Thousands of individuals obtain cars from rental agencies each year, but when it comes to protecting themselves economically while in ownership of the rental car, many individuals have questions about the ultimate way to protect themselves.
One of the biggest questions which may be in their mind is whether the rental car insurance supplied by their gold or platinum credit cards is adequate coverage against damage or fraud of the rental car. Many individuals decline the local insurance proposed by the rental car company because they assume that the insurance offered by their visa or mastercard is enough to handle any issue that may arise.
So are they correct?
The brief answer is the fact that it will depend on the specifics of the insurance offered by the credit card issuer. There are many credit card issuers that claim that if you rent a car using their credit card, they’ll provide an insurance plan for you for so long as you have the automobile. For some, this feels like adequate protection for any instances if they need to rent a car.
The issue occurs when the individuals neglect to read the small print of their charge card disclosures. Although many credit card issuers offer rental car insurance, the actual items covered can vary greatly from company to company.
Reading the disclosures for the rentals car insurance portion of the mastercard and conditions can save an individual a great deal of hassle in the long run. For instance, while some credit card issuers claim to offer full coverage insurance for the rental car, it is only valid if the automobile is rented from a certain agency.
The coverage may also be limited to a certain type or category of car, meaning that if every other type or class of car is rented, the coverage will never be valid. Other credit card issuers limit their liability to the amount of the deductible of your personal car insurance and cannot pay above this amount to have the automobile repaired or substituted, leaving the card owner accountable for the rest of the costs.
Even the credit card companies that offer an intensive insurance plan for rental automobiles will typically only provide collision and thorough coverage for the automobile, leaving the credit card holder responsible for any property destruction or accidental injury costs that may be incurred. Credit card companies also do not typically provide reimbursement for any personal belongings that may be lost if the car is stolen while in the card holder’s possession.
It’s a good idea to take any valuables you may have in the car with you. But the local rental car agency can help the credit card owner a great deal when an issue arises, a credit card holder that is determined by this insurance exclusively could find themselves in a tight place if the insurance will not cover what they think it does.
Make sure that you read the fine print and know about the coverage that it provides before your next car rental.
Compare auto insurance rates instantly for free! No credit card or personal information needed. Enter your zip code below:
