have the option of full or basic.. basic means the car is covered 100% no matter what happens.. I use to be a rental agent..:)


I think if I remember right, the credit card only covers the deductable portion of your auto insurance. You would be best serve to contact your credit card company to make sure.


Credit Card Insurance provided for rentals is a re-embursement of cost which means you must first pay to have the repairs done then submit the receipt to the Credit Companies Insurance.They can take as long as they like to re-emburse you and there is a chance you may not be fully re-embursed.Also there is the matter of "Loss of use" which is not covered by CC Insurance or Personal Insurance.This means that while the vehicle is being repaired and not producing revenue, you are still essencially renting a vehicle sitting in the repair shop.Only the Loss Damage Waiver offered by the rental industry allows you to just walk away.Source(s):Hertz Employee



Popular Q&A

Moving to California from the UK, will my driving licence say?
Your country of birth will not appear on the license---once you are here in California, call Ganis Insurance for an auto insurance quote---we have carriers who will give you driving experience for your UK license! :-)

What is the cheapest auto insurance i can get?
Typically, insurance rates will vary from State to State and can even vary by ZIPCODE! It also will depend on the type of car/truck, coverages, limits of liability, and driving record. SOme companies run credit scorees and MOST run a motor vehicel report and CLUE (Comprehensive Loss Underwriting...

Anyone on the east coast have Traveler's Auto Insurance?
I used to be an agent in NJ & we had Travelers as one of our companies (independent agent) & I had my coverage there. They do have good rates and they are a good company. I had a claim with them & they paid promptly and fairly. Be sure you have more liability than the State minimum though...

List a lot of organizations other than sports please?
3M CompanySt. Paul, MNAbbott LaboratoriesAbbott Park, ILADMDecatur, ILAdvance Auto Parts, Inc.Roanoke, VAAdvanced Micro Devices, Inc.Sunnyvale, CAAetna Inc.Hartford, CTAffiliated Computer Services, Inc.Dallas, TXAflac IncorporatedColumbus, GAAGCO CorporationDuluth, GAAgilent Technologies, Inc...