Wednesday, June 15, 2022

Does Chase Freedom Cover Rental Car Insurance

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Do You Have Full Coverage

Rental Car Insurance: What your credit card does and doesn’t cover

If you have full coverage, it means you have comprehensive and collision on your car insurance policy.

Collision insurance pays for damage from situations when youre driving. For example, if you hit a car or you hit an object.

On the other hand, comprehensive insurance covers damages to your car that are outside of driving situations. That could mean weather damage, fire, or theft.

Depending on the insurer, full coverage may or may not extend to cover rental cars. So its a good idea to clarify with your insurance company beforehand.

If youre not sure if the coverages extend to your rental car or you dont have full coverage, you could consider going with the rental companys loss damage waiver.

But if you have full coverage and decline, theres a catch. The rental car company could potentially charge you for loss of use if you damage the car. The fees they collect recover money they lost out on while repairing the vehicle.

Heres How Chase Credit Card Rental Car Insurance Works:

  • When it applies: Rentals of up to 31 days paid for with a Chase credit card or Chase rewards. There are a few vehicle exclusions .
  • Additional requirement: You must decline any insurance that the rental car company offers you.
  • Coverage value: If your rental car is damaged or stolen, Chase may reimburse you for as much as the vehicles cash value.
  • Non-covered situations: Intoxication, driving off road, and traveling to a warzone, among others.
  • How to file a claim: Call Chase at , tell them what happened and ask for a claim form within 60 days. Within 100 days of the incident, return the completed claim form along with any proof that Chase requests .
  • Reimbursement: Chase will evaluate your claim. If its approved, Chase will send you a check within approximately 15 days of reaching their decision.
  • So, rest assured, all Chase cards have rental car insurance. But still make sure to read the cards benefits guide to know whats included and whats not.

    How Do You File A Claim

    Your credit card issuer will be able to tell you what documents to submit. If in doubt, document it. More information will be better than less in the event of an incident that results in a claim. In general, keep copies of your rental agreement photos of the damage a police report, if applicable and repair estimates. There will inevitably be a lot of paperwork, but that paperwork could mean the different between you paying hundreds or thousands of dollars out-of-pocket vs. taking advantage of this credit card benefit.

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    Do All Credit Cards Have Car Rental Insurance

    Not all credit cards have car rental insurance. In fact, most Citi cards and Discover cards do not include car rental insurance on their list of benefits. Renting a car with a credit card that offers primary car rental insurance can save you hundreds of dollars by allowing you to decline the car rental agency’s collision damage waiver offer.

    How To Qualify For Your Cards Rental Car Insurance

    Does Chase Freedom Cover Rental Car Insurance?

    To be eligible for the auto rental CDW perk, youll need to book and pay for your rental car using your Sapphire card. Additionally, whatever name is on your card should be the same name listed as the primary renter of the car.

    Also, note that you can qualify for Chase Sapphire auto rental coverage if you pay for your rental car with your rewards points. Chase mentions this in its Guide to Benefits for both cards:

    You are covered when your name is embossed on an eligible card issued in the United States, and you use your credit card account and/or rewards programs associated with your account to initiate and complete your entire car rental transaction.

    If the rental company offers you a collision damage waiver, you should turn it down. If you accept the rental companys waiver, you arent eligible for the Sapphire card benefit. In other words, accepting the rental companys coverage equates to paying an extra fee for coverage you already have.

    Chase Sapphire car rental insurance covers most car rentals, but there are a few exclusions to keep in mind. For example, you wont be covered for the following with either Chase credit card:

    • Luxury cars from brands including Maserati, Rolls Royce and Aston Martin
    • Vans designed for more than nine passengers
    • Rental periods greater than 31 days

    To ensure you can take advantage of your car rental insurance, make sure your reservation doesnt include any of these exclusions.

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    When And Where Are You Covered

    You’re covered from the time you take possession of the vehicle from the rental company until you return it back to the rental company for periods of 31 days or less.

    The benefit is available in the United States and most foreign countries. Coverage is not available where it is prohibited by law or by individual merchants, or is in violation of the territory terms of the rental agreement check with the benefits administrator and the rental company in your chosen destination before traveling to ensure the Auto Rental CDW applies. Based on our experience, we haven’t had problems in any country, including South Africa, New Zealand, United Arab Emirates and Italy.

    NOTE: We HIGHLY recommend you contact the benefits administrator and request that they send you a proof of coverage form. They will email you a document that states the coverage, your name, your address and last four of your credit card. When renting from any agency, if you receive pushback about coverage, use this document to show proof of coverage.

    Which Credit Cards Offer Rental Car Coverage

    Most credit cards offer some type of rental car coverage. Visa, Mastercard, American Express, and Discover all provide some type of rental car coverage, although specific options vary between cards.

