How Does Your Car Insurance Card Work?

Estimated read time 4 min read

Although car rental companies usually add some type of insurance for the rented vehicle to the price, your credit card could help you save that expense.

Driving is an activity that always includes some type of risk. Even if you are a responsible driver with all the necessary precautions, there is always the possibility of coinciding on the streets with another who is not so careful and an accident occurs. This is why it is important to have insurance.

Limited liability insurance is also an obligation in 14 of the 32 states of the Mexican Republic. If you drive in Baja California, Chihuahua, Mexico City, Jalisco, Morelos, Nayarit, Nuevo León, San Luis Potosí, Sinaloa, Sonora, Tabasco, Tamaulipas, Veracruz and Yucatán, you must have it. This is something you can control when you drive your own vehicle, but what happens when the car is rented?

Car insurance by the landlord

Commonly, car rental companies include some type of vehicle insurance, although their cost is not always considered; at least limited coverage is a mandatory part of the service.

The insurance options that lessors usually offer are: limited coverage, which includes civil liability expenses, total theft and medical expenses for the occupants; and comprehensive coverage, which, in addition to the limited coverage services, covers some extra events such as material damage to the vehicle caused by natural causes and collisions, as well as some additional coverage.

It is very important to ask the company with which you will rent the car for the details of the insurance. Because in addition to knowing in what eventualities you are protected. You will be able to compare the real price with insurance included. Although there is compulsory insurance, many times it is the job of the lessor to try to sell you additional coverage that you may not really need for the time and type of use you are looking for with the rented car.

Car insurance included in your credit card

When you go on a trip, it is very likely that you will rent a car. Banks and other financial institutions have this in mind, so some credit cards include car rental protection. Know the characteristics of the card you have contracted. If it has this benefit and it is the best option to use it.

Rental car insurance is usually part of the benefits package. That is include in luxury plastics, gold and platinum categories or aim at travelers.

Among the companies that offer it are Visa, Mastercard and American Express. If your plastic is Platinum level or is a travel card, it is likely that it is already include as part of the services you pay for or the benefits of the card.

This type of card insurance includes a maximum amount as payment for damages. There are two very important conditions before using it: 1) To make it valid you must pay the full car rental with your card, and 2) As a cardholder, you almost always have to decline CDW/LDW (Collision Damage Waiver) coverage and loss damage waiver) offered by the car rental agency, depending on the type of credit card you have.

Each financial institution includes different characteristics. In some cases it only covers theft or material damage, others include collision, vandalism or accidental fire, and this is the case of Visa. MasterSeguro de Autos coverage also pays for physical damage as a result of hail, lightning, floods, or other weather-related causes, but only on certain card categories.

Drive easy

Driving always includes risks. When you take out insurance for your car and know the terms, your assets are protect. If you are going to go on a trip and want to rent a car to move more comfortably, do it calmly; In case of an accident you are protect. In addition to the options already mentioned there are others such as personalized or per kilometer insurance. Which you can even hire before planning your vacation.

If you are going to rent a car, evaluate your options. To collect insurance you will have to reject the others. If your credit card includes it or your normal insurance already includes it. Compare the benefits against those offered by the rental company. If the car rental does not include it and you already have another to cover your trip. You will not need to incur an extra expense.


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