Paul Sanchez
Credit cards can be a convenient way to pay for insurance premiums, but it's important to consider the potential fees and financial implications. While some insurers allow credit card payments for auto insurance, others, such as life insurance providers, may refuse this option. Additionally, homeowners' insurance payments via credit card depend on the insurer and mortgage status. It's crucial to be aware of any associated fees to avoid negating the benefits of using a credit card. Carrying a balance on the card can also offset the perks, as credit card interest charges can be high. Before using a credit card for insurance payments, ensure that you can pay the balance in full and on time.
| Characteristics | Values |
|---|---|
| Credit card companies that offer car rental insurance | Chase, Capital One, American Express, Citi, PenFed, Wells Fargo, United Airlines, Visa, Mastercard |
| Type of coverage | Primary, secondary, or a combination of both |
| Requirements for coverage | Reserve and pay for the rental car with the qualifying credit card; decline the rental car company's CDW/LDW coverage; list all drivers on the rental agreement |
| Exclusions | Luxury vehicles, certain countries (e.g. Australia, Italy, Ireland), certain vehicle types (e.g. large passenger vans, antique vehicles, RVs, motorcycles), leases, micro-leases, car-sharing services |
| Coverage period | Usually up to 14-31 days, but can vary by card |
What You'll Learn
What is credit card car rental insurance?
Credit card car rental insurance is a valuable benefit that allows you to waive purchasing extra coverage from the rental company. This insurance usually covers what is known as a collision damage waiver (CDW) or loss damage waiver (LDW). This means that, in the case of an accident, the insurance will cover damage to the vehicle and the cost of towing it to a repair shop. If the rental is stolen, the insurance will cover the cost of the theft. The insurance will also compensate the rental company for any income lost while the car is being repaired.
Credit card car rental insurance is usually secondary coverage, meaning that it will kick in after your personal car insurance policy. If you don't have a personal auto insurance policy, secondary coverage may still apply, but it's important to check your policy to be sure.
Primary coverage, on the other hand, means that you can submit an accident claim right away by calling the number on the back of your card, without first submitting a claim to a personal policy. This type of coverage is more common with premium travel credit cards and business credit cards.
Not all credit cards offer car rental insurance, and the level of coverage can vary depending on the card and issuer. To find out if your credit card offers car rental insurance, you can read your card's benefits guide, log in to your card account online, or call the number on the back of your card.
When renting a car, it's important to remember that credit card car rental insurance usually does not cover liability, personal accident expenses, or damage to your personal belongings. Additionally, luxury cars and recreational vehicles are often excluded from coverage. There may also be a limit on the number of days that you can take out coverage, typically up to two weeks (14 days) or a month (31 days).
In conclusion, credit card car rental insurance can be a valuable benefit that allows you to save money on rental car fees. However, it's important to understand the terms and conditions of your specific card's coverage to ensure that you're properly protected in the event of an accident or theft.
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Primary vs. secondary car rental insurance
When it comes to renting a car, you have the option to add extra coverage offered by the rental company. However, your personal auto insurance policy or your credit card may already cover this. Most travel rewards cards are equipped with special car rental insurance, allowing you to skip the rental company's insurance.
Primary vs. Secondary Coverage
Most credit cards offer secondary coverage, which means the coverage kicks in after your personal car insurance policy. In the case of an accident, theft, or damage, you would first need to file a claim with your car insurance company before submitting a claim through your credit card's insurance provider. If you don't have a personal auto insurance policy, secondary coverage may still kick in, but it's important to check your policy to be sure.
Primary coverage, on the other hand, means you can submit an accident claim right away by calling the number on the back of your card, without first submitting it to a personal policy.
Credit Cards with Primary Coverage
Some credit cards that offer primary rental car coverage include:
- Chase Sapphire Reserve®
- Chase Sapphire Preferred® Card
- Capital One Venture X Rewards Credit Card
- United℠ Explorer Card
- United Club℠ Infinite Card
- Bilt World Elite Mastercard® Credit Card
- Ink Business Preferred® Credit Card
- Ink Business Cash® Credit Card
Credit Cards with Secondary Coverage
Credit cards that offer secondary rental car coverage include:
- American Express® Gold Card
- Blue Cash Preferred® Card from American Express
- PenFed Platinum Rewards Visa Signature® Card
- Most Wells Fargo credit cards, such as the Wells Fargo Active Cash® Card
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What is and isn't covered
What's Covered
Many credit cards offer rental car insurance, which can save you money on rental car insurance, especially when travelling internationally. This insurance usually covers physical damage to the rental vehicle and/or theft of the rental vehicle. Some cards also cover loss-of-use charges assessed by the rental company and reasonable towing charges related to a covered loss.
