Before you pick up your rental car, check to see what insurance benefits your credit card offers. Extra insurance benefits are usually available for cards that offer travel rewards, and you can only use these extra perks on travel purchases you make with that credit card.
Check whether your card offers primary or secondary insurance for rental cars. If it only offers secondary insurance, that means it will only cover the costs of a collision or other damage after you file a claim with your primary insurance company. If your card only offers secondary insurance and you don’t have a car insurance policy (say, you don’t have your own vehicle), you may still need to purchase insurance from the rental car company.
You’ll also want to research whether your credit card offers collision coverage, liability coverage, or both; it’s common to have coverage from your card issuer for damage to your own rental car (collision) but not for damages to the other party. This information is listed in your credit card’s guide to benefits that you received in the mail; you can also find this document in your online account for that card. If you have questions about what the insurance benefit does and does not cover, call your card issuer to clarify before heading to the rental counter.
And when it’s time to pick up your rental, take that guide-to-benefits pamphlet with you. Some car rental agencies will ask for proof of your credit card insurance coverage if you decline theirs. Rental car insurance can add as much as $50 per day to your overall bill. Imagine what you could do with an extra $50 per day to spend on the fun parts of your journey?