Can You Use Your Credit Card To Provide Rental Car Insurance?

When you rent a car you will have to pay for the rental with your credit card. Most people do not know that your credit card can pay for at least some of your car rental insurance.

When you rent a car, there are four types of car rental insurance that you need to know about. Some of these may be covered by your personal car insurance policy, by your home owner or renter policy, or by your health insurance. Additionally, you may find out that your credit card may pay for some of your rental car insurance. The four types of insurance coverage are: (1) Liability Insurance; (2) Comprehensive and Collision Coverage; (3) Personal Accident; (4) Personal Property .

Some credit card companies, especially the Gold and Platinum cards, will pay for your comprehensive and collision coverage. Typically, credit card companies will not pay for liability insurance, or other coverage. So you will still need to either pay for this additional coverage or check with your personal auto insurance agent to see if you are covered.

If your credit car does provide for car rental insurance, it may not provide all of the coverage that you need, or provide coverage for the vehicle that you are renting. Some luxury vehicles and SUVs are not covered. Also, some credit card companies only pay for the deductible for your personal auto insurance coverage. Some credit cards will not cover a teenage driver, or if you have other high risk factors. You need to check with your credit card company to find out what your coverage is. Call the 1-800 number on the back of your credit card to find out what coverage is provided.

Supplemental Liability Insurance: Car rental companies are required to provide the minimum liability insurance and this is included in your rental agreement. However, this basic level will not provide you with sufficient coverage if you are involved in an accident. You can purchase additional supplemental insurance from the car rental company. Typically, your personal car insurance policy should provide the coverage you need when you rent a vehicle. Your credit card will not provide this coverage.

Collision Damage Waiver: This covers damage to the rental vehicle if it is involved in an accident or is stolen. Many Gold or Platinum credit cards will offer this coverage, but it varies from card to card. You need to check with your credit card company.

Personal Accident Insurance: if you have an accident, personal accident insurance will cover medical benefits. You may be covered under your health or life insurance policies, as well as covered under your personal auto insurance policy. Depending on the state you rent your car in, some states required the car rental company to provide this insurance at no additional cost. This will not be covered by your credit card.

Personal Effects Coverage: This covers the theft of your personal things from the car, such as your luggage or laptop computer. You may be covered under your home owner or renter insurance policy, check with your agent before you make your trip. This may be covered by your credit card, if you purchased the items that were stolen with the credit card.

If you do not own a car, or if you own an older vehicle, you will need to get rental car insurance to provide you with the coverage that you need. However, the amount of coverage and types of coverage that you need may be reduced if you pay for your car rental with your credit card. Just keep in mind, you probably need additional coverage if the only coverage that you have is what is provided by your credit card. However, the coverage that you can get from your credit may save you up to $20 a day. So it is definitely worth looking into.

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