Car Rental Insurance: Do You Need It?

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, who we will always identify, all opinions are our own. When refinancing your mortgage, total financing costs may be higher over the life of the loan. Credible Operations, Inc. NMLS # 1681276, is referred to herein as “Believable.”

Whether you’re on a business trip or vacation, picking up your rental car will always include this head-scratcher of a question: “Would you like to purchase the optional rental car insurance?”

It can be difficult to determine if you need this additional coverage from your rental car company, especially if you didn’t think about it before you were ready to pick up your rental car. Understanding the details of how rental car insurance works can help you decide if this extra coverage is right for you.

Here’s what you need to know about rental car insurance:

What is rental car insurance?

When you rent a car, you have the option of purchasing rental car insurance to cover any damages or injuries from an accident you cause while driving. You can choose from different types of coverage. On the same subject : Michigan auto insurance reform accelerates layoffs and job cuts, survey says. Rental car companies are required by law to offer the minimum state-mandated liability insurance as part of their rental agreement.

Compare car insurance from major carriers

Types of rental car coverage

Although rental car insurance sounds like a single policy that you either opt in or out of, you actually have four different types of rental car coverage to choose from: On the same subject : GoAuto car insurance company, bought by a private equity firm in Pennsylvania.

Rental car insurance vs. your own auto insurance

Even if you own a car and already have auto insurance, you may assume that you need to get rental car insurance. But your own car insurance generally covers you when you drive a rental car for personal reasons. Read also : The states where motorists pay the most for car insurance. Just know that many policies don’t cover rental cars that you drive for business.

It is important to understand the differences between the insurance you choose at the rental car counter and your own car insurance. Specifically, rental car coverage and your auto insurance coverage may differ based on damage or theft of the rental car, liability for damage or injuries to others, your own injuries, or items stolen from your rental.

If you need any of these types of coverage from the rental car company, you will need to select each one. In addition to the state minimum liability, rental car insurance options are not automatic.

Here’s a closer look at the differences between rental car insurance and personal car insurance:

When it makes sense to get insurance on a rental car

Opting for rental car insurance may or may not be the right move for you. It depends on a number of circumstances, including where you are, what coverage you already have, your deductible, and the length of time you’ll need the rental car.

Here are some common scenarios when you might want to opt for rental car insurance:

When it may not make sense to get rental car insurance

In some scenarios, you may not want to purchase rental car insurance. By opting out of the rental car company’s optional insurance add-ons, you may be able to save money while still maintaining the insurance coverage you need.

Some common scenarios when it doesn’t make sense to get rental car insurance include:

Credit cards with rental car coverage

Many major credit cards offer some collision coverage for rental cars if you reserve and pay for the rental car with that credit card and make the reservation in the cardholder’s name.

This type of credit card coverage can replace the need for a collision damage waiver from the rental car company. However, this type of coverage is often “secondary,” meaning it will only pay after your personal auto insurance kicks in. That means the credit card coverage may be able to reimburse you for your deductible, but it cannot protect. you from a premium increase if your car insurer decides to raise your rate after the claim.

Some travel credit cards offer primary rental car coverage, which means the coverage will pay for damages first, and you don’t have to make a claim with your personal auto insurance. The specific coverage and limits for rental car insurance vary from credit card to credit card. It’s important to find out what your card covers and how much it will cost before declining rental car insurance. You can call your card issuer for the details.

Some credit cards that have this benefit include:

How much is rental car insurance?

Here’s roughly what you can expect to pay for each of the four types of rental car insurance:

Good to know: These costs are in addition to your daily rental fee. This means that choosing all four types of rental car insurance for a seven-day rental could add up to $308 to your total rental costs.

How to get a rental car through an insurance claim after an accident

If you damage your car in an accident and need to drive a rental while your car is being repaired, follow these steps to get a rental car through your insurance claim:

Compare car insurance from top providers

Disclaimer: All insurance-related services are offered through Young Alfred.

Emily Guy Birken is a trusted authority on student loans and personal finance. Her work has been featured by Forbes, Kiplinger’s, Huffington Post, MSN Money, and The Washington Post online.

Does Chase Marriott card cover rental car insurance?

You will receive cover for damage, theft to the rental car, reasonable/customary towing and applicable loss of use charges.

Does the Marriott Bonvoy Chase card cover rental car insurance? For coverage to be valid, book and pay for your entire car rental with your Marriott Boundless card and decline the CDW or LDW coverage from the rental agency. You will receive cover for damage, theft to the rental car, reasonable/customary towing and applicable loss of use charges.

Does Marriott Bonvoy credit card include travel insurance?

Travel benefits: If you travel often, the Marriott Bonvoy Bold Credit Card offers useful benefits, such as baggage delay insurance, concierge service, and reimbursement for lost baggage and travel delays. No annual fee: Card users do not pay an annual fee.

Does Marriott Bonvoy card have rental car insurance?

Marriott Bonvoy Premier rental car insurance covers physical damage, vandalism or theft, up to the cash value of most vehicles. You must pay for the rental with your card and you must decline the rental agency’s insurance to be eligible.

