Rental Car Insurance: Rental Company vs. Credit Card


What does the rental car crash damage waiver cover?

A crash damage waiver, or CDW, can actually cover greater damage than a collision to a rental car. As we determined, it covers costs of up to $50,000 if the car you’re renting is taken or damaged in a covered accident or while left neglected.

How much does that cost, exactly? The OneTrip Rental Car Keeper pays the cost of repairing or replacing the car (whichever is less), plus any reasonable loss of use fees that the rental car owner will incur while it is being repaired. Lost usage means cash that the car rental company spends while the car remains in the shop. We think of replacement costs as the real cash value of the rental car, minus any reasonable salvage value.

It is important to remember that OneTrip Rental Car Guard gives you ultimate protection. Prime coverage means the plan is the first to pay the cost of the damage or loss — not your own auto insurance. You don’t pay for deductible insurance (as you would most likely do for an accident claim including your own car). The collision damage coverage you may have through your credit card company is usually additional coverage, meaning it starts after your regular auto insurance.


Few people know that OneTrip Rental Car Guard also consists of 2 unexpected gifts. One of these is a travel interruption benefit of up to $1,000, which can reimburse you for an additional non-refundable portion of your trip and for increased transportation costs that are deemed to be your return home due to a covered factor. So, in the event that you have to cut short your trip because your child is seriously ill, this benefit can reimburse you for non-refundable car rental costs, resort or airfare bookings, and so on.

The second is an open door to our emergency help hotline. No matter where you are on the planet, you can call a hotline for assistance with points such as: finding eligible health care, changing warehouse or collected tickets, making new travel arrangements, finding legal assistance or obtaining cash assistance situations. emergency.

Why is it important to purchase an accident damage waiver?

Because almost nothing will ruin your vacation faster than the hefty and unexpected expenses of a car rental company.

Accidental damage waivers are important when your rental car is actually damaged in an accident — or worse, when you exit the resort and find your rental car taken. (You may be amazed by the countries with the highest auto theft rates: Uruguay, New Zealand, Bahamas, and Italy.) Whether you make a mistake, abandonment can pay for those high repair or replacement costs.

It’s just as valuable when you don’t damage the car, but the car rental company claims you did. Unfortunately, the event from the rental car company charging the client for damages they didn’t think they actually caused wins, sadly. If you leave your car when the workplace is closed, and a worker doesn’t check it until later, you can be delegated damage you didn’t cause. Another common situation: car rental representatives are unable to record pre-existing damages. “That can be a particular problem with many airline terminal rentals, which are inspected and then handed over to the customer for later collection without an escort,” remembers Customer Note. To protect yourself, take lots of pictures of when you get the car when you drop it.

What does a rental car collision damage waiver not cover?

Liability for physical injury: This is a big one. OneTrip Rental Car Guard is not a rental car liability insurance. This waiver only protects the car — not you, your passengers, or anyone else you might hurt in an accident. If you rent a car at Unified Species, your regular auto insurance can cover you for bodily injury liability, which pays for injuries sustained by others in an accident for which you are liable.

In Europe, the price of a car rental usually consists of liability insurance. In other countries, plans differ — contact your local consular office beforehand to find out what type of rental car insurance you may need.

Health care of your emergency situation: OneTrip Rental Car Guard does not cover health care of any emergency situation. If you drive in Unified Species, your regular auto insurance and health and wellness insurance may be spent on the therapy you receive as a result of an injury in a car accident.

Abroad, you should consider protecting yourself with a travel insurance package consisting of an emergency clinical benefit and an emergency clinical transport benefit. According to the Centers for Disease Control, “nearly fifty percent of clinical evacuations back to Unified Species are the result of car accidents, and clinical evacuations can cost more than $100,000.”

Damage to other people’s property: If you hit a camioneta (also known as a fowl bus) in Guatemala, OneTrip Rental Car Keeper can pay to repair the damage to your rental car — but won’t pay to renovate a luxury paint job bus. You will need to pay for it, unless you purchase additional rental car insurance which includes property damage liability.

Driving under the influence: If you damage your rental car while driving under the influence of alcohol or a regulated compound, your loss will not be covered.

Certain vehicles: OneTrip Rental Car Guard does not cover any vehicle, camper, off-road vehicle, trailer, motorcycle, recreational vehicle, vintage vehicle, or any vehicle with the manufacturer’s recommended starting list price higher than $50,000.

Rent a car in certain countries: OneTrip Rental Car Guard does not cover cars rented or owned through Israel; Jamaica; Republic of Ireland; Northern Ireland; or areas where the law does not allow this coverage.

Long-term rentals: Rentals or leases that exceed 45 consecutive days are omitted.

Various exceptions and other conditions apply; be sure to read the plan document so that you understand all the requirements. Contact Allianz Global Assistance at any time if you have questions about the OneTrip Rental Car Guard or other travel insurance items.

Does your credit card offer rental car insurance? That does not? Great—but it might not cover what you think.

It’s important to know how rental car insurance from your credit card, your car insurance, and rental companies all differ from one another. This way, you can avoid unwanted financial surprises when you travel on a charter trip.

What Your Car Insurance Covers

Usually speaking, if you do have car insurance, it also covers rental cars. However, these are not guidelines, so it’s a good idea to check with your insurance provider before renting a car.

It’s also important to consider the type of auto insurance coverage you have. Even if you have car insurance, for example, it doesn’t mean everything related to the car will be covered. Typically, auto insurance includes 4 main types of coverage:

Liability: Covering the damage you cause to other people and their property
Injury protection (or PIP): Covers you and your passengers’ clinical costs in the event of an accident
Collision: Covers damage from accidents
Extensive: Covers your non-collision costs, such as hail damage or robbery
When you are considering renting a car, it is a smart idea to make sure you have coverage for all of these locations.

Credit Card Car Rental Insurance Benefits

Getting a good car rental insurance credit card can be very useful for individuals who travel a lot, and here’s why:

This is free

Many travel charge cards offer rental car insurance as a benefit to the cardholder. Check your card benefits overview for information on limits and coverage.

No Insurance deduction

Amazingly, what most people describe as “credit card rental car insurance” is not insurance, but basically additional coverage and insurance benefits. This is a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), and it means that if the car is damaged or stolen, you will not be able to change or repair it. These costs will be “forgotten” completely, and therefore, you won’t have to worry about paying any deductions.

Disadvantages of Credit Card Car Rental Insurance

Car rental coverage from your credit card issuer is a free and valuable benefit, but it’s not comprehensive coverage. Here are some drawbacks to think about:

You Need To Do Some Points To Get It

To ensure you’re covered by credit card rental car insurance, you’ll need to do each of these 3 points, in most situations:

You must be the primary tenant listed in the car rental contract.
You must pay with a credit card that offers coverage.
You need to reduce the optional coverage from the rental company.
Most Credit Card Rental Car Insurance Is Not The Main Cover

Most credit card rental car insurance you see today is just additional coverage. This means you will be required to file an insurance claim with your primary insurance company first. Right after that, additional coverage will begin and cover all expenses you will need to pay for expenses, such as insurance deductions or certain expenses not covered by your insurance company.

It also means that most credit card coverage does not consist of the liability insurance that is often required to own a car.

Rental Car Insurance: Rental Company vs. Credit Card
Rental Car Insurance: Rental Company vs. Credit Card

Your Coverage May Have Limits

It’s easy to be lulled into false complacency. “Car rental insurance” sounds broad, right? If that’s all you can count on—and don’t check to see if you’re covered elsewhere—you can get more than you expected.

In addition, credit card rental car insurance may not cover you if you are traveling to certain countries, for an extended period of time, or for certain types of car. They may also be invalid if you perform certain points, such as being alone on a dusty highway or causing an accident by speeding.

Some of the common types of exceptions you may see include:

Rent in Jamaica, Northern Ireland, Republic of Ireland and Israel
Expensive or antique car
Recreational vehicle
U.S. rental more than 15 days
Damage triggered while drunk driving
Damage suffered when you drive without a valid license

Not Offered With Every Credit Card

While it’s relatively common to see “car rental insurance” listed as an advantage on your card’s Benefits Overview, it doesn’t come with all billing cards. For example, usually secured cards do not offer CDW. Significantly, Discover—one of the world’s largest credit card issuers—does not offer rental car insurance with any of its cards.

