Does American Express Cover Rental Car Insurance?

Many travelers rely on rental cars for their vacation trips, business trips, and other short-term transportation needs. It's important to make sure you have the right car insurance coverage when you rent a car. It can be confusing to know what type of coverage you need and who is responsible for it. One of the major credit card companies, American Express, offers some types of car rental insurance. It's important to understand if you're covered and what type of coverage you have.

What Coverage Does American Express Offer?

American Express offers three types of coverage for rental cars: collision damage waiver (CDW), theft protection (TP), and personal accident insurance (PAI). CDW and TP are included in your American Express card's benefits, while PAI is an optional add-on. CDW and TP are usually available for free when you use your American Express card to pay for your rental car, but you may still be responsible for paying a deductible.

CDW and TP cover the costs of damage and theft to the rental car. PAI provides insurance coverage for medical expenses if you or your passengers are injured in an accident. It also provides coverage for accidental death and dismemberment. It's important to note that American Express rental car insurance does not cover liability, so if you are responsible for causing damage to another person or their property, you would need to purchase additional liability coverage.

Am I Automatically Covered?

You are automatically covered for CDW and TP when you use your American Express card to pay for your rental car. However, you must meet certain requirements for the coverage to be valid. You must be a primary renter of the car, meaning that you are the only driver of the car. You must also be at least 25 years old. Additionally, the car must be rented from an approved rental car agency and you must use your American Express card to pay for the rental.

If you don't meet these requirements, you may still be able to purchase coverage from the rental car agency or your own personal car insurance policy. It's important to understand what type of coverage you have and what type of coverage you need before you rent a car.

Do I Need to Purchase Additional Coverage?

In some cases, you may need to purchase additional coverage. For example, if you are renting a car in a foreign country, you may need to purchase additional coverage to be fully covered. Additionally, if you are renting a specialty vehicle, such as a luxury car or an SUV, you may need to purchase additional coverage. It's important to check with the rental car agency to make sure you have the right type of coverage.

American Express rental car insurance can provide you with some types of coverage when you rent a car. It's important to understand what type of coverage you have, what type of coverage you need, and if you need to purchase additional coverage. Knowing what type of coverage you have and what type of coverage you need can help you make sure you are properly protected when you rent a car.