NEW YORK (LowCards.com) -- If you plan on renting a car during an upcoming summer vacation, using a credit card to pay for it may save you money and provide increased protection.
When you rent a car, the rental agencies will try to sell a collision damage waiver, commonly referred to as a CDW. This is the insurance that provides coverage for damage to the rented vehicle. This can cost about $15 per day.
Depending on your policy, your personal auto insurance may cover any damage to the rental car. In addition, your credit card issuer may offer CDW coverage, but you must pay for the rental car in full with your credit card for this coverage to be valid. You must also decline the coverage from the rental car company. The CDW coverage from your credit card will be secondary to your personal coverage.
Make sure you understand the coverage on your personal auto insurance and your credit card before you rent a car. Since coverage varies from one issuer to another, it is a good idea to call both your car insurance and credit card company to get the specific details of your rental car coverage. Ask for the coverage information in writing.Coverage can vary depending upon a number of issues:
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