Car rental companies often try to get you to purchase insurance bundles when you rent a car. This often isn’t worth the investment if you have credit card travel insurance. The insurance provided by your credit card usually includes both collision and damage coverage for rental vehicles. However, it does not typically extend to liability insurance.
Most cards offer excellent collision and damage coverage that will protect you as the cardholder in the event that your rental vehicle is damaged or stolen. Even if it’s not your fault, you wouldn’t have to worry about the damage done to the rental vehicle because you’re covered. The only thing to be mindful of is that most credit card car insurance does not provide liability coverage. Therefore it doesn’t cover any damages to other cars, property, or people. In general, making use of the insurance on your credit card will save you from buying insurance from the rental agency and still provide the coverage you need for any damages to the vehicle.
If you’re looking for a credit card with excellent car rental insurance, you should consider the three credit cards below. They all provide coverage on rental periods that don’t exceed 48 consecutive days and they require you use the card to pay for a portion or the full cost of the rental vehicle. Finally, you must have declined the rental agency’s collision damage waiver.
What’s great about the Scotiabank Gold American Express card is that it offers coverage up to the vehicle’s actual cash value plus loss of use charges, reasonable towing charges, and administrative charges that could result from damage or theft. This is quite extensive coverage compared to the other cards. The coverage extends to cars, sport utility vehicles, and minivans provided they seat no more than eight occupants including the driver, and they are used for private use only.
The BMO World Elite MasterCard offers coverage up to $65,000 in damages. One advantage to this MasterCard travel insurance plan is that it also offers coverage up to the actual cash value of your personal effects (up to $1,000 per insured person for a maximum of $2,000).
The insurance also provides accidental death and dismemberment benefits of up to $300,000 while occupying a rental car for one accident. In order to receive coverage, you don’t need to pay the full cost of the rental using your card although you must pay a partial cost to receive coverage. Coverage extends to cars, sports utility vehicles, and vans as long as they’re for private use, seat no more than eight occupants, don’t exceed at “¾ ton” rating, and aren’t designed for recreational use.
The American Express Gold Rewards card offers similar coverage as the Scotiabank Gold American Express card in that they both offer full coverage up to the vehicle’s actual cash value plus any valid loss of use charges resulting from damage or theft. This card covers vehicles with a manufacturer’s suggested retail price of under $85,000 in its model year. This includes cars, sport utility vehicles, and minivans, provided they have a maximum gross vehicle weight of 2,680 kg (5,966 lbs.), seat no more than eight occupants, and are for private use only.
Regardless of which credit card you have, you can maximize your benefit from the car rental insurance provided. Before renting a vehicle, make sure that the rental agency will allow you to decline the collision damage waiver without making a deposit. Also check the rental car thoroughly for any scratches, dents, or damages before taking possession of the car. This will ensure you aren’t blamed for any damages prior to you taking possession of the vehicle.
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