What is rental car insurance on a credit card?

Quick insights

• The most common credit card rental car insurance is a collision or loss damage waiver, a coverage that is often secondary to your personal auto insurance.
• What’s covered by this insurance varies across credit cards, so it’s a good idea to familiarize yourself with your card’s Guide to Benefits.
• Cardmembers should initiate the claim process immediately after the car is damaged and may be able to submit a claim online.

Does my credit card cover rental car insurance? You may be surprised to find out that many major credit card issuers offer some form of credit card rental car insurance. While you could find this travel benefit on any credit card, it’s a common feature of travel rewards credit cards.

Read on to learn the ins and outs of credit card car rental insurance.

How rental car insurance on a credit card works

If your credit card includes car rental insurance, you may have protection against theft or collision damage to your rental car. This insurance is usually a form of secondary coverage, meaning it pays out after your personal auto policy. Some credit cards may offer auto rental insurance that serves as primary coverage, allowing you to bypass your auto insurer.

Where to look for information about rental car insurance benefits

It may be a good idea to verify what rental insurance benefits you have before booking a rental. That’s because coverage can be different among the banks that issue cards, as well as among cards issued by the same bank.

Call the number on the back of your card to verify your coverage. Alternately, you can review the card’s Guide to Benefits.

What to ask the administrator about rental car insurance

It can be confusing to know what your credit card does and doesn’t cover. Here’s what to ask the administrator about this popular benefit.

Primary vs. secondary rental car insurance

It’s helpful to ask the administrator how their rental car insurance works in relation to your personal auto insurance. If the card issuer provides primary coverage, that means you can bypass your personal auto insurance and potentially avoid a deductible. This may help you stop your premiums from rising. But this kind of coverage is less common and is typically limited to specific credit cards.

Secondary coverage—the most common type offered by credit cards—means your auto insurer pays the claim. Your credit card car rental insurance may reimburse you for your deductible and cover other expenses not included in your primary policy.

The coverage that is and is not included

Be sure to inquire about what’s covered by your credit card car rental insurance. Here’s what’s commonly included:

• Collision or loss damage waiver: Frequently the most expensive coverage, the waiver usually applies to damage related to accidents, vandalization, theft, fire and weather events.
• Towing and valid loss-of-use charges: Charges related to towing the car or compensation to the rental company for the time the car is out of use due to repairs.

Note that collisions may not be covered if you violate the rental agreement, so it’s important to follow the terms.

These costs are not typically covered by credit card car rental insurance:

• Property damage
• Injury to others
• Lawsuits that arise from property damage or injury to others
• Theft or loss of personal belongings
• Ambulance or medical bills related to the crash

Fortunately, some of these expenses may be covered under your personal auto, homeowners, renters or health insurance policy.

Other questions to consider

Here’s what else you need to know about your credit card car rental insurance.

• Are all vehicle types covered? Some vehicles may be excluded, such as motorcycles, trucks, large vans and expensive or exotic cars. Coverage may not extend to car-sharing or peer-to-peer car rental services.
• What are the limits on the coverage period? How long the rental will be covered may vary across issuers. It’s common for rentals to be covered for 15 consecutive days domestically and 31 days internationally. If you have primary coverage through your credit card, 31 days for all rentals is usually the standard.
• How does it work if I don’t have personal auto insurance? If you don’t have a personal auto policy, you’ll likely benefit more from the credit card auto insurance. For collision, the secondary coverage then becomes primary policy. However, if you frequently rent cars, the Insurance Information Institute recommends getting a non-owner liability policy.
• Are international auto rentals covered? Yes, though some credit card issuers exclude certain countries, so check before you book. If your personal auto insurance doesn’t cover international rentals, then your secondary coverage through your credit card becomes the primary.

Filing a claim

The process for filing a claim can vary by credit card issuer. The first step will likely be to submit the claim online or contact the Benefit Administrator to request a claim form. There’s a specified timeframe in which you must notify the Benefit Administrator, file the claim and submit the documentation.

You’ll want to have this documentation ready when you go to file your claim:

• Copy of the accident report from the rental company
• Rental agreement
• Repair estimate
• Police report
• Photographs of any damage

In summary

Your credit card may offer a collision damage waiver, a form of secondary coverage that may pay for some of the expenses that fall outside of your personal auto insurance policy. Other credit cards may provide primary coverage, which means you won’t need to file a claim with your auto insurer. It’s a good idea to review your card’s Guide to Benefits so that you understand what is and isn’t covered.