If you have a credit card, there’s a chance that you might have some hidden benefit you were previously unaware of. One of the benefits that tends to be less advertised than others is auto insurance when you rent a vehicle. This can come in handy if you need a short-term rental or if you go on holiday and rent a vehicle.
In this article, we will overview some of the benefits of having credit card auto insurance and how it can help you get more out of your money. We’ll also provide you with some tips on how to best make use of these benefits – sometimes rental companies will try and deter you from using the insurance you already have!
Depending on your credit card, the issuer may offer you free car insurance for when you travel abroad and rent a vehicle. The same can be said if you rent a vehicle for a short time at home. You should check with your issuer or in your terms to see if this is a feature that is freely available.
If you do have this form of insurance, and you want to use it, you should pay for the entire auto rental on your vehicle. Not doing so will typically mean that you’re ineligible for the insurance. Next, you need to decline the insurance that is offered to you should the auto rental company offer you insurance.
This can save you serious amounts of money, as car rental locations often offer inflated insurance prices to help earn more money. This means the price you see online is typically much lower than the full price you pay when you get to the rental location. Using your credit card’s insurance is the best way to save money quickly.
Check the Terms
You want to make sure that you check the terms of your credit card’s car insurance. Some may not cover the full cost of an accident or problem, meaning it may leave you exposed. If this is the case, make sure to consider taking the rental insurance if it provides better coverage or a reduced co-pay. The extra cost can be worth it in certain circumstances, especially if you’re driving in a foreign country where you have little understanding of the road rules.
Insist on Using Your Card Insurance if It’s a Better Deal
Some users have reported that rental companies refuse to allow you to use your own insurance. This is typically not allowed, but you may feel like you have no choice if the person at the desk is refusing. Make sure to look up the rental company you’re hiring from before you head on holiday to make sure they allow you to use your own insurance. If they do, use this as evidence if one of their employee’s tries to refuse your credit card insurance.
As with any insurance policy, you need to be careful that you have the level of coverage that you think you do. Make sure to check your policy to look for exceptions or circumstances that may leave you exposed. It pays to be aware.