Make Sure To Use One Of These Cards When Youre Renting A Vehicle
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When we were choosing the best cards for car rentals, we put primary rental car insurance coverage as a top feature to have because it means you dont have to tap your own car insurance first if you have it. All but one card on our list offer primary coverage, and the one that doesnt saves you an annual fee. We also looked at affordability, rewards, and other perks that may be of interest when renting a car. Here are our top picks.
What Credit Score Is Needed To Get A Travel Rewards Card
Travel rewards cards usually require a good , equal to 670 or higher. But weve seen many forum comments indicating that scores as low as 600 are sometimes accepted, depending on the applicant and the credit card company.
The best way to see whether its worth applying for a particular travel rewards card is to first ask for pre-authorization. Most credit cards offer pre-authorization, allowing you to see if you have a chance of ultimate approval without the score damage from a hard pull of your credit. If you survive pre-authorization, you can then complete the application process, which will require a hard inquiry.
You can increase your approval chances by recruiting a cosigner with a good credit score. Both you and the cosigner are equally liable for paying the monthly bill.
You can also ask to be an of someone elses credit card. Youll have the right to use the credit card, but only the owner is held liable for payments.
If you simply need to increase your credit score, make sure you make all your payments on time and reduce your outstanding debt. Your debt-to-income ratio should not exceed 36% and your should be well below 30%.
If you have bad credit or no credit at all, you may have to start with a secured credit card. These are cards with credit limits backed by your cash deposit held in a special account by the card issuer. Secured cards are easy to get since the cash collateral protects the credit card company against loss.
Commercial Car Rentals Williams Facilities
Liability insurance: There is no need to purchase additional liability insurance from the rental agency. The Colleges commercial automobile insurance
Drivers must be 21 years of age to be eligible to rent under Cornells corporate agreement. For insurance coverage on international vehicle rentals, please
Liability coverage: Helps cover costs if you damage another persons property or hurt someone while driving your rental car. This can cost about $7 to $14 a day
Learn more about the benefits Card Membership can provide. Select the Card below to read the full Policy for Car Rental Loss & Damage Insurance related to
Also Check: Which Credit Cards Offer Primary Rental Car Insurance
How Rental Car Insurance On Credit Cards Works
To take advantage of rental car insurance from your credit card, decline the collision damage waiver from your rental car company. If you damage your rental car, you need to submit a claim to your credit card company if you have primary coverage, or submit a claim to your auto insurance, then a claim for any left over expenses to your credit card company.
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How Does Car Rental Insurance With A Credit Card Work
When you rent a car, the car rental company will insure it themselves for the legal minimum amount. Depending on the state or country where youre renting the car, this may be a much lower amount than you expect and may not cover any and all potential damage.
In the rental agreement that youll sign when renting a car, you agree to be responsible for any damage to the car during the rental period, and in some cases, regardless of whether you are at fault. Car rental insurance is a popular credit card benefit and can help ensure that you are not on the hook for hundreds or thousands of dollars in damage.
Car rental insurance is a credit card benefit that helps ensure youre not on the hook for damage to a rental car.
If you have paid for the car rental with a credit card that offers car rental coverage, then the credit card company will get involved if theres damage that requires an insurance claim.
If your credit card offers primary car rental insurance, then the credit card insurance company will handle all claims. If your credit card only offers secondary insurance, then it will only apply after your own personal liability coverage or other insurance providers are contacted.
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Most Policies Offered By A Credit Card Let You File A Claim Online
Different credit cards may have different policies when it comes to filing a claim. However, most offer an online claims portal that lets you submit your claim paperwork and proof of your claim via the web. Make sure to gather evidence of your claim including photos of the damage, police reports and any other evidence related to your specific problem, whether its damage, theft or some other mishap.
The information about the United Explorer Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
Ink Business Preferred Credit Card
The Ink Business Preferred credit card offers primary coverage up to the actual cash value of the vehicle but only if youre using the rental for business purposes or youre traveling abroad. Personal use within the U.S. gets secondary coverage.
For the most part, the cards benefits administrator gives the same terms, exclusions, and limitations as the Chase Sapphire cards. To get the full details, however, you can read the cards benefits guide.
Take a look at our Ink Business Preferred review for more details.
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How Does Credit Card Car Rental Insurance Work
First and foremost, when renting a car, you must pay for your rental with the specific credit card that offers car rental protection. And, if there are multiple drivers on the rental contract, the primary renter must be the card holder. Additionally, for the credit card coverage to take effect in the unfortunate case that an accident occurs, you must decline the Collision Damage Waiver sometimes called Loss Damage Waiver in your rental agreement. You might find that some car rental companies automatically include this extra insurance and cost into your agreement, so youll want to double-check your paperwork.
