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Travel credit cards offer a broad range of perks that can make travel more convenient, more comfortable and even more affordable. One such benefit is rental car insurance.
If you sign up for a rewards credit card that offers this benefit, simply use your credit card to pay for the full rental agreement when you rent a car and decline the coverage the agency offers you at the counter. The coverage you have with your credit card will apply to your car rental agreement, but there are different levels of car rental coverage offered by credit cards. To help you understand which credit card has the best car rental coverage for you, here are some of the best examples.
Comparing cards with car rental insurance
| Card name | Annual fee | Best for | Bankrate score |
|---|---|---|---|
| Chase Sapphire Preferred® Card | $95 | Value | 4.8 |
| Chase Sapphire Reserve® | $550 | Luxury travel | 5.0 |
| Ink Business Preferred® Credit Card | $95 | Business | 4.4 |
| United℠ Explorer Card | $0 Intro for First Year, then $95. | Airline card | 3.9 |
| Bilt Mastercard® | None | No annual fee | 3.9 |
Best credit cards with primary rental car insurance
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The Chase Sapphire Preferred Card is an excellent deal when you consider all the perks and boosted rewards rates you’ll receive for its $95 annual fee. Travel benefits include a primary collision damage waiver coverage for rental cars that’s worth up to the actual cash value of the rental car (exclusions apply). Coverage is also good for rental periods of up to 31 days, and for damage, theft, towing charges and loss of use charged by the rental car company.
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Pros
- Its impressive airline and hotel transfer partners offer boosted redemption value.
- It includes perks commonly found on higher-tier travel cards, including its anniversary bonus and travel protections.
Cons
- Its annual fee will offset a sizable chunk of your rewards value.
- This card lacks introductory APRs on purchases or balance transfers, making it a bad pick for people hoping to reduce current card debt or avoid interest on future purchases.
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The Chase Sapphire Reserve is the more luxurious sibling of the Preferred card; it comes with a much higher annual fee of $550 but includes some flashy perks not found on the Preferred card. Auto rental coverage is also primary and worth up to $75,000 in damage from collision or theft. Other travel perks you could benefit from include trip cancellation/interruption insurance, baggage delay insurance and lost luggage reimbursement, trip delay coverage, roadside assistance, travel accident insurance and emergency evacuation and transportation coverage.
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Pros
- You’ll earn some of the highest rewards rates for dining and travel in the Chase Travel℠ portal, plus boosted value for Chase Travel redemptions.
- With an automatic $300 travel credit each anniversary year, you can get close to offsetting the card’s high annual fee.
Cons
- This card charges an additional $75 annual fee per authorized user, which other cards seldom charge.
- It carries very few luxury airport lounge and hotel perks, making it a poor competitor in the luxury cards market.
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If you travel for business often, you should also consider the Ink Business Preferred® Credit Card. This card offers primary rental car coverage when you use your credit card to pay for a rental agreement and you are renting the car for business purposes. Other important cardholder benefits include cellphone protection, free employee cards, trip cancellation and interruption insurance, extended warranties and purchase protection.
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Pros
- Its impressive welcome bonus could increase your earning potential during your first year with the card.
- You pay no extra fee for employee cards, making this an ideal pick for savvy business owners with employees who have purchasing responsibilities.
Cons
- This card has very few business-focused benefits so it’s not a good choice for business owners hoping to leverage perks and benefits.
- Bonus rewards are capped at $150,000 spent in combined purchases per year, restricting earning potential for big spenders.
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If you fly with United Airlines often and want to earn miles in the United MileagePlus program, you can also check out the United Explorer Card. Cardholder benefits include primary auto rental coverage(the same coverage you get with the Chase Sapphire Preferred card). You’ll also receive trip delay reimbursement, baggage delay insurance, purchase protection, lost luggage reimbursement, trip interruption or cancellation coverage and a first checked bag free when you fly United, among other perks.
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Pros
- Its intro annual fee will be a good trial run if you are wary of whether or not you’ll make the most of the card.
- It has an expanded portfolio of travel benefits that can help you save money and have a convenient airport experience.
Cons
- You’ll need to make a plan to redeem your miles with the MileagePlus loyalty program to ensure you’re making the most of them.
- It carries limited redemption options compared to general travel rewards cards.
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The Bilt Mastercard includes an auto rental collision damage waiver, surprising for a no-annual-fee card. If you’re a renter hoping to avoid as many fees as possible along your credit journey but don’t want to spare the perks of pricey rewards cards, the Bilt Mastercard gives you the unique opportunity to earn rewards for rent and skip some of the pricey hurdles on the best rewards cards.
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Pros
- You can earn points on rent without worrying about transaction or processing fees (up to 100,000 points earned per calendar year).
- If you attain Silver or higher elite status, your unused points will earn interest.
Cons
- Other travel and cash back cards offer higher ongoing rewards rates.
- This card has little short-term value compared to the top rewards cards because it lacks a welcome offer.
How to use credit cards for rental car insurance
Rental car coverage can be used in place of your own insurance when your credit card offers the coverage and you use it to pay for your rental car. You can decline the paid coverage at the rental counter and rest assured you’re covered up to the limits of the policy on your credit card.
While primary coverage kicks in before other coverage you have, secondary coverage can only be used after you file a claim and exhaust benefits from any other insurance you have, including your own auto insurance policy.
To get the most out of car rental coverage offered by a credit card, you need to
- Know what kind of coverage you have
- Understand any limitations of your coverage
- Use your credit card to pay.
You also have to be clear that you’re declining the paid coverage offered by the rental car company and that you list everyone who might drive the car on the rental agreement.
How to choose credit card for rental car insurance
Decide if you want primary or secondary coverage.
We highlighted the best credit cards for auto rental coverage above, but we only included cards with the best primary coverage. Plenty of other travel credit cards offer secondary auto rental coverage that can help cover losses after any other insurance policies you have are exhausted.
Make sure you understand any limitations or restrictions in coverage.
Most credit cards that offer rental car coverage list some fine print you should be aware of, including wording that limits the type of automobiles they’ll cover. With Chase rental car coverage, for example, antique and exotic cars may not qualify. Also, their coverage is also only good for rental periods up to 31 days.
Be aware of how to file a claim.
Different credit cards may have different policies when it comes to filing a claim. However, most offer an online claims portal that lets you submit your claim paperwork and proof of your claim via the web. Make sure to gather evidence of your claim including photos of the damage, police reports and any other evidence related to your specific problem, whether it’s damage, theft or some other mishap.
The information about the United Explorer Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
What’s next?
Frequently asked questions about credit card car rental insurance
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Rental car insurance is not a standard feature on all Visa cards. Coverage varies, so you’ll need to contact your credit card issuer to check if your card includes this benefit and understand the level of coverage provided.
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Using a credit card to rent a car can offer benefits such as potential discounts, complimentary rental agency status, insurance coverage, rewards earning and additional security. It’s not mandatory, but depending on the rental agency’s policies and your credit card’s perks, it may be advantageous.
The bottom line
The right credit card can help you enjoy primary rental car coverage that will help you save money and benefit from some peace of mind on your vacation. However, it’s important to carefully review your credit card’s coverage and limitations and to always decline the paid coverage offered by the rental car company.
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