Renting a vehicle always comes with a lot of decisions. Credit card insurance for car rental are related to what you would get for what you would pay. But the most expensive decision you may take is paying the cost of a collision damage waiver to the rental car company.
Furthermore, the amount of money you may have later to pay to solve a probable issues between your insurance company and the rental car company.
So, what is the solution for this problem?
In fact, you can save a lot of money if you discovered what coverage for car rental are available on your credit cards.
The primary reason for this problem is dealing with the collision damage waiver (CDW) or loss damage waiver (LDW) as being insurance while it is not.
CDW is just functioning like insurance.
You will need to understand what collision damage waiver means and what the best credit cards to get for the purpose of protection.
What is collision damage waiver (CDW) for car rental?
The collision damage waiver is a coverage that compensates you if your rental car is damaged or stolen when it is in your custody.
The CDW covers also the money you may be charged to pay for the car rental agency as a compensation for its loss of revenue as a result of damaging or losing the car.
When you prepare yourself to rent a car, you will have to buy a collision damage waiver coverage from the car rental company. It is the most expensive option.
You can reduce your charge to the car rental company by having a credit card that is already providing a CDW coverage with no additional charge for the rental company.
Credit cards provide two main CDW coverage options, either secondary CDW coverage or primary CDW coverage.
- Secondary CDW coverage: before having the benefits of your credit card secondary CDW coverage, you will have to file a claim with other insurance.
- Primary CDW coverage: you will have the benefits of your credit card CDW coverage without the need to file a claim with other insurance.
You should know that your credit card may provide secondary CDW coverage in specific countries and primary CDW coverage in other countries.
To discover the benefits you may get from your credit card, you can discuss it with your card’s benefits administrator.
How to ensure that you are covered by Credit card insurance for car rental?
Credit cards provide CDW coverage under specified requirements, you should meet these requirements to be sure that you will be covered if your car is exposed to any damage or theft.
- All drivers should be listed on the rental agreement
- The CDW coverage should be declared by the rental car company
- You should use your credit card that provides CDW coverage to pay for the rental car company
What is covered and what is not covered?
Your credit card covers three main things:
- The collision damage waiver that is considered the most expensive item if you purchased it from the rental company.
- Other expenses and administration fees.
- The Compensation for the rental car company for lost revenues as a result of the damaged or stolen car.
Not all vehicles could be covered by your credit card, there are some excluded types such as the following:
- Motorcycles, large vans or trucks
- Vehicles that are meant to cover more than nine passengers
- Expensive and exotic vehicles
Types of credit cards for car rental coverage
There are many different types of credit cards, not all of them are suitable for your needs. So, we will discuss those types and differentiate between them to know what may fit your requirements.
- Personal chase credit cards
- Personal AmEx credit cards
- Business credit card
Personal chase Credit card insurance for car rental
There are three main types of personal chase credit cards that are used for CDW coverage:
- Chase sapphire preferred card
It is considered one of the best credit cards for car rental coverage.
It provides its owner with two main benefits, the owner of this credit card will have primary CDW coverage in all countries in addition to earning two rewards points for each spent dollar on car rental.
By having a primary CDW coverage, you will not have to file a claim if your rental care is damaged or stolen.
Your rental car is covered by this credit card if its user during the accident was the authorized users or other listed drivers on the rental agreement.
The coverage amount include the cost amount of your rental car with no limits.
- Chase sapphire reserve card
It provides the same rental coverage of the chase sapphire preferred card but with a limited coverage amount with $75,000.
There are three benefits you can get if you have this credit card:
- Primary CDW coverage
- Three rewards points for each spent dollar
- Using rewards points to pay for the rental value
- United mileage plus club card
This type is suitable for travelers who use united airlines and rent cars regularly.
It provides the same benefits of the chase sapphire preferred card in addition to some travel benefits such as a lounge membership in the united club.
Personal AmEx Credit card insurance for car rental
These cards provide equal CDW coverage.
They primarily provide their owners with secondary CDW coverage but you can also by an additional premium protection for your rental car.
By buying a premium protection, you will have more travel benefits and hotel rewards. Suggestions include the following:
- The American express platinum card
This card provide its owner with many luxury travel benefits. For example, your airline tickets will earn five membership rewards points for each spent dollar on car rental. The card provides you with secondary CDW coverage or you can ask for premium CDW coverage.
- The American express Hilton honors aspire card
When you use this card for renting a car, you will get a lot of benefits such as earning seven Hilton honors points for each spent dollar on car rental or other premium travel benefits like airline credits and resort credits.
Business credit cards insurance for car rental
There are three main types of business credit cards including the following:
- Ink business preferred card
This card provides you with primary CDW coverage in all countries if your rented car is for business use. But if your rented car is for personal use, this credit card will provide you with only secondary CDW coverage.
- Ink business cash card
This card provides the same benefits of the Ink business preferred card in the United States without paying any annual fees.
- American Express blue business cash card
This card enables you to get 3% of cash back when you use it for renting a car. You can enjoy the secondary CDW coverage benefits of this card or you may buy a premium CDW coverage.
Regardless the credit card type you would use for car rental,you should know that you will be required to file a claim if your rental car is exposed to an accident.
Submitting a claim will have, deadlines, documentations and responsibilities.
These elements should be discussed with the credit card benefits administrator.