Many people rent cars from car rental agencies each year for various reasons, including lack of transportation and not wanting to use their own vehicle for long trips. One of the most important parts of the process is determining the best way to protect yourself financially while in possession of the car. Many people have questions about the best way to protect themselves in this situation and one of the most frequently asked questions is whether the rental car insurance available through credit cards is adequate protection against damage or theft of the rental car.
Compare Insurance Features
The availability of rental car insurance through their credit card cause some people to decline the rental car insurance offered by the rental company because they believe that the insurance offered by their credit card will be sufficient to handle any issue that may arise. However, whether the coverage is adequate or not depends on the specific features of the insurance available through the credit card company. Before making the decision to decline the rental company’s insurance plan, be sure to review the information about rental car insurance policies available from the credit card company first and compare the features of both types of insurance before signing the rental contract.
Review What Is Actually Covered
A number of credit card companies state that if you rent a car using their credit card, they will provide insurance coverage for you for as long as you have the car. For many people, this appears to be adequate protection for theft and damage when renting a car and is an attractive option because it doesn’t cost any additional money up front. Issues occur when they fail to read all of the information in their credit card disclosures and assume that something is covered by the insurance that actually is not. Although many credit card companies offer rental car insurance, the actual items covered may vary from company to company, so be sure to check what is actually covered before making your decision.
Read All Of The Terms And Conditions
Knowing what is in the terms and conditions for the rental car insurance can save you time, energy, and frustration in the event that you have to make an insurance claim. Some credit card companies offer full coverage insurance for the rental car, but will only pay the claim if the car is rented from a specific car rental company. Some other companies offer limited coverage for certain types or classes of vehicles and if prohibited types or classes of vehicles are rented, the coverage will not be valid.
Another term you should look for is whether the credit card companies limits their liability to the amount of the deductible of your personal car insurance policy, meaning that the credit card company will not pay more than this amount to have the car repaired or replaced, leaving you responsible for any additional costs. Although the credit card rental car insurance may help when an issue arises, a person that depends on this insurance may find themselves in a difficult position if the insurance does not cover everything that the person assumes it does.