If you don’t own a car, then renting one will fulfill your needs temporarily without spending a lot of money. The only thing that most of us don’t like is the Rental Car Insurance, right? If you are renting a car for one or two days, then it is fine.

But what if, you want it for a week? It is a lot of money. Moreover, if you are 25 years old or below, things are worse. That will cost you at least $20 extra per day, plus the insurance.

Come on, that is not acceptable but you have to.

Credit Cards will cover your Car Rental Insurance

That is where Credit Cards come into place to help you. Most of the Travel Credit Cards cover the Rental Car Insurances for you. That is a Good News.

Even though most of these Credit Cards will ask you to pay annual fees, it is a fair deal. Especially if you rent cars very often, this deal helps you save a lot of money.

Most of my friends are using it and they agreed that they are saving a lot of money. That is why I did a thorough research online to find more about it.

It was unbelievable to me as the Rental Car Insurance costs at least $20 per day if you rent a car and a Credit Card company is going to cover all of it? Sounds pretty good.

Even though you will have to pay $75 annual fee (on average), if offers great value in return.

But, like I said, the information that I found on the Credit Card’s official websites, didn’t satisfy me.

That ended up on deciding me to call the Credit Card companies itself and ask them directly.

So what I did, I picked the best two Credit Cards which cover the Rental Car Insurance and decided to call their Customer Service.

Before I jump into that, I needed to figure out what should I ask them.

After a quick research, I found what I needed from Greedy rates and it was clearly written there.

What do you need to know before you use the Rental Car Insurance covered by Credit Cards?

When you rent a Car, your Credit Card should cover;

  1. Damage to the Rental Vehicle.
  2. Theft of the Rental Vehicle.
  3. Damage to another person’s vehicle.
  4. Injury to another person.
  5. Loss of use of the Rental Vehicle while it’s under Repair.

Source: Greedy Rates

Greedy Rates say, Most of the Credit Cards cover the 1,2 and 5 when it comes to Rental Car Insurance. But the options 3 and 4 are not offered by any Credit Cards.

What is 3rd Party Liability?

3rd party liability means the Insurance Coverage provided by the Insurance Company where – if you hurt someone else or damage someone else’s car.

So what it means, most of the Credit Cards which offer the Rental Car Insurances won’t cover the 3rd Party Liabilities. That is not a Good News.

If you get into an accident, it is hard to say that such a situation won’t happen.

According to what I learned, if you don’t have 3rd party liabilities covered in your Rental Car Insurance and you met an accident and hurt someone else or damaged someone else’s car, that will ruin you financially.

But I need more proof to that. So like I mentioned above, I decided to call the Credit Card Companies and now I know what I needed to ask.

Best Credit Cards which offer Rental Car Insurance in Canada

# Scotiabank Gold American Express® Credit Card.

# American Express® AIR MILES® Platinum Credit Card.

# MBNA Rewards World Elite® MasterCard Credit Card.

I picked these 3 which are the best Credit Cards that offer Rental Car Insurance in Canada.

I called their Customer service and asked them to give more details about the 3rd party liability insurance coverage and unfortunately, none of them were offering that particular category in their Rental Car Insurance package.

In conclusion

What you need to know before using your Credit Card to cover the Rental Car Insurance?

I’m not saying that you shouldn’t use it anymore. I know it is tough to go with what Rental car companies are offering.

Using a Credit Card that covers your Rental Insurance can save you a lot of money, especially if you are between 20-25 years old, you save at least $30 by using a card like this.

I know some of my friends are highly confident about renting a car because they have a Credit Card which covers the Rental Car Insurance. That is good to an extent but not a long term solution.

When it comes to Rental Car Insurance, you must need to know what is covered by your Credit Card before you rent a Car with that.

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