Saturday, December 3, 2022

Which Credit Card Has Best Car Rental Insurance

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What Happens If You Damage A Rental Car Without Insurance

Major credit card companies provide free rental car insurance

As we mentioned in the last section, in many cases you can rent a car without any insurance. But its generally a risk that most people are not willing to take.

If your personal auto insurance does not cover car rentals , then the car rental company will charge you for any damage to the rental car, according to your rental agreement.

So if you dont have your own insurance or a credit card with car rental insurance, consider purchasing car rental insurance coverage from the car rental agency.

Which Credit Card Has The Best Car Rental Coverage If I Don’t Have Auto Insurance

If you dont have auto insurance, you may need to have more than rental car coverage provided by any credit card. The reason: Rental car insurance covers the car, not you. In other words, youll be on the hook for any damage done to any other car, property, or more importantly for any medical expenses resulting from an accident. If you dont have auto insurance, make sure to purchase liability insurance from your rental car provider.

That said, the distinction between primary and secondary car rental insurance coverage doesnt matter if you dont have a personal auto policy.

Where To Look For Information

Most of the major credit card networks, including Visa, Mastercard and American Express all offer some form of rental car coverage for cards on their networks. However, the coverage on any particular card can vary according to the bank that issued it, and even cards from the same issuer can have different levels of coverage.

Understanding your credit cards coverage for rentals may be as simple as calling the phone number on the back of your card and asking the issuer. You could also check the “guide to benefits” provided by your card issuer.

We recommend that customers know, before renting a car, what their credit cards cover and if it transfers to a rental vehicle, says Lisa Martini, a spokeswoman for Enterprise Holdings, which owns the Enterprise, National and Alamo rental brands. Specifically, it might be best to inquire what the coverages are, what is included and what the exclusions are if there are any for rental vehicles.

Its worth a few minutes of investigation. If you can safely decline $20 per day of add-ons at the rental counter because of your credit card, that saves you $280 on a rental during a two-week vacation.

» MORE: The cheapest way to rent a car 9 tips

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Bmo World Elite* Mastercard*

  • $150 Annual fee â First year free*
  • Get 30,000 BMO Rewards points when you spend $3,000 in the first 3 months, and 2,500 points for each subsequent month in which you make at least $2,000 in purchases on your card, for 12 months
  • Earn 3 BMO Rewards points per $1 spent on dining, entertainment, and travel purchases
  • Earn 2 BMO Rewards points per $1 spent on all other purchases
  • Mastercard Airport Experiences membership provided by LoungeKey, plus 4 annual passes

What makes the BMO World Elite* Mastercard®* a good choice as a credit card with car rental insurance is that its a premium that has no annual fee for the first year. Normally, youd pay $150 for the yearly fee, but its waived for the first year. On top of that, the welcome bonus is usually quite generous. The included rental car insurance covers you for 48 days as long as the MRSP of the rental car does not exceed $65,000.

Whats also nice about this card is that you get a Mastercard Airport Experiences membership provided by LoungeKey, plus 4 annual free passes. Think about all those benefits for a second. You can basically use the welcome bonus to offset your car rental costs, you get car rental insurance, and you get airport lounge access. All of this is free for the first year.

Capital One Venture X Rewards Credit Card

Credit Card Rental Car Insurance Coverage

This premium travel credit card from Capital One has a lower annual fee than the Chase Sapphire Reserve®, and it also has a lot to like in terms of rental car rewards.

For one, the Capital One Venture X Rewards Credit Card offers primary car rental insurance coverage up to $75,000. You’ll also receive the highest level of Hertz elite status Hertz President Circle status which will get you the widest selection of cards, guaranteed upgrades and access to a dedicated Hertz Rewards member line.

Finally, the Capital One Venture X Rewards Credit Card earns 2x miles on every purchase, but when you book rental cars through Capital One Travel with the card, you’ll earn an increased 10x miles.

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What To Watch Out For

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If you want to take advantage of your credit cards card rental insurance, there are several conditions and exclusions you should be aware of prior to renting a vehicle:

  • You must be a Canadian citizen with a valid drivers license.
  • You must charge the full amount of the rental to your credit card.
  • Some types of vehicles are usually not covered, such as pick-up trucks, commercial vans, antique cars, motorcycles, and luxury cars .
  • Travel in some countries may not be covered by your credit cards car rental insurance, e.g. in countries for which the Canadian government has issued a formal travel advisory.
  • Your credit card account must be in good standing.
  • 31-48 days of rental is the maximum that your credit card will likely insure you for.
  • If you book your car rental as part of a travel package, youre still required to charge the full amount of the rental to your travel credit card.
  • If your car rental is provided due to winning a contest, your car rental insurance would apply if you have a history of paying your car rentals with the credit card that includes car insurance.
  • In most cases, if you book your car rental with points, then your car rental insurance would apply assuming the points you use come from the credit card that offers credit card car insurance.

