Most credit cards have their own little perks. And most card holders don’t bother to take advantage of them. One perk that many credit cards have is auto insurance coverage when you rent a car with the credit card. This little perk can provide you with great peace of mind while also saving you $10 to $20 per day in additional car rental costs.
Not all credit cards offer auto rental insurance, but it is a fairly common credit card benefit. Therefore, before renting a vehicle, find out whether or not the card offers this perk. If you have several credit cards, be sure to use one of the cards that offers car rental insurance.
This benefit is often referred to as a Collision Damage Waiver or a Loss Damage Waiver. In either case, it generally will cover the expense of replacing the rental if it is damaged or covering the cost of damage that may occur.
In order to get this coverage through your credit card, all you need to do is turn down the coverage when it offered by the rental company. When you turn down this option, the coverage from your credit card will automatically kick in.
Other types of insurance coverage that will likely be offered to you by the auto rental company include Personal Accident Insurance, Supplemental Liability Protection, and Personal Effects Coverage. While these forms of coverage won’t be offered through your credit card, your home, auto, life, or health insurance policies most likely have these areas covered as well.
Similarly, your automobile coverage may offer Collision Damage Waiver coverage as well. Therefore, it is worth your effort to check with both your credit card company and with your auto insurance company to make sure you are fully aware of the coverage each has to offer. It is a good idea to get your policies in writing beforehand so you can be certain you are covered.
You also need to make sure you are clear on any exclusions the policy may have. For example, you likely won’t be covered if the damage is caused because of off-road driving. In addition, some types of vehicles aren’t covered by credit card policies – particularly those that are more expensive to rent, such as some vans, motorcycles, and mopeds.
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