Rental Company Car Rental Insurance Benefits

When you fill out paperwork to get your rental car keys, the representative will often try to sell you on optional rental car insurance. Here are some factors you may want to think about:

If you don’t have all the types of coverage you need, you can get it today

Not everyone has car insurance. If you rely solely on rental car coverage from your credit card, you are protected against problems with the rental car. But as we have already determined, it is only a component of the complete picture.

You also need coverage for liability. Or, you risk legal action for any injury you cause to others or damage to other people’s property. You may also want injury coverage (if you don’t have health and wellness insurance, that’s all). If you don’t have these points right now, now is a good time to buy them.

You Can Avoid Making Claims With Your Insurance

Purchasing rental company insurance can also be useful if you want to avoid filing an insurance claim and paying insurance deductions through your auto insurance company. You need to read the fine print carefully to make sure there are no insurance deductions. Usually speaking, the Collision Damage Waiver leaves you with nothing to pay for, which includes insurance deductions.

Disadvantages of Rental Company Car Rental Insurance

It is important to understand the drawbacks when it comes to your car rental insurance.

You Often Miss Insurance You Don’t Need

Let’s face it—insurance is a challenging and often boring topic. It’s easy to sign up for optional rental car insurance when you’re in response because representatives have a tendency to try to persuade you to buy their plan.

If you currently have auto insurance, you are most likely currently covered for most of everything that rental companies have to offer.


Buying insurance from a car rental company can cost between $20 and $50 a day, usually. Spending on insurance on a multi-day or multi-week timeline can make rents too expensive.

Is It Worth Buying Rental Company Insurance?

If you don’t have enough insurance through your auto insurance provider, it can be a smart idea to think about buying additional coverage through a rental company.

For example, if you don’t have a PIP on auto insurance coverage or health and wellness insurance, you may want to enter a PIP through a car rental company. The median physical injury claim in 2019 was $18,417, according to the Insurance Information Institute—a pretty significant clinical cost you’d incur if you didn’t have insurance for it.

Using your credit card for car rental coverage

Billing cards often provide cover for rental cars, assuming you use the card to spend on rentals and the rental remains in your name. They can be a very useful option overseas in a position where your personal auto insurance will not cover you.

You’ll get this protection right away if it’s included with your credit card — no calling or signing forms. But usually additional coverage, meaning your own auto insurance coverage will pay first if available.

If you intend for credit card coverage, contact your credit card issuer to verify the information.

Buying your own rental car insurance

Some companies sell standalone packages for car rental if you don’t want to buy insurance in response. Usually, you will need to reduce the rental company’s coverage to use this.

Allianz Global Global Assistance

Allianz Global Assistance offers Rental Car Damage Guard for $11 per day paying up to $75,000 for damage and loss. This is primary coverage, so it is a good idea to insure your own car and include 24-hour emergency assistance.


Bonzah offers insurance starting at $7.99 daily that pays up to $35,000 for vehicle repair or replacement. This is primary insurance, so it’s a good idea before your own insurance provider. Plans usually include overseas trips, but check the fine print.

My Rental Car Guarantee

The My Rental Car Guarantee offers damage loss coverage covering damages of up to $100,000 to your rental vehicle. You can purchase coverage for anywhere from a day (from $9.75) to a year. The package provides ultimate protection so you don’t need to use your own car insurance first. Plans may also include rentals outside the US.

Rental Cover

Rental Cover offers a package without the essential deductions for primary coverage so you don’t have to get an insurance claim for your car insurance provider in advance. Coverage options differ by country. Rental Cover doesn’t list prices on its website but claims to be up to 50% cheaper compared to a rental workbench.


Some offer rental car insurance that covers up to $100,000 worth of car damage, plus any of your belongings in it. Coverage also includes blast and warehouse locks, and you can get quotes online from their website.



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