Best Credit Cards for Rental Car Insurance

Are you looking for Best Credit Cards for Rental Car Insurance? If Yes, You are at the right place.

In this article, We are sharing all the information about Best Credit Cards for Rental Car Insurance.

Whenever you rent a car, you are fully responsible for the car, property damage, and injuries to persons. The car rental company offers drivers rental car insurance during the checkout process. If you decline the collision damage waiver, you can use the benefits of your credit card rental insurance to protect the car against damage or theft.

This is something we have all experienced before. There are several coverage options when renting a car, each with a price tag. The last thing you need is to spend even more money on a car rental to ensure you’re covered. Your credit card travel insurance is often an alternative option.

Most credit cards actually provide coverage for car rentals if you use the card to pay for the rental. Your next car rental could be significantly less expensive if you take advantage of this largely unknown perk. There are also some credit cards that offer special perks, such as elite status and discounts on car rentals.

There are some credit cards that offer better coverage than others, but not all do. Make sure you have the right credit card in your pocket before renting a car – whether on vacation or just in town.

What Is a Rental Car Credit Card?

The most basic definition of a rental car credit card is a card that provides benefits related to renting a car. Most credit cards offer cardholders the opportunity to earn elite status with rental car companies and earn bonus points for rental car reservations, even though rental car companies themselves do not offer specific credit cards.

There are several credit cards that offer insurance for car rentals, which allows you to waive the charges when you pick up the car. There are cards that offer primary coverage and others that offer secondary coverage.

What are Credit Cards for Rental Car Insurance?

Rental cars can be confusing, and one of the more confusing aspects of the rental experience is whether or not your own car insurance will cover them. Consequently, when you rent a car, insurance companies will offer you protection at high daily rates, usually at a price you will not be able to afford.

There are many credit cards that offer rental car insurance services at low or no cost, waiving collision damage and sometimes also third-party coverage, allowing cardholders to save money at the rental car counter.

What Is Credit Card Car Rental Insurance?

The following are a few steps you need to take to get credit card insurance for car rentals: 

Step 1. It is important to read the coverage provided by your credit card carefully and to be aware of any exclusions. Luxury vehicles, for instance.

Step 2. Your credit card that offers car rental insurance can be used to book a rental car. Your credit card will only be charged for the rental car insurance if the payment is made. 

Step 3. The card you used to book the rental car must be used to complete the payment when you arrive at the pick-up location.

Step 4. The rental car company’s insurance coverage should be declined. Your credit card’s car rental insurance is void if you purchase coverage from the rental car company. This is just a sales tactic used by the car rental company to pressure you. 

Step 5. Your credit card company will pay for any damages caused by an accident or other mishap with your rental car. It’s important to remember that if your credit card’s car rental insurance is secondary, it won’t kick in until after your primary auto insurance does.

How does credit card car rental insurance work?

Using your credit card to pay for the entire rental is the only way to get credit card insurance on your rental car reservation. Utilizing a credit card that earns rewards points when booking a rental car may be beneficial to you. It is necessary to decline the collision damage waiver offered by the rental car company at checkout. A credit card rental insurance benefit will not be applicable if this is the case.

Rental car credit protection covers damage to or theft of a car only during short-term rentals. Rental car coverage is usually limited to the lesser of the rental car’s cash value or a specific dollar amount. A difference in coverage does not apply if the vehicle was damaged by another vehicle or property or if a pedestrian or passenger was injured.

The rental benefit may also cover loss of use and towing costs incurred as a result of the incident, depending on your credit card. During the period when a rental car is being repaired or replaced, the company is reimbursed for the revenue it has lost on that rental car.

Top 4 Best Credit Cards for Rental Car Insurance

Here are the Top 4 Best Credit Cards for Rental Car Insurance –

Chase Sapphire Preferred

Among the most popular credit cards for renting cars is the Chase Sapphire Preferred. It covers you at home as well as abroad. If you prefer not to accept the collision damage waiver or loss damage waiver offered by the rental agency when you book, this insurance offers secondary coverage.

In addition, the card offers great travel insurance benefits such as baggage insurance, trip delay insurance, cancellation insurance, and trip interruption insurance. Furthermore, you can earn two points for each dollar you spend on car rentals and other travel purchases. Credit cards from Chase cover car rental reservations for up to 31 days.

