Wednesday, June 15, 2022

Does Visa Cover Rental Car Insurance

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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!

How Does Coverage Vary For International Rentals

Rentals in some countries may be excluded. For example, standard Visa and Mastercard coverage excludes rentals in Israel, Jamaica and Ireland. American Express wont cover in Italy, Australia and New Zealand. Aside from excluded countries, the good news is that if your personal auto policy doesnt cover you outside the United States, your secondary credit card coverage could become primary coverage automatically.

» MORE:Declining rental car insurance abroad? Know the risks

Visa Credit Card Rental Car Insurance

If you have a Visa credit card, youre in luck! All Visa Standard Credit, Rewards Credit, Signature®, Signature Preferred®, Premium Rewards cards offer secondary rental car insurance. This means that it comes into effect after your personal insurance coverage. If youre renting overseas, your Visa coverage will act as your primary coverage. In order to use Visas rental car insurance, youll need to waive the rental companys insurance and use your Visa card for the rental.

Visa covers up to 15 consecutive days of an auto rental in the U.S. and 31 consecutive days outside of the U.S. Visa does not cover rentals in Israel, Jamaica, Republic of Ireland or Northern Ireland. Most passenger cars, minivans and sports utility vehicles are covered but trucks, some luxury cars and certain vans are not. Any vehicles valued above $50,000 arent covered.

Without personal auto insurance, Visas auto rental collision damage waiver can help reimburse you for the covered theft and damage to the rental car. Any valid administrative, loss-of-use and reasonable towing charges related to damage can be covered, too. If you do have personal auto insurance, Visas rental car coverage will pay for the deductible portion of your insurance, plus the above administrative and towing costs.

Collision Damage Insurance Vs Liability Insurance

So if you have a and a collision damage waiver youre good to go, right? Well, not entirely.

Your collision damage waiver is only going to cover any damage caused to your own vehicle. It will not cover any damage caused to other vehicles, property, or injuries to you and anyone else involved in the accident.

If you have a personal car insurance policy, it is likely that it will cover these items, but make sure to review the details of your policy first. If you dont have personal car insurance and want to make sure these exclusions are covered then you could always purchase a supplemental liability insurance policy.

Pc Financial World Elite Mastercard

Do Visa Signature Cards Cover Car Rental Insurance Abroad ...

The popular PC Financial World Elite card is one of the best credit cards for earning cash back if you shop at Superstore and Shoppers Drug Mart.

Car Rental Insurance

They offer car rental insurance that covers damage and theft for up to a period of 31 consecutive days. As expected, you must decline the car rentals CDW/LDW, rent the car in your name, and pay the entire cost of the rental using the card.

The maximum car value covered is up to $65,000, and you must report a claim to the insurer, American Bankers Insurance Company of Florida within 48 hours of a loss or damage.

A minimum personal income of $80,000 per year is required to apply for this card.

Other Benefits of this Card

  • No annual fee


What Do I Do If I Have An Accident Or The Rental Vehicle Is Stolen

Immediately call the Benefit Administrator at 1-800-348-8472 to report the theft or damage regardless of whether your liability has been established. If you are outside the United States, call collect at one of our

The Benefit Administrator will answer any questions you or the auto rental company may have and will send you a claim form.

Is Discover Rental Car Insurance Primary Or Secondary

The only Discover card that offers primary rental car insurance is the Escape card; all other Discover cards provide secondary auto rental insurance only. Secondary insurance means that any accidents will have to be reported to your personally-owned vehicle’s insurance company at home, thereby affecting your premium, while primary car rental insurance would not affect your domestic car insurance rates at all.

What Are The Pros And Cons Of Credit Card Rental Car Insurance

The main pro of credit card rental insurance is that its free if you have the right credit card.  If you already have auto insurance that covers liability, having credit card coverage saves you money because you wont have to purchase the rental companys collision insurance and offers convenience if something happens to the rental car.


The con is that rental car insurance covers the car, not you.  You are still responsible 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.

