Are you tired of paying expensive fees for rental car insurance every time you travel? Look no further than your credit card! Many credit cards offer primary rental car insurance as a perk, saving you both money and hassle. But with so many options available, it can be overwhelming to determine which credit cards offer the best coverage. In this article, we will explore the top credit cards that provide primary rental car insurance and how to choose the right one for your needs.
The Benefits of Primary Rental Car Insurance with Credit Cards
Before we dive into the specifics of which credit cards offer primary rental car insurance, let’s first understand the benefits of having this type of coverage. Primary rental car insurance means that in the event of an accident or damage to the rental car, your credit card insurance policy will be the primary provider of coverage. This means that you won’t have to file a claim with your personal car insurance company, potentially saving you from increased premiums or deductibles. Additionally, primary rental car insurance typically covers the full cost of damages, whereas secondary insurance may only cover the remaining balance after your personal car insurance has paid their portion.
Now that we understand the advantages of primary rental car insurance with credit cards, let’s take a look at the top credit cards that offer this benefit.
Chase Sapphire Reserve: The Best Overall Option
The Chase Sapphire Reserve is consistently ranked as one of the best travel credit cards on the market, and for good reason. Not only does it offer a generous sign-up bonus and valuable rewards program, but it also provides excellent primary rental car insurance coverage. With the Chase Sapphire Reserve, you are covered for up to $75,000 in damages for theft or collision, making it one of the highest coverage limits available. Additionally, it covers a wide range of vehicles, including most luxury and exotic cars, and has no foreign transaction fees.
How to Use the Chase Sapphire Reserve’s Primary Rental Car Insurance
To take advantage of the Chase Sapphire Reserve’s primary rental car insurance, simply use your card to pay for the entire rental car transaction. This includes any additional fees such as insurance, gas, or upgrades. It’s important to note that this coverage is only valid for rentals up to 31 consecutive days, and you must decline the rental company’s collision damage waiver (CDW) for it to be in effect.
Example: Using the Chase Sapphire Reserve for a Rental Car
Let’s say you are planning a trip to Italy and decide to rent a luxury car for three days. You use your Chase Sapphire Reserve to pay for the rental and decline the CDW offered by the rental company. Unfortunately, during your trip, you get into a minor fender bender. The damages to the rental car total $10,000. Since you paid with your Chase Sapphire Reserve and declined the CDW, your credit card’s primary rental car insurance will cover the full $10,000, saving you from having to file a claim with your personal car insurance.
Comparison: Chase Sapphire Reserve vs. Other Credit Cards
While the Chase Sapphire Reserve offers excellent primary rental car insurance coverage, it does come with a higher annual fee compared to other cards on this list. However, when you factor in the generous sign-up bonus, valuable rewards program, and other travel benefits, the annual fee becomes worth it for frequent travelers.
American Express Platinum Card: The Best for Luxury Travelers
For those who prefer to travel in style, the American Express Platinum Card offers some of the best primary rental car insurance coverage available. With this card, you are covered for up to $75,000 in damages for theft or collision, including many luxury and exotic cars. Additionally, the American Express Platinum Card comes with premium travel benefits such as airport lounge access and hotel status upgrades, making it a top choice for luxury travelers.
How to Use the American Express Platinum Card’s Primary Rental Car Insurance
Similar to the Chase Sapphire Reserve, you must use your American Express Platinum Card to pay for the entire rental car transaction and decline the CDW offered by the rental company to take advantage of this coverage. The primary rental car insurance is valid for rentals up to 30 consecutive days.
Example: Using the American Express Platinum Card for a Rental Car
Let’s say you are planning a trip to Hawaii and decide to rent a luxury SUV for a week. You use your American Express Platinum Card to pay for the rental and decline the CDW offered by the rental company. Unfortunately, during your trip, you accidentally hit a curb and damage the vehicle. The repairs cost $25,000. Since you paid with your American Express Platinum Card and declined the CDW, your credit card’s primary rental car insurance will cover the full $25,000, saving you from having to file a claim with your personal car insurance.
