Car rental insurance is one of the most popular additional insurance for credit cards. Since insurance is usually a complex product, you should take a close look at what insurance coverage really does.
What is car rental insurance?
The next vacation is coming and you have booked a rental car. Damage can occur quickly. A small stone chip is enough to put unnecessary strain on the travel budget. Major accidents can cost four-figure sums. For this reason, car rental insurance is recommended.
Three-digit sums are not uncommon at the local landlord. Up to 20 USD are charged per day. Sometimes the insurance coverage exceeds the pure rental costs for the car.
But there is a sensible alternative: the credit card with rental car insurance. Hardly a car rental company delivers a car without a credit card. You must present this plastic card at the latest when you hand it over. The deposit is blocked during the rental period. The landlord wants to protect himself against financial damage.
Car rental companies and credit cards are closely related. Therefore, the card companies offer an optional rental car insurance.
Rental car protection: the advantages at a glance
The local station bills daily. If you need a car for two weeks, you have to calculate with 100 to 300 USD. A credit card secures all annual rentals. So you don’t have to pay for every single day. Under the stitch, you can save a lot of money with the additional service.
Info: The rental car insurance is not included with all credit cards. The card provider lists this additional protection in the services.
As a rule, you have to pay for the rental car with the respective credit card. No further steps are required for activation. Some card companies do without it and also allow PayPal payments. Here you should take a look at the terms and conditions or call the company directly.
The scope of protection of the various rental car insurance companies varies greatly. Check whether you are enjoying an all-round carefree package. The following services can be included:
- Partial or full coverage
- Tires, glass and underbody
- Legal protection
In addition to the protection services, there are a number of discounts: Some credit card providers have entered into strategic cooperation agreements with landlords. You can get a cheap rental car there. Partnerships with tour operators secure you around 5 percent discount on your next vacation. There are also fuel vouchers and bonus points that you can redeem later.
Limitations on insurance coverage
With a credit card, the term “rental car protection” can hide everything. Maybe there is a fully comprehensive rental car insurance behind it? Read the protections carefully. This is the only way to be on the safe side. Not everyone needs full insurance coverage. A normal comprehensive insurance is often sufficient and the customer can forego legal protection.
Tip: Check the amount of the deductible in the event of damage. These are the costs you have to bear in the event of an accident. It shouldn’t be more than 300 USD.
The rental period can also be limited. A maximum of 30 to 90 days are covered per year. Insurance coverage expires after this period. If the accident occurs a day later, you will have to pay the costs. If you need a longer rental period, you should choose an unlimited number of tickets.
In some cases, only certain types of wagons are covered. Here, the price serves as a benchmark: an expensive convertible is out of the question for rental car protection. Most stations rent out newer vehicles. You should consider this point when renting.
Car rental insurance: what are the costs?
The rental car insurance is supposed to upgrade a credit card. Such services can be found more in the premium area. These are cards with annual fees of 50 USD or more. As a consumer, you have to calculate the costs precisely. Despite the high expenses, car rental protection can be worthwhile.
Other insurance policies are often included in the scope of benefits. This can be luggage, health or travel protection. The package costs are lower. Determine individually whether the protection is worthwhile. Those who do not need a rental car in the next two to three years can do without this insurance. If you travel spontaneously, the situation is different. The rental car protection offers enormous flexibility.
Rental car insurance can also be associated with fuel discounts. If you drive to work every day by car, the cost of the credit card quickly compensates.
Example: The Barclaycard Platinum Double comes with fully comprehensive car rental insurance. Damages up to a limit of 100,000 USD are covered. This includes damage, total damage or loss of the vehicle. The deductible is 0 USD. The only requirement is booking and payment by credit card. The rental period of a car is limited to 90 days. There are no fees in the 1st year, from the 2nd year it is 99 USD. Termination is possible after the second year.
Conclusion: for whom is car rental protection worthwhile?
Vacationers or travelers benefit from the protection. The rental car insurance is valid all over the world and is always in your pocket in the form of a credit card. Fully comprehensive insurance without excess is optimal.
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