Not many are aware of the rental car coverage which is offered with a credit card. If you take a look into the details of your credit card application form, you will learn about the type of protection you get for car rentals. This coverage can be valuable if you use car rentals often on holidays or for business purposes. It is important to contact insurance agents and the credit card company and get much information as possible before you sign a contract for car rental insurance.

Your insurance comes first
What you are offered with your credit card is not actual insurance. The rental car company will have insurance on the car. What you get is a waiver that the rental company will not come to you in case of damage to the car. It provides a duplicate coverage of what you already have, which is one of the reasons you can decline the protection. Your own insurance policy will apply here, and the rental coverage benefit is a secondary coverage that will be applicable only after the personal auto insurance pays out. However, there are some cards which offer primary coverage for rental cars.

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Look for information

Most credit card companies offer rental coverage for the cards on their network. The coverage varies according to the bank that issues it. Even the same issuer can have different coverage for different cardholders. You need to understand the coverage for car rental offered on your credit card by contacting the credit card company. You can also speak to the insurance agents and understand the terms and conditions of the card. Consumers should be aware of what their credit card is covering and whether it transfers to a rental vehicle or not. It only takes a few minutes, but it will help you make the right decision when you apply for a credit card.

Choose primary coverage

If you intend to buy any rental coverage benefits, ensure that you choose the primary coverage. Only a few cards offer this coverage. Primary coverage will pay first for damage, and it will allow you to bypass the insurance you have. However, most cards offer a secondary coverage, which means the auto insurer pays the claim. The amount will be reimbursed by the card. To ensure that the coverage offered by your credit card is applicable to your rental, you need to pay for it with the credit card and decline the coverage offered by the rental car company. The credit card coverage includes a loss damage waiver and a collision damage loss. Some cards also include coverage for administrative fees and expenses. Liability or injury concerns are not included in the coverage.

It is important to note that the credit coverage period is limited, and you will have to apply for a personal auto insurance to remain covered at all times. It is your own insurance that will help you in case of an injury or accident.

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