Comparison: American Express Platinum Card vs. Other Credit Cards
The American Express Platinum Card offers similar primary rental car insurance coverage as the Chase Sapphire Reserve, but with additional luxury travel benefits. However, it comes with a higher annual fee, so it may not be the best option for those who don’t frequently travel in luxury.
United Explorer Card: The Best for Domestic Travel
If you primarily travel within the United States, the United Explorer Card may be an excellent option for you. This card offers up to $50,000 in coverage for theft or collision of rental cars in the U.S. and Canada. It also includes other travel benefits such as priority boarding and free checked bags when flying with United Airlines.
How to Use the United Explorer Card’s Primary Rental Car Insurance
To use the United Explorer Card’s primary rental car insurance, you must pay for the entire rental car transaction with your card and decline the rental company’s CDW. This coverage is valid for rentals up to 15 consecutive days.
Example: Using the United Explorer Card for a Rental Car
Let’s say you are planning a road trip across the U.S. and decide to rent a mid-size car for two weeks. You use your United Explorer Card to pay for the rental and decline the CDW offered by the rental company. While driving through the mountains, a rock hits your windshield, causing a crack. The repair costs $500. Since you paid with your United Explorer Card and declined the CDW, your credit card’s primary rental car insurance will cover the full $500, saving you from having to file a claim with your personal car insurance.
Comparison: United Explorer Card vs. Other Credit Cards
While the United Explorer Card offers lower coverage limits compared to other cards on this list, it also has a lower annual fee. It may be a good option for those who primarily travel within the U.S. and Canada.
How to Choose the Right Credit Card for Primary Rental Car Insurance
With so many options available, it can be challenging to determine which credit card is the best fit for your needs. Here are some factors to consider when choosing the right card for you:
- Coverage Limit: As seen in the examples above, different credit cards offer various coverage limits, with some providing higher limits than others. Consider how much coverage you may need based on your rental car needs.
- Annual Fee: Some credit cards come with a high annual fee, while others have no annual fee at all. Factor in the cost of the annual fee and other benefits the card offers to determine if it is worth it for you.
- Travel Benefits: Many credit cards that offer primary rental car insurance also provide other valuable travel benefits, such as airport lounge access, free checked bags, and travel credits. Consider which benefits are the most important to you and choose a card that aligns with your needs.
FAQs About Credit Cards and Primary Rental Car Insurance
Q: Do all credit cards offer primary rental car insurance?
A: No, not all credit cards provide this benefit. It’s essential to check with your credit card company to see if they offer primary rental car insurance and what the coverage limits are.
Q: Can I use my personal car insurance instead of the credit card’s primary rental car insurance?
A: While it may be tempting to save money by using your personal car insurance in the event of an accident, it may end up costing you more in the long run. Filing a claim with your personal car insurance could result in increased premiums or deductibles.
Q: Are there any restrictions on which types of rental cars are covered under primary rental car insurance?
A: Yes, there may be restrictions on the types of vehicles covered under primary rental car insurance. Luxury and exotic cars are often excluded, so be sure to check with your credit card company for specific details.
Q: Does primary rental car insurance cover damages to other vehicles or property?
A: No, primary rental car insurance only covers damages to the rental car. It does not provide liability coverage for damages to other vehicles or property.
Q: What happens if I already have a personal car insurance policy but want to use my credit card’s primary rental car insurance?
A: In this case, your personal car insurance would act as the primary coverage, and your credit card insurance would be secondary. If you have a high deductible on your personal car insurance, it may still be beneficial to use your credit card’s primary rental car insurance instead.
Conclusion
In conclusion, choosing the right credit card that offers primary rental car insurance can save you both money and hassle when traveling. With options such as the Chase Sapphire Reserve, American Express Platinum Card, and United Explorer Card, you can find a card that best fits your needs and travel style. Be sure to review the coverage limits, annual fees, and additional benefits to determine which card is the best fit for you. Happy travels!
