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Everyone knows the hard sell at the car rental counter will come, but not everyone knows how to handle it: rental car coverage. You may remember that rental cars come with free protection when you use your credit card. That’s probably true, and that coverage can be valuable. (Jump ahead to our list of cards with primary coverage. ).
However, you must be aware of the coverage you have and when it pertains to your rental.
“People frequently don’t know what their credit card covers and doesn’t cover,” says Loretta Worters, an Insurance Information Institute spokesperson. Therefore, before they sign that contract, it’s crucial that they get in touch with both their credit card company and insurance agent. ”.
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However, keep in mind that you might not even require this insurance before comparing the benefits of various travel credit cards for rental insurance.
Do you need rental car insurance?
If you live in the U. S. and possess a personal vehicle, you probably won’t require extra insurance when renting a car in the U.S. S. This is so that your rental car will be covered by your own auto insurance policy. But some U. S. Some states only require more restricted coverage for auto insurance, such as Florida and New Hampshire. In the event of an accident or mishap, your rental car may be underinsured if your personal auto policy does not provide collision and comprehensive coverage.
Several of the best credit cards for travel also offer coverage for rental cars in numerous foreign countries. But there are exceptions.
In any case, before renting a car, you should contact your credit card company and your auto insurance provider because your policy might have changed. Additionally, ensure that you are aware of the various kinds of auto insurance.
When renting a car, the following is a summary of what personal auto insurance and the best travel credit cards may cover: Swipe to scroll horizontally
| Rental Car Insurance Scenarios | Personal Auto Insurance | The Best Travel Credit Cards |
| Travel in the U.S. | Yes | Yes |
| International Travel | No (except Canada) | Yes (though most cards exclude Italy, Ireland, Northern Ireland, Australia, Israel, Jamaica and New Zealand) |
| Business Travel* | No | Yes, with some exceptions |
| Luxury car rental | You may need additional insurance | Yes |
| Exotic cars, off-road, trucks | No | No |
*Auto insurance coverage is a perk of employment for those employed by the government, including postal workers and members of the armed forces. Verify whether you are protected by a company policy if you work for a private employer.
Therefore, it makes sense to purchase one of the greatest travel cards to cover a rental car in the following situations, even if you already have personal auto insurance:
- The value of the car or cars you have insurance on is significantly less than the car you plan to rent. Given that most rental cars are relatively recent, this is a typical situation.
- You plan to rent a car outside of the U. S. or Canada.
- You are planning to rent a car in the U. S. or abroad while traveling for business.
- A decent travel credit card provides far more protection than your own auto insurance policy.
Hot Tip: If you are renting a car internationally, especially, don’t wait until you get to the counter to set up insurance based on your credit card. It’s possible that you’ll be informed that certain insurance is mandated by national law and that renting a car isn’t possible without domestic insurance. Clear up any of these issues ahead of time.
Comparing credit card issuers
Many financial institutions, like Bank of America or U. S. Bank, offer auto rental benefits. Additionally, benefits will differ between cards, so it’s critical to comprehend each one’s terms.
WalletHub discovered that Chase Bank provided the greatest rental car insurance benefits among the personal credit card issuers shown in the chart below. ( credit: WalletHub).
No coverage: Neither Discover nor Citi credit cards provide coverage for automobile rentals.
Best coverage from Chase and American Express
Chase credit cards offer the best car rental insurance when compared to other issuers. Chase will insure rentals globally, including in countries like Italy and Ireland that other cards may prohibit. Chase also boasts the highest per-vehicle coverage amount (up to $75,000), and coverage extends up to 31 days, whereas most competitors will insure only up to 15 days in your home country.
Lastly, damage to tires and rims as well as damage sustained while operating a vehicle on a dirt or gravel road are covered by Chase cards.
Per WalletHub, the highest-rated personal credit card is the Chase Sapphire Reserve®.
For benefits related to car rentals, all other Chase consumer cards came in second. For instance, the Chase Sapphire Preferred® Card offers good travel benefits and has a lower annual fee than the Sapphire Reserve card. See our analysis of the Chase Sapphire Preferred bonus offer for more information.
