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When you’re picking out a rental car, the rental car company can confront you with a confusing list of car insurance add-ons and protections you can buy. While it may seem like a good idea to get rental car insurance, you probably don’t need it. After all, some of the best travel rewards cards offer car rental coverage, potentially allowing you to skip the rental company’s collision damage waiver (CDW).
In particular, some of the top rewards cards offer CDW automatically when you use the card to pay for car rentals. this gave up
R can cover the rental car in case of an accident or theft or damage to you. So today I’m going to discuss the best cards that offer car rental coverage and answer some frequently asked questions about this benefit.
These cards provide major car rental coverage for most rentals. This guide focuses on cards that provide primary coverage and discusses the differences between primary and secondary coverage. I’ll also highlight some low-level or no annual fee cards that provide secondary car rental coverage at the end of this guide.
Primary and secondary car rental coverage
Some travel rewards cards offer primary or secondary car rental collision damage. Some business credit cards offer secondary insurance when you rent a car in your country of residence for personal reasons. However, secondary insurance only works after your auto insurance and other types of insurance, such as travel insurance.
So, if you’re in a rental car accident, you may have to file a claim with multiple insurance companies if you paid the rent with a credit card that offers secondary insurance. On the other hand, primary insurance applies before any other type of insurance. So, with primary insurance, you only need to file one claim.
Both types of coverage usually have a published maximum, so make sure it matches or exceeds the total value of the car you’re renting. Generally, primary insurance will reimburse the cash value of your rental car or the cost of repairs, whichever is less. However, secondary insurance will only reimburse you for the amount covered by any of your other insurance policies.
Most secondary policies on credit cards automatically become primary coverage in two common scenarios. First, if you’re renting a car outside of the US and your auto insurance policy isn’t covered in that country, the CDW of the card could be prime. Second, if you don’t own a car and don’t carry a car insurance policy, most of the secondary coverage provided by a credit card becomes the primary one.
What is covered (what is not covered)
The car rental coverage offered by a credit card won’t cover everything. (Photo by @brittnyborowski/twenty20)
The Car Rental Collision Damage Waiver Profit or Loss provides reimbursement for damage caused by a collision or theft, up to the actual cash value of most vehicles. Typically, CDWs only cover physical damage or theft of rental vehicles. Some cards also cover loss-of-use charges assessed by rental companies and tugboat charges to take the vehicle to the nearest qualified repair facility.
You must decline the rental company’s auto damage insurance or similar terms to get credit card auto damage coverage. You may also need to decline other types of insurance offered by the car rental company. It is important to remember that some rental vehicles may not be eligible for insurance. In particular, if you rely on these benefits, the following terms must be kept in mind:
Liability insurance not included
While the collision damage waiver provided by your credit card may cover damage to your rental car, it will not cover any damage you cause to other vehicles and personal property. Credit card car damage insurance generally does not cover injury to you, your passengers, or pedestrians in an accident. Your auto insurance policy may be in effect here, but it’s a good idea to check your policy or call your provider to confirm.
If you don’t own a car, consider buying non-owner car insurance. Many insurance companies offer this type of coverage, but they don’t always advertise this coverage online. Worth checking with several companies for their pricing policies, as the prices I’ve found tend to vary widely.
Not all car types are covered
Recreational vehicles are generally not eligible for collision damage. (Photo by Katie Genter / points guy)
If you stick to standard rental categories like small, mid-size, and full-size cars, the credit card rental policy should apply. However, most policies do not cover premium vehicles, including large vans, pickups, vintage cars, and motorcycles. In addition, many policies do not cover leasing and micro-leasing. Most policies do not cover rentals through person-to-person car-sharing companies.
This is limited by the number of days
Many readers may insist on short travel times during rental cars. But if you need a multi-month car rental, your credit card coverage usually won’t apply.
Some countries are excluded
While the exact list of excluded countries varies from card to issuer, the most common exceptions I’ve noticed are Australia, Israel, Italy, Ireland, United States, Jamaica, Northern Ireland, and New Zealand. No matter where you’re traveling, it’s a good idea to call the customer service number on the back of your card to make sure your destination is insured whenever you rent a car outside the United States.
Make sure your lease is eligible
Call the number on the back of the card to find out coverage before renting a vehicle. (Photo by Hero Images/Getty Images)
You must read your card’s policy carefully to understand what is not covered. If you have any questions about your insurance, you can call the customer service number on the back of your card. Doing so will allow you to obtain more information and confirm that your policy covers the type of rental vehicle in the country you are visiting.
Top Brands, Major Car Rental Coverage
This section will discuss some of the best credit cards that provide major car rental coverage when you use the card to pay for the entire rental. Note that this is not an exhaustive list, so you may find other hands that also offer major coverage. In particular, I’ve excluded cards that provide primary car rental coverage for current cardholders but are currently not accepting applications.
