Slavsky

Can credit card insure a rental car?

Oh, isn’t it nice to get this little, super-shiny piece of plastic, referred to as credit card, in mail? Some people give it a very special meaning. And, indeed, it means we’ve been “evaluated” and now we “worth” something. It took us some time to get here. But being a proud owner of a credit card, permits us to get loans, buy things we are not able to pay in full, hey, our credit score goes up.

Credit cards are different. They charge different interests, offer different limits, some give you special points and discounts, some offer exclusive privileges including concierge, personal shopper, travel agent, complimentary airline tickets, elite club memberships and much more. Has your card promised you insurance coverage on the rental car? Yep, they can do that too. But, how safe is it?

Well, first of all, ask for a sample policy. Read it carefully or, better yet, give it to your car insurance agent to read and explain it to you.

Make sure it provides primary coverage (as Diners Club Card does). That means it pays first and ignores your Personal Auto coverage. Otherwise, the entire cost of the rental car damage will be charged to your credit card until you prove in writing, that your Personal Auto policy does not provide coverage.

Also make sure there are no exclusions, such as driving after even a single drink, negligent driving and so on. Check if the credit card covers damages to the rental car; damages to the car, caused by your careless driving; and loss of revenues the car agency suffers while the car is being repaired. Your Personal Auto policy covers injuries and property damages that you caused to others.

If it’s all insured - use the card and do not buy collision-damage waiver from the car rental agency.