Third place goes to all American Express personal credit cards. For a small fee per rental period, not per day, American Express offers Premium Car Rental Protection** in addition to excellent coverage. Unlike many other plans, this one covers SUVs and luxury vehicles as well. See American Express Credit Cards: the Best Pick for You for an analysis of the Green, Gold, and Platinum cards.
If you want to use Chase’s rewards programs to make reservations for dining, travel, and other services, this card is perfect for you. Get five to ten points for every dollar you spend on Chase travel. Plus get a $300 yearly statement credit for travel purchases.
According to WalletHub, this card offers the best rental car insurance for coverage at home and abroad.
After spending $4,000 on purchases in the first three months of opening your account, you will receive 60,000 bonus points. When you redeem these points through Chase Ultimate Rewards®, you will receive a $750 bonus value toward travel, more than offsetting the $550 annual fee.
Travel benefits like access to VIP airport lounges, hotel room upgrades, and up to $100 every four years to help defray the cost of TSA PreCheck® or NEXUS applications are all included with this card, which offers the kind of luxury travel benefits you might anticipate.
- Interest rate: 22.49% to 29.49% variable.
- Annual fee: $550; $75 for each authorized user.
- Foreign transaction fee: None
- Rewards: Earn 10 points for every dollar spent at participating restaurants via the Chase Dining program, as well as five points for flights booked through Chase, three points for other restaurant and travel expenses, and one point for remaining purchases. These points can be earned through hotel and car rentals booked through Chase Ultimate Rewards.
- Additional benefits include a $300 annual statement credit for travel purchases (qualifying purchases do not earn points until the $300 travel credit is applied), access to airport lounges with Priority Pass Select membership, and privileges at Luxury Hotel properties.
- Redemption: Points can be exchanged for other points at a favorable rate of 1 or transferred to affiliated hotel and airline loyalty programs. When you use Chase’s Pay Yourself Back program to redeem statement credits against purchases in select categories (such as dining, lodging, charitable donations, and other categories), or to book travel through Ultimate Rewards, each redemption is worth five cents.
- Bonus for signing up: 60,000 points after spending $4,000 in the first three months. These points can be redeemed for travel through Chase Ultimate Rewards, worth a total of $900.
- Member FDIC
Other Chase personal credit cards, such as the Chase Sapphire Preferred® Card, came in second.
The Chase Ultimate Rewards® points that you earn with this card are redeemable for travel bookings through Chase at a heightened value of 1.25 cents each, or get a respectable value of 1 cent per point for cash back or gift cards. Alternatively, transfer points to a solid list of partner travel loyalty programs, including Southwest Airlines Rapid Rewards, United MileagePlus, Marriott Bonvoy and World of Hyatt.
After spending $4,000 on purchases within the first three months of opening your account, you will receive 60,000 bonus points. Thats $750 when you redeem through Chase Ultimate Rewards®. See Chase Sapphire Preferred Credit Card Launches $750 Bonus Offer for our analysis of this bonus offer.
- Interest rate: 21. 49% to 28. 49% variable APR for purchases and balance transfers, and 29. 99% variable APR on cash advances.
- Annual fee: $95
- Foreign transaction fee: None
- Rewards: Three points per dollar on dining, some online grocery and streaming services, and travel purchases made with Chase Ultimate Rewards®; five points per dollar on other travel-related purchases; and one point per dollar on other purchases.
- Additional benefits: Receive 50% of annual statement credits for hotel stays reserved through Chase; every year on the anniversary of the account’s opening, you’ll receive a bonus of 10% of total purchases made in the previous year; the card offers some of the best benefits for car rental insurance in the market.
- Redemption: Use Chase Ultimate Rewards (C2%AE) to redeem for flights, hotels, car rentals, and cruises to receive up to 25% more value. For example, 60,000 points are worth $750 toward travel.
