Most travelers decline collision coverage at the rental car counter, because their credit cards cover the rental if it’s paid for with the credit card.The key, however, is to understand that the credit card policies change frequently and by a lot. So, instead of simply re-affirming with your credit card that the rental car coverage is automatically in place, have the issuing company send you the details of the coverage. The reason for this is because the customer service representatives may not be aware of the fine print or even recent adjustments.If you own an automobile, your coverage may extend to the rental car but with some limitations. Often, this coverage does not include ‘loss-of-use’ fees charged by the rental car company because in the case of a crash with your own vehicle, you’d either rely on family and friends while your car is repaired or have the option to rent a car which is what you’ve already done on your trip.
No liability – no way, no how
Collision is only half the auto insurance story, of course, and neither travel insurance nor your credit card rental protection provide liability coverage, which protects you in case the rental car the rental car you are driving damages other property (or even worse, people).
Your own automobile insurance coverage may include liability, but again, if you’re using your auto insurance to cover your rental car when you travel, get your hands on the coverage details and understand the benefits and limitations. Plus, check your limits because if you drive a 15-year-old car at home and rent a nice, new minivan on vacation, your limits may not be enough to cover damage to the rental car. If liability insurance isn’t available as part of your travel insurance or credit card insurance, see if you can add a third-party liability (often called an “umbrella” rider to your homeowner’s or renter’s insurance).
See the full details about car rental collision coverage.
Without a credit card, rely on travel insurance
While the protection you have with a credit card is typically included in your annual fee (unless you purchase a specific insurance product from your credit card issuer), travel insurance collision coverage costs (on average) $7-$9 dollars per day, which is a lot less than the $18-$21 per day often charged by car rental agencies.
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