Renting a car can be a convenient way to travel, but it also comes with potential risks and expenses. Fortunately, the right credit card can provide valuable rental car insurance coverage and other benefits, saving you money and providing peace of mind. This guide will help you navigate the world of credit cards for rental cars and find the best option for your needs.
Top Credit Cards for Rental Car Benefits: A Comparison
| Credit Card | Primary Rental Car Insurance Coverage | Other Notable Benefits |
|---|---|---|
| Chase Sapphire Preferred® Card | Yes (secondary in the US, primary abroad) | Earns valuable Chase Ultimate Rewards points on travel and dining, no foreign transaction fees, trip delay reimbursement, baggage delay insurance, purchase protection, and extended warranty protection. |
| Chase Sapphire Reserve® Card | Yes (primary worldwide) | Earns even more Chase Ultimate Rewards points on travel and dining, airport lounge access (Priority Pass Select), Global Entry or TSA PreCheck credit, travel and purchase protections, and a higher redemption value for points through Chase Ultimate Rewards. |
| The Platinum Card® from American Express | Yes (secondary) | Extensive travel benefits including airport lounge access (Centurion Lounge, Priority Pass Select, Delta Sky Club when flying Delta), hotel elite status (Hilton Honors Gold, Marriott Bonvoy Gold Elite), travel credits, and a high earning rate on flights and hotels booked directly with Amex or through Amex Travel. Also includes purchase protection, return protection, and extended warranty. |
| Capital One Venture X Rewards Credit Card | Yes (primary) | Earns Capital One miles on all purchases, airport lounge access (Capital One Lounges and Priority Pass Select), travel credits, Global Entry or TSA PreCheck credit, and no foreign transaction fees. |
| United Club Infinite Card | Yes (primary) | United Club membership, free checked bags, priority boarding, bonus miles on United purchases, Global Entry or TSA PreCheck credit, and travel and purchase protections. |
| Ink Business Preferred® Credit Card | Yes (primary) | Earns Chase Ultimate Rewards points on business purchases, travel and purchase protections, and no foreign transaction fees. |
| American Express Gold Card | No | Earns high rewards on US supermarkets (on up to $25,000 per calendar year, then 1x) and at restaurants worldwide, travel and purchase protections, and no foreign transaction fees. While not providing rental car insurance directly, the high earning potential can offset rental costs. |
| World Elite Mastercard | Secondary | Rental Car Collision/Loss Damage Waiver (CDW) coverage, travel assistance services, and access to Mastercard’s Luxury Hotel & Resorts Portfolio. Specific benefits and coverage levels vary by card issuer. |
| Citi Premier® Card | No | Earns ThankYou points on dining, gas stations, supermarkets, and air travel and hotels. While not providing rental car insurance directly, the high earning potential can offset rental costs. |
Detailed Explanations of Key Benefits
Primary vs. Secondary Rental Car Insurance Coverage
Primary rental car insurance means the credit card's coverage pays out before your personal auto insurance policy. This is highly desirable because it avoids filing a claim with your own insurance company, potentially preventing premium increases.
Secondary rental car insurance means the credit card's coverage kicks in after your personal auto insurance policy has paid out. This can help cover your deductible and any expenses not covered by your primary insurance.
Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card is a popular choice for travelers. It offers secondary rental car insurance in the US and primary rental car insurance outside the US. It also earns valuable Chase Ultimate Rewards points on travel and dining, which can be redeemed for travel, cash back, or gift cards. Its no foreign transaction fees make it great for international travel. Plus, it includes trip delay reimbursement, baggage delay insurance, purchase protection, and extended warranty protection.
Chase Sapphire Reserve® Card
The Chase Sapphire Reserve® Card is a premium travel credit card that offers primary rental car insurance worldwide. This is a significant benefit, as it eliminates the need to file a claim with your personal auto insurance in case of an accident or damage. It also earns even more Chase Ultimate Rewards points on travel and dining compared to the Sapphire Preferred, provides airport lounge access through Priority Pass Select, offers a Global Entry or TSA PreCheck credit, and provides comprehensive travel and purchase protections. The Sapphire Reserve also offers a higher redemption value for points when redeemed through Chase Ultimate Rewards.
The Platinum Card® from American Express
The Platinum Card® from American Express is another premium travel credit card with extensive benefits. It offers secondary rental car insurance. The card excels with its airport lounge access, including Centurion Lounges, Priority Pass Select, and Delta Sky Clubs when flying Delta. It also provides hotel elite status with Hilton Honors and Marriott Bonvoy, travel credits, and a high earning rate on flights and hotels booked directly with Amex or through Amex Travel. The Platinum Card also includes purchase protection, return protection, and extended warranty coverage.
