The Costco Credit Card’s rental car insurance will cover most car rentals purchased with the card, as long as you decline any insurance offered by the rental agency. If the car is stolen, or you get into an accident with the car, you’re covered for up to $50,000 in either repair costs or the cash value of the car (whichever turns out to be less). And because it’s free with the Costco Credit Card, it’s a lot cheaper than the rental car insurance offered by the rental agency.
There are some rules, however. The maximum length of a covered rental is 31 days, so your car won’t be covered if the rental agreement is longer than that. Covered issues include damage due to an accident, natural disaster, or vandalism; or theft of the vehicle. Towing expenses to the nearest collision center are also covered. The Costco Credit Card rental car insurance covers rentals worldwide – and outside of the U.S., it’s considered primary insurance, which means it covers the car before any other insurance policy takes effect.
Costco Credit Card rental car insurance does not cover rentals used as a “car for hire,” rentals from peer-to-peer car sharing companies, or damage done by operating the car in a way that violates the rental agreement. It also won’t cover bodily injury expenses.
If you need to file a claim, call 866-918-4670 as soon after the incident as possible. You can also visit the Citi Costco claims website to download a claim form.