How does the Visa credit card rental car insurance work?

Yes, your rental car insurance will cover other drivers as long as they are listed as an additional driver on your rental agreement. You can add an additional driver to your agreement with most rental car companies by having the driver present their license at the rental counter. You may be charged a small daily fee for adding an additional driver, but some companies waive this fee if the driver is your spouse.... read full answer

When Rental Car Insurance Covers Other Drivers

• When you cause an accident. If you are driving a rental car and are at fault for an accident, other drivers’ medical expenses incurred due to the accident are covered by your rental car liability insurance. Rental car liability insurance typically costs about $10-$16 per day.

• When someone else is driving your rental car. If the individual is listed as an additional driver on your rental car agreement, your rental car insurance will extend to cover them as well. Keep in mind, the additional driver must be present when the vehicle is rented and must have a valid driver’s license to be eligible. Many companies also require the driver to be at least 25 years old.

Finally, it’s worth noting that even if you are using the rental insurance offered by your credit card, other drivers will still be covered under your card’s rental insurance as long as they are listed as an additional driver on your rental agreement.

To learn more, check out WalletHub’s guide to rental car insurance.

Third-party rental car insurance covers anyone's medical expenses and property damage in the event of an accident apart from for you and the rental car. Major third-party rental car insurance companies include Allianz and Bonzah, though online travel agencies and travel insurance companies usually offer this type of coverage as well.... read full answer

Key Things to Know About Third-Party Rental Car Insurance

If you need rental car insurance, buying from a third party is normally much cheaper than buying additional coverage directly from the car rental company. Buying enough coverage is very important, too. Although the mandatory minimum liability insurance is automatically included when you rent a car in most states, this bare-bones coverage is probably not enough to protect you if you get into a serious accident.

On that note, Bonzah is the only major third-party rental car insurance company that offers supplemental liability insurance. The other insurers offer the equivalent of comprehensive and collision coverage, along with some other benefits.

Third-Party Rental Car Insurance Companies

Allianz

• What It Covers: Damage to or theft of rental car; Trip interruption; Loss, damage, or theft of personal effects; 24/7 travel assistance
• Coverage Limits: $40,000 for the rental car; $1,000 for baggage; $1,000 for trip interruption
• Deductible: $0
• Pricing: $9 a day ($7 a day for Florida residents)

Bonzah

• What It Covers: Damage due to collision, theft, vandalism, windstorm, fire, hail, flood, and any cause not in your control; Personal effects; Option to add liability coverage
• Coverage Limits: $35,000 for the rental car; $500 total for personal possessions (or $250 per item); Option of primary liability coverage (state minimum) or supplemental liability coverage up to $1 million total
• Deductible: $0
• Pricing: $7.99 a day; $14.88 extra per day for primary liability; $11.90 extra per day for supplemental liability

Insure My Rental Car

• What It Covers: Damage to or loss of rental car; Option to add coverage for personal property, flat tire expenses, misfuelling fees, towing charges, and lost key reimbursement
• Coverage Limits: $100,000 for the rental car
• Deductible: $0
• Pricing: Varies by state, but often $9.75 a day

P’teet

• What It Covers: Damage to or theft of the rental car; 24/7 travel assistance
• Coverage Limits: $40,000 for the rental car
• Deductible: $0
• Pricing: $9 a day ($7 a day for Florida residents)

Rental Cover

• What It Covers: Damage to the car due to collision, theft, or vandalism; Lost key reimbursement; Loss of use fees
• Coverage Limits: $35,000 for the rental car
• Deductible: $0
• Pricing: $12 a day

Sure

• What It Covers: Physical damage to the vehicle or personal property; Flat tire expenses, misfuelling fees, towing charges, lost key reimbursement
• Coverage Limits: $100,000 for the rental car
• Deductible: $0
• Pricing: Varies by location and driver information

Even if you have car insurance that already covers rental cars, buying coverage from a third-party rental car insurance company can keep you from paying a deductible or from driving up your rates if you need to file a claim. Frequent car renters can also buy annual rental car insurance from Insure My Rental Car and P’teet.

What to Look For When Buying Third-Party Rental Car Insurance

If you plan to buy third-party rental car insurance, be sure to check coverage options and restrictions. Third-party companies often exclude unusual vehicles like limousines or motorhomes, or the coverage may be geographically limited. The many credit cards that offer rental car insurance have similar restrictions, by the way. Some also require you to file a claim with your normal car insurance company first.

Finally, if you are looking for a wider variety of coverage for an entire trip, travel insurance companies like Generali and Travel Guard offer rental car coverage in certain packages.

You can pay for car insurance with a credit card, but it might cost extra. All of the top 10 auto insurance companies accept credit card payments, as well as bank transfers, paper checks, and money orders. But insurers will charge a credit card processing or convenience fee, typically a percentage of the payment amount between 1.5% and 4%.... read full answer

Major Car Insurance Companies That Accept Credit Card Payments:

• Allstate
• American Family
• Farmers
• Geico
• Liberty Mutual
• Nationwide
• Progressive
• State Farm
• Travelers
• USAA

Paying for insurance with a credit card means taking an additional risk. If you don’t pay the full balance each month, interest charges can add up quickly. Plus, paying bills like your mortgage or car insurance with credit cards can negatively impact your credit score due to high credit utilization—how much of your total credit limit you’re using.

If you’re financially responsible and use credit cards effectively, paying with credit can be a smart move. For example, people with good credit and a great rewards card can rack up a lot of extra rewards by paying for car insurance with their credit card.

Most insurance companies also offer a paid-in-full discount. If the potential savings from paying the whole year upfront are worthwhile, but you can’t swing the payment upfront, a credit card could be a cost-effective solution. It also helps to get your payment out of the way, so you don’t have to worry about sending checks on time, late fees, or lapses in coverage, either.

If paying by credit card is the difference between making and missing a payment, it’s definitely better to buy now and pay over time to stay insured. There is no standard grace period when it comes car insurance payments. If you don’t pay the bill on time, you could be without insurance, and it’s illegal to drive. There can be lapsed coverage penalties, too.

Finally, if you need to pay your car insurance deductible with a credit card, you should be able to. Most insurance companies simply write a check—either to you or your mechanic—for the total cost of repairs minus your deductible. If you need to pay your deductible directly to your insurance company before they will write a check, they can process that payment on a credit card just as they would for a premium. Otherwise, the mechanic fixing your car will need to accept plastic for you to cover the cost of your deductible with a credit card.