Does My Credit Card Cover Rental Car Insurance?

You’re about to sign the dotted line for the “collision damage waiver,” CDW, insurance when you remember 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?

Before renting a vehicle, rental car companies provide four types of car insurance. They include the following:

Supplemental Liability Insurance: This increases your liability up to $1 million. It can cost anywhere between $7-$15 per day.

Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): Waives your burden for theft or damages. The cost can range from $9-$19 per day.

Personal Accident Insurance (PAI): This coverage provides medical and accidental death benefits should you or your passengers become injured or killed due to an accident. Coverage can cost $1-$7 per day.

Personal Effects Coverage: Receive compensation for any personal property stolen from your rental vehicle. It can cost anywhere between $1-$5 per day.

Do I Already Have Rental Car Insurance?

If you drive regularly and own a car, you may already carry an auto insurance policy with some protection when driving a rental car. 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. If you’re unsure of what’s in your auto policy, contact one of our agents at TGS Insurance! Our team will be happy to help you better understand your policy, offer solutions to gaps, 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 are offered Liability Insurance Supplement, decline if you have sufficient personal liability insurance. 
• If you are offered Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), decline if you have sufficient personal comprehensive and collision coverage. 
• If you are offered Personal Accident Insurance (PAI), decline if you’ve got sufficient personal injury protection and health insurance.
• If you are offered Personal Effects Coverage, decline if your homeowners or renters insurance extends to rental cars.

What Type of Coverage Does my Credit Card Have for Rentals?

Credit cards typically only provide collision damage coverage, so credit card providers will not hold you responsible for any theft or damage to the rental car.

When you pick up your rental car, you must decide whether to pay for the rental company’s collision damage waiver (CDW). The waiver takes the responsibility off your hands if any damages may incur while 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 Card Covers Car Rental Insurance?

Creditcards.com compiled a list of the best credit cards with the most coverage for rental vehicles. Knowing if your credit card covers rental car insurance can save you hundreds of dollars in the long run.

American Express

• American Express Gold cards offer up to $50,000 protection per rental car agreement.
• Premium cards can offer up to $75,000.
• Delta SkyMiles® Reserve American Express Card or The Platinum Card from American Express will protect rental car insurance from accidental deaths and dismemberment.
• Reserve and Platinum cards include accidental injury insurance in a rental car for a limit of $300,000. 
• Platinum and Reserve cards also carry personal property rental car coverage.
• Amex rental car protection is a secondary option if your primary insurance plan does not cover rental damages.

Chase

• Most Chase credit cards provide rental car insurance that protects against theft and damage as well as loss-of-use up to the cash value of most rental cars in the United States and abroad.
• The Chase Sapphire Reserve provides collision and theft protection up to $75,000.
• The Chase Sapphire Reserve, Chase Sapphire Preferred Card, United Explorer Card, United Club Infinite Card, Ink Business Unlimited Credit Card, and Ink Business Cash Credit Card provide car rental insurance as the primary coverage in the United States and abroad.

Capital One

• Capital One cards offer secondary rental car coverage.
• Coverage is in the U.S. and most other countries except Ireland, Israel, Jamaica, and Northern Ireland. 
• Capital One Venture Rewards Credit Card includes an auto rental collision damage waiver in the Visa Signature Benefits.

Bank of America

• All Bank of America credit cards includes secondary rental car insurance.
• Car rentals for business travel qualify for primary coverage in the U.S. and most countries except Ireland, Jamaica, and Northern Ireland.
• You must decline the auto rental CDW with the rental car company to receive coverage through your Bank of America Credit Card.
• Any damage or theft must be reported within 45 days of the accident.
• Bank of America does not publicly disclose its maximum coverage amounts for rental car insurance.

Wells Fargo

• Protection is for loss and damage up to the vehicle’s cash value to a limit of $50,000. 
• Protection is secondary in the U.S. but primary in other countries, excluding Ireland, Israel, Jamaica, and Northern Ireland.

FAQs: Does My Credit Card Cover Rental Car Insurance?