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Released: February 17, 2012

Help Desk FAQ

Does a credit card protect me from liability when I rent a car?

Use of a credit card does not protect you from personal liability when you rent a car. If you are involved in an accident that injures other people or damages another vehicle, your primary insurance coverage would cover your liability, up to the limits of your coverage.

Many credit cards provide an auto rental “collision damage waiver” (CDW) benefit, which covers the loss if your rental vehicle is damaged or stolen. If you have personal insurance that would cover the loss, then the credit card benefit would reimburse your deductible. To take advantage of the card’s benefit, you must decline the car rental company’s collision damage waiver.

Benefits and restrictions vary among card issuers. For example, Discover limits its collision damage waiver benefit to $25,000, which might not be enough to cover many vehicle classes. Contact your credit card issuer regarding its policies, as not all cards offer a CDW benefit.