Youre Often Upsold On Insurance You Dont Need

Lets face itinsurance is a tricky and often boring subject. Its easy to sign up for optional rental car insurance when youre at the counter because the agent tends to try to convince you to buy their policies.

If you already have car insurance, chances are youre already covered for most if not all of what the rental company offers.

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If You Dont Have All The Coverage Types You Need You Can Get Them Now

Not everyone has car insurance. If youre relying on just the rental car coverage from your credit card, youre covered against damages to the rental car. But as weve stated, thats only a part of the full picture.

You also need coverage for liability. Otherwise, you run the risk of being sued for any injuries you cause to other people or damage to other peoples property. You may also want personal injury protection . If you dont currently have these things, now is a good time to purchase them.

How To Choose Rental Car Insurance Cards

Best Credit Card for Car Rental

There are several ways you can choose a rental car insurance card. As discussed previously, you might want to choose a card with primary coverage if you want auto insurance coverage and if you dont have car insurance, to begin with.

Before choosing a rental car insurance card:

  • See if the card offers primary or secondary. Some only offer secondary, and some will offer both. Secondary cards will give you more options and you will have many different cards to choose from if you decide to go this route.
  • See if the card offers other travel perks that could make your vacation cheaper. Many cards offer all kinds of rewards. Not just ones that pertain to car rentals. You can earn rewards for airlines, hotels, and many other travel-related things to make your next trip cheaper in every aspect.
  • Make sure to check any drawbacks such as any fees or per day charges.
  • See if the coverage is valid only for the cardholder or for other drivers as well.
  • Weigh the annual fees against the benefits. Make sure the annual fee can be covered by your benefits. You dont want to be stuck paying a huge fee and not be able to get it back through benefits.
  • Look at welcome bonuses and minimum spending requirements. Some cards will offer a welcome bonus and have spending requirements you need to meet before getting benefits. Make sure to pay attention to this so you can ensure you are getting all the benefits advertised.

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Best Credit Cards For Rental Cars

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When you think about rental cars, the rental car counters you see when you exit the airport and the shuttle buses emblazoned with company logos circling the arrivals level might come to mind.

But rental cars are a good option for traveling, wheth. You may have little faith in an older vehicle so that renting might make sense to go on road trips longer than several hours. You might also want to consider renting a bigger car to accommodate the people in your travel squad or all of the equipment or off-roading required for a camping trip. Or maybe you just want to get better gas mileage for the distance youll be driving.

Whatever the reason, your credit card might be able to help you save when you book a car. Some cards even provide varying degrees of rental car inurance coverage, which can help pay for any damages to the rental car in case you get into a rental car accident or someone breaks into your car. Here are our picks for the best credit cards for spending on rental cars.

Best Credit Cards For Rental Car Insurance Of June 2022

You can trust the integrity of our unbiased, independent editorial staff. We may, however, receive compensation from the issuers of some products mentioned in this article. See how we make money.

Rental car insurance cards will give you special car rental insurance, so you dont have to pay the rental car company for car insurance.

Most rental car companies make you pay high prices for insurance and some form of car insurance is required to use a rental car, so you will be stuck paying for it either way. If you use car insurance on your credit card, you typically have to pay for the rental car on the credit card and then the fees as well.

You also have to have the primary driver as the one who will be driving the rental car. You also will need to consider whether to decline the Collision Damage Waiver as this allows you to use the credit card coverage rather than the coverage given to you by the rental car company.

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Chase Sapphire Preferred Card: Best Travel Insurance Coverage For A Low Annual Fee

While the Chase Sapphire Reserve has slightly better travel insurance coverage, it also has a high annual fee of $550 .

This is not so with the Chase Sapphire Preferred, as the annual fee is only $95 the lowest for the best cards with travel insurance. Plus, you dont have to pay to add cardholders who will receive the same benefits as the primary cardholder.

The collision damage waiver for rental car insurance carries no country exclusion like many other credit cards and you get many of the same benefits as the Chase Sapphire Reserve. Chief among them is the $10,000 per person in trip cancellation/interruption insurance on flights, passenger tours and hotels.