    Rental car coverage varies between cards, but it also varies between banks. One bank might offer additional rental car insurance perks on credit cards, for example, while another bank offers no such perks.

    For all of these reasons, its crucial to understand your rental car insurance coverage. Check your credit card paperwork or contact your bank to verify coverage. Theres a big difference between secondary coverage and primary coverage for rental cars. Plus, some cardholders have significant rental car insurance perks they did not know about.

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    Who Is Covered By The Policy

    You as the cardholder of the Ink card will be covered as the primary renter of the vehicle and any additional drivers permitted to operate it under the terms of the rental agreement are also covered. Basically, if their names are on the contract as additional drivers then they will be covered as well.

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    To take advantage of rental car insurance from your credit card, decline the collision damage waiver from your rental car company. If you damage your rental car, you need to submit a claim to your credit card company if you have primary coverage, or submit a claim to your auto insurance, then a claim for any left over expenses to your credit card company.

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    What Type Of Coverage Do Rental Car Companies Provide

    Typically, rental car companies provide four types of car insurance that they offer to you before you rent a vehicle. They include the following:

    Supplemental Liability Insurance: This increases your liability up to $1 million. Can cost anywhere between $7-$15 per day.

    Collision Damage Waiver or Loss Damage Waiver : Waives your burden for theft or damages. The cost can range from $9-$19 per day.

    Personal Accident Insurance : This coverage provides medical and accidental death benefits should you or your passengers become injured or killed as a result of an accident. Coverage can cost $1-$7 per day.

    Personal Effects Coverage: Receive compensation for any personal property that is stolen from your rental vehicle. Can cost anywhere between $1-$5 per day.

    If youre someone who drives regularly and owns a car, then its possible you already carry an auto insurance policy with some sort of protection when you drive a rental car, therefore you can decline most rental insurance offered to you.

    However, its always a good idea to brush up on your auto insurance policy to see whats covered and whats not, so you know where your gaps in coverage are. If youre unsure of whats in your auto policy, contact one of our agents at TGS insurance! Our team will be happy to help you better understand your policy, offer solutions to any gaps, and best of all, save you a ton of money!

    Rental Car Insurance Using A Credit Card In Costa Rica

    For us there are a number of advantages to using our card coverage instead of buying CDW or other policies from the rental car agency

  • It is free and saves us between $18 and $44 per day compared to various coverage options sold by the car rental agencies .
  • It covers at least as much and usually much more than any options sold through the rent-a-car company. In our case it includes 100% accidental damage, 100% collision, 100% theft and 100% vandalism coverage with a zero deductible.
  • It is though a U.S. company who deals with any Costa Rican red tape for us in case of an accident or other claim. We just hand over the accident report and the credit card company does the rest.
  • The one time we had to make a claim it took a single five minute phone call, cost us $0.00 and was taken care of in a few days.
  • We cant guarantee that it will be the same for everyone because coverage depends on your card agreement and the rental agreement including all the fine print therein. We can tell you it is worth checking into.

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    What Credit Cards Give Rental Car Insurance

    Many credit cards offer car rental insurance, including cards from Capital One and Chase. It’s always important to verify that your specific credit card offers the coverage and to check exactly what is and isn’t covered before you forgo coverage from the car rental company. Examples of cards with car rental coverage include: the American Express® Gold Card, the Chase Sapphire Reserve® and the Chase Sapphire Preferred® Card.

    How Does Credit Card Car Rental Insurance Work

    Does My Chase Credit Card Cover Car Rental Insurance

    First and foremost, when renting a car, you must pay for your rental with the specific credit card that offers car rental protection. And, if there are multiple drivers on the rental contract, the primary renter must be the card holder. Additionally, for the credit card coverage to take effect in the unfortunate case that an accident occurs, you must decline the Collision Damage Waiver sometimes called Loss Damage Waiver in your rental agreement. You might find that some car rental companies automatically include this extra insurance and cost into your agreement, so youll want to double-check your paperwork.

    Once you rent the car, youll then be covered if your rented car incurs theft or damage from a collision. This coverage will protect you from the financial responsibility of covering the cost. However, the included policy will not protect you from the cost of damage or injuries to another car if youre found at fault. Typically, your personal car rental insurance will cover you in these situations or you can purchase separate policies from the car rental company.

    Youll also notice that there are two different types of credit card car rental coverage: primary and secondary. Primary coverage means that if theres a covered accident, the claim will go directly through the credit card company, allowing you to avoid the hassle of involving your own auto insurance policy. This will not only save you time but will also avoid any premiums to your own policy.

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    Some Credit Cards Offer Primary Coverage

    Most credit cards offer secondary coverage for rental vehicles. That means your personal auto insurance policy is the primary coverage, and any claim would go through your insurance company first.

    However, some credit cards now offer primary coverage. Cards with higher limits and income requirements, for example, come with perks like primary coverage.

