How does rental car insurance offered by credit card company (if you use the card to work)?

I have credit cards, which they cover me for rental car insurance when I use the card to say the total payment for the rent. How does it work? Are there any catches? Does it make sense to me given that additional insurance of the car rental (Avis how)? If I had an accident, the credit card insurance coverage is everything, or will also be paid to my regular car insurance?

This entry was posted by admin on May 5, 2010 at 6:22 am, and is filed under Insurance. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.

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#1 written by kaly l 1 year ago

yes there is a catch.. most cc will only cover only after you have exhausted your car insurance.. and yes you should get coverage from the rental agent. why? beacuse when you get into an accident or if the vehicle is stolen they cover the car 100% no deductibles to you, even if the car was vadilized in the parking lot.. you don’t have to report it your insurance co so no high rates and no deductibles.. insurance co tell you not to buy it beacause when you file a claim they make money off of your deductible.. so when you cover the car from the rental you have the option of full or basic.. basic means the car is covered 100% no matter what happens.. I use to be a rental agent..:)

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#2 written by Fred C 1 year ago

Every card is different, and the card companies can change their insurance carriers without notice. Most of them give collision damage waiver only. If you have an accident, they will cover repairs over and above the rental company insurance, but they do not cover the cost of a replacement rental for you to drive. Very few of them cover liability. The most complete coverage may be offered by your insurance company, for a lower fee than the waivers offered by the rental companies. In Manitoba, for instance, we sell (to Manitobans) a rental car policy that gives $50 deductible for damage, loss of use coverage, and 5 million dollars liability coverage, and this package can be bought to cover a rented car anywhere in Canada or the US. So, before you rely on your credit card, read the wordings booklet, then talk to you auto insurance agent.

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#3 written by Gizmo 1 year ago

Credit Card Insurance provided for rentals is a re-embursement of cost which means you must first pay to have the repairs done then submit the receipt to the Credit Companies Insurance.
They can take as long as they like to re-emburse you and there is a chance you may not be fully re-embursed.
Also there is the matter of “Loss of use” which is not covered by CC Insurance or Personal Insurance.
This means that while the vehicle is being repaired and not producing revenue, you are still essencially renting a vehicle sitting in the repair shop.
Only the Loss Damage Waiver offered by the rental industry allows you to just walk away.

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#4 written by Mike C 1 year ago

I think if I remember right, the credit card only covers the deductable portion of your auto insurance. You would be best serve to contact your credit card company to make sure.

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How does rental car insurance offered by credit card company (if you use the card to work)?

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May 2010

How does rental car insurance offered by credit card company (if you use the card to work)?

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