Does the Marriott Bonvoy card have travel insurance?

The Marriott Bonvoy Boundless card travel insurance works by offering lost baggage and travel delay compensation when you use your card to pay for your trip. You are covered for up to $3,000/passenger if your luggage is damaged or lost by the carrier.

Does Marriott Bonvoy card cover global entry?

Receive a statement credit reimbursing you for the application fee when you apply for either Global Entry ($100) or TSA Precheck ($85). For Global Entry, you get the benefit every four years.

Does Marriott credit card have rental car insurance?

You can be covered for theft, loss and damage to your rental car with an MSRP of up to $85,000 for rentals of 48 days or less when you charge your rental in full to your Card.

How can I tell if my credit card has car rental insurance?

How to find out if your credit card offers rental car insurance. The best way to find out about your credit card’s rental car insurance benefits is to log into your account online and look for a “Benefits” link in the menu. You can also call the number on the back of your card to inquire.

Does Marriott Bonvoy Amex have rental car insurance?

The Marriott Bonvoy Brilliant⢠American Express® Card offers rental car insurance as a free benefit. Marriott Bonvoy Brilliant rental car insurance covers loss of rental vehicle, appraisal fees as long as they are supported by verifiable documentation, towing costs and storage.

Does the Marriott Bonvoy card have travel insurance?

The Marriott Bonvoy Boundless card travel insurance works by offering lost baggage and travel delay compensation when you use your card to pay for your trip. You are covered for up to $3,000/passenger if your luggage is damaged or lost by the carrier.

Does the Chase Freedom card cover rental car insurance?

The Chase Freedom Flexâ  and Chase Freedom Unlimited® both offer insurance coverage for the financial cost of damage or theft to a rental vehicle. However, coverage through the collision damage waiver (CDW) is secondary insurance – it only kicks in after other forms of insurance (such as your personal auto insurance).

Does Chase Freedom student have car rental insurance?

The Freedom Student card does not offer rental car insurance. But there are other Chase cards that have this benefit, which covers theft, damage, valid loss-of-use charges imposed by the car rental company, administrative fees, and reasonable towing charges to the nearest qualified repair facility.

How do I claim insurance on my Chase rental car?

How to make a claim for Chase car rental insurance. Immediately after the theft or damage, call the Chase benefits manager at 888-320-9961. If you are outside the United States, call collect at 804-673-1691. A representative tells you next steps, as well as where to submit your claim form.

Does my Chase Freedom card have travel insurance?

Chase Freedom Unlimited® The Chase Freedom Unlimited card offers several helpful travel protections, including: Trip cancellation and trip interruption insurance covering up to $1,500 per person or $6,000 per trip.

Does Chase Freedom card cover rental car insurance?

The Chase Freedom Flexâ  and Chase Freedom Unlimited® both offer insurance coverage for the financial cost of damage or theft to a rental vehicle. However, coverage through the collision damage waiver (CDW) is secondary insurance – it only kicks in after other forms of insurance (such as your personal auto insurance).

Does a Chase Freedom student have rental car insurance? The Freedom Student card does not offer rental car insurance. But there are other Chase cards that have this benefit, which covers theft, damage, valid loss-of-use charges imposed by the car rental company, administrative fees, and reasonable towing charges to the nearest qualified repair facility.

Does the Chase Freedom card cover car rental insurance?

Answer provided by. âYour Chase Freedom Visa card does not come with full coverage rental car insurance. However, it does offer roadside assistance and collision damage.

What are the benefits of Chase Freedom card?

The Chase Freedom Unlimited® credit card gives 1.5% cash back for every $1 spent on all purchases. You also earn 5% cash back on travel purchases made through Chase Ultimate Rewards® and 3% cash back on food purchases at restaurants, including takeout and select delivery services, and pharmacies.

How do I claim insurance on my Chase rental car?

How to make a claim for Chase car rental insurance. Immediately after the theft or damage, call the Chase benefits manager at 888-320-9961. If you are outside the United States, call collect at 804-673-1691. A representative tells you next steps, as well as where to submit your claim form.

What are the benefits of Chase Freedom card?

The Chase Freedom Unlimited® credit card gives 1.5% cash back for every $1 spent on all purchases. You also earn 5% cash back on travel purchases made through Chase Ultimate Rewards® and 3% cash back on food purchases at restaurants, including takeout and select delivery services, and pharmacies.

What does a freedom card do?

The Freedom Unlimited card is a great card. No annual fee and rewards of 5% back on travel through Chase Ultimate Rewards, 3% back on dining and drugstores, and 1.5% back on all other purchases. In addition, the rewards it earns are credited as Ultimate Rewards points.

What should I use my Chase Freedom Unlimited card for?

redeeming You can redeem the money earned on your Chase Freedom Unlimited as a statement credit or for direct deposit into most US checking and savings accounts. Alternatively, you can use your rewards on the Ultimate Rewards portal for travel, shop with them on Amazon.com or redeem them for gift cards.

Is Chase discontinuing the Freedom card?

Yes, Chase Freedom was discontinued on September 15, 2020, and is no longer available to new applicants. Current Chase Freedom cardholders don’t have to switch products, although they can upgrade to another Chase rewards credit card if they’d like.

