Relying on Credit Card Car Rental Insurance (No Primary Policy)

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1

My wife and I just went car-less and it’s been great! We live in Miami and don’t need a car on a daily basis, so we’ve been relying on Uber/Lyft and occasional car rentals.

I found a fantastic local deal and have been renting Tesla Model 3s for just $27 a day whenever I need a car for a few days. The combined cost of rentals and rideshares is way less than our previous lease payments.

I’ve been declining the rental insurance and using my Chase Sapphire Reserve instead. As far as I know, it doesn’t cover damage to others, meaning if I cause an accident, I’m liable for their damages, while credit card insurance would cover damage to my rental.

Is it unwise to rely solely on my Chase Sapphire Reserve’s insurance without a personal auto policy?

2

I don’t own a car and rely on my credit card for rental damage, while also buying liability insurance since I have assets that could be collected in a lawsuit.

3

Teal said:
I don’t own a car and rely on my credit card for rental damage, while also buying liability insurance since I have assets that could be collected in a lawsuit.

Have you considered an umbrella policy?

4

@Wynn
I’m not sure about others, but my umbrella policy only covers amounts beyond the max liability of my auto policy, which I assume is common.

5

I’d like to see what others say here. If you rent often, a non-owner auto policy could be worth looking into. It costs about $900/year, but it might give you peace of mind.

6

I also don’t own a car but rent frequently. I purchase third-party insurance for around $7–8 a day, adding that to my credit card coverage for peace of mind. I use Allianz insurance.

7

Credit card insurance generally only covers damage to the rental car itself. If you’re at fault and cause injury or property damage, you’re liable. In many states, it’s illegal to drive without liability insurance, and you could face serious consequences if you don’t have proof.

8

@Ash
Exactly, you still need to purchase liability coverage.

9

@Ash
I was under the impression that just using the rental company’s insurance would suffice.

10

Teal said:
@Ash
I was under the impression that just using the rental company’s insurance would suffice.

Correct! If you buy insurance from the rental company, that includes liability coverage, which the OP is not relying on.

11

Since my personal vehicle only has liability insurance, I also use Chase’s insurance for rentals. I had a minor incident (a rock hit my windshield), so I can’t say how liability would work if I damaged another vehicle.

12

@Asher
Your personal insurance likely covers liability for rental cars too.

13

It’s not dumb to rely on your credit card’s collision coverage, but it is unwise not to purchase liability insurance to protect above the state minimum coverage on the rental car. The rental company will protect its own interests, not yours.

14

Review your credit card insurance closely and consider additional coverage based on how often you rent. Some credit cards cover collision but not liability if you injure someone.

15

Mai said:
Review your credit card insurance closely and consider additional coverage based on how often you rent. Some credit cards cover collision but not liability if you injure someone.

Do you know of any credit cards that provide liability coverage? I wasn’t aware of any.

16

@Ash
I don’t know any specific ones; many credit cards seem not to offer liability coverage, though this article suggests they might not be accurate: https://thepointsguy.com/credit-cards/cards-rental-car-coverage/.