Once you rent the car, youll then be covered if your rented car incurs theft or damage from a collision. This coverage will protect you from the financial responsibility of covering the cost. However, the included policy will not protect you from the cost of damage or injuries to another car if youre found at fault. Typically, your personal car rental insurance will cover you in these situations or you can purchase separate policies from the car rental company.
Youll also notice that there are two different types of credit card car rental coverage: primary and secondary. Primary coverage means that if theres a covered accident, the claim will go directly through the credit card company, allowing you to avoid the hassle of involving your own auto insurance policy. This will not only save you time but will also avoid any premiums to your own policy.
Ink Business Unlimited From Chase: Best Card For Business Travelers
Why we picked it: Thanks to the primary car rental coverage, no annual fee, 0 percent intro APR and other features, the Ink Business Unlimited might be a smart choice for business travelers who frequently rent cars. Its also a great card to hold if youre already invested with the Chase Ultimate Rewards program the Ink Business Unlimited lets you transfer its rewards to other Ultimate Rewards cards.
Pros
- 1.5 percent unlimited cash back on every purchase
- 0 percent intro APR on new purchases for 12 months
- $750 after spending $7,500 on purchases in first three months
Cons
- Travel rewards redeemable only through Chase Ultimate Rewards portal
- Minimum 2,000 points required for reward redemption
- 3 percent foreign transaction fees
Who should apply: For the on-the-go businessperson, the Ink Business Unlimited can be a solid addition to your wallet. Aside from the appealing rental car coverage, the card is great for small business owners just starting out thanks to its no annual fee and 12-month 0 percent APR on new purchases.
Who should skip: If you often travel abroad, the 3 percent foreign transaction fees might deter you from getting this card. In addition, if you dont transfer rewards to another Chase travel card, the rewards are only worth the standard 1 cent per point. Small business owners who dont spend a great deal annually could go for another no-annual-fee business card that offers higher cash back rates.
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Best For Renting A Car Internationally: Chase Sapphire Reserve
Heres why: The Chase Sapphire Reserve® provides primary insurance coverage for rental cars all around the world. Thats not always a given.
You may also appreciate that the Chase Sapphire Reserve® has a $0 foreign transaction fee while youre traveling overseas.
On the rewards front, you can use the annual $300 travel credit to help pay for your rental car. Youll also earn
- 10 points per $1 on car rentals and at hotels booked through Chase Ultimate Rewards®
- 10 points per $1 on Chase Dining purchases made through Chase Ultimate Rewards
- 5 points per $1 on flights booked through Chase Ultimate Rewards
- 3 points per $1 on other travel purchases
- 3 points per $1 on other dining purchases
- 1 point per $1 on all other purchases
But all of these rewards and perks will cost you the card comes with a hefty $550 annual fee.
What Does Credit Card Rental Car Insurance Cover
The most common type of optional insurance offered at the rental car counter is thecollision damage waiver , also known as a loss damage waiver. You can purchase CDW coverage from the rental car agency for virtually any kind of rental vehicle. It’s designed to lower your costs and hassle in the event the car is involved in an accident, damaged, or stolen.
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What Type Of Car Rental Coverage Does Discover Offer
The protections offered by Discover rental car insurance will cover damage/loss caused by collision or theft of the vehicle you are renting . This is not all-inclusive insurance and so personal injury and property loss coverage are not included. Loss of use fees and towing charges are also excluded for all Discover cards except the Escape card, which will cover for these expenses so long as a receipt and fleet utilization log from the rental company is provided.
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How Can A Credit Card Impact My Credit Score
In general, owning a credit card is good for your credit score. Simply opening a credit card will not help you build your credit history. Making on-time payments and keeping account balances low relative to the credit limit are key to building your credit history. Credit cards typically weigh more heavily on credit scores than other types of debt because they give greater insight into how you make borrowing and debt management decisions. One of the fastest ways a new credit card will help your score is by increasing your total available credit limit. Say you have one card with a $2,000 limit, and youre using about $500 of that limit. Thats a 25% , which is good, but it would be better if it were below 10%. Then you get a new credit card, and it comes with a $5,000 limit. That puts your utilization below 10% with a little room to spare . The thing to pay attention to here is to not abuse the higher credit limit. Its definitely tempting to spend when you have $7,000 of available credit, but most experts recommend keeping your utilization below 30%, with below 10% being best. Youll want to look at your existing debt before turning to a new credit card as the way to improve your scores. You may want to reduce your spending and work on making timely payments on your existing debt to help raise your credit scores before applying for additional credit.