How do I claim insurance on my Chase rental car?

How to make a claim for Chase car rental insurance. Immediately after the theft or damage, call the Chase benefits manager at 888-320-9961. If you are outside the United States, call collect at 804-673-1691. A representative tells you next steps, as well as where to submit your claim form.

Does Chase prime have rental car insurance?

Benefits overview Initiate and pay for the entire rental transaction using the covered Chase card and decline the rental company’s collision damage or loss damage waiver.

Does Chase debit card provide rental car insurance?

When you rent a car and pay for the rental with an eligible Chase credit card, your rental car will be covered thanks to your credit card collision damage waiver (CDW). The CDW will help reimburse you for damages or replacement if your rental car is involved in an accident or theft.

Does Chase Freedom car rental insurance?

The Chase Freedom Flexâ  and Chase Freedom Unlimited® both offer insurance coverage for the financial cost of damage or theft to a rental vehicle.

What are Mastercard Platinum benefits?

The World Mastercard Platinum credit card offers you special privileges, outstanding services and comprehensive insurance. These include Travel & Concierge Service, free access to airport lounges, comprehensive insurance package and bonus program. Now with half the annual fee in the first year.

What can I buy with a Platinum Mastercard? A Platinum Mastercard provides all the benefits you would get from a standard or Gold Mastercard, plus more….The standard and Gold benefits include:

• $0 fraud liability.
• Travel insurance
• Price protection.
• Extended warranty coverage.
• Rental car insurance.

Is a Platinum card the same as a Mastercard?

The Platinum Mastercard is the next level of Standard. This card includes all the benefits of a Standard Mastercard, as well as additional rewards and experiences.

Is the American Express Platinum card Visa or Mastercard?

The American Express Platinum Card® is not a Visa or Mastercard – it is in the American Express network. This means that the American Express Platinum card has a little less worldwide acceptance than Visa or Mastercard, but should still be usable at most merchants within the United States.

Which is better Platinum Visa or Mastercard?

There are no major differences between the two companies. VISA is slightly larger and has a higher transaction volume and a slightly higher level of global acceptance. However, MasterCard is accepted in more countries than VISA.

Is Platinum card A Mastercard?

The Platinum Mastercard is the definitive purchasing tool for premium cardholders seeking global acceptance, financial sophistication and exceptional travel and lifestyles.

What does it mean to have a Platinum Mastercard?

Having a platinum credit card used to mean that your credit card was more exclusive and elite than a normal credit card. Now, there are platinum credit cards offered for every level of credit, from bad to excellent, and the word “platinum†has more to do with marketing than the benefits and features of a card.

How much money do you need for a Platinum credit card?

What does your credit score need to be for the Amex Platinum card? Although a fixed score is not required, we recommend that you have a credit score of at least 720, 2 years of clean credit history, and an income of at least $50,000 per year to apply for the Amex Platinum card.

What benefits with Mastercard Platinum?

The World Mastercard Platinum credit card offers you special privileges, outstanding services and comprehensive insurance. These include Travel & Concierge Service, free access to airport lounges, a comprehensive insurance package and a bonus program. Now with half the annual fee in the first year.

Does Mercury MasterCard have rental car insurance?

WalletHub, Finance Company Yes. Mercury offers rental car insurance.

Does Mastercard offer rental car protection? Mastercard car rental insurance covers your rental vehicle against physical damage and theft. It can also pay for a reasonable loss-of-use more information button and towing costs. To get this coverage, use your Mastercard to pay for the entire rental and decline the rental company’s coverage.

Does Mercury Insurance cover rental cars in Canada?

For example, Mercury Insurance policies will generally provide the same coverage you have for your car at home when you rent a car anywhere in the United States and Canada.

Does my insurance cover a rental car out of country?

Most US auto insurers won’t cover you while you’re driving abroad, with the possible exceptions of Canada and Mexico. So unless you have a credit card that offers rental car insurance, you’ll likely have to purchase your insurance from the rental company itself.

Does my car insurance cover rental car in Canada?

Usually, your US coverage will apply to a rental car driven in Canada, regardless of whether you picked it up in the US or Canada. In fact, a rental car agency in the United States might even provide the yellow card insurance that Canadian authorities require.

Does Mercury Insurance work in Canada?

Or they could check with their auto insurance company. For example, Mercury Insurance policies will generally provide the same coverage you have for your car at home when you rent a car anywhere in the United States and Canada.

How can I tell if my credit card has car rental insurance?

How to find out if your credit card offers rental car insurance. The best way to find out about your credit card’s rental car insurance benefits is to log into your account online and look for a “Benefits” link in the menu. You can also call the number on the back of your card to inquire.

Can I use my credit card to insurance a rental car?

Most of the major credit card networks, including Visa, Mastercard and American Express, all offer some form of rental car coverage for cards in their networks.

What do I need to know when renting a car with a credit card?

A credit card usually provides some kind of insurance coverage for rental cars. This makes rental car companies happy because it means the renter is likely to have insurance for any damage that happens to the vehicle.