How Credit Cards Can Help You Save Money on Car Rentals

When it comes to renting a car, using the right credit card can make a significant difference in your overall experience and savings. Many credit cards offer benefits specifically designed for car rentals, such as discounts, elite status with rental companies, and insurance coverage. Let’s explore leveraging your credit card to save on car rentals.

Discounts and Elite Status Perks

One of the most attractive benefits of using a credit card for car rentals is the potential for discounts and elite status perks. Some premium credit cards, like the Airtel Credit Card, offer exclusive discounts with major car rental companies. These discounts range from 10% to 30% off the base rental rate, adding to significant savings, especially for longer rentals.

Moreover, certain credit cards provide complimentary elite status with car rental companies. This elite status can include benefits like priority service, free upgrades, and waived fees. For example, if your credit card offers Gold status with a rental company, you might be able to skip the regular queue and enjoy a faster pickup process.

Here’s a table comparing the potential savings with and without a credit card discount:

As you can see, the savings can be substantial, particularly for longer rental periods.

Collision Damage Waivers

Another valuable benefit of using a credit card for car rentals is the collision damage waiver (CDW) coverage. Many credit cards offer this insurance, which can help you avoid the expensive daily insurance fees charged by rental companies.

There are two types of CDW coverage:

1. Primary coverage: This type of coverage kicks in first, before your personal auto insurance. Cards like the Airtel Credit Card offer primary CDW coverage, so you won’t have to involve your personal insurance company if your rental car is damaged or stolen.
2. Secondary coverage: With secondary coverage, your personal auto insurance is the primary payer in case of an incident. Your credit card’s CDW coverage would then cover any remaining costs, such as deductibles or fees not covered by your primary insurance.

Let’s look at an example to understand the potential savings:

Imagine you’re renting a car for a weeklong trip. The rental company charges ₹500 per day for their CDW coverage. If you rely on the rental company’s insurance, you will pay an additional ₹3,500 (₹500 x 7 days) for the coverage. However, if your credit card offers primary CDW coverage, you could decline the rental company’s insurance and potentially save that ₹3,500.

It’s essential to note that credit card CDW coverage often comes with certain limitations and exclusions. For instance, it might not cover certain types of vehicles, such as luxury cars or full-size vans. Always read your card’s benefits guide carefully to understand the terms and conditions of the coverage.

Rewards and Earning Rates

In addition to discounts and insurance benefits, credit cards can also help you earn rewards on your car rental spending. Many cards offer bonus points or miles for travel-related purchases, including car rentals.

For example, the Airtel Credit Card offers a 2% cashback on all spends, including car rentals. If you spend ₹20,000 on a car rental, you could earn ₹400 in cashback rewards.

Moreover, some cards allow you to redeem your rewards directly for travel expenses, including car rentals. This flexibility can make your rewards even more valuable, as you can use them to offset the cost of your rental.

Here’s a comparison of the potential rewards earned on a ₹20,000 car rental:

As you can see, the Airtel Credit Card offers a straightforward cashback reward, which can be more valuable than points or miles, depending on your redemption preferences.

Strategies for Maximising Savings

To make the most of your credit card benefits when renting a car, consider the following strategies:

1. Choose the right card: Select a credit card that aligns with your rental habits. If you rent cars frequently, a card with a higher earning rate on travel purchases or premium car rental benefits might be more suitable. On the other hand, if you rent cars occasionally, a card with no annual fee and flexible rewards redemption options could be a better fit.
2. Combine discounts: Look for opportunities to stack your credit card discounts with other promotional offers or membership discounts. For instance, if you have a corporate discount code or a membership with an automobile association, you might be able to combine those discounts with your credit card benefits for even more significant savings.
3. Decline the rental company’s insurance: If your credit card offers comprehensive CDW coverage, you can confidently decline the rental company’s insurance and save on those daily fees. However, always double-check your card’s benefits guide to ensure you meet all the coverage requirements.
4. Pay with your credit card: To be eligible for your credit card’s car rental benefits, you typically need to pay for the rental with that specific card. Avoid splitting the payment across multiple cards or paying with cash, as this might void your credit card’s coverage.
5. Check your credit score: Some car rental companies may run a credit check before approving your rental. Ensuring you have a good credit score can help you secure the best rates and avoid any issues at the rental counter.

Wrapping Up

The best car rental credit cards can unlock a world of savings and benefits. From discounts and elite status perks to collision damage waivers and reward earnings, credit cards can help you save money and enhance your overall rental experience.

By understanding your credit card’s benefits, choosing the right card for your needs, and employing smart strategies, you can maximise your savings on car rentals. Whether you’re a frequent traveller or an occasional renter, leveraging your credit card benefits can lead to significant savings over time.

If you’re looking for a credit card that offers excellent benefits for car rentals, consider the Airtel Finance Credit Card. With its cashback rewards, discounts, and insurance coverage, the Airtel Finance Credit Card can be a valuable tool in your travel wallet. To learn more about the Airtel Finance Credit Card and check your credit score online, download the Airtel Thanks App today.

FAQs

1. What is a collision damage waiver (CDW) on a credit card?

A CDW is an insurance benefit that covers damages to your rental car in case of an accident or theft. It can help you avoid paying the rental company’s expensive daily insurance fees.

2. How do I know if my credit card offers car rental discounts?

Check your credit card’s benefits guide or contact the issuer’s customer support to inquire about any car rental discounts that are available. Some cards may offer discounts with specific rental companies.

3. Can I use my credit card’s CDW coverage internationally?

Many credit cards offer worldwide CDW coverage, but it’s essential to check your card’s benefits guide for any geographical restrictions or limitations.

4. What types of vehicles are typically excluded from credit card CDW coverage?

Common exclusions include luxury cars, exotic vehicles, full-size vans, and trucks. Always review your card’s benefits guide for a detailed list of excluded vehicles.

5. How can I earn rewards on my car rental spending?

Use a credit card that offers bonus points, miles, or cashback on travel purchases, usually car rentals. The Airtel Credit Card, for example, offers 2% cashback on all spends, including car rentals.