Emma lives in Bogota, Colombia, where she owns the English-language newspaper The Bogota Post. She began her editorial career at a financial website in the U.K. over 20 years ago and has been contributing to The Ascent since the summer of 2019.
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A credit card with car rental insurance can be a great money saver, not least because you can confidently waive the car rental agency's coverage. You may even be able to avoid claiming on your auto insurance policy and paying a deductible.
Find out how to know if your credit card covers car rental insurance and how to make sure you're eligible.
If your credit card offers car rental insurance, the coverage will vary depending on the card and issuer. Have a look at your card benefits guide or call the credit company to find out exactly what coverage you're entitled to.
If your credit cards don't offer this perk, check out our list of best credit cards for car rental insurance for one that does.
Most credit card car rental insurance will provide what's known as a collision damage waiver (CDW) or loss damage waiver (LDW). According to Experian, credit card car rental insurance policies will often cover:
We recommend comparing options to ensure the card you're selecting is the best fit for you. To make your search easier, here's a short list of standout credit cards.
On Wells Fargo's Secure Website .
Rating image, 5.00 out of 5 stars. 5.00/5 Circle with letter I in it.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Intro: Circle with letter I in it.
0% intro APR for 12 months from account opening on purchases and qualifying balance transfers
Purchases: 0% intro APR, 12 months from account opening
Balance Transfers: 0% intro APR, 12 months from account opening on qualifying balance transfers
Regular: 20.24%, 25.24%, or 29.99% Variable APR
On Wells Fargo's Secure Website .
On Discover's Secure Website .
Rating image, 5.00 out of 5 stars. 5.00/5 Circle with letter I in it.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Intro:
Purchases: 0%, 15 months
Balance Transfers: 0%, 15 months
Regular: 18.24% - 28.24% Variable APR
On Discover's Secure Website .
On Bank of America's Secure Website .
Rating image, 4.00 out of 5 stars. 4.00/5 Circle with letter I in it.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Intro: Circle with letter I in it.
0% Intro APR for 15 billing cycles for purchases. 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days. After the intro APR offer ends, 19.24% - 29.24% Variable APR on purchases and balance transfers will apply. A 3% fee for 60 days from account opening, then 4% fee applies to all balance transfers.
Purchases: 0% Intro APR for 15 billing cycles for purchases
Balance Transfers: 0% Intro APR for 15 billing cycles for any balance transfers made in the first 60 days
Regular: 19.24% - 29.24% (Variable)
On Bank of America's Secure Website .
Credit card rental insurance policies usually do not cover:
To qualify for coverage, you'll need to use your credit card to pay for the car rental. You will also need to decline the insurance offered at the car rental counter. Be aware that credit card car rental insurance policies are often secondary policies, which means they will only apply after you've filed with your primary insurer, and they often only cover certain types of vehicles.
There's a big difference between primary and secondary coverage. The easiest way to understand it is that primary coverage applies first, and secondary coverage fills in the gaps afterward.
If you already have a car, your existing auto insurance will almost certainly be the primary insurance on your rental. Many -- but not all -- credit card car rental policies are secondary, which means they kick in after you've claimed on your existing policy. That can impact your premium further down the line.
Check to see whether your credit card rental car insurance is primary or secondary.
If your credit card gives primary coverage, you can claim directly, without going through your auto insurance company. You won't have to pay a deductible and the claim won't impact your insurance costs. Premium travel credit cards and business credit cards are more likely to carry primary rental car insurance.
If the coverage is secondary, you'll have to file two claims -- one with your primary insurer and one with the credit card company's partner insurer. If you have to pay a deductible, your credit card's collision damage waiver might reimburse you. If you don't have primary insurance, the secondary will usually cover you completely.
Just double-check, rather than risk accidentally driving without insurance.
The best way to find out about your credit card's rental car insurance benefits is to log in to your account online and look for a "Benefits" link on the menu. You can also call the number on the back of your card. Credit card benefits change now and then.
Before you rely on your credit card for coverage, be sure to confirm that the benefit is still being offered.
Many of the best credit cards offer car rental insurance. You can find more information on each issuer here:
If you're wondering if you need rental car insurance, the answer is often no. In many cases, rental car insurance is a waste of money because you will already be covered through other policies. Paying twice for the same coverage doesn't give you extra cash if you need to file a claim.
An auto insurance policy will often extend the same coverage to a rental car. Some policies include free collision damage waiver coverage. Check with your insurer to find out what you have and what the limitations might be. For example, if you are traveling outside the U.S., your policy may not apply.
If your possessions are stolen from your rental, the losses may be covered by homeowners or renters insurance. Similarly, if you have personal injury protection insurance, you may not need to pay more to the rental company.
If your credit card perks include rental insurance, the CDW (collision damage waiver) will replace a lot of what the rental company might offer.
The cost of car rentals can add up. Turning down the car rental insurance policy is a great way to save money. For peace of mind, check your credit card and insurance documents so you know exactly what's covered and who you'll call if there's an accident.
Choosing a credit cardDon't you wish you could take a peek inside a credit card expert's wallet sometimes? Just to see the cards they carry? Well, you can't look in anybody's wallet, but you can check out our experts' favorite credit cards. Get started here:
