Rental Car Insurance – How to Go

Here are a few things to consider if you’re planning on renting a car:

→ Credit Card Coverage:

“The coverage on credit cards typically isn’t primary insurance,” says Neil Abrams, president of Abrams Consulting Group, a global consulting and research firm specializing in ground transportation and car rentals. “It’s secondary insurance, which means your own [auto] insurance stands in front of your credit card insurance.”
However, if your card offers secondary coverage through an auto rental collision damage waiver (CDW) it may pick up the bill for certain costs that aren’t covered, like your auto insurance deductible.
If you don’t have your own car insurance policy or are driving in a country outside of the USA or Canada, your credit card’s policy may become the primary insurance.

→ Luxury Cars, RVs and ATVs:

Generally, luxury vehicles and high-value cars are excluded from your credit card’s coverage. You’ll probably be required to provide more paperwork to the rental car agency when renting cars like these, too.
The credit card company might not cover you when renting recreational type vehicles (motorcycles, trucks, trailers, RVs, ATVs, boats etc).
Check with your insurance agent to see if your car or homeowners insurance will cover this variety of vehicle, sometimes it can be added temporarily. If neither your policy or credit card covers them, it would be a good idea to purchase separate coverage.

 


→ Long Term Rentals:

Credit card rental car coverage is designed for short-term rentals, generally shorter than a month. You can avoid these restrictions by paying a separate daily rate through the rental service center or third party.

→ Caveats in Coverage:

No matter what type of coverage you decide on (credit card coverage, your personal policy, the rental company or a third party) you may not be covered for certain incidents:
Driving off-road or on unpaved roads .:|:. Negligence .:|:. Driving while under the influence

We’re happy to review your current coverage with you and help you decide what the best option is.

Call us at 303-443-1288
Email us at jstringfellow@farmersagent.com
Stop by the office at 1919 8th Street in Boulder, Colorado 80302
Office Hours: 8:30am-5:30pm Monday – Friday


References:
  1. https://www.marketwatch.com/story/whats-not-covered-by-credit-card-rental-car-insurance-2019-04-25
  2. https://www.nerdwallet.com/blog/insurance/rental-car-insurance/?utm_campaign=ct_prod&utm_source=syndication&utm_medium=wire&utm_term=anne-stanleymarketwatch-com&utm_content=596498