What is rental car insurance on a credit card?
Quick insights
- Some credit cards offer auto rental coverage as a complimentary protection benefit, which can be used in lieu of the rental car insurance offered by the rental company.
- Auto rental coverage through a credit card is typically secondary to any personal auto insurance you may have.
- Auto rental coverage can vary across credit cards, so it may be a good idea to familiarize yourself with your card’s Guide to Benefits.
Does my credit card include rental car insurance? Some credit card issuers provide auto rental coverage, which usually applies when you use your card to pay for the rental and decline the rental car company’s collision damage waiver. While you could find this 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 auto rental coverage.
How auto rental coverage on a credit card works
If your credit card includes auto rental coverage, you may have protection against theft or collision damage to your rental car. This is usually a form of secondary coverage, meaning it pays out after your personal auto policy. Some credit cards may offer this protection benefit as primary coverage, potentially allowing you to bypass your auto insurer.
Review the card's Guide to Benefits for auto rental coverage details
It may be a good idea to verify what type of auto rental coverage you have before booking a rental. Coverage may vary among banks, as well as among cards from the same issuer. You’ll typically find specific coverage details in the card’s Guide to Benefits, which was likely included with the physical card when you initially opened the account. This document is often available online, too.
Some things to know about credit card auto rental coverage
Understanding auto rental coverage and its limitations can help you avoid surprises. Here are some coverage details to keep in mind as you review your card’s Guide to Benefits.
Primary vs. secondary rental car insurance
It’s often helpful to understand how a credit card's auto rental coverage 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—often those that charge annual fees.
Secondary coverage—the most common type offered by credit cards—means your auto insurer pays the claim. Your credit card car auto rental coverage may reimburse you for your deductible and cover other expenses not included in your primary policy.
What is and is not included
It may be a good idea to check what’s covered by your credit card's auto rental coverage. 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 auto rental coverage through a credit card:
- 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
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 might need to know about your credit card auto rental coverage.
- 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's auto rental coverage. For collision, the secondary coverage then becomes primary. However, if you frequently rent cars, the Insurance Information Institute recommends getting a non-owner liability policyOpens overlay.
- Are international auto rentals covered? Yes, though some credit card issuers exclude certain countries, so check before you book. Some secondary auto rental coverages provided through a credit card become primary when renting a car outside of the U.S.
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 auto rental coverage, which is often 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 may be a good idea to review your card’s Guide to Benefits so that you understand what is and isn’t covered.
