All you need to know about credit cards and car rental insurance

Most credit cards offer some degree of rental car collision and theft insurance, however the extent of coverage varies by credit card company, with some companies offering quite comprehensive rental car insurance while others offer the bare minimum. So if you’re planning on relying on your credit card for your insurance needs, be sure to check with your card provider first to find out what is covered.

Most major credit card companies offer secondary coverage, which means they will cover any additional costs your primary auto insurance company won’t cover. Rental car agencies charge “loss-of-use” fees when a car that the customer damaged is not available for rental because it is in the shop. Agencies also charge “diminished value fees,” which is supposed to cover the inherent value lost when one of their rental cars is damaged.

Some credit card companies claim to cover these fees, but the problem is the circumstances in which they will cover these can be limited. In some cases, credit card companies will only cover the fees if they determine them to be “reasonable,” but what is and is not reasonable is up to the credit card companies to decide.

If your credit card does not include auto insurance, or you think that the offered coverage is insufficient, you can always get a more comprehensive car rental excess package offered by trusted insurance companies.