Credit Card Car Rental Insurance Doesn’t Cover As Much As You Think
Some credit cards have interesting perks – for example, free insurance when renting a car. If you use this card to pay your rent, you will be protected. However, this insurance may not cover as much as you think.
As noted by Travel + Leisure , while some cards (like Chase Sapphire Preferred) offer primary insurance for rented cars, most of them use secondary insurance. This means that you really need to go through primary insurance if you need to file a claim. Your card will only be charged additional fees and costs not covered by your primary insurance. CreditCards.com lists some other cards that offer basic coverage. However, these benefits are subject to change, so be sure to read the explanation of your credit card benefits.
There are other restrictions as well.
- Collision insurance only : Most credit cards only cover collision insurance, not liability. Therefore, if you want liability, you will have to rely on it separately, either through the car rental company or through your personal insurance policy. The Value Penguin lists some card policies here .
- Not All Cars Are Covered: Some types of vehicles, such as exotic cars, trucks, or vans, may not be covered. If you use carsharing, for example Zipcar, this also usually does not apply.
- Not all countries are covered : depending on the country, your credit card insurance may not be available. Some common countries not covered: Australia, Italy, New Zealand, Ireland, Israel and Jamaica.
- “Deductions” do not apply: As Travel + Leisure points out, your card policy usually includes a few exceptions, including roadside assistance. If you damage one of the cars and the rental company charges you a “cost reduction,” your credit card may not cover that either.
Bottom line: Read the fine print of your credit card to see what it does and what it doesn’t. This is a great perk, but it may not cover as much as you think, so be prepared.