A benefit associated with a specific credit card provides coverage for vehicle rentals. This coverage acts as secondary or primary insurance when renting a car with the card, potentially saving renters money on insurance offered by rental companies. For instance, if an individual rents a vehicle using a specific card and experiences damage or theft, this benefit may cover repair costs or the vehicle’s value, depending on the terms and conditions.
The availability of such coverage offers significant advantages. It allows cardholders to decline the rental agency’s collision damage waiver (CDW) or loss damage waiver (LDW), leading to cost savings. Historically, credit card companies began offering this as a value-added service to attract and retain customers. The extent of coverage varies, underscoring the necessity of understanding the specific policy details and limitations.