The Macy's Credit Card does not offer a rental car insurance benefit. Even though the Macy's Credit Card doesn’t have rental car insurance, this perk is one of the handful of credit card benefits that still come with many credit card offers. If you’d like a credit card with rental car insurance, there are plenty of options.
In general, credit card rental car insurance provides coverage against damage and theft of a rental vehicle, usually up to the vehicle’s actual cash value, when the rental is paid for entirely with an eligible credit card. To get coverage, the cardholder must decline the rental agency’s insurance plan.
Rental car liability insurance is coverage that pays for injuries or property damage that you cause in an accident when you are driving a rental car. Rental car liability insurance does not protect you or your rental car from collision damage, car theft, loss of personal effects, or injuries.
In most states, some rental car liability insurance is included with the rental. However, the state-mandated minimum insurance that these cars carry might not be enough to protect you from the financial repercussions of an accident. Because of this minimal coverage, rental companies sell supplemental liability insurance at the counter. Rental car companies also offer other types of coverage like loss damage waivers, roadside assistance, and personal accident insurance.
You might already have rental car insurance through your current insurance coverage or your credit card, however. Your current auto insurance policy likely extends its liability coverage to rental cars, whereas credit cards often provide the equivalent of comprehensive or collision coverage but no liability coverage.
When Your Standard Insurance Covers Rental Cars
You have personal auto insurance
Your personal liability coverage limits are equal to or higher than the limits required for the vehicle that you're renting
You're only using the rental car for personal reasons, not business-related
You're only traveling inside the United States
You have homeowners or renter's insurance
When Your Credit Card Covers Rental Cars
Some credit cards, including many travel rewards cards, provide rental car insurance if you use the card to pay. Here are some key things to know about how credit cards cover rentals:
Certain cards provide primary coverage, which means you don’t have to file a claim with your insurance company before you file with the card company.
Certain cards offer secondary coverage, meaning they pay only after your insurance company has reached its limits.
Most cards only cover damage to the rental car, not damage to other people’s property, your property, or anyone’s injuries. So be sure to check with your credit card company to see if – and what type of – rental car insurance is included.
Getting Rental Car Liability From the Rental Company
If you do not have a personal car insurance policy and your credit card doesn’t cover you, you can purchase supplemental liability insurance from the rental car company. However, this can quickly get expensive, especially since liability insurance for the rental car is sold separately from other coverage.
If you rent cars frequently, it might be more efficient to buy rental car liability insurance from another source. For instance, travel insurance companies offer rental car liability insurance, often at lower prices. You can also buy a non-owner car insurance policy, which offers liability coverage. Another option is to compare credit cards that covers rental cars
No, you do not need insurance to rent a car because rental companies have their own insurance. Rental car companies usually provide minimum liability coverage only, so if you don’t have personal insurance, you’ll probably want to purchase extra rental car insurance through the rental company. If your personal car is insured and you pay for your rental with a credit card, you can probably skip the optional coverage offered at the rental counter.… read full answer
You don’t have to purchase all of these coverage types to be protected while driving your rental. But minimum liability insurance carried by the rental car company isn’t enough protection if you get into an accident.
When You Don't Need The Rental Company's Insurance
Before you buy the rental company’s insurance, you should consider what coverage you may already have through your personal car insurance. The coverage limits and deductibles you have on your personal vehicle typically still apply to rentals, as long as you’re renting for personal use. Many major credit cards also offer coverage for rental cars if you pay with your card and decline the collision damage waiver offered by the rental company.
The best rental car insurance is a personal car insurance policy. People who already have car insurance for their personal vehicle are usually covered up to their normal policy limits when driving a rental car in the United States. If you don’t have a personal car insurance policy, you can purchase rental car insurance from a third-party provider either directly or through the rental car company. Keep in mind that purchasing the coverage directly is usually the cheaper option.… read full answer
Third-party rental car insurance providers are affordable, costing around $6 to $25 per day, depending on the type of coverage. In comparison, the insurance a rental car company will sell you at the counter can easily cost twice as much.
Best Third-Party Rental Car Insurance
Insure My Rental Car
Bonzah is the best third-party rental car insurance provider because it’s the only option that offers supplemental liability insurance. The other major providers protect you from the cost of rental car repairs, roadside assistance, trip interruption, and/or stolen personal items, but they lack liability coverage options.
Some credit cards also provide rental car insurance, though they usually only cover damage to the rental car itself rather than bodily injury or property damage liability. Most cards offer secondary coverage, too, meaning that you must file a claim with your own car insurance company first – if you have one – before filing a claim with the card.
How to Choose the Best Rental Car Insurance for You
The best overall choice for rental car insurance depends on preference and personal circumstances. Some drivers consider their primary insurance to be the best option, especially when paired with the right credit card, since there’s no extra cost. But drivers who need additional coverage or who don’t want to pay their normal insurance deductible can purchase third-party rental insurance. Finally, buying insurance at the rental car counter is the most expensive choice, but it does add convenience and peace of mind.
If you plan to use your standard insurance policy or your credit card as rental car insurance, just be sure to read the fine print or call your insurer to make sure you’ll be covered. Also, check that you’ll fulfill the state’s minimum requirements for car insurance to avoid driving without sufficient coverage.
In most states, rental car companies automatically include the mandatory minimum coverage in your contract. California is a key exception, however, since state laws allow companies to rent out cars without providing any insurance. Consequently, if you don’t have a standard car insurance policy and you rent a car in California without purchasing liability coverage from the rental car company or a third-party insurer, you will be driving illegally without insurance.
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