- Bonus offer: After spending $4,000 on purchases within the first three months of opening your account, you can earn 60,000 bonus points. Thats $750 when you redeem through Chase Ultimate Rewards®.
- Member FDIC
Third Place: All American Express cards, like
Offering three points for every dollar spent on dining, transportation, and travel, this is a good travel card. Although the card’s welcome bonus was recently lowered from 60,000 to 40,000 points, it’s still a viable option for customers who want American Express benefits without having to pay a hefty annual fee. See rates and fees.
See our guide on selecting the ideal American Express credit card if you’re looking for a card with a higher rewards rate.
- Offer summary: During the first six months of your new card membership, spend $3,000 on purchases to earn 40,000 Membership Rewards® Points, which can be redeemed for travel and are valued at approximately $400.
- Interest rate: Pay Over Time APR: 21. 24% to 29. 24 percent, contingent upon your creditworthiness and additional criteria as established at the time of account opening
- Annual fee: $150
- Foreign transaction fee: None
- Reward: For every dollar spent on travel and transportation (airfare, hotels, cruises, tours, car rentals, campgrounds, vacation rentals, trains, taxis, rideshares, ferries, tolls, parking, buses, and subways), earn three Membership Rewards® points. Earn three additional points for each dollar spent on qualifying dining, including delivery and takeout in the United S.
- Airport Security Clearance: When you use the American Express® Green Card to pay for your CLEAR Plus membership (which is subject to auto-renewal), you can receive up to $189 in statement credits annually.
- Additional Travel Benefits: Receive a $100 annual statement credit toward LoungeBuddy, an app that facilitates access to travel lounges, as well as trip delay insurance up to $300 for specific expenses on a round-trip ticket paid for entirely with your card (see terms for limitations).
- Redemption: There is no cash back option; instead, using points to book travel and take advantage of the numerous discounts and other benefits yields the best value.
- Disclosure: Kiplinger has independently gathered all of the information regarding the American Express® Green Card.
- Terms apply
How to use your card for rental car insurance
It’s easy to use your card’s travel benefits instead of the rental company’s insurance. Use the card to make a rental car reservation after you’ve acquired or chosen to use one with reliable rental car insurance. Next, make sure to pay for the car rental using the same credit card and decline the theft and damage insurance that the rental company is offering.
**Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress. com/benefitsguide for more details. Underwritten by Amex Assurance Company.
The article above represents our opinion of the greatest offers as an independent publication committed to maximizing your financial resources; it does not represent the views of any of the organizations listed, including credit card issuers, hotels, airlines, and so on. Likewise, none of those organizations have evaluated or approved the content.
Ellen is a personal finance writer and editor who specializes in credit cards and related products. She also covers the nexus between sustainability and personal finance. She spent fifteen years at Calvert Investments as a manager and sustainability analyst, where she worked on consumer staples and climate change. She oversaw corporate engagements and was a member of several Fortune 500 companies’ sustainability councils. Ellen managed loans for alternative energy projects in Latin America as a program officer for Winrock International prior to joining Calvert. She earned a master’s from the U. C. Berkeley in international relations and Latin America.
FAQ
Does my Visa card cover car rental insurance?
The Visa vehicle rental coverage reimburses up to the entire cost of fixing or replacing a rental car in the following situations: collision or theft-related damage; malicious vandalism against the vehicle; and proven, legitimate loss-of-use fees levied on the renter by your business.
Does MasterCard cover car rental insurance?
If a cardholder pays for a car rental with an eligible MasterCard, MasterCard offers a program called MasterRental that offers limited additional coverage. Certain MasterCard cardholder agreements include MasterRental, which comes with no extra upfront fees for the cardholder.
Does Discover credit card cover rental car insurance?
Comparing credit card issuers: None of the credit cards from Citi, Synchrony, or Discover provide any coverage for car rentals.
Read More :
https://www.kiplinger.com/personal-finance/credit-cards/credit-cards-that-cover-rental-car-insurance
https://thepointsguy.com/guide/cards-rental-car-coverage/