Scotiabank Passport Visa Infinite

  • Rental Car Coverage: Covered up to the vehicles actual cash value plus any valid loss of use charges, towing charges, and administrative charges resulting from damage or theft
  • Coverage amount: Rental car with an MSRP of up to $65,000
  • Coverage period: Up to 48 consecutive days
  • Conditions: You must use your card to pay the full cost of the rental vehicle and decline the rental agencys damage waiver
  • Annual fee: $139
  • No foreign transaction fees
  • Earn 2 Scotia Rewards points on every $1 spent on eligible grocery stores, dining, entertainment purchases, and transit purchases
  • Earn 1 point per dollar on all other eligible purchases
  • Welcome offer: Get 30,000 bonus points with your first $1,000 in everyday purchases in the first 3 months
  • Includes Priority Pass airport lounge membership with 6 free visits per year

The Scotiabank Passport Visa Infinite offers the same rental car insurance policy and coverage terms as the aforementioned Scotiabank Gold American Express Card for vehicles with an MSRP of $65,000. This cards rental insurance policy extends to almost all car types from four seater sedans to minivans and covers up to the vehicles actual cash value plus loss of use charges, reasonable towing charges, and administrative charges that could result from damage or theft. Its also worth highlighting that the Scotiabank Passport Visa Infinite offers 25% off the base rate on rental car bookings at eligible AVIS locations and charges no foreign transaction fees .

Rbc Royal Bank Visa* Gold Auto Rental Collision/loss Damage Insurance Certificate Of Insurance

Please read this certificate carefully. It outlines what Collision/Loss Damage Insurance is and what is covered along with the conditions under which a payment will be made when You rent and operate a rental vehicle but do not accept the Collision Damage Waiver or its equivalent offered by a Rental Agency. It also provides instructions on how to make a claim. This certificate should be kept in a safe place and carried with You when You travel.

This certificate is not a contract of insurance. It contains only a summary of the principal provisions of the Policy.

All benefits are subject in every respect to the Policy which alone constitutes the Agreement under which payments are made.

This coverage may be cancelled, changed or modified at the option of the card issuer at any time without notice.

Do You Have Full Coverage

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 .

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.

Rental Car Insurance Basics

Lets start by taking a general look at car insurance. If you already have personal auto insurance, youll want to check how that covers you when you rent a car. While collisions and theft are usually covered, that often only reaches to a certain extent. Usually auto insurance wont cover fees from the rental company, which can amount to hundreds of dollars.

When your personal auto insurance wont cover your rental car completely, your credit card can provide the answer. When credit cards provide rental car insurance, it will come in the form of either primary or secondary coverage. Primary coverage kicks in in the event of collision or theft of your rental car, even before you need to file a claim with your personal car insurance. Primary coverage will fully cover the damages.

Secondary coverage, on the other hand, tends to cover much less in damage and administrative costs. This is largely due to secondary coverage kicking in after youve already filed a claim with your own personal car insurance company. However, if you dont have your own personal car insurance, a credit cards secondary coverage becomes your primary coverage. This can also be the case if you rent a car in a foreign country not covered by your insurance. No matter which credit card you have, youll always want to double check how much coverage you have before you use it to rent a car.

Below You Will Find Answers To The Some Of The Most Commonly Asked Questions About The Benefit

Ask your credit card company about rental car insurance

Q: Who is covered under the program?

A: Covered Visa Infinite Cardholders and their dependents are covered when their tickets are purchased with your covered Visa Infinite card.

Q: How does the benefit work?

A: The Plan Administrator will pay Accidental Death & Dismemberment benefits if you are injured while riding as a fare-paying passenger in, or getting on or off of, a flight or other common carrier for which a ticket was purchased using your eligible Visa card.

Q: How does the Travel Accident Protection work if I have other coverage?

A: This benefit is paid to you regardless of other coverage you may have.

Trip Cancellation/Trip Interruption

When you purchase your travel ticket with your Visa Infinite card and you must cancel or interrupt your trip, this benefit can help reimburse you for the nonrefundable cost of your passenger fare. Available to all Visa Infinite cardholders. It may also be available on other card products, call your issuer to see if you have this benefit.

Best Personal Amex Credit Cards For Car Rental Insurance Coverage

Most American Express credit cards come with complimentary secondary CDW coverage and allow you to purchase optional Premium Car Rental Protection.

This means that American Express credit cards are basically created equal when it comes to CDW coverage.

As a result, it makes sense to use an American Express card that delivers premium travel benefits and earns flexible points or hotel rewards when renting a vehicle. Heres what we suggest:

  • Terms Apply. For rates and fees of the Amex Platinum card, click

UP’s Bonus Valuation*:$2,200Must Reads: For more info on the Amex Platinum, see our thoughts on the cards incredible benefits and perks, which includes travel insurance coverage, car rental insurance and so much more. Check out our full review to see why it’s one of the best travel credit cards.

For luxury travel benefits, its difficult to beat the Amex Platinum card.

Plus, youll receive special benefits, discounts, and elite status with , , and National Car Rental.

Airline tickets and hotels earn 5 valuable Membership Rewards Points per dollar spent, and points can be transferred to travel partners.

