Friday, May 29, 2009

Credit card insurance coverage for rental cars

As usual, last time I rented a car, in Michigan, the rental car agent explained that I should purchase the exorbitantly priced property damage insurance because 1) Michigan is a fully no-fault state and 2) liability for damage to the car would include rental costs while the car was being repaired. Despite having posted on this very topic, I had no idea whether I would be fully covered by my insurance for property damage if I was in a collision.

Shortly after that I received a benefits guide from one of my credit cards and I took a close look at its rental insurance coverage. It covers vehicles rented for 31 days or less with a value of $50,000 or less. There is no coverage unless you decline the Collision/Damage waiver offered.

And, yes, it covers "reasonable loss-of-use charges imposed by the vehicle rental company for the period of time that the rental vehicle is out of service."

So next time I rent a car I'll refuse the property damage insurance with confidence--that is, if I can remember which credit card I should be using.

1 comment:

Shanna said...

Hi Nina,

Well, it’s good that you have discussed here in this post about Credit card insurance. If you have a credit card, you can get some offers of different types of credit card insurance. There are many types credit card insurance are available, like Credit disability, Credit life, Credit property, Credit unemployment etc. But many people do not go for credit card insurance plan due to more cost of money.