Most of us have a notion that credit cards are bad and hence, will push us into debt. Isn’t it? But, in most cases, it doesn’t happen the way we think.
Credit cards can save you in dire situations if you’re aware of its proper usage. For example, if you’re traveling in a rental car and meet with an accident, credit cards can save you thousands of dollars.
Yes. that’s right! So, don’t be dumbfounded if you’ve just come to know about it.
Keep reading to know more about how credit card car rental insurance is helpful, what coverage does a credit card auto rental insurance policy offer and how credit cards can save you money in a car accident.
Credit card auto rental insurance is offered by credit card companies. It covers the damage of a rental car in case of an accident. Generally, it pays for the Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW).
To get the benefits of credit card car rental insurance, at first, check out whether or not your credit card issuer provides such services.
Most credit cards in the country offer a benefit known as the Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), which pays for most of the damages of the rented car except certain costs like administrative fees or full loss of the rental car after the accident.
Most personal car insurance policies don't cover rental vehicles. If you meet with an accident in your rental car and your personal auto insurance has a rental car coverage, it’ll pay for the primary damages first.
To get the benefits of secondary car rental insurance, you’ve to charge the total cost of the rental car to that credit card, which gives this type of coverage.
Only some selected credit cards provide primary rental auto insurance coverage. These type of cards pay for the loss of the rented vehicle, more than what your insurance covers. Primary car rental insurance pays for the damage to rental cars or rental car thefts. You’ll get primary car rental insurance only if you deny the rental car company’s CDW.
How? Take a look below:
Now, are you going to purchase a credit card? If so, then check out whether or not it’s providing rental car coverage.