While getting a car on rent, the rental car company may ask you if you need insurance especially if you don’t have regular auto insurance policy. If you say yes then you may have to buy rental auto insurance over the counter. However, if you have some credit cards, it is likely that you will be covered for driving rental cars as well. But before driving a rental vehicle, it is important that you contact the credit card company to find out what all the card insurance covers so that you can weigh your options.
Top credit card providers are known for providing rental car insurance in some form or the other. Nevertheless, the coverage may depend on the bank that issues the credit card and its type. You will have to contact your credit card company to check whether you are covered for driving a rental vehicle and confirm the benefits offered under the card insurance. Is credit card car insurance coverage primary or secondary?
If your credit card(s) provides primary insurance then you won’t have to engage an insurer for your rental car. This way you can save money on premiums. But most credit cards offer secondary coverage which implies that you must have a primary car insurance policy that will pay any claims first. A secondary auto insurance policy will cover damages within prescribed limits and it might be subject to deductibles, maximums, and other factors.
Depending on the credit card company, rental auto insurance may include collision or loss damage waiver coverage feature. The insurance may also cover aspects like car theft, damages, and towing charges.
But credit card insurance will not cover third party liability for bodily injuries and property damages. Besides, such coverage might also not cover damages caused to expensive high-end vehicles like Ferrari, Jaguar, Maserati, etc. Credit card insurance may not cover very old vehicles, cargo vans, limousines, motorcycles, trucks, and recreational vehicles.
Insurance coverage for rental cars through credit cards usually extends to 15 successive days if the rented vehicle is being driven within Canada. But if you are going outside the country, the time period may be extended to 31 days.
