Paying for Rental Insurance? Why You May Not Need It

When renting cars, people often buy supplemental car insurance, which can reportedly add $15-$30 a day extra to the cost of the rental. However, it is often the case that consumers are already covered by either their current auto insurance, or their credit card company.

The majority of consumers are covered by their own auto insurance, but they may not know it,” Odysseas Papadimitriou, CEO of, said. “They may be spending extra money when they don’t have to.”

The four major credit card issuers, Visa, American Express, MasterCard, and Discover, all provide some form of rental car insurance in their coverage. CardHub rated the companies based on the extent of the coverage they provide and the ease of transactions. American Express achieved the highest rating (90%) and Visa the lowest at 74%.

In order to be covered for the rental car, one must make sure to charge the entire cost of the rental to the credit card and decline the supplemental coverage offered by the rental company. However, to be covered by your credit card comes with restrictions. For example, some vehicles may not be covered. Consumers should consult both their auto insurance provider, as well as credit company and rental company, to ensure they receive the coverage they desire.


Read more here- “Why You Don’t Need to Buy Extra Car Rental Insurance,” (Les Christie, CNN Money)

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Olivia is a graduate of Villanova University where she studied Economics and History, minoring in Gender and Women's Studies. She also has experience working with federal legislatures on health care policy, women's issues, and Internet safety.


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