Understanding the Benefits of Credit Cards for Car Rental Coverage

Credit cards and debit cards are commonly used for transactions, but when it comes to paying for services like car rentals, credit cards have distinct advantages. The benefits, such as rewards points and car rental insurance, make credit cards the preferred choice.

Credit Cards vs. Debit Cards: Car Rental Insurance Explained

When renting a car, the additional cost for collision damage coverage can add up, with rental companies charging an average of $27 per day. However, using the right credit card can eliminate this expense entirely.

Which Credit Cards Offer Car Rental Coverage?

Car rental insurance is typically provided by the credit card network, including Visa, Mastercard, and American Express. To activate coverage, you must charge the entire rental to your credit card and decline the collision damage coverage offered by the rental company.

There are two types of car rental insurance offered by credit cards: primary coverage and secondary coverage.

Understanding Coverage Restrictions

Certain limits apply to car rental insurance provided by credit cards. Coverage may not extend to high-end cars, full-size vans, antique vehicles, trucks, or off-road cars. Duration limits also apply, typically up to 15 days for domestic rentals and 31 days for international rentals.

Credit Cards Offering Primary Car Rental Insurance

Cards like the Chase Sapphire Preferred and American Express provide primary coverage for theft and collision damage. These cards also offer additional travel rewards, making them beneficial for regular travelers.

Important Considerations – Always Read the Fine Print

Understanding the details of your credit card car rental insurance coverage is crucial. Be aware of provisions that could affect your coverage, such as restrictions on business use or coverage limitations in certain countries.

Choosing Between Debit or Credit Cards for Car Rentals

When it comes to renting a car, credit cards offer added protection and cost savings compared to debit cards. With car rental insurance and rewards points, credit cards are the more logical choice for such transactions.

The Bottom Line

Verifying your coverage with both your primary insurance carrier and credit card company is essential when renting a car. The benefits of car rental insurance make using a credit card a wise decision over a debit card.