Chase Sapphire Reserve

There are the same benefits offered by the Chase Sapphire Reserve card as the Chase Sapphire Preferred card, but damages up to $75,000 are covered. If you reserve your car through Chase Ultimate Rewards and pay with your Reserve card, you can earn 10x Ultimate Reward Points or pay with Ultimate Reward Points. A $300 annual travel credit is also available with this card. You will receive $300 back as a statement credit for travel purchases, including hotels and car rentals.

American Express Platinum

This credit card is popular with frequent travelers. You will be eligible for elite status in loyalty programs such as Avis Preferred Plus, Hertz Gold Plus Rewards, as well as National Emerald Club – all of which come with perks such as express check-in, complimentary upgrades, and exclusive discounts. A Platinum American Express card will cover loss and damage caused by car rental reservations lasting less than 31 days, just like Chase Sapphire Reserve.

Capital One Venture X

The Venture X credit card is another top-rated credit card for renting a car. You can earn 10x points on each dollar spent on rental cars booked through Capital One Travel. Those with Hertz cards are also eligible to join the Hertz President’s Circle loyalty program. Using your Venture X card, you can choose not to accept the rental agency’s insurance because your card’s Collision Damage Waiver covers up to $75,000 in theft and collision damages. There are also generous benefits for trip delay, interruption, and cancellation with the card. 

Primary vs. Secondary Car Rental Insurance

Several travel rewards credit cards provide car rental collision damage waiver coverage as a primary or secondary coverage option. The secondary insurance kicks in only after other types of insurance, such as travel insurance or your own car insurance, have been exhausted. A secondary policy would cover any expenses remaining, such as deductibles on other insurance policies.

When you get into an accident in a rental car and use a credit card that has secondary insurance, you’ll probably have to file claims with multiple companies. As opposed to this, primary insurance takes precedence over all other types of insurance. You would file one claim if you had primary insurance.

The maximum coverage amounts for both types of insurance are usually higher than or equal to the total value of the car you’re renting. If your rental car is damaged, primary insurance will generally reimburse you the cash value or the cost of repairing it – whichever is lower. You will, however, only receive reimbursement if your primary insurance policy doesn’t cover the amount.

The primary insurance of a credit card car rental policy will automatically become secondary insurance under two common scenarios. First, if your personal car insurance policy does not cover rentals outside the U.S., the credit card’s insurance may take precedence. Secondly, most secondary insurance provided by credit cards becomes primary if you do not own a car or carry a car insurance policy.

Pros and Cons of Best Credit Cards for Rental Car Insurance

Here are the Pros and Cons of Best Credit Cards for Rental Car Insurance

Pros of Credit Cards for Rental Car Insurance

• Bonus points. You can earn additional bonus points by renting a car.
•  Rental car insurance. The included rental insurance saves you money by allowing you to waive the rental company’s insurance.
•  Elite status. There are many credit cards that offer a path to elite status with rental car companies.

Cons of Credit Cards for Rental Car Insurance

• Annual fee. There is usually an annual fee associated with cards offering these features.
•  Secondary insurance coverage. There are insurance benefits offered by credit cards that don’t kick in until your personal car insurance policy has been maxed out.

How Do I Know If My Credit Card has Car Rental Insurance?

Credit card rental insurance offers a few benefits, so you need to check your card’s terms and conditions before renting a car. You might not have rental car coverage with all credit cards, so here’s how to find out if yours does.

• Materials for credit card marketing. This information is usually included on the marketing page dedicated to your specific card from the card issuer.
•  Benefits guide. For more information about your card’s benefits, read the guide that came with your card or browse the bank’s website by searching for “benefits guide.”
•  Message customer service or call. The customer service department of your credit card company may also be contacted if you have questions about your benefits, either by phone or online chat – if your bank offers it.

There are differences between credit cards when it comes to coverage limits and exclusions for rental cars. Before renting a car, make sure you verify your benefits so there aren’t any surprises.

How to File a Claim for Credit Cards for Rental Car Insurance?

When you need to claim rental car insurance from your credit card, call your card’s customer service immediately. There is a maximum of 100 days allowed for filing claims after an incident, but you should not delay longer than necessary. In this way, you keep the facts fresh in your mind and minimize the likelihood of losing important documents.