Use the complimentary secondary CDW that comes with the card, or opt for Premium Car Rental Protection for primary coverage.

Hot Tip: Dont miss our dedicated article for more information on the car rental and insurance benefits of the Amex Platinum card. 

When you book your car rental with the Hilton Honors Aspire Card, youll be earning 7 Hilton Honors Points per dollar spent.

Car Rental Collision Damage Waiver

The Car Rental Collision Damage Waiver or Loss Damage Waiver is coverage that reimburses you for damage to your rental car or theft of the car while the vehicle is in your custody.

It can also cover loss of use of the rental car, which car rental agencies can charge you if the vehicle is damaged or stolen.

Car rental companies require you to purchase CDW/LDW coverage before you take possession of the rental car, unless you have the coverage elsewhere.

Several credit cards provide CDW coverage at no extra charge, and if you have this coverage you can decline the expensive car rental company option.

When Should You Opt For Rental Car Insurance

Sometimes its worth it to buy rental car insurance. This depends on if you:

  • Dont have insurance because you dont own a car
  • Have insurance that comes with low coverage limits
  • Want peace of mind and dont mind the additional cost
  • Its up to you to do your research before renting a car.

    Knowing how much your auto policy covers for a rental car will prevent you from signing on for coverage from the rental car company that you dont need. Itll save you money from paying for the same coverage twice.

    Looking for car insurance? The Cover app compares rates from over 30 different providers to find you a competitive rate.

    will get you an auto quote in as little as five minutes. All you have to do is answer a few short questions.

    Td Cash Back Visa Infinite

    • Rental Car Coverage: Covers up to the vehicles actual cash value plus any valid loss of use charges resulting from damage or theft
    • Coverage amount: Rental car with an MSRP of up to $65,000
    • Coverage period: Up to 48 consecutive days
    • Conditions: You must use your card to pay the full cost of the rental vehicle and decline the rental agencys damage waiver

    Card details

    • Annual fee: $120
    • Earn 6% Cash Back on all Purchases for the first 3 months up to a total spend of $2,000. Plus, first year no Annual Fee for the Primary and Additional Cardholders. Conditions apply. Must apply by December 5, 2021
    • Earn 3% cash back on gas, groceries and recurring bills
    • Earn 1% cash back on all other purchases
    • Complimentary roadside assistance and travel insurance benefits
    • This offer is not available for residents of Quebec. For Quebec residents, please click .
    • Terms and conditions apply.

    Along with offering 48 days of collision damage and loss insurance, the TD Cash Back Visa Infinite stands out for its strong earn rate of 3% cash back on gas. So, not only will you save on rental car insurance but at the pump too. Plus, you can knock an additional 5% to 10% off the base price when reserving a car from eligible Avis and Budget agency locations.

    Primary Vs Secondary Coverage

    While many credit cards offer CDW coverage, there can be a significant difference in how the coverage functions.

    • Secondary CDW Coverage: If your credit card offers secondary CDW coverage, you will need to first file a claim with any other available insurance before the secondary coverage kicks in.
    • Primary CDW Coverage: Provides coverage without the need to file a claim with other insurance. If an incident happens, the primary coverage applies.

    Hot Tip: Note that coverage on the same credit card can be secondary in certain countries and circumstances while primary in others. Check with your cards benefits administrator for specific questions.

    When And How Do I Submit A Claim If An Accident Or Theft Occurs

    You must report to Discover as soon as possible immediately following an accident and all required documentation must be submitted within 90 days following the incident.

    If you opt to  decline CDW coverage offered by the rental company and use your credit card insurance instead, you will be responsible for collecting and sending in the required paperwork for submitting a claim to Discover in the event of an accident or theft. The required documents will include:

    • Copy of your account statement showing the full amount paid for the rental
    • Copy of your rental agreement/contract
    • Police/accident report

    Debit Or Credit Card: Which To Use For Car Rentals


    Theres not a whole lot of difference between and debit cards when it comes to paying for services. But benefits rewards points, for example, and secondary or primary car rental insurance  definitely favor credit cards all the way.

    If you ever rented a car and had to pay the extra fee for collision damage coverage, then you understand how valuable this benefit is. Car rental companies charge an average rate of $27 per day for this additional coverage. Using a credit card especially the right credit card can eliminate this charge completely.

    Do I Have To Do Anything Else

    Visa Business Credit Card

    Usually there is nothing else you need to do. Typically, claims will be finalized within fifteen days after the Auto Rental CDW Benefit Administrator has received all documentation necessary to fully substantiate your claim.

