Capital One Auto Insurance: What's Included And What's Not

Capital One offers a range of credit cards that provide rental car insurance, which can be used as primary or secondary coverage. To be eligible for this complimentary insurance, cardholders must decline the collision damage waiver (CDW) insurance offered by the rental car company and pay for the entire rental with their Capital One card. Capital One's rental car insurance covers physical damage to the car, theft of a covered rental vehicle, valid loss-of-use charges, and reasonable towing charges. It's important to note that this insurance only covers the rental car and not other vehicles or medical payments. Additionally, it excludes coverage in certain countries, including the Irish Republic, Israel, Jamaica, and Northern Ireland. Cardholders can also enjoy other benefits such as no foreign transaction fees, the ability to transfer points to travel partners, and access to Capital One lounges.

Collision coverage

In the context of Capital One, collision coverage is mentioned in the context of rental car insurance. Capital One credit cards may offer rental car insurance as a benefit, which can include collision coverage for physical damage to a rental car in the event of a collision. This collision coverage through Capital One's credit card rental car insurance can serve as primary or secondary coverage. If it is primary coverage, it will be applied before the renter's personal auto insurance. On the other hand, if it is secondary coverage, the renter's personal auto insurance will be applied first, and the card insurance will supplement it if necessary.

It is important to note that credit card rental car insurance through Capital One may have limitations and exclusions. For example, it typically does not cover medical expenses or damage to other vehicles in an accident where the cardholder is at fault. Additionally, there may be restrictions on the types of cars covered, such as antique vehicles. To fully understand the extent of collision coverage offered by Capital One's credit card rental car insurance, it is advisable to refer to the specific benefits guide associated with your Capital One credit card.

When considering collision coverage, it is essential to weigh the costs and benefits. Collision coverage provides peace of mind and financial protection in the event of an accident. It allows you to avoid paying out-of-pocket expenses for repairs, which can be costly. By having collision coverage, you can ensure that your vehicle is covered for repairs or replacements, regardless of who is at fault in an accident.

Additionally, when deciding on the amount of your deductible, it is important to consider the cost of your car and your willingness to pay for repairs under the deductible amount. A higher collision deductible can lower your monthly premium, but it also means you will cover a larger portion of the repair costs when needed. On the other hand, a lower deductible results in a higher monthly premium but provides more financial protection in the event of an accident.

Theft coverage

If you rent a car with a qualifying Capital One credit card, you may be automatically covered if the rental vehicle is stolen. This coverage is known as theft coverage and can provide financial protection in case of theft. It is important to note that coverage may vary depending on the specific Capital One credit card you have. To verify the exact coverage provided by your Capital One credit card, be sure to check your card's benefits guide.

In addition to theft coverage, Capital One credit cards with rental car insurance may also offer other types of coverage, such as collision coverage for physical damage to the rental car in case of an accident, and towing charge coverage for the cost of recovering the rental vehicle if it needs to be towed.

It is worth noting that credit card rental car insurance typically has certain limitations and exclusions. For example, it may not cover physical injury to the cardholder or others, damage to other vehicles, or property damage to the belongings of others. Additionally, it may not cover luggage or other items stolen from the rental vehicle or mechanical breakdowns of the rental vehicle.

To summarise, theft coverage is a valuable component of auto insurance that can provide financial protection in the event of car theft. While Capital One does not offer auto insurance directly, its credit cards may include rental car insurance benefits, including theft coverage, providing added protection and peace of mind for cardholders.

Towing charge coverage

When you sign up for towing charge coverage, you will be provided with the contact information for the emergency roadside assistance company that your insurance company has partnered with. In the event of a breakdown, you can call this number to request assistance. The service technician's time and labour costs will be covered by your insurance, but you will be expected to pay for any materials or fuel out of pocket.

It is important to note that towing charge coverage usually follows the car rather than the driver. Therefore, if you are driving a friend's car and need assistance, you may not be covered unless they also have similar coverage. However, some policies, especially those offered by separate companies like AAA, may provide coverage regardless of the car you are driving.

Loss-of-use charge coverage

To be eligible for this complimentary insurance coverage, you must decline the collision damage waiver (CDW) insurance offered by the rental car company and pay for the entire rental with your Capital One card.

It's important to note that Capital One's rental car insurance has some limitations. For example, your rental period cannot exceed 15 consecutive days in your residence country or 31 consecutive days in other countries. Additionally, certain types of vehicles, such as expensive, exotic, antique automobiles, motorcycles, trucks, and recreational vehicles, are not covered.

Make sure to carefully review the terms and conditions of your Capital One card's rental car insurance coverage, as the specific benefits and limitations may vary.

Primary and secondary coverage

When it comes to auto insurance, it's important to understand the difference between primary and secondary coverage, especially when renting a car. Here's a detailed explanation:

Primary Coverage

Primary auto insurance is the initial coverage that pays for an accident claim. It is typically provided by your personal auto insurance policy or the rental company's insurance if you opt for it. This type of coverage takes precedence in the event of an accident, and you will need to file a claim with the primary insurer first. One of the biggest advantages of primary coverage is that it protects your insurance premium from increasing due to the accident. It usually covers damages from accidents, theft, or vandalism. However, it's important to note that only a few credit card companies offer primary car coverage.

Secondary Coverage

Secondary auto insurance, also known as "backup" coverage, comes into play when your primary insurance doesn't cover certain aspects or when the damages exceed your primary policy limits. It is often provided by credit card companies as a benefit. Secondary coverage will pay for damages not covered by your primary insurance or personal auto policy. It's important to remember that secondary coverage usually comes with a deductible, which is an out-of-pocket expense you'll need to pay before the insurance company covers the rest. Additionally, secondary coverage often has payment limitations and may only cover a portion of the damages. In most cases, you will need to file a claim with your personal insurance company first and then turn to your secondary coverage if needed.

When deciding between primary and secondary coverage, it's essential to consider the level of protection you need and the potential costs involved. While primary coverage provides more comprehensive protection, secondary coverage can be a cost-effective option if you already have personal auto insurance or if you're looking for additional protection.

Frequently asked questions