Mastercard Auto Rental Insurance: What's Covered?

If you're renting a car, you might be wondering if your Mastercard will cover the insurance. The answer is: it depends. While Mastercard does offer rental car insurance, the specifics of what's covered can vary depending on the type of card you have, the vehicle you're renting, and the location of your rental.

Mastercard's rental car insurance, known as MasterRental, is typically secondary coverage, which means it kicks in after your personal auto insurance. It covers damage or loss caused by collision or theft of the rental vehicle, as well as towing and loss-of-use fees. However, it usually doesn't cover personal liability, injury, or property damage.

To use MasterRental insurance, you'll need to decline the rental company's collision and theft coverage, pay the rental fee in full with your Mastercard, and ensure that the rental is in the same name as the credit card. Keep in mind that certain types of vehicles and destinations may be excluded from coverage.

Before renting a car, be sure to carefully review the terms and conditions of your Mastercard rental car insurance and understand any limitations or exclusions. That way, you can travel with peace of mind and avoid unexpected costs in the event of an accident or damage to the rental vehicle.

What type of rental car insurance does Mastercard provide?

Mastercard offers a rental car insurance program, known as MasterRental, which provides limited supplementary coverage when a cardholder pays for a car rental with an eligible Mastercard. This insurance is included in select Mastercard cardholder agreements at no additional cost to the cardholder.

Mastercard rental car insurance covers physical damage or theft of an eligible rental vehicle, as well as loss-of-use charges, towing costs, and late drop-off charges. The coverage limit is typically $50,000 or the price of the vehicle, whichever is lower.

To be eligible for this coverage, you must charge the entire car rental bill to your covered Mastercard credit card when making the reservation and reject the insurance offered by the rental agency. The rental must also be made in the same name as that printed on the credit card used. It's important to note that not all Mastercard credit cards have car rental insurance, and the coverage provided may vary depending on the type of Mastercard you have (Standard, World, or World Elite).

MasterRental insurance is typically secondary coverage, meaning it kicks in after your regular car insurance coverage and any other applicable coverage. There are some exclusions to the coverage, including expensive, exotic, antique, or sport utility vehicles, and some card issuers may have additional exclusions, such as trucks. Additionally, coverage is usually limited to a certain number of consecutive days, typically ranging from 14 to 31 days.

Before renting a car, be sure to review the benefits guide that came with your Mastercard to understand the specific coverage details, exclusions, and requirements for making a claim.

What do I need to do to use MasterRental insurance on my next rental?

To use MasterRental insurance on your next rental, you must first check that your Mastercard offers this benefit. You can do this by consulting your online credit card account, your original cardholder agreement, or by calling 1-800-MASTERCARD (627-8372) or your card issuer.

Once you have confirmed that your Mastercard offers rental car coverage, follow these steps to ensure that your card will protect you against damage to, or theft of, your rental car:

• Pay for your car rental with your Mastercard credit card. It is important to note that you must use your Mastercard credit card to pay for the full rental cost, even if you use another card for other related charges such as gas or parking.
• Ensure that you are the primary driver on the rental car agreement.
• Refuse rental agency coverage. It is important to decline this offer of coverage both at the time of reservation and when picking up the rental vehicle.

It is also important to be aware of the limitations of Mastercard rental car coverage. For example, coverage is typically secondary, meaning that your auto insurer pays the claim and your Mastercard reimburses your deductible. Mastercard rental car coverage also has exclusions, including personal injuries, liability, property damage, and personal items stolen from the rental vehicle. Check your cardholder agreement for a complete list of coverage terms and exclusions.

Primary vs secondary coverage

When it comes to rental car insurance, it is important to understand the difference between primary and secondary coverage, as it can have a significant impact on your decision-making. Here is a detailed comparison between the two:

Primary Coverage:

Primary rental car insurance is offered by some premium credit cards and provides direct coverage for damages to the rental vehicle without involving your personal auto insurance policy. This means that in the event of an accident, theft, or vandalism, you can file a claim with your credit card company, and they will handle all the necessary procedures. One of the biggest advantages of primary coverage is that it prevents your insurance premium from increasing due to the accident. Additionally, primary coverage often has more generous terms, covering the full cost of the car for a longer rental period and in more countries. When deciding on primary coverage, it is essential to note that it usually does not include liability insurance, so you may need to purchase additional coverage for that.

Secondary Coverage:

Secondary rental car coverage, on the other hand, acts as a supplement to your personal auto insurance policy. It is more commonly offered by credit card companies as a benefit. In the event of an accident, you would first need to file a claim with your personal insurance company, and then the secondary coverage would kick in to cover any remaining costs or your deductible. This process can be time-consuming and may result in an increase in your monthly insurance rates. Secondary coverage often has lower limits for total coverage, a shorter duration of rental coverage, and a more limited list of countries where it applies.

When choosing between primary and secondary rental car insurance, it is important to consider your personal circumstances and the level of coverage you require. Primary coverage provides more comprehensive protection and convenience, while secondary coverage can help fill in the gaps in your personal policy. It is always recommended to carefully review the terms and conditions of your credit card's rental car insurance benefits to make an informed decision.

What about liability coverage?

Liability coverage pays for other drivers’ injuries or damages to their personal property caused by an accident with a rental vehicle. Rental companies are required by law to provide at least the state minimum for liability coverage. You can also purchase supplemental liability insurance to extend your coverage beyond the state minimums.

If you already have liability coverage under your personal auto insurance policy, you may not need to purchase rental car liability insurance. However, if you are renting a car in a different country, your personal liability insurance may not apply. In this case, you may want to consider purchasing rental car liability insurance.

It's important to note that Mastercard rental car insurance does not cover personal injuries, liability, or property damage. Therefore, if you are looking for liability coverage, you may need to consider other options such as purchasing additional insurance from the rental car company or checking if your personal auto insurance policy provides coverage for rental cars.

Before renting a car, it is recommended to do your research and understand your existing auto insurance policy and credit card coverage options. This will help you make an informed decision about whether you need to purchase additional rental car liability insurance.

How do I know if my credit card has car rental insurance?

To know if your credit card has car rental insurance, you should consult your card's benefits guide, which was likely mailed to you when you first got the card, or check online. You can also call the number on the back of your card with any questions about the benefits available to you.

If your credit card does have car rental insurance, it's important to understand the terms and conditions of the coverage. Most credit cards offer secondary coverage, which means that it kicks in after your personal car insurance policy. However, some premium credit cards offer primary coverage, which allows you to file a claim directly with the credit card company without involving your personal insurance.

In addition, credit card rental car insurance usually has several requirements that must be met for the coverage to apply. These typically include paying for the rental car reservation in full with the card, declining the rental car company's collision damage waiver (CDW) or loss damage waiver (LDW), and being the primary renter. It's also important to note that not all types of cars or destinations may be covered, and there may be limits on the number of days of coverage.

By understanding the specific benefits and requirements of your credit card's car rental insurance, you can ensure that you have the necessary coverage when renting a car.

Frequently asked questions