Credit Card Rental Car Insurance

Credit Card Rental Car Insurance.
Have you thought about buying rental car insurance? Here’s where the confusion can set in.
Credit Card Rental Car Insurance
You don’t want to overpay but you don’t want to be under insured, and you think you might be covered by your credit card but you’re not sure for white exactly.
It can get complicated but it doesn’t have to be. Here’s everything you need to know about credit card rental car insurance in about three minutes.
First, what does it cover? Credit cards provide the same insurance you get from a collision damage waiver or loss damage waiver, which rental agencies sell as CDW or LDW.
That means you’ll be covered for any damage to the rental car itself, including if it’s lost or stolen.
Get a fender bender? Suddenly find your parking spot empty because someone broke into your car? In either of those cases, you’d be covered for the cost of the rental car by your card.
The kicker! You won’t need to buy CDW or LDW from the rental agency. This could save you about $20 per day.
That’s a lot of cash back in your pocket. The fine print. Credit card rental automobile insurance, a bit like any policy, has its justifiable share of fine print terms and legalese to decode.
Here are a number of the foremost important things to understand. Check if your card actually comes with coverage in the first place because not all do.
For cards that do come with coverage, terms are mostly the same: you’ll be covered for rental cars that have an MSRP of $65,000 for a maximum period of 48 days. F
or your insurance to kick in, you need to pay for the full price of the rental using your credit card and reject deny or just say no to the CDW LDW with the rental agency.
Yes, coverage typically applies around the world, meaning any country in any city you’re in. But it might not always be the case, like if you’re traveling somewhere that has a travel warning.
One more thing: there are some ways you could void your car’s insurance. For example, if you’re renting a massive vehicle with more than eight seats or using the rental to haul office supplies for your small business, coverage won’t apply.
Generally though, if you’re renting a sedan or minivan just to get around for a road trip, you’ll be covered through your card. To be extra safe, consider calling up your credit card company before booking your rental.
So, we now know the credit cards provide collision damage and loss coverage for the rental car itself.
Now it’s time to talk about what it doesn’t cover. It won’t provide third-party insurance. So, your credit card won’t cover you for damage caused to anyone else’s property, like someone else’s car.
It won’t cover personal injury coverage, including any health care costs due to an accident, like physiotherapy.
Finally, it won’t provide personal effects coverage. Personal effects is just a fancy word for valuables.
So, if your rental car is stolen in your expensive laptop along with it, you won’t get any money back for your laptop. There’s some good news though.
If you own a car and already have an auto insurance policy, you’re probably covered for all the above and won’t need o pay out of pocket.
But if you do not, and you’re just counting on your MasterCard, you will only be covered for the value of the rental car, and you will get to purchase liability and personal injury insurance.
Personal effects insurance is covered under your home insurance or with a handful of cards like the BMO World Elite MasterCard.


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