You are standing at the rental car counter when the familiar question comes: “Would you like to add insurance coverage?” If your credit card includes rental car insurance, declining that extra coverage can seem like an easy way to save money.
Rental car insurance can add an average of $61 per day to the cost of a rental, according to MarketWatch. On a weeklong trip, those daily charges can quickly add hundreds of dollars to your bill. Credit card rental car coverage can be a valuable benefit, but it is important to understand exactly what is (and is not) covered before you rely on it.
The Pros of Credit Card Rental Car Coverage
The most obvious advantage is cost. Rental car coverage offered as a credit card benefit generally does not require you to pay a separate daily insurance charge. Depending on your card, that could provide substantial savings, especially on a longer rental.
The coverage itself can also be significant. According to a 2026 WalletHub study, coverage up to the cash value of the rental vehicle or $50,000 is typical, while some of the best credit card rental car benefits provide up to $75,000 in coverage.
These benefits generally focus on damage to or theft of the rental vehicle. Some policies may also cover expenses such as towing, administrative fees or loss-of-use charges imposed by the rental company.
An important distinction to research is whether the card offers primary or secondary coverage. Primary coverage can allow you to make a qualifying claim through the credit card benefit before turning to your personal auto insurance. Secondary coverage typically requires your own auto insurance to respond first, with the credit card benefit potentially covering certain remaining eligible expenses.
Where Credit Card Coverage Can Fall Short
The biggest risk is assuming that because your credit card provides “rental car insurance,” you have the same protection you would receive from a complete auto insurance policy.
Credit card rental benefits generally focus on the rental vehicle itself. They may not provide liability coverage if you cause an accident that injures another person or damages another vehicle or property. They also may not cover medical expenses for you or your passengers.
There can be other limitations as well. Certain luxury or exotic cars, trucks, large vans, motorcycles and other vehicles may be excluded. There may also be restrictions on how long you can rent the vehicle or where you can drive it. In fact, WalletHub found that 53% of credit cards offering rental car insurance limited domestic rental coverage to 15 days.
You also generally need to follow specific requirements to activate the benefit, such as paying for the rental with the eligible credit card and declining the rental company’s collision or loss damage waiver. Coverage varies considerably by card, so never assume you are protected simply because your credit card advertises rental car benefits.
Know Your Coverage Before You Leave the Counter
Before renting a vehicle, take a few minutes to review both your credit card benefits and your personal auto insurance policy. Find out whether your credit card coverage is primary or secondary, what vehicles and situations are excluded, the maximum coverage amount, and whether liability or injury-related expenses are covered elsewhere.
It may also be helpful to call your credit card company and auto insurance provider before your trip. That way, when the rental agent asks whether you want additional coverage, you can make an informed decision instead of trying to decipher insurance options while standing at the counter.
Get Help After a Rental Car Accident on Long Island
Rental car accidents can become complicated quickly. Your personal auto policy, credit card benefits, the rental company’s coverage and another driver’s insurance could all potentially come into play. Determining which policies apply and in what order may require a careful review of the circumstances and policy terms.
Have you been injured in a car accident? If you’ve been injured in a rental car or another motor vehicle accident, you need an experienced attorney who understands how to navigate insurance policies. The North Shore Injury Lawyer has more than 35 years of experience helping accident victims on Long Island pursue the compensation they deserve.
Call 631-495-9435 today for a free consultation and let Mark and his team investigate the available insurance coverage and fight to get you the maximum recovery possible. Stay safe out there!