Capital One Venture X Rewards Credit Card
The Capital One Venture X Rewards Credit Card offers primary rental car insurance. It earns Capital One miles on all purchases, which can be redeemed for travel, cash back, or gift cards. The card also provides airport lounge access through Capital One Lounges and Priority Pass Select, travel credits, a Global Entry or TSA PreCheck credit, and no foreign transaction fees.
United Club Infinite Card
The United Club Infinite Card offers primary rental car insurance along with a suite of benefits for United Airlines flyers. These benefits include United Club membership, free checked bags, priority boarding, bonus miles on United purchases, a Global Entry or TSA PreCheck credit, and travel and purchase protections.
Ink Business Preferred® Credit Card
The Ink Business Preferred® Credit Card is a great option for business owners who rent cars frequently. It offers primary rental car insurance, earns Chase Ultimate Rewards points on business purchases, and provides travel and purchase protections. It also has no foreign transaction fees.
American Express Gold Card
The American Express Gold Card does not provide rental car insurance directly. However, it earns high rewards on U.S. supermarkets (on up to $25,000 per calendar year, then 1x) and at restaurants worldwide, which can offset rental costs. It also includes travel and purchase protections and no foreign transaction fees.
World Elite Mastercard
World Elite Mastercards offer secondary rental car insurance as a standard benefit. This coverage is often referred to as Rental Car Collision/Loss Damage Waiver (CDW) coverage. The specific benefits and coverage levels vary by card issuer. World Elite Mastercards also provide travel assistance services and access to Mastercard’s Luxury Hotel & Resorts Portfolio.
Citi Premier® Card
The Citi Premier® Card does not directly provide rental car insurance. However, it earns ThankYou points on dining, gas stations, supermarkets, and air travel and hotels, which can offset rental costs.
Understanding Rental Car Insurance Coverage Details
It's crucial to understand the specific terms and conditions of your credit card's rental car insurance coverage. Here are some key things to consider:
- Coverage Limits: Know the maximum amount the credit card will cover for damage or theft.
- Exclusions: Be aware of any exclusions to the coverage, such as certain types of vehicles (e.g., exotic cars, trucks) or specific countries.
- Rental Period Limits: Most cards have a maximum rental period for which coverage applies (e.g., 31 days).
- Eligible Renters: The primary cardholder and authorized users are typically covered.
- How to Activate Coverage: You usually need to decline the rental agency's CDW/LDW (Collision Damage Waiver/Loss Damage Waiver) and pay for the rental with your eligible credit card.
- Claim Process: Know how to file a claim in case of an accident or damage.
How to Choose the Right Credit Card for Rental Cars
Choosing the best credit card for rental cars depends on your individual needs and preferences. Consider the following factors:
- Rental Car Insurance Needs: Do you want primary or secondary coverage? How often do you rent cars?
- Travel Habits: Do you travel frequently and value other travel benefits like airport lounge access, hotel elite status, and travel credits?
- Spending Habits: Which credit card offers the best rewards based on your spending patterns?
- Annual Fee: Are you willing to pay an annual fee for premium benefits?
- Credit Score: Ensure you meet the credit score requirements for the card you're interested in.
Frequently Asked Questions
Does my credit card cover rental car insurance?
Many credit cards offer rental car insurance as a benefit, but the coverage varies. Check your card's terms and conditions for details.
What is the difference between primary and secondary rental car insurance?
Primary coverage pays out before your personal auto insurance, while secondary coverage pays out after your personal insurance.
How do I activate my credit card's rental car insurance?
Typically, you must decline the rental agency's CDW/LDW and pay for the rental with your eligible credit card.
What happens if I damage a rental car and have credit card insurance?
You'll need to file a claim with your credit card company, providing documentation such as the rental agreement, accident report (if applicable), and repair estimates.
Are all types of rental cars covered by credit card insurance?
No, some cards exclude certain types of vehicles, such as exotic cars, trucks, or vans. Check your card's terms and conditions.
Conclusion
Choosing the right credit card for rental cars can save you money and provide peace of mind. Prioritize cards offering primary rental car insurance if you frequently rent cars, as it avoids impacting your personal auto insurance. Evaluate your travel and spending habits to find a card that offers the best overall value and benefits.