When renting a car, understanding your existing insurance coverage can save you from unnecessary expenses at the counter. Your personal auto policy and certain credit cards often provide rental car benefits, but make sure to meet specific requirements, such as declining the rental company’s coverage and following the rental agreement terms.

Credit cards may offer rental car coverage for damage but typically do not include liability or medical coverage. Requirements for coverage usually involve renting the car in your name, using the specific credit card for payment, declining the rental company’s coverage, driving according to the rental agreement terms, and filing insurance claims promptly.

Some credit cards provide primary rental car coverage, while others offer secondary coverage. It is crucial to know which type of coverage your credit card offers to file claims correctly. Always verify coverage with your credit card issuer, as some popular cards have eliminated rental car benefits.

Rental car insurance from credit cards may not cover liability, so you may need additional coverage for damages you cause to others or their property. Understanding what is covered by your credit card rental car insurance and what is not can help you make informed decisions when renting a car.

Car rental companies offer insurance add-ons like personal effects coverage and personal accident insurance, which may be redundant if you have existing coverage through homeowners or renters insurance. Knowing what’s included in your credit card rental car insurance can help you avoid unnecessary expenses at the rental counter.

Always check with your credit card company before renting a car to understand the coverage benefits. By declining costly waivers at the counter, you can activate your credit card’s insurance coverage and potentially save money. Understanding your coverage options can help you make informed decisions when renting a car.

Including a collision damage waiver in your rental agreement is beneficial if you lack coverage through personal auto insurance or credit cards. Rental car reimbursement coverage is optional and can be added to your auto insurance policy to cover rental costs if your car is in the repair shop after an accident.

Read more at Yahoo Finance: How does credit card rental car insurance work?