Renting a car can be a hassle. You have to find the right rental company, choose your car, and then there’s the issue of insurance. The rental car company will try to sell you extra insurance when you pick up the vehicle, but is it really necessary? If you have the right credit card, the answer may be no.
Credit cards with rental car insurance perks can save you a lot of money by covering damage to the rental vehicle in case of an accident or theft. This allows you to decline the costly insurance from the rental car company. But not every card offers these benefits, so it’s important to know which ones provide rental coverage.
One popular card that includes free rental car insurance is the Costco Anywhere Visa® Card by Citi. This Costco co-branded card provides valuable rewards and benefits to Costco members, including collision damage waiver insurance when you use it to pay for a rental car.
Let’s take an in-depth look at how the Costco Visa rental car insurance benefit works, who is eligible, what is covered, and how it compares to other credit cards’ policies.
Overview of the Costco Anywhere Visa Card
The Costco Anywhere Visa is a rewards credit card offered through a partnership between Costco and Citi. Cardholders earn:
- 4% cash back on eligible gas purchases, including at Costco
- 3% cash back on restaurants and eligible travel purchases
- 2% cash back at Costco and Costco.com
- 1% cash back on other purchases
There is no annual fee for the card. However, you do need an active Costco membership, which starts at $60 per year.
The Costco Visa comes with many benefits beyond rewards, such as:
- Purchase protection
- Extended warranty
- Travel accident insurance
- Roadside dispatch service
- Rental car insurance
The rental car coverage is one of the most valuable perks because it can save you a lot of money when renting vehicles.
Does Costco Visa Have Rental Car Insurance?
Yes, the Costco Anywhere Visa Card provides primary rental car insurance when you use the card to pay for an auto rental.
This means if your rental car is damaged or stolen, the Costco Visa insurance will cover the costs before any other insurance you may have, including personal car insurance or rental company insurance.
The rental car coverage has no deductible and is valid worldwide, with no geographic restrictions. It applies to car rentals up to 31 days in length when you decline the collision damage waiver (CDW) and loss damage waiver (LDW) from the rental agency.
What is Covered by the Costco Visa Rental Insurance?
The Costco Visa rental car insurance covers:
- Physical damage and theft of the vehicle
- Valid rental agency towing charges to the nearest collision repair facility
You are covered up to the actual cash value of the vehicle or the repair costs, whichever is less. The maximum benefit is $50,000 per rental.
What is Not Covered?
While the Costco Visa rental coverage is extensive, there are some limitations and exclusions:
- Rentals over 31 days are not covered
- Damage caused by wear and tear or mechanical failure
- Personal injury or liability claims
- Damage to other vehicles/property
- Rentals considered “off-road” vehicles
- Rental cars used commercially (rideshare, delivery, etc.)
You also won’t be covered if you violate the rental agreement or operate the vehicle recklessly or while intoxicated.
How to File a Costco Visa Rental Car Claim
If you need to file a claim due to damage or theft of your rental car, follow these steps:
- Call 1-866-918-4670 as soon as possible to start your claim
- Submit claim forms and documentation within 180 days:
- Rental agreement
- Accident report or damage estimates
- Receipts showing you paid with your Costco Visa
- Any other evidence requested
- The claims administrator will confirm coverage eligibility and process your claim
It’s important to note that you must decline the rental company’s collision insurance in order to be eligible for the Costco Visa rental car benefits.
Who is Eligible for the Rental Car Insurance?
To take advantage of the free Costco Visa rental car insurance, you must meet the following eligibility requirements:
- You must be a cardholder of the Costco Anywhere Visa. Authorized users are also eligible.
- The rental car must be for personal use. Business rentals are not covered.
- You must decline the collision damage waiver (CDW) from the rental agency.
- You must pay for the entire rental with your Costco Visa.
- The rental period must be 31 days or less.
As long as you meet these qualifications, you can enjoy valuable rental coverage at no extra cost!
How Costco Visa Compares to Other Credit Cards
The Costco Anywhere Visa isn’t the only card that offers free rental car insurance. Many other rewards cards provide similar benefits, but they differ in coverage details.
Here’s how the Costco Visa rental protection compares to some other top credit cards:
| Card | Coverage | Details |
Does Costco car insurance cover rental cars?
Does Costco Visa card cover car rental insurance?
Does Costco insurance cover rental cars?
Does Visa insure my rental car?
Does Citi credit card have car rental insurance?