Does the Costco Visa Card Provide Rental Car Insurance?

Renting a car can be nerve-wracking. You’re driving an unfamiliar vehicle in a new place. And there’s always the risk of getting into an accident or experiencing a breakdown. That’s why having rental car insurance is so important. It protects you financially if something goes wrong.

But do you need to purchase the rental company’s costly insurance plan? Or does your credit card provide sufficient coverage? In this article, we’ll look at whether the popular Costco Anywhere Visa® Card by Citi includes rental car insurance benefits.

Overview of Costco Visa Card

The Costco Anywhere Visa® Card by Citi is a rewards credit card exclusively for Costco members It offers

• 2% cash back on all Costco and Costco.com purchases
• 3% cash back on restaurant and eligible travel purchases
• 4% cash back on eligible gas purchases (on up to $7,000 per year, then 1% thereafter)
• 1% cash back on all other purchases

Cardholders also get perks like damage and theft protection when renting cars, access to Citi Entertainment for special events, and no foreign transaction fees.

Does the Costco Visa Offer Primary Rental Coverage?

When you use your personal credit card to pay for a rental car, you typically get secondary coverage. This means your card’s policy kicks in after your personal auto insurance policy pays out.

With the Costco Visa, you get primary coverage. This means the card’s benefits come first in the event of an accident or damage to the rental vehicle.

Specifically, the Costco Visa provides:

• Collision damage waiver (CDW) coverage for theft and collision damage
• No deductible
• Coverage for vehicles rented for 31 consecutive days or less

One thing to note is that primary coverage excludes luxury, specialty, and exotic rental cars in some countries. And it may not apply for rentals longer than 31 days. But for standard rentals within a month-long period, you can decline the rental company’s collision damage waiver and rely on the card’s protection.

Are There Any Drawbacks or Limitations?

The Costco Visa’s primary rental car coverage is quite comprehensive. But there are some limitations to be aware of:

• Excludes some locations – Primary coverage does not apply to rentals in Australia, Ireland, Israel, Italy, Jamaica and New Zealand. In these places, it acts as secondary coverage.

• Must decline CDW – You need to decline the rental company’s CDW/LDW for the card’s benefits to kick in. If you purchase supplemental liability protection, the card’s coverage is void.

• Doesn’t cover liability – The Costco Visa policy only covers damage to the rental car. It does not provide liability protection if you cause injury to others or damage their property.

• No coverage for expensive cars – As mentioned, rentals of luxury, exotic, and antique vehicles are excluded in most regions.

So while the Costco Visa provides excellent primary rental coverage in most situations, it’s not all-encompassing. Review the benefits guide for full details. And consider supplementing with your own insurance where applicable.

How to Activate Coverage

Activating the Costco Visa’s rental car benefits is straightforward:

1. Use the card to reserve and pay for the entire rental.
2. Review the rental agreement and decline any collision/loss/damage waiver offered. Accept liability coverage if desired.
3. Verify the rental is for 31 consecutive days or less.
4. Examine the car before driving off the lot and note any prior damage.

If you get into an accident or the rental car is damaged/stolen, contact the benefit administrator right away to file a claim. You’ll need documentation like the rental agreement, police report, and repair estimates.

Other Credit Cards With Rental Coverage

The Costco Visa isn’t the only card that includes rental car protection. Here are some others to consider:

• Chase Sapphire Preferred® – Primary coverage internationally, secondary domestically
• Chase Ink Business Preferred® – Primary coverage up to $75,000
• United Explorer Card – Primary coverage internationally, secondary domestically
• American Express Platinum – Secondary coverage, up to $75,000
• Bank of America Premium Rewards® – Primary coverage

Each card has its own stipulations, so review the benefits guide thoroughly before relying on coverage.

The Bottom Line

Thanks to its primary collision damage waiver, the Costco Anywhere Visa® Card by Citi provides peace of mind when renting cars for most trips. Just be aware of the limitations and exclusions. And consider combining it with your regular auto insurance policy and/or supplemental liability protection from the rental company for complete coverage.