does costco credit card cover rental car insurance

[Mariana]

The Costco Anywhere Visa® Card by Citi does not offer standalone primary rental car insurance. Instead, it provides secondary rental car insurance coverage. This means it will only cover expenses not paid by your personal auto insurance policy first, after you've filed a claim with them and paid any deductible. This coverage is automatic when you use the card to pay for the entire rental and decline the rental company's collision damage waiver (CDW/LDW).

The key is understanding what "secondary" means. If you have a personal auto policy, you must use it as the primary payer. The card's benefit kicks in to cover your deductible or other costs your insurance doesn't cover. For those without a personal auto policy, the card's coverage may act as primary. However, there are significant exclusions. The coverage does not apply to rentals in certain countries, exotic or expensive vehicles, vans with a capacity over eight people, or damages to other people's property (liability insurance).

Coverage Aspect	Details for Costco Visa Card
Coverage Type	Secondary
Automatic Activation	Yes, when you charge the full rental and decline the rental company's CDW/LDW
What's Covered	Physical damage to or theft of the rental vehicle
Key Exclusions	Liability insurance, rentals in Ireland, Israel, Jamaica, Northern Ireland; expensive/luxury vehicles; vans over 8-passenger capacity
Required Action	You must decline the rental company's collision damage waiver

Before renting, always check the Guide to Benefits that comes with your card for the most current terms. It's also wise to call the number on the back of your card to confirm coverage for your specific rental. For peace of mind, especially if you want to avoid a claim on your personal insurance, considering the rental company's coverage or a separate third-party primary insurance policy might be a better option.

[MacSarah]

It covers it, but as a backup. You have to use your own car insurance first if you have it. The card just helps with what your insurance doesn't pay, like your deductible. So it's not a replacement for the insurance the rental company tries to sell you. Make sure you pay for the whole rental with the card and say "no" to their extra coverage for it to work.

[ElizaAnn]

As a secondary benefit, the coverage is useful but has clear limitations. It effectively reduces your out-of-pocket costs if you have an incident, primarily by covering your personal insurance deductible. However, it does not replace the need for liability coverage, which is crucial. For frequent renters or those without comprehensive personal auto policies, relying solely on this secondary coverage can be risky. Always review the latest terms from Citi.

[DelLilah]

I use my Costco card for rentals all the time for the cash back, and I always decline the extra insurance. I'm comfortable doing this because I have a good personal auto policy. I see the card's coverage as a safety net for my deductible. It's not something I ever want to use, but it's nice to know it's there. I would never rely on it if I didn't have my own insurance first.

[VanMalachi]

Think of it as a gap-filler, not a primary solution. The coverage is secondary, meaning your own car insurance is the first line of defense. This setup is common with many no-annual-fee credit cards. The real value is offsetting costs like your deductible after an accident. For primary coverage that acts before your personal policy, you'd need a premium travel card or to purchase the rental company's waiver. Understand the distinction to avoid unexpected costs.