Compare credit cards' rental car insurance policies
They vary widely in coverage; make sure you know yours
By Emily Starbuck Gerson
If you're a veteran car renter, it's likely you routinely decline the rental company's offer of additional insurance coverage, smug in the knowledge that you're not wasting money. After all, if you get in an accident, your credit card will cover your deductible, right?
Maybe not. A closer look (chart) shows that credit card companies' policies vary sharply in who's covered, at what level, in which vehicles and where.
What credit card insurance does, doesn't cover Most major credit cards come with a rental car loss and damage insurance plan. If you get in an accident while driving the rental, your auto insurance policy will likely pay most of the damage, but your credit card company provides secondary coverage. It covers whatever your primary auto insurance doesn't, paying whatever is left and going toward your deductible.
But there are requirements to qualify for that additional coverage and limits to it.
In order for the benefit to kick in:
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• The rental car must be paid for in full with the credit card that provides the insurance plan. • The cardholder must decline the auto rental company's collision waiver and be the primary renter of the car, though additional authorized drivers are also covered.
The credit card plans generally cover the repair or replacement of stolen or damaged rental vehicles. They often also include the charges of towing the vehicle to the nearest authorized collision repair facility.
Coverage varies Visa and American Express provide rental auto insurance to all cardholders as a free benefit, though America Express offers a paid upgrade to a premium insurance program. Discover and MasterCard offer rental auto insurance only to cardholders at more elite levels, such as gold or platinum (in other words, those with better credit).
Most plans cover vehicles rented up to one month, and cover up to $50,000 of damage or loss (though American Express has plans that go higher). Be aware, however, that not all rental vehicles are covered. Commonly excluded vehicles are exotic cars, motorcycles, campers, mini buses, pickup trucks and cargo vans. Cars rented in certain countries are also excluded.
The accompanying chart outlines the basic auto rental insurance plans offered by the four payment networks. Details of auto rental insurance plans can change at any time and may differ slightly from issuer to issuer. Before you embark on a trip in a rental car, it is advisable to call your issuing bank (i.e., Chase or Capital One, not Visa or MasterCard) to gather the details on your individual plan.
Payment network
Do all cards offer basic coverage?
Amount of coverage
Vehicle exclusions
Limit on rental length
Country exclusions
American Express
Yes, but you can upgrade to to premium protection for a fee
Up to $50,000 for Green, Blue, Gold, Optima, Small Biz, & Small Biz Gold cards; up to $75,000 for Platinum, Centurion, & Small Biz Platinum cards
Any type of pick-up truck, full-sized SUV, luxury van, any exotic sports car and any type of cargo van
Up to 30 days
Australia, Ireland, Israel, Italy, Jamaica New Zealand
Discover
No: Available to holders of only Platinum, Miles by Discover, Discover Motiva, Discover Titanum, Discover Business & Discover Business Miles cards
Up to $50,000
Off-road, antique or limited edition motor vehicles; trucks, recreational vehicles, campers, pickup trucks, and minibuses; limited edition motor vehicles or high value, exotic, high performance or collector type; any vehicle which has not been manufactured for 10 years or more
Will not exceed 31 consecutive days, or 45 consecutive days if the insured is an employee of an organization which has provided a card for business use
Coverage applies to vehicles rented in the U.S. and Canada only
MasterCard
No: Available only to Gold, Platinum, World & World Elite cardholders
The lesser of the actual repair amount, current market value (minus salvage), or $50,000 per incident
All trucks, pickups, full-size vans mounted on truck chassis, campers, off-road vehicles, and other recreational vehicles; trailers, motorbikes, motorcycles, and any other vehicle having fewer than four wheels; antique vehicles
Up to 31 consecutive days
Australia, Ireland, Israel, Italy, Jamaica and New Zealand
Visa
Yes
Up to actual cash value of the vehicle as it was originally manufactured
Expensive, exotic, and antique automobiles; certain vans; vehicles that have an open cargo bed; trucks; motorcycles, mopeds, and motorbikes; limousines; and recreational vehicles
Up to 15 consecutive days in your country of residence or up to 31 consecutive days outside your country of residence
Australia, Ireland, Israel, Italy, Jamaica and New Zealand
Source: CreditCards.com research, conducted May 2008. Card terms are always subject to change. To report an update, write Editors@CreditCards.com.
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If you're a veteran car renter, it's likely you routinely decline the rental company's offer of additional insurance coverage, smug in the knowledge that you're not wasting money. After all, if you get in an accident, your credit card will cover your deductible, right?
