A rental car company asks you to sign the “collision damage waiver”, CDW, for the car you’re about to rent. But you remember that your credit card covers rental car insurance. Most rewards credit cards provide protection when paying for rental cars. So, does your credit card cover rental car insurance?
What Type of Coverage do Rental Car Companies Provide?
Rental car companies provide four types of car insurance before you rent a vehicle: supplemental liability insurance, collision damage waiver, personal accident insurance, and personal effects coverage. Each type of coverage encompasses a specific part of rental car insurance:
- Supplemental Liability Insurance: Covers damages to other people’s property (i.e. cars) and medical costs for other people’s injuries in an accident where you are at-fault. It can cost anywhere between $10-$16 per day.
- Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): Waives your burden for theft or damages. The cost can range from $10-$30 per day.
- Personal Accident Insurance (PAI): Provides coverage for medical and accidental death benefits in the case an accident injures or kills you or your passengers. Coverage can cost $3-$9 per day.
- Personal Effects Coverage: Compensates you for any personal belongings stolen from your rental car. It can cost anywhere between $1-$6 per day.
Do I Already Have Rental Car Insurance?
Your auto insurance policy may already include some rental car protection built in. Therefore you can decline most rental insurance offered to you.
However, it’s always a good idea to brush up on your auto insurance policy (and home) to see what’s covered and what’s not so you know where your gaps in coverage are. Unsure of what’s in your auto policy? Connect with one of our agents at TGS Insurance! Our team is ready and happy to help you better understand your policy, offer solutions to gaps in coverage, and save you a ton of money!
It’s important to note that depending on what types of protection you should opt out of depends entirely on the value of your rental car and your auto insurance policy limits, deductibles, and coverages.
- If you have sufficient personal liability insurance, decline Supplemental Liability Insurance.
- If you have sufficient personal comprehensive and collision coverage, decline the Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW).
- If you have sufficient health insurance and personal injury protection, decline Personal Accident Insurance (PAI).
- If your homeowners or renters insurance already extends to rental cars, decline Personal Effects Coverage.
What Type of Insurance Do Credit Cards Have for Rental Cars?
Credit cards typically only provide collision damage coverage, therefore credit card providers will not hold you responsible for any theft or damage to the rental car. But different credit cards offer different coverages when it comes to rental car insurance, so it’s best to check your card’s terms and conditions beforehand.
When picking up a rental car, the rental company will ask if you’d like to pay for their collision damage waiver (CDW). This waiver takes responsibility out of your hands if any damages occur while the vehicle is in your possession. If your credit card provides free CDW protection as a part of its rewards, you can save money and avoid paying for the protection you already have.
Which Credit Cards Cover Car Rental Insurance?
Visitors Coverage compiled a list of the best credit cards with the most coverage for rental vehicles. You can save hundreds of dollars just by knowing if your credit card covers rental car insurance ahead of time.
Chase
- Cards like the Chase Sapphire Reserve® and Chase Sapphire Preferred® offer primary rental car insurance.
- Extends coverage to rentals within the United States and internationally.
- Offers up to $75,000 protection for up to 31 days.
Wells Fargo
- Many Wells Fargo consumer credit cards come with the built-in perk of rental car insurance.
- Wells Fargo Active Cash® and Wells Fargo Autograph® offer coverage up to $50,000.
- Coverage extended for up to 31 days internationally, 15 days within the United States.
American Express
- Typically provides secondary coverage for rental car insurance.
- American Express® Gold card offers up to $50,000 in coverage.
- American Express® Platinum card offers up to $75,000 in coverage.
Capital One
- Many Capital One cards, including Venture X, some Venture and Venture One cards, have rental car protection available.
- Most Capital One cards provide secondary rental car insurance.
- Capital One Venture X Rewards card offers primary rental car insurance, up to $75,000.
- Coverage available for up to 31 days internationally, 15 days within your home country.
Bank of America
- All Bank of America credit cards include secondary rental car insurance.
- Bank of America® Premium Rewards® Elite card offers primary rental car insurance, up to $75,000 in coverage.
- Car rentals for business travel qualify for primary coverage in the U.S. and most countries except Ireland, Jamaica, and Northern Ireland.
- To receive coverage through your Bank of America Credit Card, you must decline the rental car company’s auto rental CDW.
FAQs: Do Credit Cards Cover Rental Car Insurance?
According to CNBC Select, the best credit cards for rentals are:
Chase Sapphire Reserve®: Best for high coverage limit
Chase Sapphire Preferred®: Best low-annual-fee credit card for car rentals
Capital One Venture X Rewards Credit Card: Best for luxury travel lovers
Ink Business Preferred® Credit Card: Best for business car rentals
If your auto insurance doesn’t offer rental vehicle coverage, you may receive some protection through your rewards credit card. Check with your auto insurance provider and credit card company to clarify the limits of your coverage.
You can determine if your credit card covers rental insurance in two ways. You can read the fine print on your credit card or call the company to check your benefits.