1. Gather Information About the Incident: Collect details such as the date, time, place, and other details about the incident. Make sure you take photographs of the damage and get copies of the repair estimate and the itemized repair bill.
2.  Get in Touch with Customer Service: You’ll be connected to your card’s rental car insurance provider when you call customer service. Usually, the claim number can be found in the card’s guide to benefits, so you can call the provider directly.
3.  If Necessary, File a Police Report: The rules regarding involving the police vary according to your location. To determine whether a police report is necessary, contact the local police department. Regardless of whether you must file a report, you should note the name, phone number, and time you spoke with the person.
4.  You can File a Claim: Within 120 days of the incident, you must submit your completed claim form.
5.  Please Provide All the Required Information: You may be asked by the claims provider to submit documentation regarding your claim. The submission can be made by fax, online, or by mail. There may be a deadline of one year for submitting your documentation, depending on the claims administrator.
6.  Respond to Any Additional Requests: To ensure that the claim process stays on track, reply quickly if the claims provider requests additional information or documentation.

How To Choose a Credit Cards for Rental Car Insurance?

Our list of the top credit cards for auto rental coverage is among the best on the market today. However, there are always other factors to take into account. Here are some tips for choosing the right travel credit card:

• Comparing Primary and Secondary Car Rental Coverage: The number of cards available to you, if you prefer secondary coverage that kicks in only after your auto insurance coverage limits have been exhausted, is considerably greater.
•  Think About the Rewards You Will Earn. There are different rewards you can earn on each of the cards we’ve highlighted above. You can earn cash back on some cards, and you can also rack up flexible rewards or airline miles on others. Consider cards with auto rental coverage that earn rewards you will actually use when you compare credit cards. For example, if you seldom fly, accumulating airline miles is probably not worthwhile.
•  Compare Annual Fees with Cardholder Benefits. It’s not uncommon for primary auto rental coverage cards to charge much higher fees than secondary coverage cards, especially since these cards often offer additional cardholder perks to make up for higher fees. Make sure the perks and rewards you receive justify the cost of a credit card that charges a high annual fee. When something goes wrong, benefits like car rental insurance can save you hundreds of dollars. Renting cars frequently can save you hundreds of dollars in premiums if you pay a higher annual fee.
•  Examine Welcome Bonuses and Minimum Spending Requirements. It is possible to earn a significant amount of value by earning a welcome bonus. It does, however, require enough upfront spending to qualify for the bonus. You should check your expenses to make sure you are able to meet the threshold with organic spending if you have a card with an exceptionally high minimum spending requirement.

Alternatives to Credit Cards for Rental Car Insurance

There are more options than just your credit card and the rental car company when protecting your rental car. If you are considering renting a car in the near future, here are a few options to consider.

Upgrade Your Travel Insurance

Travel insurance companies often include rental car coverage in their policies. There are two types of insurance policies: single-trip and annual. A single-trip policy covers one trip, and an annual policy covers an entire year. There are some travel insurance companies that offer standalone policies for rental cars. Determine whether your travel insurance policy provides primary or secondary coverage.

Make Use of Your Automobile Insurance Policy

You can use your primary auto insurance to cover your rental car if you already have it. Due to the fact that they already pay for insurance protection, many travelers choose this option. Check with your insurance provider to make sure your policy covers rental cars before you make your rental reservation. You may have to pay higher insurance premiums if you file a claim.

Online Travel Agency

You may be able to purchase rental car insurance when you book your rental car through an OTA. Rental car companies may charge a flat rate for coverage or offer a discount versus buying it directly from the site.

FAQs

What Happens If I Don’t Have a Credit Card for a Rental Car?

Most rental car companies accept other forms of payment because many travelers do not have access to credit cards. Rental car companies may place a security hold on your debit card in excess of the rental cost. Other restrictions may apply to travelers who wish to use cash, a money order, or a cashier’s check. A credit check, a security deposit, or proof of return travel may be required in these situations.

Is It Cheaper to Rent a Car With a Credit Card?

Credit cards provide additional collision damage coverage, so it’s cheaper to buy this policy instead. In addition to the financial benefits of a credit card, rewards are also available. When you pay for a car rental with a rewards card, you may receive points, cash back, or some other benefit.

How to Use Your Credit Cards for Rental Car Insurance?

When you use your credit card’s travel benefits instead of the rental company’s insurance, you’ll save money. You should use the card you have chosen to reserve the rental car with once you have obtained the card with solid rental car insurance. Make sure you pay for the rental car with the same credit card.