Other benefits include the following:

  • Baggage delay insurance that reimburses essential expenses when your baggage is delayed over six hours up to $100 per day for five days
  • Trip delay reimbursement covers non-reimbursable expenses like meals and hotel stays, when common carrier travel is delayed more than 12 hours or overnight, up to $500 per ticket
  • Travel and emergency assistance services provide legal and travel referrals from the plan administrator when youre far from home. However, youre responsible for the cost of any goods and services you use from the referral.

When Should You Consider Rental Car Insurance Cards

Best Credit Card For Car Rental Insurance

Car rental insurance cards are important if you rent cars often for personal use or business. Car rentals are notoriously expensive and are one of the main reasons that people choose not to travel as often as they can.

If you dont have travel enough because of high car rental costs, you might want to consider getting one of these cards to help you fund the costs of your trips. Always weigh the pros and cons before choosing a car rental insurance card.

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Which Credit Card Covers Car Rental Insurance

American Express

  • Amex offers protection up to $50,000 on most cards and $75,000 for Platinum and Reserve cards for damage or theft.
  • Delta SkyMiles® Reserve American Express Card or The Platinum Card from American Express will provide rental car insurance protection for accidental deaths and dismemberment.
  • Reserve and Platinum cards include accidental injury insurance in a rental car for a limit of $300,000.
  • Additionally, personal property rental car coverage is carried on Platinum and Reserve cards.
  • Amex rental car protection is a secondary option if your primary insurance plan does not cover rental damages.

Chase

Capital One

Bank of America

Wells Fargo

  • Protection is for loss and damage up to the cash value of the vehicle to a limit of $50,000.
  • Protection is secondary for all states except for New York.

When Theres A Damage Claim

Im sure its happened but I have never heard of anyone having any problems with credit card coverage.

It makes sense. The credit card company wants their customers to be happy. They spend billions of dollars a year acquiring and retaining customers and theyre not going to let some car rental agency mess up that relationship or their reputation for taking care of their customers. The credit card is also negotiating from a position of power. If they feel the repair bill is not fair they simply dont pay until the rental agency proves its legit.

On the other hand we hear complaints on a regular basis about claims when the vehicle is covered by the rent-a-car agencys insurance. Some of the most common are below.

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How To Maximize Car Rental Credit Card Rewards

If you want to make the most out of your car rental credit card, here are some things that may come in handy:

  • Find out if your credit card offers an elite status at certain rental car services. In this case, you may be entitled to reduced rates, automatic upgrades, and more points.
  • Dont forget about the cards welcome bonus. Make sure you use your new card for purchases outside of car rentals to hit the minimum spend on time. Look into your card issuers travel portal. You may be able to earn extra points if you book your car rental through it.
  • Maximize the cards value by using it to shop in bonus categories. For example, you may get more points dining at restaurants, booking hotels and or even just buying groceries.
  • Best Credit Cards For Free Car Rental Insurance In Canada 2021

    Rental Car Insurance: What your credit card does and doesn’t cover

    How many times have you been faced with the decision on whether or not you should purchase car rental insurance while at the car rental company?

    It always catches me by surprise when the customer rep at the car rental agency asks if I want auto rental insurance and emphasizes why I need it so badly. I just never really think about insurance before venturing to rent a car.

    Car rental insurance sold as Collision Damage Waiver or Loss Damage Waiver does not come cheap. At up to $30 per day, you could easily be on the hook for approximately $1,000 for a 30-day rental and it is often more expensive than the rental fee itself.

    So, should you pay for the car rental insurance offered by the car rental agency? It depends.

    There are several no-fee credit cards offering free rental car insurance coverage that protects your rental car against collision damage and loss, subject to specific conditions. They also cover the costs of towing and loss of use fees charged by the rental company.

    If your credit card offers free rental car insurance benefits, you can save lots of money every time you rent a car!

    Read on to learn about the best credit cards for free car rental insurance in Canada.

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    Cards With Primary Coverage

    Interested in credit cards with primary rental car coverage so you dont have to use your personal auto insurance? Two popular general travel credit cards the Chase Sapphire Preferred® Card and the Chase Sapphire Reserve® are among the cards offering it. To qualify, you typically must be using a consumer card for personal travel and a business card for work travel. All the cards below cover rentals for a maximum of 31 days.

    Many credit cards offer secondary rental car coverage. That includes the best travel credit cards.

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