Last updated on September 16, 2022, by Kristin
Are you planning to rent a car for a month or more? If you usually decline the insurance offered at the rental counter, it’s crucial to understand how long your car insurance or credit card will cover collision insurance for a long-term rental.
Will Your Car Insurance Cover a Long-Term Rental?
If you’re unsure whether your auto insurance policy will protect you during a long trip, it’s best to contact your insurance company directly. Alternatively, you can find your policy details online if you rely on your auto insurance for coverage.
Most major auto insurers cover rental cars for up to 30 days, although the terms can vary and policies are not always straightforward. For example, Geico generally covers private passenger vehicles rented for 30 days or less. On the other hand, Allstate’s auto policy covers a two-week car rental, but longer-term rentals are evaluated on a case-by-case basis.
Did your personal vehicle get into an accident, and now you need to rent a car long-term? If you purchased rental reimbursement insurance, the cost of the rental car might be covered. This type of coverage provides a daily limit for a specific period, such as $30 per day for 30 days. The bonus is that if the insurance company pays for the rental, they will likely cover you regardless of the car’s age. However, always confirm with your insurance company to be sure.
If you want to ensure that your personal auto insurance covers your entire long-term rental, here’s a pro tip: split your rental into two consecutive transactions of less than 30 days each. For example, if you need a car for 45 days, make two separate reservations. The first rental would cover the first 30 days, and the second rental would cover the remaining 15 days. This way, if you have an accident with any of the rental cars, your personal auto insurance coverage would still be valid since each rental period is less than 30 days.
Will Your Credit Card Cover a Long-Term Rental?
But what if you don’t have auto insurance? Your credit card might provide rental car coverage, but the terms can vary depending on the card. It’s always a good idea to check your card’s policy before making a reservation.
According to a study by Wallethub, approximately 38% of credit cards cover domestic rentals for 15 days and international rentals for 31 days. Around 52.3% of credit cards cover both domestic and international car rentals for at least 30 days, while about 9% cover rentals of only 15 days.
Some Visa cards provide coverage for damage, vandalism, and theft of a rental vehicle for up to 15 days. International rentals (excluding Jamaica, Israel, and Ireland) are typically covered for up to 31 days. Premium cards like Chase Sapphire Reserve offer coverage for car rentals up to 31 days.
Mastercard policies vary, but most card issuers cover car rentals for up to 31 days. For instance, the HSBC Premier World MasterCard provides coverage for that duration.
American Express establishes a general coverage period of 30 days for car rentals on all its cards. However, cardholders can extend that period to 42 days by purchasing premium car rental protection for a flat fee of $24.95 per rental. This option is considerably cheaper than buying insurance at the rental agency.
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