Credit Card Companies Offering Collision Coverage
The vast majority of motorists have become leery of companies that offer motorists additional rental car insurance. These companies are viewed as running an almost illegitimate scam. Typically, rental car agencies will charge a customer $10.00 to $25.00 a day for insurance coverage on a rented vehicle. However, your regular car insurance company may be one of many who will extend coverage to their customers who are involved in motor vehicle accidents with vehicles other than their own. Not all insurance carriers offer this form of extended protection; therefore, it is important to educate yourself about the terms and conditions of your policy. Furthermore, your credit card company may be willing to assist in paying for additional expenses incurred that are not covered under your current insurance policy. These programs run by credit card companies sometimes boast that they will bear the financial responsibilities for all costs involved if a motorist is not covered by insurance.
However, a motorist should be wary of such claims made by credit card companies. Visa and Diners Club credit card carriers are offered rental car collision insurance and theft protection programs at no cost to the individual. Other credit card companies only extend these services to their premier clients. If you are enrolled in such a program, your credit card company is bound by the terms of your contract to pay for expenses that are not covered by your primary insurance. However, many credit card companies will not shoulder expenses from an accident that involves a rental car. Many credit card companies require that a rental car company provide the credit card company with a fleet utilization log, which is supposed to prove that the rental agency is unable to repair the car of their own volition. A rental car agency typically considers these documents to be classified and will refuse to surrender them, which nullifies the agreement of the card holder and their credit card company. If you do choose to enroll in such a program through your credit card company, be very vigilant when it comes to examining the particulars of your policy.
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