So many of you might be thinking of renting a car next time you go on vacation.  I couldn’t agree more, if you are going to be spending a lot of time in an area, or you will be doing business in an area where public transport isn’t frequent then this is the real way to go.

What a lot of people don’t realize is that their credit cards give them a lot of rights, especially at the ticket counter.   This amounts to you saving a lot of money. I will talk directly about VISA, but many other cards also give some kind of rental insurance.  The important thing to remember is that it has to be a full credit card. Bank or ATM cards won’t cut it here (even if they have the VISA logo).

Actually taking a look at the terms and conditions of your credit card is very useful.  For VISA cardholders, you can take a look at this site to see the cardholder benefits. They are surprisingly easy to read (not to be taken for granted in this day and age).  For one, VISA cardholders that are residents of the United States are fully covered when renting cars at home and abroad.  There are a bunch of terms and conditions, but here is the short of the long.

(1) The initial guarantee must be made with the VISA card.

(2) The final payment must be completed with the VISA.

(3) Coverage will be provided given that you refuse the coverage from the rental agency.

(4) Coverage is valid for up to 30 days per year.

(5) Coverage is valid in most countries, but not Ireland or Israel.

(6) Very high value sports cars are not covered.

Some of these are really self-explanatory, but let’s take a look at the ones that have to be understood.

A note about (3), the requirement to refuse additional coverage.  In some countries, the driver is required to purchase a certain amount of coverage by law.  It isn’t usually full coverage.  Whatever the case, you should refuse any additional cover beyond what is required by the local laws.    If you accept outside coverage, then the credit card won’t cover any damages, and the company providing outside coverage will cover you.

Here’s a good tip about number (4). The credit card will only cover you for a maximum of 30 days per year.  If you have to rent a car for more than 30 days here’s what you should do. Tell the agent that you need a contract for 30 days, and any additional days will have to be done with a new contract.  When renting the car, use your credit card as a temporary deposit.  Upon returning the car, (provided that it has no damage caused by you), just pay cash.  Because you didn’t complete the rental with the card, you are still entitled to your 30 days.  Just rent the car again using the same credit card.

Also keep in mind that when you show up to the rental counter, the agent will try to sell you full cover.  Rental agencies do a little of everything to try to convince you to pay for the extra cover.  Agents will do whatever they can to push this insurance, including(but not limited to) have you sign additional paperwork saying that you are refusing coverage, and initialing parts of contracts.  One time, they even offered me a larger car for accepting their insurance policy. They get commissions for this and so they will use whatever tactics they can to convince you to purchase their insurance.  Just simply remember that by accepting their insurance, you are paying for something that you already have.  Remember, it is possible to be over-insured!

I hope you enjoyed this article.  Take a look at my other travel articles here, and remember to travel smart!