Car Rentals, Credit Cards, and Insurance Coverage

When renting a car in New York, most consumers call ahead, shop for the lowest rates, and inquire as to the type of cars available. Many do not give much thought to the cost and availability of insurance coverage. We all know that getting into any accident can be costly, but getting into an accident in a car rental can be even more so.

Make sure you're covered in the case of an accident

In the unlikely event of an accident, many of the major credit cards offer their card holders coverage for the damage done to the car rental. Unfortunately, credit card companies do not provide coverage for any injuries to occupants of the rental car or the other car which may be involved in the collision, or the damages done to any property. The credit card companies do not cover damage which may have been caused to third parties by the rental car accident or any injuries in the car rental vehicle or outside the car rental vehicle. Coverage for those losses is usually covered by what is known as it's upplemental Liability Insurance?or SLI, which can cost anywhere from $13 a day and up. New York car rental companies sell coverage known as Collision Damage Waiver or Loss Damage Waiver at a cost of $13 a day or more.

Additional coverage for New York car rental customers

Many major credit cards, but not debit cards, provide additional benefits to card holders above and beyond cash back rewards and frequent flyer miles. One of these services is rental car coverage. New York car rental companies will always try to sell you insurance options that can add an extra $30 a day or more to the cost of your rental, but most people don't need to buy this coverage.

Each credit card offers different coverage levels. In fact, different credit cards offered by the same company offer different coverage for car rental insurance policies. The coverage for the rental car can be different for the length of the rental with some credit card companies offering only 15 days of coverage while others may offer more.

Each credit card company that offers car rental coverage requires the entire car rental bill to be paid for on the credit card that you seek to have coverage on. Moreover, most credit card company coverage for car rentals is secondary, meaning if you damage the car rental you must first report the claim to a personal automobile insurance company. In the event you must pay a deductible on your personal automobile policy to cover the car rental vehicle damage, the credit card company will likely cover the deductible. Should you have no personal automobile coverage, the credit card will cover the damage to the New York car rental. Note that many of the credit card companies limit what type rental car they will cover, often they do not cover mini vans, 15 passenger vans, trucks, expensive car rentals, and specialty car rentals.

There are some programs offered by credit card companies, such as American Express, which will offer primary coverage for the car rental. In order to utilize this coverage, you must call American Express prior to renting the car in order to make the necessary arrangements and pay the required fees. These fees are often cheaper than purchasing the coverage from the car rental company.

It is important that all terms and conditions of the car rental agreement are adhered to; otherwise coverage may be denied. This includes only permitting authorized drivers to drive the New York car rental and operating the car rental within the geographic driving parameters set forth in the rental agreement. Some of the credit card companies only offer coverage in the United States and other select foreign countries.

Check for restrictions and limitations

It's important to note that all of these policies have more restrictions and limitations than outlined here, and that policies vary slightly from company to company. Some car rental companies may demand that you pay up front for the damage to the car rental and seek reimbursement from the credit card later. Others will await payment from the credit card company providing you have complied with all laws, adhered to the car rental agreement, and completed all the necessary forms so the car rental company can get paid for the damage to the rental car.

Whether you will need the other types of insurance offered by the car rental company (which may include personal accident insurance and supplemental liability insurance) depends on what kind of coverage you already have through your regular car insurance policy or lack thereof. If you have any concerns or unusual circumstances regarding your New York car rental, read the fine print on the rental car contract or call the credit card company or your personal insurance broker before you rent the car. Take notes, including the name of the customer service representative you spoke with. It can be a challenge to track down these policies online, but if you contact your credit card company, they should be able to mail you a copy of the policy.