does american express cover rental car insurance

You’re at the rental car counter, keys almost in hand, when the agent asks the big question: “Would you like to purchase our insurance coverage?” It’s a moment of uncertainty for many travelers. Before you automatically say yes, it’s worth checking what protection you might already have in your wallet. For American Express cardholders, the answer can be a resounding yes, but it’s not automatic. So, let’s clear up the confusion around the question: does american express cover rental car insurance?

How American Express Rental Car Coverage Works

American Express offers a secondary rental car insurance program on many of its cards. This means it typically kicks in after any other applicable insurance you have, like your personal auto policy. However, a key benefit is that AmEx allows you to upgrade to a Premium Car Rental Protection plan. For a flat fee per rental period, this plan becomes primary coverage, paying for damage or theft before your own insurance gets involved. This can save you from filing a claim and potentially facing increased premiums on your personal policy.

What the Protection Actually Covers

Both the standard and premium plans are technically Collision Damage Waivers (CDW) or Loss Damage Waivers (LDW). They cover damage to or theft of the rental vehicle itself. It’s crucial to know what they don’t cover. This protection generally does not extend to liability for injury to others or damage to their property. It also usually excludes certain vehicles like expensive luxury cars, vans, and trucks. Always check your card’s specific terms and conditions for a complete list of exclusions.

Activating Your Coverage is a Crucial Step

This is the most important part: coverage is not automatic. You must use your eligible American Express card to pay for the entire rental transaction. You also must decline the rental company’s own CDW/LDW coverage at the counter. If you accept their offer, your AmEx benefits will not apply. For the premium plan, you need to enroll your card and pay the associated fee for each rental.

Making Sure You’re Fully Protected

Before your next trip, take a moment to review the guide to benefits for your specific American Express card. This document will confirm your eligibility and the exact details of your coverage. Consider the premium upgrade if you rent cars frequently, as the primary coverage offers significant peace of mind.

Having rental car insurance through your credit card is a fantastic perk that can save you money and hassle. By understanding how your American Express coverage works and taking the simple steps to activate it, you can confidently skip the counter offer and hit the road with greater security.