Get Insurance Cover for Rented Cars From your Business Credit Card and Relax

Author: Smanik

You are required to get insurance for car when you rent it. Don’t buy auto insurance immediately even if you don’t have coverage from your insurance company. You won’t have to pay any extra money if you have your business credit card with you.

Almost all business credit card issuers give free car insurance cover for rented cars that are paid for with their business credit cards. Rental car’s insurance is generally overlooked by people holding business credit card while renting a car. If there is an accident or theft the business credit card issuer gives either replacement of car or gets it repaired. The insurance cover of business credit card even pays the towing charges if the need is there.

This is not a compulsory feature of businesses credit card so make sure whether your card has it or not. Sometimes you may have this feature on your business credit card but the issuer doesn’t give coverage. Therefore, confirm the terms of your business credit card agreement.

The rental car insurance feature which is part of business credit card’s benefits only covers those cars of car rentals which are hired by you for business purposes and paid for by your business credit card. If unfortunately you have an accident while using a rented car for personal use, the business credit card will give only limited or no cover inspite of the fact that you have paid for car rental via your business credit card. You should be always aware of your business credit card’s limitations. It would be better still if you talked to your business credit card company and confirmed from them.

The rental car insurance from your business credit card does not cover accidents caused by unauthorized drivers. Normally insurance coverage covers only the primary renter of car rental and drivers according to auto car rental contract. Therefore, you should never lend rented car to friends because legally they will be termed unauthorized drivers.

There is an expiry date to business credit card insurance cover. If you are still renting the same car after the expiry date, the insurance from your business credit card will not cover it. You should not expect business credit card insurance cover to be active for unlimited periods of time.

When there is requirement of filing a claim, don’t delay it. The insurance coverage on your business credit card has set number of days, maximum being forty five days to provide insurance cover for rented cars. Therefore, file your claim immediately after an accident or theft.

There are a few other things like personal injuries to self or some other occupant that are not covered by business credit card insurance. Any damage resulting from your failure to protect the rented car is generally not covered. Inspite of all these limits it is still good to know that you can get coverage by simply using your business credit cards while renting a car.

Still if car rental company insists that you buy their insurance the rule is to talk to your business credit card issuer first.

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Articles from August 2007
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