Using Credit Cards to Insure Your Car Rental

Using Credit Cards to Insure Your Car Rental

The next time you take a trip somewhere away from home are you going to get a rental car? If so, what is your answer going to be when they ask if you need their insurance coverage.  There are three possible choices you can choose from for your answer:

No thanks, I have my own insurance – If you have a decent auto insurance policy that you are paying for, it will likely cover any damages that you may do to the rental car you want to use. You should find out what the rental companies requirements are for coverage and see if your policy fits the description. If it does you can say ‘thanks but no thanks’ to their policy and save yourself a little money.

Yes, I need your insurance coverage – All car rental dealerships work with an insurance company to cover their vehicles when they are taken off the lot. They are more than willing to tack this coverage onto your rental policy, should you need it. But, you will have to pay for it. Some rental companies charge up to $25 a day to cover you while you have their rental car.

No thanks, my Credit Card will cover me – This is a very little known fact for many people, but your credit card just may be able to cover your rental car insurance. Many of the best credit card companies today offer a series of extra services, which may include rental car insurance coverage. This policy will cover everything that the dealership is trying to sell you will and often more. You should check with your credit card company to see if they offer this type of service.

Now that you know about this extra option in rental car insurance, you may want to keep it in mind the next time you are shopping for credit cards. Many of the best credit cards have a series of travel offerings, not just insurance, but also trip cancellation coverage, reimbursement for lost luggage and even 24/7 roadside assistance services.

While these extra coverages are most common on travel rewards credit cards, more and more companies are jumping on the bandwagon and offering extra perks to their customers who travel. The key is to look for them. Not all credit card companies make a big deal out of these extras, but if you are in need, and they are available, they will be a big deal to you.