Renting a car can be a convenient way to travel, but it often comes with the added pressure of deciding whether to purchase the rental company's insurance. This can significantly increase the overall cost of your rental. Fortunately, many credit cards offer car rental insurance as a perk, potentially saving you money and providing peace of mind.
This guide will explore the best credit cards for car rental insurance in 2024, helping you understand the different types of coverage offered, eligibility requirements, and how to file a claim. We'll delve into the details so you can make an informed decision and choose the card that best fits your needs.
| Credit Card | Primary or Secondary Coverage | Key Benefits & Considerations |
|---|---|---|
| Chase Sapphire Preferred® Card | Primary | Excellent travel rewards program, earns points on travel and dining. Primary coverage saves you from having to file with your personal auto insurance first. Requires declining the rental company's CDW/LDW. Coverage is valid in most countries. |
| Chase Sapphire Reserve® Card | Primary | Premium travel rewards program with higher earning rates and benefits than the Preferred card. Primary coverage for rental cars. Trip cancellation/interruption insurance. Higher annual fee. |
| Capital One Venture X Rewards Credit Card | Primary | Solid travel rewards program with a simple earning structure. Primary coverage. Relatively lower annual fee compared to other premium travel cards offering primary car rental insurance. Trip cancellation/interruption insurance. |
| American Express Platinum Card® | Secondary | Excellent travel perks, including airline credits and hotel benefits. Secondary coverage unless you enroll in Premium Car Rental Protection (an additional fee). High annual fee. Extensive travel concierge services. |
| United℠ Explorer Card | Secondary | Co-branded United Airlines card with miles earning potential. Secondary coverage. Free checked bag on United flights. Useful for frequent United flyers looking for car rental insurance as a secondary benefit. |
| Ink Business Preferred® Credit Card | Primary | Excellent for business owners, earns points on travel, shipping, and online advertising. Primary coverage for rental cars when used for business rentals. * No foreign transaction fees. |
| World Elite Mastercard® (Varies by Issuer) | Secondary or Primary (Rare) | Benefits vary by issuer, but generally offer secondary coverage. Check with your specific World Elite Mastercard issuer to confirm coverage details. * May offer roadside assistance and travel accident insurance. |
| Visa Signature® (Varies by Issuer) | Secondary | Benefits vary by issuer, generally offering secondary coverage. Emergency travel assistance services. Check with your specific Visa Signature issuer to confirm coverage details. Could offer travel upgrades and discounts. |
| Bilt Rewards Card | Secondary | Earns rewards on rent payments. Secondary car rental coverage. No annual fee. Useful for renters looking for car rental insurance as an added perk. |
Detailed Explanations
Chase Sapphire Preferred® Card: The Chase Sapphire Preferred® Card is a popular choice for travelers, thanks to its excellent travel rewards program. Cardholders earn points on travel and dining purchases, which can be redeemed for travel, cash back, or gift cards. The primary car rental insurance is a major benefit, meaning you don't have to file a claim with your personal auto insurance first. To be eligible, you must decline the rental company's Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) and pay for the rental with your Chase Sapphire Preferred® Card. The coverage is typically valid in most countries, but it's always best to check the card's terms and conditions for specific exclusions.
Chase Sapphire Reserve® Card: The Chase Sapphire Reserve® Card is a premium travel rewards card that offers even higher earning rates and benefits than the Preferred card. Its primary car rental insurance is a significant advantage for frequent renters. Like the Preferred card, you must decline the rental company's CDW/LDW and pay with your Sapphire Reserve® Card. It also includes trip cancellation/interruption insurance, making it a comprehensive travel card. However, it does come with a higher annual fee.
Capital One Venture X Rewards Credit Card: The Capital One Venture X Rewards Credit Card provides a solid travel rewards program with a simpler earning structure. It also offers primary car rental insurance, making it a competitive option. This is a considerable benefit, meaning you don't have to file with your personal insurance first. It also includes trip cancellation/interruption insurance. Its relatively lower annual fee compared to other premium travel cards offering primary car rental insurance makes it an attractive choice for those seeking value.