Credit cards with rental car insurance include:
- Chase Sapphire Reserve®
- Chase Sapphire Preferred® Card
- PenFed Platinum Rewards Visa Signature® Card
- Blue Cash Preferred® Card from American Express
- American Express® Gold Card
- Wells Fargo Active Cash® Card
- Wells Fargo Autograph®
- BILT Mastercard®
What's Not Covered
Credit card rental car insurance usually does not include liability coverage, which covers damage to property other than the rental car, personal injury, and related lawsuits. This type of coverage is typically included in the rental company's insurance.
Credit card rental car insurance also usually excludes certain types of vehicles, such as luxury cars, exotic cars, and recreational vehicles. There may also be a limit on the number of days that you can take out coverage, often up to two weeks (14 days) or a month (31 days).
Additionally, some credit card companies charge fees for paying with a credit card, and some insurance providers charge fees for paying with a debit or credit card. These fees can add up over time, so it's important to consider the cost when deciding whether to use a credit card to pay for rental car insurance.
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How to file a credit card car rental claim
The process of filing a claim for credit card car rental insurance can be similar to filing a claim with standard auto insurance. Here are the steps you need to take:
- Notify the Car Rental Company: Inform the car rental company about the incident or claim within the timeframe specified by your credit card company, usually 30 to 45 days. They will provide you with instructions on the next steps and any necessary documentation.
- Show Proof of Loss: You will need to submit various documents to support your claim. These may include a police report, accident report form, repair estimate, final bill, photos of the damaged vehicle, rental agreement, proof of payment, and your auto insurance coverage details.
- Receive Payment for Loss Claims: Depending on your credit card company's terms, you should receive payment for the proven losses within 15 to 90 days of submitting the required documentation.
It's important to note that if your credit card offers secondary coverage, you may need to file a claim with your personal auto insurance first and then submit the documentation to your credit card company. This is because secondary coverage typically kicks in after your personal auto insurance has paid for the damages.
Additionally, make sure to carefully review your credit card's guide to benefits to understand the specific coverage provided and any exclusions or limitations that may apply.
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How to get the most out of your credit card car rental insurance
Before renting a car, it's worth checking if your credit card offers rental car insurance, as this can save you money on rental car insurance, especially for international travel.
Firstly, check the terms and conditions of your credit card, or call the number on the back of your card, to find out if rental car insurance is included. If it is, you'll need to pay for the rental car with that card and decline the rental company's collision damage waiver (CDW) or loss damage waiver (LDW). CDW covers damage to the rental vehicle in the case of an accident, while LDW offers the same protection and covers you in case the car is stolen.
Most credit cards offer secondary rental car coverage, which means that it kicks in after your personal car insurance policy. However, some cards offer primary coverage, which means that you can submit a claim to your credit card company first, without involving your car insurance company.
If you're renting a car in another country, be aware that some cards exclude certain countries from their rental car coverage. For example, Visa and Mastercard often exclude rentals in Israel, Jamaica, and Ireland, while American Express won't cover rentals in Italy, Australia, and New Zealand.
Rental car coverage also usually excludes certain types of vehicles, such as luxury cars, motorcycles, and trucks. There may also be a limit on the number of days that you can take out coverage, with 14 or 31 days being common.
If you're looking for a credit card with good rental car insurance, the Chase Sapphire Reserve® and Chase Sapphire Preferred® Card are often recommended for their primary rental car coverage for up to 31 days. The Blue Cash Preferred® Card from American Express is another good option, offering auto collision damage coverage for up to 30 days.
To get the most out of your credit card car rental insurance:
- Check the terms and conditions of your card to understand what is covered and what is excluded.
- Pay for the rental car with that specific credit card.
- Decline the rental company's collision damage waiver or loss damage waiver.
- Understand the difference between primary and secondary coverage, and whether you need to contact your car insurance company first in case of an accident.
- Be aware of any country exclusions or vehicle type exclusions that may apply.
- Choose a credit card with good rental car coverage, such as those mentioned above.
- Combine cards by selecting multiple rewards cards with different reward categories and earning structures.
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Frequently asked questions
You can check your credit card's benefits guide to see if it includes auto insurance.
To activate your credit card's auto insurance, you must pay for the rental car with your credit card and decline the collision damage waiver at the rental counter.
Credit card auto insurance covers theft, loss, and damage to your rental car in the case of an accidental collision.
Credit card auto insurance does not cover damage to property or other cars, medical injuries, or the cost of stolen personal items.
Primary auto insurance can be used before any other auto rental coverage, including your own policy. Secondary auto insurance can only be used after other coverages are exhausted.
