Using Your Credit Card To Provide Rental Car Insurance

Most car rental companies require you to use a credit car to pay for the car rental. But did you know that if you use your credit card, you may not need to purchase the expensive rental car insurance?

Before you start jumping for joy at beating the system, keep in mind that some credit cards will not provide car rental insurance. If your credit car does provide for car rental insurance, it may not provide all of the coverage that you need, or provide coverage for the vehicle that you are renting. Call the 1-800 number on the back of your credit car to find out what coverage is provided.

Some luxury vehicles and SUVs are not covered. Also, some credit card companies only pay for the deductible for your personal auto insurance coverage. Also, credit card coverage will not pay for liability coverage. Some credit cards will not cover a teenage driver, or if you have other high risk factors. You need to check with your credit card company to find out what your coverage is.

Some car rental companies are now charging for Loss of Use if the rental car is involved in an accident. If you purchase the expensive insurance offered by the rental company, this is covered. If you do not purchase the insurance, you will be responsible for this cost. This appears to be a built in revenue generator for the car rental companies. If the vehicle is involved in an accident, you could be liable for hundreds of dollars in fees while the vehicle is being repaired.

Most personal auto insurance policies will not cover the Lose of Use. However, some credit card companies will cover it. This is in a state of flux right now, so you need to check with your crdit card company. Also, some car rental companies will not provide the information to the credit card companies about the loss of use, so then the card company will not provide coverage.

If you do not own a car, or if you own an older vehicle, you will need to get rental car insurance to provide you with the coverage that you need. However, the amount of coverage and types of coverage that you need may be reduced if you pay for your car rental with your credit card. Just keep in mind, you probably need additional coverage if the only coverage that you have is what is provided by your credit card.