How does rental car insurance through credit cards work?
Credit card rewards are great, offering cardholders everything from cash back with every purchase to travel perks. Some credit card networks go beyond rewards to offer other types of benefits, like rental car insurance.
Learn more about credit card rental car insurance, how it works and what it covers.
Key takeaways
- Some credit card networks offer rental car insurance.
- Credit card rental car insurance may cover things like damage to the vehicle and towing.
- In some cases, credit card rental car insurance can work as a supplement to personal auto insurance.
- Credit card rental car insurance may offer comparable coverage to the optional collision damage waivers (CDW) your rental company may offer you.
- If you’re interested in a card that offers benefits like credit card rental car insurance, you can compare Capital One cards.
What is credit card rental car insurance?
Rental car insurance is offered by some credit card networks. It can offer protections to cardholders in certain situations, like when there’s damage to the rental car. But keep in mind that coverage typically differs from network to network and from card to card.
How does credit card rental car insurance work?
When you rent a car with a qualifying credit card, you may automatically have rental car insurance. To take advantage of the insurance, you may need to do things that include:
- Paying the entire rental amount with your qualifying credit card.
- Declining the rental company’s optional CDW that you will likely be offered.
Card rental car insurance is typically either primary or secondary coverage. With primary coverage, card rental car insurance is applied before a renter’s personal auto insurance kicks in. With secondary coverage, personal auto insurance is applied first and then the card insurance supplements it if necessary.
What happens if a person without personal auto insurance rents a car using secondary credit card insurance? In that case, the card coverage typically becomes primary coverage.
Keep in mind that if your rental vehicle is in an accident and you’re found to be at fault, credit card insurance generally won’t cover medical expenses or damage to other vehicles. There may also be limits on the types of cars that are covered by the insurance, such as antique vehicles.
What does credit card rental car insurance cover?
Here are some types of coverage the benefit may provide.
- Collision coverage: for physical damage to your rental car in case of a collision.
- Theft coverage: in case your rental vehicle is stolen.
- Towing charge coverage: to recover your rental vehicle if it’s towed.
- Loss-of-use charge coverage: for when the rental company seeks compensation for lost rental revenue if your vehicle is damaged since it can’t be rented while it’s being repaired.
To verify exactly what’s covered by your credit card network, check your card’s benefits guide.
What’s not covered by credit card rental car insurance?
Credit card rental insurance may be limited to situations involving only your rental car. Here are claims that may not be covered by credit card rental car insurance.
- Physical injury to you or others
- Damage to other vehicles
- Property damage to the belongings of others
- Luggage or other items stolen from the rental vehicle
- Mechanical breakdown of the rental vehicle
If you aren’t sure exactly what’s covered, check your card’s benefits guide.
How do I file a claim through my credit card rental car insurance?
If you don’t already know, you’ll likely want to check your card’s benefits guide to see whether your coverage is primary or secondary. Secondary coverage tends to be more common.
If your coverage is primary, you’ll want to start the claims process by contacting your card issuer for next steps. If it’s secondary, and you have personal auto insurance, you can refer to your card’s benefits guide as well as contact your insurance provider for instructions on initiating secondary coverage.
Credit card rental car insurance FAQ
Here are answers to common questions about credit card rental car insurance and rental car insurance in general:
Does my credit card cover rental car insurance?
You can check your credit card’s benefits guide to see whether your card offers rental car insurance.
How do auto rental collision damage waivers work?
When you pick up a rental car, the rental company may offer a CDW to help pay for possible damage to the vehicle. It’s sometimes also known as a loss damage waiver. The cost of the waiver typically depends on things like the type of vehicle you’re renting and where you’ll be driving it.
Here’s how a CDW can work with certain types of insurance.
- Personal auto insurance: With this insurance, paying for the waiver may be unnecessary since most auto insurance policies will cover you as the driver of a rental car.
- Credit card car rental insurance: With a qualifying credit card, you can decline paying for the waiver and instead use your card’s included coverage.
Whichever option you choose, check with the insurance provider to be clear on what’s covered.
Is rental car insurance the same thing as travel insurance?
Not exactly. People often get travel insurance to cover things like trip cancellations, travel interruptions and foreign medical care. But depending on the policy, rental car coverage could be included.
Does credit card rental car insurance cover a second driver?
Yes, credit card rental car insurance typically covers other drivers. But keep in mind that they typically have to be added to the rental agreement as authorized drivers. Before renting a vehicle, it may help to check your card’s benefits guide.
Credit card rental car insurance in a nutshell
Credit card networks sometimes offer rental car insurance. This benefit can be used on its own or in combination with personal car insurance to give extra peace of mind. But before you use a credit card’s insurance, you’ll want to know what it covers and whether that coverage meets your needs.
If you’re interested in a card that offers benefits like credit card rental car insurance, you can compare Capital One cards.