The Pros and Cons of Credit Card Rental Car Insurance (2024)

FAQs

Do credit card companies offer car protection when renting cars? ›

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.

What coverage is included? Credit card coverage mostly applies to what's called a collision damage waiver or loss damage waiver, typically the most expensive coverage offered at the rental counter. Cards also usually include some coverage for towing expenses and administrative fees.

The benefit of insuring your credit card balance is that if job loss, total disability, or loss of life occurs, your finances may be protected to a greater degree. Credit card balance protection insurance can help you make payments on your credit card if you, for example, lose your job.

Companies prefer credit cards because it proves to them you're not a financial risk; their costs will be covered as they can recover part or all of the deposit if needed. With a debit card, the company cannot pull money from a bank account if it has insufficient funds.

Remember that the rental is considered “your” car for insurance purposes, so, if you only have basic liability, it makes sense to purchase rental car insurance.

Some credit cards offer return protection coverage, so you may be able to get a refund for the purchase after all. Purchase protection: If a product you bought with the card is damaged, stolen or lost within a certain time frame (typically a few months), this coverage can reimburse you for the purchase price.

Collision and damage insurance (also known as collision/loss damage insurance) protects you, the cardholder, in the event that you rent a car that is subsequently damaged or stolen. The insurance applies only to the car itself; it does not cover any damages to other cars, property or people.

The deductible is the maximum amount of money you're liable for in the event your rental car is damaged or stolen as long as you follow the conditions of your rental agreement. Each car has a different deductible. The best way to determine the exact amount is to check the Rate Includes section of the Rental Conditions.

That depends on liability and the level of insurance you have. A Collision Damage Waiver (CDW) means the rental car company won't charge costs for damage to your rental car's bodywork. But you will have to pay for any other damage.

Some cards also provide the added benefit of insurance. Upon the occurrence of an event covered by the insurance, it may partially reimburse you for eligible travel expenses, or loss or damage to car rentals or qualifying purchases.

Is there a downside to using a credit card? ›

High credit card interest rates — and how quickly they can result in mounting debt balances — are a downside of credit cards. But if you pay off your balance in full and on time, you can reap benefits like rewards and a strong credit score.

Can I cancel the insurance coverage? If you cancel within the first 30 days, the insurer will issue a full refund of any amount paid for the Plan to your credit card. If you cancel any time after that, the insurer will refund any amount paid for the period after the cancellation date.

When you use your Visa card to book a car and pay the full price of the rental, you are covered by this insurance. To access this coverage you must decline the Collision Damage Waiver (CDW/LDW) or similar coverage offered by the car rental company in its rental agreement.

Most of the major rental agencies will accept debit cards for initial deposits and final payments. A credit card is usually encouraged because it tends to be the easiest way to pay.

Rental Insurance

We will cover You up to $50,000 toward the cost of repairs or the cash value of the car, whichever is less, if a covered accident or theft occurs when You pay for a rental car with Your Citi® Card and decline the rental company's collision loss/damage insurance.

When Visa cardholders book an eligible rental car with their covered Visa card, they can be reimbursed for up to the full cost to repair or replace the rental vehicle.

Car rental insurance is a benefit extended to Chase Sapphire Preferred and Chase Sapphire Reserve cardmembers. Coverage applies to rental car companies in the United States and abroad.

Yes, as long as a valid and verifiable rental car agreement has been issued to the cardholder, and the entire transaction is charged to the cardholder's eligible Visa card to pay for taxes and any other additional fees. What should the cardholder do in the event of accident or theft?