Disclosure: We get a commission for links on the blog. You don’t have to use our links, but we’re very grateful when you do. American Express, Barclaycard, Capital One, Chase, Citibank and US Bank are Million Mile Secrets advertising partners. Opinions expressed here are the author's alone, and have not been reviewed, approved or endorsed by our partners. Here’s our Advertiser Disclosure.
Million Mile Secrets reader, Sumeet, commented:
Do authorized users also get full car rental insurance benefits like the primary card member on the Chase Sapphire Preferred?
One of the perks you get with Chase Sapphire Preferred card is primary car rental insurance. When you’re renting a car insurance costs add up quickly. While this is NOT comprehensive coverage, it will still save you money when you rent a car.
And authorized users are covered too!
You can currently earn 50,000 Chase Ultimate Rewards points when you sign-up for the Chase Sapphire Preferred card and spend $4,000 on purchases within the 1st 3 months of opening your account. This is the highest bonus I’ve ever seen for this card.
I’ll explain the details of the coverage!
Who’s Covered Under Chase Sapphire Preferred’s Rental Car Insurance?
Link: Chase Sapphire Preferred
When you use your Chase Sapphire Preferred card to pay for your rental car AND you decline the rental agencies collision damage waiver (often referred to as CDW or LDW), you get primary rental car insurance through the card.
The terms say this benefit is available to:
You, a person to whom a United States (U.S.) credit card has been issued (“Cardholder”) and your name is embossed on the card.
Authorized users are issued their own card with their name embossed. And I spoke with a benefits administrator who confirmed primary cardholders and authorized users each have their own coverage.
Plus, any additional drivers listed on your rental agreement are covered as well.
I’ve already given you 5,003 reasons to add an authorized user to your Chase Sapphire Preferred card. And in addition, you’ll get some peace of mind knowing your friends and family have primary car rental (and trip delay) insurance when you add them to your account!
Primary insurance provides protection for the rental car in case of an accident or theft. This is the same coverage offered by the rental agency’s CDW. So declining this coverage will save you money each time you rent a car.
Secondary rental car insurance that comes with many other cards also covers your rental car, but in the US it will only cover the what’s left over after your primary insurance pays out.
With the Chase Sapphire Preferred card’s primary insurance plan you’re covered in the US and most countries outside the US. But before you waive the rental car’s CDW, it’s a good idea to call to make sure the country you’re visiting is covered.
Other Important Terms & Conditions
- You’re covered up to the actual value of your rental car
- Only car rentals that are NO longer than 31 consecutive days are covered
- Certain types of vehicles are excluded – some brands of luxury car (i.e. Ferrari, Porsche
, Rolls Royce) , antique automobiles, certain vans (built for more than 8 passengers), vehicles that have an open cargo bed, trucks, motorcycles, mopeds, and motorbikes; limousines; and recreational vehicles
- You must report the incident to the benefits administrator within 60 days or your claim may be denied
- You should receive payment within 15 days of the benefits administrator receiving your documentation
Other Cards Offer Primary Rental Car Insurance
- Chase Ink Plus – When you use your card to pay for a rental car for business
- Chase Southwest Premier (small business card) – When you use your card to pay for a rental car for business
- CitiBusiness® / AAdvantage® Platinum Select® World Mastercard® – When renting a car for business and paying with your card
- Premier Rewards Gold Card from American Express – When you enroll for free in the American Express Premium Car Rental Protection program. But you’ll pay ~$25 (~$18 for California residents) per rental for up to 42 consecutive rental days (30 consecutive rental days for Washington State cardholders).
You’ll Still Need Liability Insurance!
Primary insurance does NOT cover damage to other vehicles, property, or injuries. So it’s important to make sure you’re covered!
Contact your personal car insurance company to find out if you’re covered when driving a rental car. Otherwise, the rental agency provides liability insurance which compliments primary insurance. If you’re at fault, it covers damage to others and their property.
The Chase Sapphire Preferred card comes with primary car rental insurance that covers any damage to your rental car if there’s an accident. You’re insured under this policy when you pay for your rental with your Chase Sapphire Preferred card AND decline the collision damage waiver (CDW or LDW) from the rental agency.
And if you add an authorized user to your account, they get this coverage too!
But you may still want to purchase liability insurance through the rental agency to make sure any damage to others and their property is also covered, if it’s not covered under your personal car insurance plan.