Rental Car Insurance

Before you rent, find out what your card and personal auto insurance offer

Before you rent, find out what your card and personal auto insurance offer, and then supplement what they don’t through the rental agency. If you have personal car insurance with comprehensive and liability, it most likely will cover your rental car. Call your insurance company to verify. Filing a hefty claim with your insurance, keep in mind, will probably raise your premium.

Credit card rental car insurance can be primary or secondary. Primary means it’s a first line of defense. Secondary means it’s, well, secondary. “Many people incorrectly assume that all credit card rental protection is the same,” said Mark Orlowski, Marketplace Morning Report travel contributor. “If it’s secondary coverage, you’ll be forced to involve your primary personal auto insurance company and file a claim before you can get anything from your credit card company.”

The coverage offered by my Chase Sapphire Preferred card is primary, and offers reimbursement up to the value of the car if the car is damaged or stolen. It does not cover personal liability — that is, if you or someone else gets hurt.

Some cards, like the American Express Platinum Card, offer limited personal liability. Car rental companies offer supplemental liability insurance, typically increasing the coverage amount to $1 million. Do you need that much coverage? Probably not. Are there times when it makes sense? Sure, especially if you have a high deductible.