Last Update: 12/30/15

By Alison DaRosa - San Diego Tribune - 2/7/93

If you think your gold credit card is providing collision damage insurance when you rent a car and use the card to pay for it, you may be in for a very costly surprise. 

If you've charged your car rental to a corporate or Gold MasterCard or Visa Gold, you have coverage -- but only if you rent a car for 15 or fewer days.  Rent a car for a 2 1/2 -week vacation and you've nullified all coverage from day one. 

Charge your rental to any American Express card -- except the corporate card -- and you have collision coverage for 15 days. If you're touring America for 2 1/2 weeks, you're not completely out of luck. Your American Express coverage remains valid for the first 15 days.

"If you're renting for more than 15 days, you should check with your own insurer to see whether you're covered," said American Express's Nancy Camis. "If not, you should ask the rental company if they have coverage you can buy." 

Camis cautioned that not all corporate American Express cards provide rental car damage coverage. Check with your company to find out whether it opted for the coverage -- or call American Express at (800) 338-1670. (You'll need to know your account number.) 

Oddly, if you rent a car outside the United States, the big three provide 31 days of coverage. And outside the United States, you get primary insurance coverage from all three cards. If you're driving domestically, American Express, Gold MasterCard and Visa Gold all provide secondary coverage, which kicks in only after your own insurer pays off any collision damage claim. (Essentially, they're paying your deductible.) 

Starting March 1, the Visa Business Card will become the best card to be carrying if you're renting a car in the United States. (Individuals can't get the card, said spokeswoman Tricia Wiseman. It's a corporate card.) Users will get primary coverage for 31 days worldwide. It will be the only credit card that automatically provides 31 days of collision damage coverage for domestic car rentals.  

But if you rent anything more than ordinary, you may be out of luck no matter which credit card you're carrying. Most vans, four-wheel-drive vehicles and exotic cars are not covered. 

Finally, be sure to name all drivers on the rental agreement, if you expect to be covered when someone else is behind the wheel. 

And be sure to check with your own insurance company; it may already provide most of the coverage you'll need.