That queasy feeling you get at the rental counter second guessing your decision to waive rental car insurance is more common than you think. Perhaps you’re not entirely positive your personal auto insurance policy covers your rental vehicle. Or maybe you heard somewhere that paying for a rental car with a credit card means the credit card company will cover you.

So, should you skip the rental car company insurance if you paid with a credit card?

Here’s what you want to have straight:

• How rental car insurance through a credit card works.

• How to tell if you have car rental coverage through your personal car insurance.

• Whether you should get a travel credit card that provides primary rental coverage or just pay for insurance through the rental company.

Does your credit card provide car rental insurance?

Whether you have credit card coverage when you rent cars depends on a few factors.

First and foremost, your credit card has to offer rental car benefits either through primary car rental insurance or secondary coverage. Secondly, you have to activate the credit card’s coverage by putting the entire rental cost for the full rental period on the card and waiving the rental agency’s car insurance coverage.

So before you decline the rental car coverage at the counter, check with your credit card issuer to make sure the kind of car you’re renting and the country you’re driving in is covered. For instance, some rental cars in European countries include the cost of liability insurance in the rental fee.

You shouldn’t assume your credit card provides primary or secondary coverage. Most credit cards used to offer rental car coverage, but some popular cards have dropped the benefit. Discover, for example, ended rental car insurance benefits in 2018. Some companies offer premium car rental protection at additional cost or as part of a travel credit card with an annual fee. To understand exactly what your card covers, read your card’s benefits guide.

Read more: How travel credit cards can help you save on your next vacation

What kind of coverage do car rental companies offer?

Paying for auto insurance coverage through the rental agency can be expensive, averaging anywhere from $15-$50 per day. And in reality, the insurance from rental car companies isn’t really insurance.

The car rental company already has insurance coverage on the actual cash value of the rental cars they own. What’s offered at the counter is simply a waiver written into the rental agreement that the car rental agency won’t hold you liable for damage to the car due to accident or theft.

The waivers can be categorized as either a collision damage waiver (CDW) or a loss damage waiver (LDW). These waivers are the same coverage identified by different names. However, some rental agencies offer these waivers for medical expenses, as well as optional add-ons called personal effects coverage (PEC) and personal accident insurance (PAI). So check the fine print on your rental agreement.

For most customers with a personal car insurance policy or primary coverage through credit card insurance, the rental car coverage provided at the rental agency will be redundant and unnecessary.

Types of credit card rental car insurance: Understanding primary vs. secondary coverage

Leveraging your credit card benefits at the rental counter can save money, but as the cardholder it’s important to understand how car rental insurance works and how different types of credit card rental insurance overlap with what your personal auto insurer covers.

Primary rental car insurance

Primary rental car coverage is exactly what it sounds like. You submit a claim first with your credit card company rather than your car insurance company. But be warned that the credit card’s primary rental car insurance doesn’t include liability coverage. Any liability you have for damages to another car, property, or person would need to be covered by your own auto insurance.

Primary coverage on a credit card is less common. But cards that offer this coverage include the Chase Sapphire Preferred®, Chase Sapphire Reserve®, and Capital One Venture X Rewards credit cards.

Secondary car rental insurance

Most credit cards, including the Delta SkyMiles® Reserve American Express Card, offer secondary car rental coverage instead of primary insurance. This means that your personal car insurance policy steps up first to cover damages while your secondary credit card coverage acts as a failsafe. In this scenario, your card’s rental car coverage would only pay for property damage not covered by your personal policy.

If you don’t have personal auto insurance, the secondary coverage from your credit card would become primary coverage.

Let’s look at how secondary car rental coverage works. Say you rent a car for a week and decline the damage waiver at the agency counter. But you charge the entire rental on your Amex card, which offers secondary rental coverage. You get in a minor accident that results in the rental company replacing the fender at a cost of $1,800.

You’d file a claim first with your personal auto insurance, pay the deductible, and your car insurance company would pay the rest. However you can then go back to your credit card company and file a claim to be reimbursed for your deductible. If, on the other hand, you have primary insurance coverage through your credit card, you’d file a claim with them first and they’d pay the full $1,800.

Credit card rental car insurance limits

What is and isn’t covered by credit card rental car insurance differs depending on your credit card issuer and even the type of credit card you have. Generally, credit card rental coverage benefits provide the following:

• Collision coverage (actual cash value of car)

• Towing expenses

• Loss of use charges

There are also a few scenarios where credit card rental car insurance won’t provide coverage. Here are some common exclusions:

• Rentals longer than 15 to 31 consecutive days

• Rentals used for ridesharing

• Motorcycles, exotic cars, vans, and trucks

• International rentals in specified countries

Liability and injury are the two biggest concerns that credit card rental car insurance doesn’t cover. If you’re a frequent car rental customer and don’t have your own auto policy with liability and collision insurance, The Insurance Information Institute recommends purchasing non-owners insurance.

3 benefits of credit card rental car insurance

Using your credit card to pay for a rental car has its benefits, even if you never need to use them to file a claim.

1. Credit card rental coverage saves money

In some cases, you already have this coverage as a built-in benefit of your credit card at no additional cost. It makes sense to put it to work and save yourself some money in the process.

2. Credit card rental insurance can cover your deductible

If you use primary coverage through your own auto insurer to cover rental car damage, you’ll usually have to pay your deductible. Credit card secondary coverage can reimburse you for that cost.

3. Credit card coverage steps up if your primary coverage fails

Whether you don’t have a personal auto insurance policy or your coverage doesn’t apply, your credit card may still have you covered for the cost of collision damage to your rental car.

How to make sure you've covered by credit card rental car insurance

Want to make sure you take advantage of the rental car insurance perks offered by your credit card? Follow these steps next time you plan to rent a car at home or abroad.

Step 1: Verify that your credit card covers rental car insurance.

It’s worthwhile to check with your credit card company before you belly up to the counter for a rental, but especially if you’re renting internationally. A few companies may not cover rentals in specific countries like Australia or Jamaica.

Step 2: Consider opting into your credit card’s primary rental car protection.

Typically, credit cards offer primary coverage for rental cars as a monthly, flat fee, opt-in protection program. It can function as primary insurance, offering higher coverage limits, secondary medical coverage, and extending insurance coverage for a longer rental or covering vehicles like luxury cars, vans, or trucks.

Step 3: Decline the rental car company’s damage waiver.

Stay strong and say no to the collision damage waiver or loss damage waiver they’re trying to slide across the counter for an extra fee. In order to activate your credit card’s insurance coverage benefits, you have to decline these waivers.

Once you’re on the road in your rental, keep your insurance information handy and rest assured that between your auto insurance policy and credit card benefits, you should be covered for rental car damage without those costly waivers.