Chase Sapphire Reserve and Chase Sapphire Preferred Cards
The Chase Sapphire Reserve and Chase Sapphire Preferred are both major car rental services in most countries. Additionally, these cards provide rental insurance for up to 31 consecutive days. Specifically, losses covered by this policy include physical damage to and theft of the rental vehicle, valid lost use charges as assessed by the rental company, and reasonable and customary towing charges associated with the covered losses.
The two cards have slightly different policy details, though. So be sure to read the benefits guide linked below for full details:
- Sapphire Reserve Guide
- Sapphire Preferred Guide
Sapphire Reserve
The Chase Sapphire Reserve is the most popular premium travel rewards credit card despite its $550 annual fee. Currently, you can earn a 60,000-point sign-up bonus if you purchase $4,000 in merchandise within the first three months of account opening. Afterward, you’ll earn 3x Chase Ultimate Rewards points on travel and dining purchases. Additionally, Chase Sapphire Reserve allows you to get great benefits like a $300 annual travel credit, priority through select membership, travel protection, and a $100 application fee for Global Entry or TSA PreCheck.
Official App Link: Chase Sapphire Reserve
Meanwhile, the Chase Sapphire Preferred Card is easily one of the best travel rewards cards with an annual fee under $100. Chase Sapphire Preferred Currently, you’re offering an even better sign-up bonus of 100,000 points when you purchase $4,000 within the first three months of account opening. Additionally, Chase Sapphire Preferred offers 2x points for travel and dining.
ink business card
Ink Business Cards – Ink Business Preferred Credit Cards, Ink Business Cash Credit Cards, and Ink Business Unlimited Credit Cards provide prime coverage for most types of vehicles. This insurance provides reimbursement up to the actual cash value of the vehicle, including expenses related to physical damage to or theft of the rental vehicle, valid lost-use charges, and reasonable and customary towing charges as assessed by the rental company.
Note that you only need coverage by primary coverage, but primarily for business purposes, renting out of your residence for personal reasons or if you don’t have auto insurance. Conversely, if you rent and have auto insurance for personal reasons in your country of residence, you will only get secondary coverage.
The Ink Business Preferred Card currently offers you a sign-up bonus of 100,000 bonus points after you spend $15,000 in purchases from the first three months of account opening. With this card, you’ll earn 3x points on travel, shipping purchases, internet/cable/phone services, and advertising purchases made with social media sites and search engines (on up to $150,000 in combined purchases each account anniversary year) and 1x points on everything else. This card has a $95 annual fee.
The Business Cash Card currently offers you $750 in cash after purchasing $7,500 from the first three months of account opening. You can spend 5% cashback (up to $25,000 in account anniversary years) at office supply stores and on internet, cable, and phone service. You can also get 2% cashback on gas stations and restaurants ($25,000 in restaurants once a year, and 1% cashback on all other purchases.
You can combine these earnings with other qualifying chase cards to convert them into Ultimate Rewards points. Unfortunately, Ink Cash charges a 3% foreign transaction fee, but no annual fee.
Official App Link: Ink Business Cash
The Ink Enterprise Unlimited Card currently gives you $750 in cash after you purchase $7,500 from the first three months of account opening. What you earn is straightforward: 1.5% cashback on all purchases. As with Ink Business Cash, if you hold this, you can convert those earnings into Ultimate Rewards points to earn Ultimate Rewards cards. In addition, there is a 3% handling fee for external transactions, but no annual fee.
United Airlines Card
As mentioned above, the following four currently available union credit cards provide primary car rental coverage and charge the entire rental cost to your card when you decline the rental company’s collision insurance. This coverage provides sales for the actual cash value of the vehicle for most rental car theft and crashes damage in the US and abroad.
The American Explorer Card currently offers 60,000 miles on purchases that cost $3,000 in the first three months of account openness. Plus, spend $6,000 for an additional 10,000 miles in the first six months. You will earn 2x Manchester United Miles on combined purchases, meals, and hotel stay when booking directly with the hotel. The card has a $95 annual fee, which is waived the first year.
Official App Link: American Explorer Card
The United Quest card offers 80,000 miles on purchases of $5,000 within the first three months of your account being open. Plus, earn an additional 20,000 miles on $10,000 in purchases of $10,000 within the first six months of your account being open. You’ll get 3 Miles on your associate purchase (immediately after earning $125 in USD Affiliate Credit) and all other travel, dining, and select streaming services. The card has an annual fee of $250.
Official App Link: United Quest Card
The United Club Unlimited Card gives you 75,000 miles on purchases for $3,000 within the first three months of your account being open. You’ll get 4,000 miles of meals and all other travel at United Comics and 2,000 miles. The card has an annual fee of $525.
Official App Link: United Club Unlimited Card
The United Business Card currently offers 75,000 miles on purchases that cost $5,000 in the first three months of account openness. Plus, earn an additional 75,000 miles from a total of $20,000 within the first six months of account opening. You’ll get 2x Mountain Gate at the Office Supply Store and during local transit and commuting, at United Complications, at restaurants, and during local transit and commuting. The card has an annual fee of $99.
