Coverage on Rental Car from Your Business Credit Cards

By: creditwisdom


Virtually all the business credit card issuers provide free vehicle insurance cover for rental car vehicles that are paid with their business credit cards. Rental car insurance is often overlooked by holders of business credit cards when they rent a car. In case an accident or theft occurs while you are driving the car, the business credit card issuer undertakes to reimburse you for the cost of repairing or replacing the vehicle; the business credit card insurance may even extend to covering towing charges if it is necessary.

This feature is not necessarily standard, so always make sure your business credit card includes it. Moreover, even if you do enjoy this business credit card benefit, there are instances when coverage will be excluded by your business credit card issuer. So check the terms in your business credit card agreement beforehand.

The rental car insurance feature that forms part of your business credit card benefits, is applicable only to car rentals for business use, that are paid for by your business credit cards. When you pay with your business credit card, it automatically activates the cover. If you meet with an accident while you use the car rental for your personal itineraries, there will be limited or no coverage at all in spite of the fact that the rental was charged to your business credit card. You should know the extent of your coverage before renting a car. You may want to call your business credit card company first, just to make doubly sure.

The rental car insurance from your business credit cards also excludes accidents caused by a person other than the authorized drivers. Generally, the insurance coverage extends only to the primary renter of the car and other additional drivers permitted by the auto rental contract. Hence, never lend a rental car to friends who are not authorized.

There will be an expiry date attached to the business credit card insurance coverage. If you continue renting the same vehicle beyond that specified period, the insurance from your business credit card will no longer be in effect. You should never assume that business credit card insurance coverage is active the whole time you rent a car - especially for extended periods.

When you need to file a claim, you should do it as soon as you can. The insurance coverage on your business credit card has set a maximum number of days, usually forty-five days, for you to file a claim. File a claim form at the soonest possible opportunity after the accident or theft occurred.

There are also a number of things that are not covered under the rental insurance in your business credit card. Personal injuries that you may cause to yourself or another person during an accident are not covered. Any damage resulting from your failure to protect the rented car is usually not part of the coverage. Despite these limitations, it is still good to know that you get coverage simply by using your business credit cards when you rent a car.

And if the car rental company insists that you purchase their insurance, the rule is: call your business credit card issuer first.


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