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Road trips can be a big part of the travel experience so it’s no surprise that many credit cards (especially travel rewards cards) offer rental car insurance. With the right card, you could save hundreds of dollars and enjoy a stress-free rental process.
What’s typically covered
Sometimes referred to as collision damage waivers (CDW) and/or loss damage waivers (LDW), these policies generally cover damage and theft of any rental car you charge to the card, up to the value of the vehicle. The cardholder will usually be required to be the primary renter, and generally, secondary drivers will only be covered if they are listed as drivers on the rental contract.
Limits + exceptions to credit card car rental insurance
For your credit card insurance protection to be valid, you’ll have to pay for the rental with the card offering the insurance. You’ll also normally have to decline the rental agency’s collision damage waiver for your credit card insurance to kick in.
Furthermore, most credit card providers put a cap on the value of the car they will cover (for example, a car with a manufacturer’s suggested retail price up to a max of $75,000). Some credit cards may also put limits on the type of vehicles you can rent, and may exclude specialty vehicles, like vans, vintage cars, exotic or luxury cars like Lexus, Alfa Romeo and Ferrari and motorcycles. There is also a limit on the amount of days coverage is valid; so, for example, you might be covered for a rental for up to 20 consecutive days in your home country or up to 30 consecutive days in foreign countries.
Personal belongings (such as a purse or wallet stolen from a car) are often excluded from coverage. Additionally, liability insurance is typically not included so you wouldn’t be protected from costs in the event you damage or injure passengers in another vehicle. For this reason, it’s vital to purchase liability insurance. Note, however, that some countries in Europe include liability in the cost of the rental, so be sure to ask if you’re not certain what’s covered.
Some credit card companies also require that you make your claim within a set period of time, such as 45 days after the incident. Yet other policies may exclude coverage from specified countries. Be sure not to make assumptions about what countries would be excluded because you might be surprised. Some policies, like American Express’ Premium Car Rental Protection coverage, excludes Ireland, Israel, Jamaica, Australia, Italy, and New Zealand.
Above all, when it comes to what is and is not covered by your credit card’s rental benefit, the most crucial point is that it’s imperative to read the fine print of the rental car insurance that comes with your card. While it’s possible to make general statements about what’s typically included or not, each credit card provider could have slightly different rules and the only way to be sure you are covered is to read the details of your policy and follow-up with questions with your credit card provider if you’re uncertain about anything.
Best credit cards for rental car insurance
Chase Sapphire Reserve
Solidifying this card’s ranking as one of the best credit cards with rental car insurance is the fact that it awards 10x points on car rentals (and hotels and select dining experiences) as long as you book through the Chase Ultimate Rewards travel portal. You also earn 5x points on flights if booked through Chase’s travel portal, as well as 3x on other travel and dining experiences and 1x for all other spending.
Insurance coverage:
- Primary coverage for US and abroad
- The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision up to the a car’s value of $75,000
- You (and secondary drivers listed on the rental contract) are covered for up to 31 consecutive
Other travel perks:
- $300 travel credit for travel purchases charged to your card
- Priority Pass Select membership for free airport lounges visits for you and two guests
- Up to $100 application fee credit every four years for Global Entry, NEXUS or TSA PreCheck
- Perks like free room upgrade and breakfast at over 1,000 properties when you book with The Luxury Hotel & Resort Collection
- Rental car privileges like upgrades and car rental discounts with Avis, National and Silvercar
- Take advantage of trip cancellation/interruption, trip delay and lost luggage insurance
- Transfer points to numerous frequent travel programs at a 1 to 1 value
- No foreign transaction fees
Chase Sapphire Preferred Card
Despite its low $95 yearly fee, this card also offers some good travel benefits. You’ll also earn 5x points on travel purchased through the Chase travel portal and 2x on other travel purchases. Get 3x points on dining, streaming services and online grocery purchases, and 1x points on other purchases.
Insurance coverage:
- Primary coverage for US and abroad
- The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision
- You (and secondary drivers listed on the rental contract) are covered for up to 31 consecutive days
Other travel perks:
- Up to $50 in statement credits toward hotel stays booked through Chase’s travel portal.
- You can transfer your points to numerous frequent travel programs at a 1 to 1 value
- Free trip cancellation/interruption, trip delay and lost luggage insurance
- No foreign transaction fees
Capital One Venture X Rewards Credit Card
Not only does it provide primary protection, it also offers big rewards for cardholders who rent vehicles. Though its one drawback is that you’re only covered for 15 days domestically. You’ll earn 10 miles per dollar on hotels and rental cars as long as you book through the Capital One Travel portal. Get rewarded 5 miles per dollar on flights booked through Capital One Travel and 2 miles per dollar on all other spending.
Insurance coverage:
- Primary coverage for US and abroad
- The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision up to the a manufacturer’s suggested retail price of $75,000
- The policy covers you and authorized drivers listed on the rental agreement for up to 15 consecutive days in your country of residence and 31 consecutive days when abroad.
