Eli5: How do credit card insurances work for Rental Cars?

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So I’ve been rejecting the 3rd party liabilities when renting because I have protection through my credit card. Reading through it it’s concerning that you have to reject the LDW insurance, but most car rental companies have this built into basic liability.

Has anyone has to gotten into an accident and went through their credit card? Any issues?

In: Economics

2 Answers

Anonymous 0 Comments

Most credit card LDW coverage is secondary to your own car insurance policy which means you’ll end up with a claim and a deductible.

Some higher end credit cards offer primary LDW coverage and they take care of the bill.

Both require the renter to decline the rental company LDW and pay with the card that has the coverage benefits.

Fun fact: I had a rental car rented by my car insurance because my personal car was in the body shop for repairs. The rental car was involved in an accident also. I ended up having to pay two deductibles.

Both accidents were animals, no fault on my part.

Anonymous 0 Comments

When I had an accident in a rental. My CC card coverage covered the car, but not the loss of usage. So, the card paid about 4k in damages, and my company had to cover 6 days of rental on the car. The time the rental company could have been renting the car…