Does Discover Card Have Rental Car Insurance? What Are Alternatives of Discover Card?

Does Discover Card Have Rental Car Insurance? If you are planning to rent a car in the upcoming days or months, you surely want to know if your credit card offers rental car insurance. Many people use credit cards for extra safety, but not all cards provide the same protection.

Does Discover Card have rental car insurance? You must know the answer to this great question to increase your rental car security. Come with us and explore what Discover offers for rental car insurance, how it works, and what you need to know before you hit the road.

What Is a Discover Card?

Discover Card is one of the most popular credit cards in the United States. Known for its cash-back rewards, zero annual fees, and top-notch customer service, it is a preferred choice for millions of consumers. However, when it comes to rental car insurance, you might not be sure if your Discover Card covers your rental vehicle. Rental car insurance can save you from paying high fees for damages or accidents while driving a rental.

Does Discover Card Offer Rental Car Insurance?

As of today, Discover Card does not offer rental car insurance. In 2018, Discover stopped offering auto rental insurance as a benefit. Before that, cardholders could depend on Discover for secondary insurance coverage while renting a car. Now, Discover does not give you any rental car protection. This change might surprise you if you are used to other cards that offer rental car insurance. Many popular credit card issuers like Visa, Mastercard, and American Express still provide this benefit. So if you are a Discover Cardholder and renting a car, you will need to look somewhere else for rental car coverage.

Why Did Discover Stop Offering Rental Car Insurance?

Discover decided to stop offering rental car insurance. This is part of a bigger change happening in the credit card industry. Other companies are also making similar changes. Although there is no specific reason to stop car rental insurance, many credit card companies are cutting back or removing perks that are expensive to keep.

They do this to save money and manage their costs better. Offering rental car insurance is expensive for credit card companies because it often shows high claims. As more people began depending on this benefit, Discover would have decided to cut it to manage costs.

By doing this, Discover can focus on its core benefits like cash-back rewards and low fees. Some customers may feel disappointed by this decision. But, the company thinks offering the best rewards program is more important for most users. They believe it improves the overall experience of a renter.

Alternatives of Discover Card for Rental Car Insurance 

If you are a loyal Discover Cardholder and need rental car insurance, do not worry! There are still a few ways that can help you to protect yourself when renting a car. Here are some of those alternatives:

Purchase Insurance from the Rental Company: Most rental car companies offer insurance options. These include Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). These can cover damages to the rental car. However, this can be expensive, often costing $10 to $30 per day.

Personal Auto Insurance: If you have a personal auto insurance policy, it might offer coverage to rental cars. This can include liability, collision, and comprehensive coverage, depending on your plan. So, discuss with your insurance provider before renting a car.

Use Another Credit Card: Many other credit cards still give rental car insurance. Some cards even offer primary coverage. This means you don’t have to use your personal insurance. Popular cards with this benefit include Chase Sapphire Preferred and some American Express cards.

Third-Party Insurance Providers: Some third-party insurance companies, like Allianz or InsureMyRentalCar, specialize in rental car coverage. These plans can be cheaper than buying insurance from the rental company. So, you can consider this option too.

Benefits of Using a Credit Card with Rental Car Insurance

If you decide to use another credit card for rental car insurance, it is important to understand the benefits of using it. Cards that offer rental car insurance provide either primary or secondary coverage.

  • Primary Coverage: This means the card covers damages without involving your personal insurance. It helps you avoid higher insurance premiums. You do not need to file a claim with your personal insurance, which keeps your rates from going up.
  • Secondary Coverage: This coverage only works after your personal car insurance pays. It helps cover the deductible or any costs that your personal insurance does not pay for.

Note: Rental car insurance from credit cards often covers collision damage, theft, and towing fees. However, it usually does not cover liability for injuries or property damage caused to others. You may need to purchase separate liability insurance if your personal policy does not offer it.

Insurance Tips for Renting a Car

When you are renting a car, it is important to know what coverage you have and where it comes from. Without the rental car insurance benefits from Discover, you have to depend on your personal auto insurance, another credit card, or insurance from the rental company. Check out what you should consider before renting:

  • Know Your Coverage: Contact your insurance provider or credit card company to understand what coverage you are getting. Some cards only offer coverage in specific countries, so check if you are traveling abroad.
  • Check the Rental Car: Always review the rental car for past damage before driving it. Take photos or videos for documentation in case you face any disputes later.
  • Understand the Fine Print: Rental car companies often have a few limitations in their insurance policies. Read the fine print carefully to know what is not covered, like off-road driving or using the car for business purposes.

Is Rental Car Insurance Important?

Rental car insurance is a valuable protection, especially if you are traveling in an unfamiliar area or driving a vehicle you are not used to. Accidents can happen, and without insurance, you can be stuck to pay from your pocket for expensive repairs. Although Discover does not offer this benefit, it is still necessary to consider your other insurance options. Some people rely on their personal auto insurance, but others might prefer to use credit card coverage or rental car company insurance.

Conclusion

So, Discover Card no longer provides rental car insurance as a benefit. If you depend on your Discover Card for travel and car rentals, you will need to explore alternative coverage options. You can consider another credit card that offers rental car insurance, discuss with your personal auto insurance provider, or purchase coverage from the rental company.

Even though this benefit is no longer available, Discover Card still offers fantastic rewards, making it a great card for everyday spending. But for rental car insurance, you need to plan in advance to avoid any hidden expenses.

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