    After the Benefit Administrator has paid your claim, all your rights and remedies against any party in respect of this theft or damage will be transferred to the Benefit Administrator to the extent of the cost of payment made to you. You must give the Benefit Administrator all assistance as may reasonably be required to secure all rights and remedies.

    * Not applicable to residents of certain states.

    You must make every effort that would be made by a reasonable and prudent person to protect the rental vehicle from theft or damage. This provision will not be unreasonably applied to avoid claims.

    If you make any claim knowing it to be false or fraudulent in any respect including, but not limited to, the cost of repair services, no coverage shall exist for such claim and your benefits may be canceled. Each cardholder agrees that representations regarding claims will be accurate and complete. Any and all relevant provisions shall be void in any case of fraud, intentional concealment, or misrepresentation of material fact.

    How Rental Car Insurance On Credit Cards Works

    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.

    How Do I Make Sure My Auto Rental Cdw Benefit Is In Effect

    To be sure you are covered, take the following steps when you rent a vehicle:

  • Initiate and complete the entire rental transaction with your eligible Visa card.
  • Decline the auto rental companyâs collision damage waiver option or similar provision.
  • Helpful tips:

    • Be sure to check the rental vehicle for prior damage before leaving the rental lot.
    • Review the auto rental agreement carefully to make sure you are declining CDW/LDW and are familiar with the terms and conditions of the auto rental agreement.

    What Do I Need To Do To Use Discover Card Car Rental Insurance The Next Time I Rent

    In order to put your Discover card car rental insurance to use, you are required to decline any other CDW coverages offered for your rental, pay for your rental in full with your valid Discover credit card, and rent the car under the same name printed on said card. Your car rental insurance with Discover will cover additional drivers, but only so long as they are officially authorized with the car rental company at the desk when you pick up your vehicle.

    Always have Discover provide you with official documentation to bring with you when you pick up your rental stating that you are properly covered and can decline the rental company’s own CDW coverage.

    Does Your Current Auto Insurance Policy Cover Rental Cars

    If you already have auto insurance, consult your policy or check with your insurer about coverage and ask the following questions:

    • Does this policy cover rental cars?
    • What and whom does your policy cover? Can anyone else operate the vehicle? Does the coverage extend past collision damage to liability, personal property, theft, etc.?
    • Is the coverage adequate for the type of vehicle you plan to rent?
    • Does your current policy act as the primary insurance for the rental?
    • Most insurance policies have a deductible, an amount you must pay before coverage kicks in. Whats your policys deductible, and is it the same for rental cars?

    Best Personal Chase Credit Cards For Car Rental Insurance Coverage

    Chase excels in offering car rental coverage by providing worldwide primary CDW coverage complimentary with its credit cards.

    UP’s Bonus Valuation*:$2,000Must Reads: For more info on the Chase Sapphire Preferred, see our thoughts on its and travel insurance coverage, which includes primary car rental insurance. Take a look at our full review to see why it’s one of our favorite cards.

    One of the best overall credit cards for car rental coverage is the Chase Sapphire Preferred.

    Not only will you be earning 2 Ultimate Rewards Points per dollar spent on your car rental , but youll have peace of mind knowing you have primary CDW coverage worldwide.

    Whats Covered

    The Chase Sapphire Preferred and any Chase credit cards offering CDW coverage come with primary coverage. This means you wont have to worry about filing a claim with your auto insurance company if something should happen to the rental vehicle.

    You can expect the following coverage worldwide with your Chase credit card:

    • Reimbursement for damage or theft of the rental car up to the actual cash value of the vehicle
    • Valid loss of use charges assessed by the rental car company
    • Reasonable towing charges
    • Rentals are covered for 31 days or less

    Whos Covered

    • Primary cardholders and authorized users
    • Additional drivers listed on the rental agreement

    Whats Excluded

    If you choose to charge the car rental to your Chase Sapphire Reserve, youll earn 3 Ultimate Rewards Points per dollar spent.

    When Theres A Damage Claim

    Im sure its happened but I have never heard of anyone having any problems with credit card coverage.

    It makes sense.  The credit card company wants their customers to be happy.  They spend billions of dollars a year acquiring and retaining customers and theyre not going to let some car rental agency mess up that relationship or their reputation for taking care of their customers.  The credit card is also negotiating from a position of power.  If they feel the repair bill is not fair they simply dont pay until the rental agency proves its legit.

    On the other hand we hear complaints on a regular basis about claims when the vehicle is covered by the rent-a-car agencys insurance.  Some of the most common are below.

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