Did you know that many major credit cards offer car rental insurance?
A new survey from WalletHub reveals that just 47 percent of drivers know about credit card rental insurance. And a third of credit card users don’t know if their card offers it.
The personal finance website rated Citi credit cards as the top ones to use for rental car insurance. Chase credit cards ranked second, and USAA (except Rate Advantage Platinum Visa) ranked third. See the full list here.
Citi provided up insurance up to $75,000 and 31 days, making it the best credit card to use for rental insurance.
Car rental insurance offered through credit cards can save money, but there’s two things you must do, according to Peter Greenberg of The Travel Detective. You must officially decline supplemental coverage offered by the rental company, and use the credit card to pay for your rental.
What to consider when getting car rental insurance:
- What might not be covered: trucks, open-bed vehicles and a full-size SUV usually are excluded from rental insurance.
- Gauge where you’re going: About 38 percent in WalletHub’s survey only cover domestic rentals up to 15 days. Some cards also exclude such countries as Ireland, Israel and Jamaica.
- Check the road: 16 percent of the policies didn’t cover damage while traveling on a dirt or gravel road
- Watch the tires: More than one in three cards do not cover all rim and/or tire damage.
- Watch out for “loss of use:” The term refers to damage the rental company claims on the car that cost more than $100. More than 86 percent of the top 10 cards will reimburse you. Be sure to return your car and get it inspected right away, USA Today advises. If you have to return you car after hours, take photos of the car so you have documentation.
- Are you covered already? If you have car insurance, coverage most likely will carry over to your rental car. But you have to have comprehensive and collision coverage.
Auto rentals are a $42 billion industry in the United States.
Source