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Chase Sapphire Preferred Card: Best Value
The Chase Sapphire Preferred® Card is an excellent deal when you consider all the perks youll receive for its $95 annual fee.
- 5X points on travel purchased through Chase Ultimate Rewards
- 3X points on dining, select streaming services and online grocery purchases
- 2X points on all other travel purchases
- 1x points on all other purchases
When youre ready to redeem your rewards, you can cash them in for gift cards, statement credits, travel through the Chase portal or 1:1 transfers to airline and hotel partners.
Travel benefits include a primary collision damage waiver coverage for rental cars thats worth up to the actual cash value of the rental car. Coverage is also good for rental periods of up to 31 days, and for damage, theft, towing charges and loss of use charged by the rental car company.
Other important travel-related perks youll receive include trip cancellation/interruption insurance, baggage delay insurance, trip delay coverage, lost luggage reimbursement, travel accident insurance and roadside dispatch.
United Explorer Card: Best Airline Card
If you fly with United Airlines often and want to earn miles in the United MileagePlus program, you can also check out the United Explorer Card.
- 2x miles at restaurants, hotels booked direct and purchases made with United Airlines
- 1X miles on everything else you buy
Cardholder benefits include primary auto rental coverage thats the same coverage you get with the Chase Sapphire Preferred card. Youll also receive trip delay reimbursement, baggage delay insurance, purchase protection, lost luggage reimbursement, trip interruption or cancellation coverage and a first checked bag free when you fly United, among other perks.
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If Your Credit Card Doesnt Include Coverage
Full coverage travel insurance may cost less than products sold by the rental companies that only cover the car and it includes the cost of missed flights, cancelled hotels and tours and medical emergencies as well. One week CDW at $22 per day = $154, one week full coverage travel insurance $130 for 10x more.
Yonder provides a convenient way to compare coverage and cost from multiple insurance companies and includes a checkbox to filter for plans that include coverage for damage to rental cars.
Instant quotes with no e-mail, phone or sign-up required. If you choose one of the plans from the price comparisons using this link we will receive a referral fee.
Ray & Sue
The Platinum Card From American Express
There is a $75,000 secondary coverage maximum on the Platinum Card from American Express compared with the $50,000 restriction for many other Amex cards. Towing and storage costs can also be covered if your rental car is damaged or stolen, so long as you have a rental insurance policy.
Coverage for 30 days is included on this Amex card. The following are examples of exclusions and restrictions:
- Using the rental vehicle while intoxicated, off-road, or for any other criminal behaviorThere are a wide range of automobiles that are not allowed to participate in the program. Exotic automobiles, on the other hand, are not exempt from the perks outlined in the benefits handbook.
- Rentals in countries sanctioned by OFAC , such as Australia, Italy, and New Zealand.
- Damage to anybody or anything other than the rental automobile, including personal responsibility, uninsured or underinsured motorists, workers compensation injuries, and disability benefits of any type
Amex cardholders can purchase primary insurance through Amex for up to 42 consecutive days for $19.95 or $24.95 every rental term, despite the fact that the card does not offer main coverage. Comparatively, renting a car costs between $20 and $30 per day.With Amex, you get up to $100,000 in accidental death and dismemberment coverage, as well as additional medical expenses and personal property protection.
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Do You Need Insurance When Renting A Car
When renting a car, youll either need to carry a personal auto insurance policy or buy one from the car rental agency. The good news is youre probably already covered.
Most states in the U.S. require you to have at least some liability coverage if you want to drive a vehicle. Liability coverage helps pay for others medical bills and damage to others vehicles and property. It can also help pay the fees to defend you during a lawsuit.
If you already have auto insurance, you might be covered when you rent.
Unless expressly stated otherwise in the exclusions list on a policy contract, your auto insurance policy could follow you when you borrow or rent automobiles, says Neil Richardson, a licensed insurance agent and adviser at auto insurance comparison website The Zebra.
However, he recommends you check your policy or call your insurance agent to verify your coverage. Richardson also adds, keep in mind that a liability-only policy will not provide physical damage coverage for a rental car.
In addition to liability coverage, rental car agencies may offer you several other types of protection. The names and coverage rules or limits may vary depending on the rental company, but in general, they fall into these three categories.
Your existing insurance could already cover you in many of these situations. For example, a renters or homeowners insurance policy might cover theft of your personal property, such as the items in your rental car.