American Express Platinum Card®: The American Express Platinum Card® is known for its excellent travel perks, including airline credits, hotel benefits, and access to airport lounges. However, its car rental insurance is secondary, meaning it only kicks in after your personal auto insurance has paid out. You can enroll in Premium Car Rental Protection for an additional fee to get primary coverage. The card comes with a high annual fee, so it's best suited for those who can take full advantage of its extensive travel benefits. Its extensive travel concierge services can be incredibly helpful when planning trips and dealing with unexpected issues.
United℠ Explorer Card: The United℠ Explorer Card is a co-branded United Airlines card that allows you to earn miles on United purchases and everyday spending. The car rental insurance offered is secondary. It also includes benefits like a free checked bag on United flights. This card is a good option for frequent United flyers who are looking for car rental insurance as a secondary benefit and want to earn miles on their purchases.
Ink Business Preferred® Credit Card: The Ink Business Preferred® Credit Card is designed for business owners and offers bonus points on travel, shipping, and online advertising purchases. It provides primary car rental insurance when the rental is for business purposes. This is a valuable benefit for business travelers who want to avoid filing claims with their personal or business auto insurance. The card also has no foreign transaction fees, making it ideal for international travel.
World Elite Mastercard® (Varies by Issuer): The benefits of a World Elite Mastercard® can vary depending on the issuing bank. Generally, these cards offer secondary car rental insurance. It's essential to check with your specific World Elite Mastercard issuer to confirm the details of your coverage, as some may offer primary coverage, though this is rare. You may also find benefits like roadside assistance and travel accident insurance.
Visa Signature® (Varies by Issuer): Similar to World Elite Mastercard®, the benefits of a Visa Signature® card vary by issuer. Car rental insurance is typically secondary. It's crucial to contact your card issuer to understand the specific coverage details. Visa Signature® cards may also offer emergency travel assistance services, travel upgrades, and discounts.
Bilt Rewards Card: The Bilt Rewards Card is unique because it allows you to earn rewards on rent payments. It offers secondary car rental coverage and has no annual fee. This card is a good option for renters who want to earn rewards on their rent and also receive car rental insurance as an added perk, even if it's only secondary coverage.
Frequently Asked Questions
What is primary car rental insurance?
Primary car rental insurance means the credit card's coverage pays out before your personal auto insurance. This can help you avoid filing a claim with your personal insurance company and potentially increasing your premiums.
What is secondary car rental insurance?
Secondary car rental insurance means the credit card's coverage only kicks in after your personal auto insurance has paid out. It covers any remaining costs up to the coverage limit.
How do I activate the car rental insurance benefit?
To activate the benefit, you typically need to decline the rental company's CDW/LDW and pay for the rental with your eligible credit card. Always check your card's terms and conditions for specific requirements.
What is CDW/LDW?
CDW (Collision Damage Waiver) and LDW (Loss Damage Waiver) are optional coverages offered by rental car companies that protect you from financial responsibility if the rental car is damaged or stolen.
What types of vehicles are typically covered?
Most standard passenger vehicles, such as cars, vans, and SUVs, are covered. Luxury vehicles, exotic cars, and certain types of trucks may be excluded.
What is typically NOT covered by credit card car rental insurance?
Typically, credit card car rental insurance does not cover personal liability, injuries to yourself or others, or damage to other vehicles or property.
What if I have an accident?
Contact the credit card issuer immediately to file a claim. You will typically need to provide documentation such as the rental agreement, accident report, and repair estimate.
Are there any countries where the coverage is not valid?
Some countries are excluded from coverage. Check your card's terms and conditions for a list of excluded countries. Common exclusions include Ireland, Israel, Jamaica, and Australia.
Does the driver of the rental car need to be the cardholder?
Generally, yes. The driver must be the cardholder or an authorized driver listed on the rental agreement.
Is car rental insurance worth it?
If you don't have car rental insurance through a credit card, consider whether the cost of the rental company's CDW/LDW is worth the peace of mind, especially if you have a high deductible on your personal auto insurance or are renting in an unfamiliar location.
Conclusion
Choosing the best credit card for car rental insurance depends on your individual needs and travel habits. If you frequently rent cars and want primary coverage, the Chase Sapphire Preferred® Card, Chase Sapphire Reserve® Card, or Capital One Venture X Rewards Credit Card are excellent options. Carefully consider the annual fee and other benefits to determine which card offers the most value for your specific situation, but always read the fine print of your credit card agreement.