Credit card rental car insurance: The best cards and how it works

If you’ve ever rented a car, you’ve probably been asked whether you want to pay extra for insurance at the counter. But depending on which credit card you have, you may already have some coverage.

Many travel rewards credit cards offer rental car insurance that can protect you against theft or damage to your rental vehicle, potentially saving you from paying extra for the rental company’s collision damage waiver.

Here’s how credit card rental car insurance works, what it covers and which cards offer some of the best protection.

The best credit cards for rental car insurance

These cards offer primary rental car coverage on eligible rentals. Coverage can vary by card, rental location and purpose.

The information for the United Club Business has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.

Top cards with primary car rental insurance

These cards offer primary car rental insurance, as long as you use your card to pay for the entire rental. Note that this isn’t an exhaustive list; you may find other cards offering primary insurance.

Chase Sapphire cards

The Chase Sapphire Reserve, Chase Sapphire Preferred and Chase Sapphire Reserve for Business each provide primary car rental insurance for rentals of up to 31 consecutive days. The personal cards are primary, while the business card is primary in the U.S. only for business rentals.

This policy covers theft, damage, valid loss-of-use charges, administrative fees and reasonable towing charges due to covered theft or damage.

Policy details vary slightly among the three cards, though. A key difference is the total amount that can be reimbursed for damages caused by theft or collision:

• Sapphire Preferred:Up to $60,000
• Sapphire Reserve:Up to $75,000
• Sapphire Reserve for Business: Up to $75,000 (primary in the U.S. for business rentals)

To learn more about each card, read our full reviews for the Sapphire Preferred, Sapphire Reserve and Sapphire Reserve for Business.

Apply here: Chase Sapphire Preferred

Apply here: Chase Sapphire Reserve

Apply here: Chase Sapphire Reserve for Business

Capital One Venture X and Venture X Business

The Capital One Venture X and Venture X Business both offer primary rental car insurance, though the coverage terms differ.

The personal Venture X provides reimbursement for theft and collision damage up to the actual cash value of eligible rental vehicles with an original manufacturer’s suggested retail price of $75,000 or less. Coverage applies to rentals of up to 15 consecutive days in your country of residence or 31 consecutive days elsewhere.

Meanwhile, the Venture X Business provides primary coverage for eligible rentals made primarily for business purposes, covering theft and collision damage subject to the policy’s valuation limits. Rentals of up to 31 consecutive days are eligible for coverage.

To learn more, read our full reviews of the Venture X and Venture X Business.

Learn more: Capital One Venture X Rewards Credit Card

Learn more: Capital One Venture X Business

Ink Business cards from Chase

Four of the Ink Business cards from Chase offer primary insurance when you rent for business purposes, providing reimbursement for theft and collision damage for most rental vehicles with an MSRP of $125,000 or less.

Each card provides reimbursement of up to $60,000 for theft and collision damage.

To learn more, read our guide to the Chase Ink Business cards.

Apply here: Ink Business Preferred

Apply here: Ink Business Premier

Apply here: Ink Business Unlimited

United Airlines cards

United’s cobranded cards offer primary car rental insurance, though the business versions are primary only when you rent for business purposes. You need to decline the rental company’s collision insurance and charge the entire rental cost to your card.

This insurance provides reimbursement of up to $60,000 for theft and collision damage for most rental vehicles with an MSRP of $125,000 or less.

To learn more, read our guide to the United cards.

Apply here: United Explorer Card

Apply here: United Business Card

How does credit card rental car insurance work?

Among the most important factors here is making sure you pay for your entire car rental bill with a credit card that has an auto collision damage waiver included in its benefits. You’ll also want to decline any insurance offer from your rental car company.

Of course, terms and conditions vary, so always check your card’s specific policies before you rent. This way, if you run into a problem, you’ll know what’s covered and what’s not.

If you don’t follow these requirements, your credit card car rental insurance won’t take effect.

What is and isn’t covered

The car rental insurance from your credit card is technically called an “auto rental collision damage waiver.” This benefit provides reimbursement for damage due to collision or theft. The cash amount your card’s insurance policy will cover can vary, so check your card’s guide to benefits for specific details.

While some cards also cover loss-of-use and towing charges assessed by the rental company, policies from other credit cards only cover physical damage or theft of the rental vehicle. Knowing what your card will cover is important before you use it.

Additionally, some rental types and locations may not be eligible for coverage. Keep the following provisions in mind if you rely on credit card car rental insurance benefits:

• Liability insurance isn’t included: Your card’s benefits may cover damage to your rental car, but they won’t cover damage you cause to other vehicles and personal property. This insurance also won’t cover injuries to you and/or others involved in an incident.
• Not all car types are covered: You won’t need to worry about this if you stick to the standard categories of car rentals (compact, intermediate and full-size). However, the policy may not cover you if you rent a specialty vehicle, such as a large passenger van, pickup truck, antique vehicle, RV or motorcycle. Leases, microleases and rentals through person-to-person car-sharing companies, such as Turo, are often also excluded.
• Some countries are excluded: This list varies from card to card and issuer to issuer. Before traveling, call the customer service number on your card to ensure your destination is covered when renting a car outside the United States.
• Rental length limits vary:Credit card insurance often won’t apply to long-term rentals. Check your policy on this. Most cover 30 days, but this varies.

If you have doubts about your car’s eligibility, it’s best practice to call the customer service number on your card. You can get more information and confirm that your policy covers your rental vehicle type in the country you’ll be visiting.

Primary vs. secondary car rental insurance

Another important distinction is the difference between primary and secondary car rental insurance, as your card could offer one type or the other. Both types of insurance usually have maximum coverage amounts, so make sure these meet or exceed the total value of the car you’re renting.

If you get into an accident with your rental car and have primary insurance, you only need to file one claim. Generally, primary insurance will reimburse you for the rental car’s cash value or the cost to repair it, whichever is less.

Secondary insurance is different because it only reimburses you for the amount not covered by other types of insurance, such as travel insurance or personal car insurance. However, if you don’t own a car or carry a car insurance policy, most secondary insurance from credit cards will become primary.

Select American Express cards include secondary coverage for damage to or theft of an eligible rental car. If you want primary coverage, you can enroll an eligible Amex card in Premium Car Rental Protection before you rent. Amex charges a flat fee per eligible rental paid for with the enrolled card.

Bottom line

Many consumers focus on the number of points or miles they can earn and redeem when choosing a travel rewards card, but travel protections such as rental car insurance can also provide significant value.

However, reviewing your card’s policy details is essential to understand what is (and isn’t) covered. Don’t assume you’re covered for every possible mishap when you pay for a car rental with a credit card that offers insurance, as many exceptions and exclusions apply.

Ensure you know the details and how they relate to your rental location, vehicle type, length of rental period and other important issues so you won’t be surprised by a bill if your rental car has a problem.

For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Source: thepointsguy.com