The Chase Sapphire Reserve® is our top pick for car rental insurance, since it offers robust primary coverage (up to $75,000) for theft and collision damage. To use this coverage on eligible rentals, you’ll need to pay with your credit card, your rewards points or a combination of the two.
Rental car insurance costs can really add up — and in some cases, those daily charges can be as much as the rental car itself. The best credit cards for car rental insurance provide this coverage on a complimentary basis, along with additional perks like travel benefits and rewards.
Remember: To qualify for rental insurance, most card issuers will require you to pay with your credit card (or rewards points, in some cases) and decline the insurance provided by the rental car company.
Compare the best credit cards for car rental
Renting a car with a credit card
If you’re already paying for your car rental with a credit card, why not use a card that also offers car rental coverage? The best credit cards for car rentals offer rental car protections as an included benefit — and as long as you meet the issuer’s conditions, you’ll be able to use this coverage instead of buying it through the rental agency.
Collision damage waivers (CDW) and loss damage waivers (LDW)
Many credit cards include a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). Essentially, these coverages are auto rental insurance policies that cover theft, damage and loss of use of a car rented with your credit card.
There are many benefits to these waivers. They may be able to:
- Replace the (often expensive) insurance offered by the car rental agency
- Cover costs that your personal car insurance won’t pay for
- Be your primary car rental coverage, which means you won’t have to file a claim with your personal car insurance policy
That said, the exact details of credit card auto rental coverage can vary widely by card. For example, some credit card policies are primary, whereas others are secondary to your own insurance. Coverage can also apply only to rental periods of up to a certain number of days, or in certain countries and not others.
Car rental discounts
Some credit cards, like The Platinum Card® from American Express, partner with car rental agencies to give you discounts and other special benefits when you rent a car with your credit card.
For example, The Platinum Card® from American Express comes with automatic Avis Preferred®, Hertz President’s Circle and National Car Rental® Emerald Club elite status, although you’ll need to enroll to get these benefits.
Car rental rewards
If you rent a car with a rewards card, you can earn points, miles or cash back on your rental. In some cases, you can also use your points to pay for your rental car reservation.
The best credit cards for car rentals tend to offer better rewards rates for rental periods and other travel purchases. An excellent example of this is the Chase Sapphire Reserve®, which offers 10X points on car rentals and hotels booked through the Chase Ultimate Rewards® portal.
How credit card rental car insurance works
When you rent a car from a rental agency, they’ll try to sell you their own rental car coverage that typically comes in the form of a Collision Damage Waiver (CDW) or a Loss Damage Waiver (LDW). These coverage types guarantee that the rental car agency or its partners will cover damages to the rental car up to policy limits. Damages can be caused by an accident, vandalism and other issues that occur.
Credit cards can also offer Collision Damage Waiver (CDW) coverage, and you can use this protection in place of the car rental insurance you can purchase from a rental agency.
Filing a claim
When you use credit card rental coverage, it means that you’ll work with a credit card benefits administrator if you need to file a claim. Other specifics will apply when you use your coverage including the paperwork the benefits administrator requires and how long you have to file a claim after a loss occurs.
For example, the Chase Sapphire Reserve® policy expects you to file a claim as soon as possible, but gives you up to 100 days from the date of the incident.
All credit card benefits administrators also have their own specific claim forms to fill out and their own processes, so make sure to read over your card’s guide to benefits so you understand how the policy works before you rent a car.
Primary vs. secondary rental car insurance
Before renting a car with a credit card, you should take a close look at whether your card offers primary or secondary car rental insurance. By and large, this is one of the most important details of credit card auto rental coverage because:
- Primary auto rental coverage means you can use it in place of your own insurance. This means that, if you’re in an accident or experience a loss, you aren’t required to notify your personal auto insurance company.
- Secondary auto rental coverage kicks in after you exhaust coverage limits offered through your own insurance. This means you’ll need to file a claim with your own auto insurance coverage first.
Some great credit cards with auto rental coverage don’t offer primary insurance for free, or only offer primary coverage if you don’t have car insurance. Even if the card offers primary coverage, you’ll want to read over the fine print to make sure your situation is covered. For example, some issuers may only offer secondary coverage if you’re using a business card to rent a car for personal reasons.
American Express rental car insurance
Many American Express cards, including The Platinum Card® from American Express1 and the American Express® Gold Card2, come with secondary car rental insurance. If you want primary car rental insurance, you’ll have to pay a fee for Premium Car Rental Protection.
How American Express Premium Car Rental Protection works
American Express (Amex) cardholders typically pay a rate of $19.95 to $24.95 per rental period (not per day) to get primary coverage on a wide variety of vehicles. While it’s generally better to use a card that offers free primary rental car insurance, Amex Premium Car Rental Protection does have a few advantages:
- A longer-than-average rental period (up to 42 consecutive days)
- It covers vehicles that most other credit card policies don’t cover, like luxury vehicles, SUVs and pickup trucks
- The amount of coverage is really high — up to $100,000 for damage or theft of a qualifying rental vehicle
With a maximum fee of $24.95 for the entire rental period, the cost is also very reasonable — and in most cases a much better deal than the policies pitched to you at a car rental counter.
Tips for renting a car with a credit card
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If you have a choice between two cards with auto rental coverage, choose the card with primary rental car insurance to avoid having to file a claim with your own insurance.
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Check your policy closely for limitations and exclusions — such as vehicle types, countries (Jamaica and Ireland are often excluded) and rental periods (many card policies limit you to only two weeks).
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Make sure the cardholder is the primary renter on the rental car agreement.
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Decline the rental car company’s collision damage waiver when asked.
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Pay for the entire rental with your credit card. If you’re renting with points or miles, check the terms on your credit card’s car rental policy — your coverage may not apply.
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Make sure you have a personal insurance policy with liability insurance, since your credit card policy won’t cover that.
Frequently asked questions
Methodology
To help you choose the best car rental credit cards, we analyzed applicable credit cards reviewed on LendingTree, as well as cards available from major card issuers. We compiled a list of the best rental car credit cards based on coverage limits, exclusions, benefits, rewards, annual fees and more. Our recommendations are based on how much value these cards can offer our readers, and these choices aren’t influenced by our advertisers.
1. Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. 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.2. Car Rental Loss and Damage Insurance can provide coverage up to $50,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. 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.
*Upon enrollment, accessible through the Capital One website or mobile app, eligible cardholders will remain at that status level through the duration of the offer. Please note, enrolling through the normal Hertz Gold Plus Rewards enrollment process (e.g. at Hertz.com) will not automatically detect a cardholder as being eligible for the program and cardholders will not be automatically upgraded to the applicable status tier. Additional terms apply.
The information related to the The Platinum Card® from American Express, Chase Freedom Flex℠ and American Express® Gold Card has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.