    Primary rental car coverage is a big deal. If your rental vehicle is damaged or stolen, then you dont have to involve your own insurance company. You dont have to pay your insurer a deductible, nor do you have to worry about higher rates in the future. Instead, the claim is handled entirely by your credit card company.

    How To File A Claim With Chase

    If you get into an accident or your rental car is stolen, you should immediately contact a Chase benefit administrator to report damage or theft. You must notify the benefit administrator within 60 days but it is better to do so immediately after any incident.

    You can contact Chase at 1-888-320-9961.

    Chase will send you a claim form when you report your loss. You must submit a completed claim form within 100 days of the damage or theft. You then have 365 days from the incident to submit all required supporting documentation.

    Required documentation may include:

    • a copy of the rental agreement
    • a receipt or credit card statement showing you used your Chase Sapphire card
    • before and after photos of the vehicle
    • an accident or police report
    • an estimation of repair costs
    • any documentation provided by the rental company before and after the incident

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    Which Credit Card Has The Best Car Rental Coverage If I Don’t Have Auto Insurance

    If you dont have auto insurance, you may need to have more than rental car coverage provided by any credit card. The reason: Rental car insurance covers the car, not you. In other words, youll be on the hook for any damage done to any other car, property, or more importantly for any medical expenses resulting from an accident. If you dont have auto insurance, make sure to purchase liability insurance from your rental car provider.

    That said, the distinction between primary and secondary car rental insurance coverage doesnt matter if you dont have a personal auto policy.

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    When you go to pick up your rental car, youll need to decide on whether or not you want to pay for the rental companys collision damage waiver . The waiver takes the responsibility off your hands if any damages may incur while in your possession. If your credit card provides free CDW protection as a part of its rewards, you can save some money and avoid having to pay for the protection you already have.

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    There Are Some Things That No Policy Covers

    Driving on the beach or through rivers, drunk driving or driving while committing a crime are a few examples of things that will void all insurance coverage including credit card. See the fine print on the policy for details

    Fording the Río Agujitas about three km from where the road south of Drake dead ends into Playa San Josecito. The suspension bridge is part of the coast trail that is the only way to get around the region on land in the rainy season.

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    Final Word On Credit Cards And Rental Car Insurance

    Many people decline car insurance for their rental car because it duplicates coverage they already have. Typically, your personal auto insurance policy provides the primary layer of protection for any rental car, while your credit card provides secondary insurance.

    If you pay for your rental car using your credit card, and if you already have a personal insurance policy, then you should not need to purchase the rental car companys coverage. You should be covered if the vehicle is damaged or stolen.

    Review your personal auto insurance policy and your credit card coverage to verify you are covered when renting a vehicle.

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    How To Activate Your Credit Cards Rental Car Loss Damage Waiver Coverage

    When your credit card includes Loss Damage Waiver coverage, there are several things that you need to do to activate it. First, you must pay for your rental with your eligible credit card. And while you can use coupons or other discounts to reduce the cost of your rental, the coverage typically wont apply if you redeem reward points or miles for a free rental, even if you use your credit card to pay the taxes and fees on the rental. However, there are some credit card reward programs that will continue to offer you Loss Damage Waiver coverage when you redeem its points for car rentals.

    You also have to decline the optional coverage offered by the car rental company. You may find that the easiest way to avoid their hard selling techniques is simply to use the word decline, rather than any other response such as I dont need it or no thank you.

    You must also rent the car from an eligible location. Several credit card Loss Damage Waiver policies dont apply to rentals in some countries. For example, Visas coverage does not apply to rentals from such as Israel, Jamaica, and Ireland. There are also restrictions on the types of vehicles covered. Typically excluded are exotic and expensive cars, antiques, large trucks and vans, and cars rented from car-sharing services.

    The Bottom Line On Chase Freedom Unlimited’s Rental Car Insurance

    Chase Credit Card Rental Car Insurance

    Now that you know whats covered under the Chase Freedom Unlimiteds rental car insurance, you can find the perfect vehicle for you. Make sure you choose a car thats covered on the card. Skip the fancy or extra-large vehicles and pick a car that the Chase Freedom Unlimited Card will cover or else be prepared to pay extra for the rental companys pricey insurance. Take advantage of the through the Chase Freedom Unlimited. You have more benefits than you think you just have to use them.

    To get the most of your travel earnings and redemptions, you may also want to consider pairing your Freedom Unlimited with a Chase Sapphire travel rewards card. The Sapphire Preferred offers 25% more value for your points when you redeem them for travel through Chase, while the Sapphire Reserve offers 50% more value for your points for travel redemptions through Chase Ultimate Rewards. When you transfer your Freedom Unlimited points to one of the Sapphire cards, you can make them stretch even further toward the cost of future trips.

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