Official App Link: United Business Card
Capital One Spark Business Card
Capital One Spark Family Business Cards – The Capital One Motivation Cash and Capital One Spark Miles for Business – offer major car rental CDWs when you rent a vehicle for business or commercial purposes. If you rent for personal reasons, you will get secondary insurance. The card can reimburse damages due to collisions or theft, up to the actual cash value of most leases. Insurance coverage applies to rentals of 31 days or less. Benefits are only available for approved account visa signature cards.
Terms apply.
The current sign-up bonus Capital One Motivation Cash is a $500 cash bonus when you spend $4,500 in the first three months of account opening. You can get 2% cashback on all purchases. The card has an annual fee of $95, which is waived for the first year.
Official App Link: Capital One Motivation Cash
The current sign-up bonus for Capital One Spark Miles for Business is that you can spend $4,500 on purchases when you purchase $4,500 in the first three months of account opening. You will earn 2x capital mile on all purchases. And miles can be redeemed for each fixed value or transferred to airline partners. The card has an annual fee of $95, which is waived for the first year. Check out the Capital One Hearse Business Credit Card Review for more information.
Top Brand, Tier 2 Car Rental Coverage
(Photo by Isabelle Raphael/The Points Guy)
If you don’t have a card that offers primary car rental coverage, your next best bet is a card that offers secondary coverage. Many credit cards offer secondary car rental coverage. So, I’ve just highlighted some of my favorite picks below.
American Express
Most American Express cards offer secondary car rental coverage. You can see the entire list of cards that provide secondary car rental protection on the American Express website. If you don’t need primary coverage, you can use one of the cards and decline the rental company’s coverage.
However, if you’re looking for prime coverage, all American Express cards offer an optional Advanced Car Rental Protection Policy that can be added (penalty) to using the card to add to your rental. Selecting benefits requires registration.
(Screenshot provided by feeservices.americanexpress.com)
You can add premium car rental protection to any American Express card. Here are some of the best Amex cards you can receive in return for renting a car. Note that the estimated returns for these cards are based on TPG’s latest valuation.
- Hilton Honors American Express Aspire Card: $450 annual fee (see rates and fees ); 4.2% off car rentals for direct bookings with select car rental companies.
- Blue Business® Plus American Express Credit Cards: $0 Annual Fee, 2x General Expenses on the initial $50,000 purchase and 1x points per year on General Expenses; 2.7% Diplomatic Transaction Fee.
- AMEX EVERYDAY® from American Express’ preferred credit card: $95 annual fee; 3% return on general spend during the billing cycle, where you can make 30-plus purchases (otherwise 2% back); 2.7% diplomatic transaction fee.
Information on the American Express Daily Preferred Card and Hilton Aspire Card is independently collected by The Points Guy. The credit card information on this page has not been reviewed or provided by the card issuer.
Capital One Investment Rewards Credit Card and Capital Once Paradise Rewards Credit Card
The Capital One Ventures card offers double the benefits of all businesses, as well as car rental insurance.
The Capital One Investment Rewards Credit Card and the Capital Once Paradise Rewards Credit Card offer car rental car damage insurance. Insurance is secondary when you are renting in your country of residence and primary when you are renting outside your country of residence. However, benefits are only available on approved account visa signature cards.
The Capital One Investment Rewards Credit Card currently offers 60,000 miles on purchases of $3,000 within the first three months of account opening. You get 2x Capital Mile on all purchases, and the card has an annual fee of $95.
The Capital Once Paradise Rewards Credit Card currently offers 20,000 bonus miles as long as you spend $500 within the first three months of account opening. You will get 1.25x miles on all purchases. There is no annual fee for this card. See the full Capital One Universal Credit Card Review for more information.
Chasing free bends and chasing free infinity
(Photo by Isabelle Raphael/The Points Guy)
If you’re looking for secondary car rental insurance with no annual fee card, be chasing the Liberty Bend Or chasing the infinite of freedom may be a good choice. These cards provide theft and collision damage coverage for most cars in the U.S. and abroad. Coverage in your country is secondary, but coverage outside your country of residence is primary.
Both cards offer a $200 cash sign-up bonus after spending $500 in the first three months of account opening. Chase Free Flex has a 5% Spins Bonus category (up to $1,500 per quarter that you can activate), while Chase Free Unlimited earns at least 1.5% on all purchases.
While neither is an annual fee, both cards have a 3% foreign transaction fee.
Bottom line
When choosing a new car, many consumers focus on the number of points they can earn and then redeem the points for a travel rewards card. However, credit card travel protection can come in handy. In particular, credit card car rental coverage can provide significant value.
However, reviewing the details of your card policy is essential to understand what is (and isn’t) covered. For example, when you pay for a car rental with a card that provides car rental coverage, don’t assume you’re covered for all possible Mishaps, so many exceptions and exclusions apply. And keep in mind that credit cards rarely offer liability insurance or cover peer-to-peer rentals.