Using Credit Card to Rent a Car, do you buy insurance?

[DOHC-LSR]

Using Credit Card to Rent a Car, do you buy insurance?

Okay, I'll give my opinion so I cover my ass.... but obviously you should ask your Credit Card company as its their policy. I just read my Citibank policy since they were nice enough to send me 2 new cards for the same account in the same month. :WTF?: :bash:

Anyways... I know many of you will start renting more and more cars now since you can. So you've alway heard, don't buy insurance from the rental agency because its stoopid and a waste of money and your credit card will cover it anyways... You've heard it from your friends and teachers, but you've never read it or seen it in writing because those policy things are too long. So I read a little bit and heres the deal for ME from CITIBANK (I'll assume all MAJOR credit cards will have similar plans/policies).

If you buy the option insurance from the Rental agency you automatically LOSE the option to have your credit card provide any insurance for any loss involved with the rental. You MUST decline the option insurance in order to have the credit card used as a SECONDARY form of insurance. Whats the primary? Your own insurance, since you drive... you probably already have insurance and thats the primary insurance. Anything that can't cover, the Credit Card will take over.

All drivers must be on the rental Policy listed as additional drivers for the Credit Card to be used as a secondary insurance.

The car can only hold 9 or less people and be worth $50,000 or less. So if you get a Escalade, you're credit card won't insure it.
Cannot be used off roading, got to drive it on paved roads.

Cliff Notes:
Rent with the Credit Card
Decline the option insurance from the Rental Agency.
Get a normal car worth less than $50,000

I think thats it.

[DOHC-LSR]

Oh, and Citibank stated that you can only rent a car for 15 days or less. My American Express said 30 days I think.

[DOHC-LSR]

Cliff Notes:
Rent with the Credit Card
Decline the option insurance from the Rental Agency.
Get a normal car worth less than $50,000

I think thats it.

I was wrong, or I'd would say I'd like to update this. If anyone works in this field or knows someone who does... please chime in... I'm just voicing my opinion and info I gathered... but can always learn more.

You already should have car insurance, so you are covered for killing people by accident:thumb_up: I feel its worth it for piece of mind to buy minimum insurance ONLY to protect the vehicle as the property of rental agency. So if it gets scratch when you left it parked, its taken car of. You don't need to buy all the optional crap because you already pay big bucks with your own insurance, so why duplicate coverage you already pay for? If you get into a accident you're insurance will probably go up regardless anyway right?

Why buy extra protection to cover a car thats already covered by your insuance? because while the rental car is in the shop being fixed... you still have to pay the deductible, which should be atleast $250-$500 for most of us I think. Also, YOU will have to rent the car for the time its in the shop getting fixed, and your insurance will NOT pay for the rental time it takes to fix it. They will only pay for fixing it, not renting it while getting fixed. So you'll still need to rent the damn vehicle while its sitting in a paint booth.

So my new take is as below.... this is what I'd do.



Cliff Notes:
Rent with the Credit Card
Buy minimum protection insurance from the Rental Agency only to protect their car/van.
Get a normal car worth less than $50,000

[DOHC-LSR]

I only checked with my insurance... I guess I should check with my CC to see what coverage they provide....

CDW (Collision damage waiver), also referred to as as LDW (Loss damage waiver): CDW covers damage to the rental car. It is usually an optional feature. Your regular auto insurance may already provide coverage on cars you rent, thus making the purchase of CDW unnecessary. Also keep in mind that many Gold and Platinum credit cards provide some CDW coverage (call to confirm what type), and that Diners Club actually offers primary CDW coverage. Some larger cars may come with the CDW already built into the price. In some cases, renting the larger car might be more economical than renting a smaller car without CDW coverage. The actual CDW policy will vary among agencies and states, so be sure to read the terms carefully.