Today credit cards offer several benefits such as awards, access to business lounges at the airport and even free museum entrances, among others. However, one thing that many people ignore is that credit cards can also provide rental car insurance. But, this coverage can vary depending on your provider. That is why here we will tell you everything about credit card rental car insurance.
The first question you could have is, ‘does my credit card cover rental insurance?’ The answer is that the coverage of your credit card will depend on which bank issued it and whether it applies to your account. To find more information about this, you can check out your guide to benefits. This should have been provided to you when you got the card, but you can also find it online. If you still have more questions, call the number on the back of your credit card.
In case you are going to travel to another country, you need to make sure your insurance works there. Keep in mind that there could be a list of countries excluded from your credit card rental car policy. That is why it is always better to check this with your provider before travelling. If you are looking for regular affordable car insurance in Ontario, Surex can help. To learn more about it, check this article.
Since now you have accomplished step one, finding out if this insurance applies to your card, we will tell you what is included.
Primary And Secondary Coverage
When you get to the rental car counter, remember that they are not selling you an insurance policy since they already have coverage on the car. What they offer is a waiver where it is stated that the company won’t come after you in case the car gets damaged. As we mentioned before, many drivers already have auto insurance policies that cover them in this instance. That is why they will decline the “insurance” offered at the counter.
Before we move on, you need to understand what is primary and secondary coverage.
● Primary Coverage
This is the main protection you will get on your rental car, and it usually comes from your auto insurance policy. Then, you might be wondering, ‘does my credit card cover car rental insurance primary coverage?’ In reality, there are just a few cards that offer it, such as Chase Sapphire Preferred. The great thing about these types of credit cards is that you won’t have to worry about a deductible. Plus, you will only have to file one claim.
● Secondary Coverage
Secondary coverage is what kicks in after your auto insurance pays. This means that if the car gets damaged or stolen, your main insurance will pay up to a limit. Then your secondary coverage will take care of the rest. This is usually what most credit cards offer.
Even though it is not a complete insurance policy is still valuable. For instance, a secondary coverage can reimburse you the car insurance deductible up to $1000. The only thing about this coverage that most people don’t like is that they have to file two claims.
To sum up, the coverage that offers your credit card is called secondary coverage. However, to have proper protection, you still need to get primary coverage through your homeowners or auto policy.
What Is Included In Credit Card Rental Car Insurance?
As we know, the coverage that you can get from your credit card differs depending on your provider. But, commonly, your credit card will offer coverage for collision damage. This means it won’t protect you in case you have to pay for medical bills or liability lawsuits.
Here is a list of what your credit card will cover:
1. The cost of towing the vehicle, in case it needs repairs
2. Damage to the rental car, or in case it gets stolen
3. Loss-of-use expenses
What Is Not Covered By Your Credit Card?
There are three main things that your credit card won’t cover liability, personal injury and personal effects. In this regard, the most important one that you should find coverage for is a liability since it will protect you if another party files a lawsuit against you. If you decide to drive without a liability policy, you are in danger of bankruptcy.
You can purchase liability coverage with your rental car company. The best part is that this protection won’t overlap with the insurance you get from your credit card.
Also, keep in mind that there are types of vehicles that your credit card won’t protect. For instance, cars that have a price market above $50,000, antiques and vans that transport more than eight passengers. Further, if you have a sports vehicle, your credit card won’t give you secondary coverage.
Does My Credit Card Cover Car Rental Insurance?
Even though the best way to find out if your credit card can cover part of your car rental insurance is by calling your provider. In this section, we are going to give you some general guidelines.
● All Visa and Visa Signature cards offer protection, but they can deny your claim, in case there are charges included that could have been avoided. For these credit cards, you won’t have international coverage in Jamaica, Israel, and Northern Ireland. The time limit of your coverage will be between 15 and 31 days.
● American Express offers coverage for all its credit card owners for up to 30 days. The limit of the protection can be anywhere between $50,000 and $75,000. For medical expenses, it will only go up to $5,000.
● In case you have Mastercard, you will only get coverage with the Gold, Platinum, World and World Elite cards. That protection will last for 15 days, and the limit is $50,000. However, you won’t have access to insurance in Italy, Australia, New Zealand and Israel.
Getting Rental Car Insurance With Your Credit Card
Once you call and ask your provider, ‘does my credit card cover car rental insurance?’ Then it is time to find out how to take advantage of it. The first condition is that you should be the owner of the credit card, and you should put your name down when renting the vehicle.
Also, when you are paying for the rental car, you need to use that credit card and reject the insurance that they offer you. That is it!
