Can a rental car be adequately insured using credit card coverage? - Can a rented vehicle receive adequate coverage through a credit card?
By Jennifer Spatz | 3-Min Read
Embarking on a holiday journey, the first stop is usually the baggage claim and then, picking up the rental car. However, this seemingly simple step often triggers a string of questions - partial or full coverage? Who's getting insured? Do I really need extra tire and glass insurance? And, more crucially, what does my credit card actually insure?
The Insurance Conundrum
When you pay for a rental car with a credit card offering rental car insurance, the policy generally safeguards against specific damages or losses, but it might not encompass everything. Here's a rundown of what you can expect coverage-wise:
Types of Coverage
- Collision Damage: Protects the rental car from accident-related physical damage, such as what Capital One credit cards cover for collision mishaps [1].
- Theft: Capitalizes when your rental car gets nicked - the theft coverage enjoys the moment [1].
- Towing and Loss-of-Use Charges: Some credit cards aid with towing fees and loss-of-use charges when the rental car meets an unfortunate fate [1].
Limitations and Exclusions
- Liability Coverage: Most credit card rental insurance doesn't cater to liability for injuries to others or damage to other people's property. You may need to fall back on your personal auto insurance or shell out for additional liability insurance from the rental company [3].
- Exclusions: Common limitations include reckless driving, off-roading adventures, luxury or antique cars, and rentals in specific countries. Coverage tends to be limited to 30-31 days on average [3].
How It Functions
- Secondary Coverage: Typically, credit card rental insurance works as secondary, implying you may need to submit a claim to your personal auto insurance initially [2].
- Requirements: Before utilizing credit card rental insurance, you often have to reject the rental company's insurance coverage and settle the entire rental cost with your credit card [2].
Credit Cards Offering Rental Car Insurance
- Capital One: Covers collisions, theft, towing, and loss-of-use charges [1].
- American Express Platinum: Furnishes coverage up to $75,000 for theft or damage to most rental vehicles [4].
Before renting a vehicle, it's crucial to scrutinize the precise terms and conditions of your credit card's rental car insurance to ensure a smooth and stress-free road trip!
[1] Capital One Credit Card Features[2] Credit Card Rental Insurance Explained[3] Understanding the Limits of Credit Card Rental Car Insurance[4] American Express Platinum Card Benefits
- In the context of renting a car for a holiday, understanding your credit card's insurance coverage is crucial to ensure a smooth experience. For example, Capital One credit cards cover collision damage, theft, towing, and loss-of-use charges.
- Your lifestyle and personal-finance choices significantly impact your travel experience. Therefore, scrutinizing the precise terms and conditions of your credit card's rental car insurance before embarking on your journey is essential to avoid any financial inconveniences during your holiday.