Other travel perks:
- $300 per year in statement credits when made via Capital One Travel bookings
- 10,000-mile bonus every year on your account anniversary
- Global Entry or TSA PreCheck application fee credit of up to $100
- Travel accident insurance and auto rental collision damage waiver
- No foreign transaction fees
- Free upgrade to Hertz President’s Circle status
United Club Infinite Card
Insurance coverage:
- Primary coverage for US and abroad
- The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision up to the cost of the car (amount maximum not specified)
- The policy covers you and authorized drivers listed on the rental agreement for up to 31 consecutive days
Other travel perks:
- Complimentary United Club membership
- Cardholders get complimentary and unlimited access to all United Club locations and participating Star Alliance affiliated lounges
- Up to $100 fee credit for Global Entry, TSA PreCheck or NEXUS
- The primary Cardmember and one traveling companion get their first and second checked bags free
- 25% back as a statement credit for purchases of food, beverages and Wi-Fi on United-operated flights
- IHG Rewards Platinum Elite status
- No foreign transaction fees
- Strong insurance offerings: Trip cancellation/interruption insurance, auto rental collision damage waiver, lost luggage reimbursement, trip delay reimbursement and baggage delay insurance
Ink Business Cash Credit Card
That being said, the card has very few other travel perks. Also, take note that the insurance coverage distinguishes between business and non-business related use. Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores, as well as on internet, cable and phone services.Get 2% cash back on the first $25,000 spent in gas stations and restaurant purchases. Cardholders receive 1% cash back on all other purchases.
Insurance coverage:
- Primary coverage if your rental is for business purposes in your country of residence and internationally.
- Secondary if you are renting the car for non-business (aka personal) purposes in your country of residence
- The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision up to the cost of the car (amount maximum not specified)
- The policy covers you and authorized drivers listed on the rental agreement for up to 31 consecutive days
Other travel perks:
- Travel and Emergency Assistance Services: A benefit administrator will provide legal or medical referrals, as well as other travel and emergency assistance
- Roadside Dispatch: If you have a roadside emergency, such as needing a tow or a tire change, your Ink Business Cash Credit will assist you in finding the service you need (though you will have to cover the cost).
The Platinum Card® from American Express
Insurance coverage:
- Secondary coverage for US and abroad (aside from a few excluded countries)
- The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision up to the a manufacturer’s suggested retail price of $50,000
- The policy covers you and authorized drivers listed on the rental agreement for up to 30 consecutive days when abroad
- You do have the option of paying an extra flat rate fee, ranging from $19.95 to $24.95 (note that the fee is for the entire rental period, not per day) to upgrade to Amex’s Premium Car Rental Protection insurance. This insurance functions as primary coverage for up to 42 consecutive days and with up to $100,000 in coverage against damage or theft.
Other travel perks:
- Up to $200 in airline statement credits to cover things like baggage fees
- $200 statement credits each year on prepaid Fine Hotels + Resorts
- $100 statement credit for Global Entry or $85 for TSA PreCheck
- Complimentary Marriott Bonvoy Gold Elite Status and Hilton Honors Gold Status
- Complimentary memberships in Hertz Gold Plus Rewards, Avis Preferred and National Car Rental Emerald Club Executive. Cardholders can also enjoy rental car benefits like discounts, grace period on returns and upgrades
- No foreign transaction fees
- Travel insurance: Rental car, baggage loss, trip delay and trip cancellation insurance
*Enrollment required for select benefits. Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.
How to decline normal rental car insurance
Each insurer may have different actions you must do to decline a rental car agency’s car insurance. In general, the process is quite simple. You would just reserve a rental car and charge the full amount to your credit card.
It’s also wise to review the coverage that comes with the car as some countries typically include some coverage in the price of the rental. Also be sure to check what exactly your card covers in terms of vehicle type, cost and length of days, as well as whether you have primary or secondary coverage. Then just decline the rental agency’s collision damage waiver. If the rental car company tries to force you to buy their specific collisions insurance, call your credit card company.
Primary vs. secondary car insurance
Many people don’t realize that rental car insurance comes in two forms: primary and secondary. Secondary car insurance means that if you are in an accident, you will have to first file a claim through your own car insurance provider (which could mean paying a deductible and a future hike in your premiums), and then possibly through your travel insurance provider before your secondary coverage kicks in.
Essentially, secondary insurance only reimburse you for costs not covered by other insurance policies. Primary car insurance is the best and the one you want to look for when choosing a card. It kicks in first and often covers the entire claim so you don’t need to worry about being covered through your own auto or travel insurer.
Read about the best credit cards for lounge access or check out more
Going has partnered with CardRatings for our coverage of credit card products. Going and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses, and recommendations are the author's alone, and have not been reviewed, endorsed, or approved by any of these entities.
See rates and fees for the American Express cards listed: The Platinum Card® from American Express
