Do You Still Get Primary Rental Car Insurance When You Use Chase Ultimate Rewards Points to Pay for Your Rental?

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I wrote about the terrific primary car rental insurance coverage you (and authorized users) get when you rent a car using the Chase Sapphire Preferred card.

Million Mile Secrets reader Tommy commented:

If you use your Chase Ultimate Rewards points to pay for a rental car, is the insurance still covered?  Or what would your best advice be there?

Excellent question, Tommy!  Using Chase Ultimate Rewards points for paid car rentals through the Chase Ultimate Rewards Travel Portal can often be an excellent deal.

The good news is, you’re still covered by your Chase Sapphire Preferred card as long as you meet certain conditions!

Do You Still Get Primary Rental Car Insurance When You Use Chase Ultimate Rewards Points To Pay For Your Rental

Yes, You Can Still Be Covered by the Chase Sapphire Preferred’s Primary Rental Insurance If You Use Points to Pay for Your Car!

I’ll explain how it works!

Get Primary Rental Car Insurance, Even If You Pay With Points

Link:   Chase Sapphire Preferred

Link:   Chase Sapphire Preferred Benefits Guide

Link:   My Review of the Primary Rental Coverage With the Chase Sapphire Preferred

Link:   Do Chase Sapphire Preferred Authorized Users Get Primary Rental Car Insurance?

Using your Chase Sapphire Preferred card to pay for rental cars can save you money!  When you decline the rental company’s collision damage waiver (often referred to as CDW or LDW), you get primary rental car insurance when you pay with your card.

This coverage also applies if you use Chase Ultimate Rewards points through the Chase Ultimate Rewards Travel Portal to pay for your rental.

Remember, Chase Ultimate Rewards points earned from the Chase Sapphire Preferred card are worth 1.25 cents each toward paid travel, including car rentals.

Do You Still Get Primary Rental Car Insurance When You Use Chase Ultimate Rewards Points To Pay For Your Rental

Using Chase Ultimate Rewards Points From the Chase Sapphire Preferred Can Save You a Ton on Rental Cars

But here’s the catch!  You must pay with points from your Chase Sapphire Preferred account.  And NOT other Chase Ultimate Rewards points-earning accounts like the Chase Ink Plus, Chase Ink Bold, or Chase Freedom.

For example, if you have Chase Ultimate Rewards points in your Chase Ink Plus or Chase Ink Bold account, transfer them to your Chase Sapphire Preferred account FIRST.  Then purchase your rental with points from the Sapphire Preferred account.

What About Points + Cash?

Chase Ultimate Rewards is my favorite rewards program because it’s so flexible.  If you don’t have enough points to cover the full cost of your rental (or prefer not to), you can pay with a combination of points and cash.

If you’re in this situation, you’ll be covered by the Chase Sapphire Preferred primary rental insurance if:

  • The points are from your Chase Sapphire Preferred account (as mentioned above), and
  • You pay the balance with your Chase Sapphire Preferred card
Do You Still Get Primary Rental Car Insurance When You Use Chase Ultimate Rewards Points To Pay For Your Rental

Only Using Points for Part of the Rental? Be Sure to Use Your Chase Sapphire Preferred to Pay for the Balance If You Want Coverage!

So if you paid partly with Chase Ultimate Rewards points from your Chase Sapphire Preferred card, and the balance with a different card, you would NOT be covered.

Basically, the entire rental cost must be paid for

  • With the Chase Sapphire Preferred card,
  • Chase Ultimate Rewards points from your Chase Sapphire Preferred account,
  • or a combination of the two

for the primary rental coverage to be in effect.

Remember, you must decline the auto rental company’s collision damage waiver to be eligible for coverage through the Chase Sapphire Preferred!

Note:   The primary rental insurance from the Chase Sapphire Preferred only covers damage to your rental car in case of an accident of theft (other vehicles and injuries are NOT covered).

And if you don’t have a Chase Sapphire Preferred card, here are other cards that offer primary car rental insurance coverage.

This Card Has You Covered in Other Areas, Too!

The Chase Sapphire Preferred comes with lots of other benefits that can save you money, including:

  • Trip Cancellation –  You could be covered for up to $10,000 ($20,000 if you’re traveling with immediate family) if your trip is cancelled for an eligible reason
  • Trip Interruption – If you have to end your trip early you could be reimbursed for any prepaid transportation (not including miles & points) up to $10,000
  • Trip Delays – Get up to $500 per ticket when your trip is delayed for more than 12 hours (even authorized users are eligible)
  • Lost Luggage – Luggage or items inside are lost or damaged for up to $3,000 with a limit of $500 for certain items like cameras, jewelry, and electronics
  • Delayed Luggage – After 6 hours, up to $100 a day for up to 5 days

That’s part of the reason why many folks, including me and Emily, keep this card in their wallet year after year!

Bottom Line

The Chase Sapphire Preferred includes primary rental car insurance when you use the card to pay for your rental.

But you’re also covered if you use Chase Ultimate Rewards points from your Chase Sapphire Preferred account to pay for your rental through the Chase Ultimate Rewards Travel Portal!

And if you use points to partially pay for your rental, you’ll still be covered!  As long as the points come from your Chase Sapphire Preferred account and you pay the balance with your Chase Sapphire Preferred card.

Thanks for the question, Tommy!

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13 responses to “Do You Still Get Primary Rental Car Insurance When You Use Chase Ultimate Rewards Points to Pay for Your Rental?

  1. As a general rule, is there any reason not to transfer all ultimate rewards points to Chase Sapphire account (vs. Chase Ink) before using them?

  2. What about the case where I drop my car off for a service at the dealership, and they give me a rental car through the enterprise office that has a desk inside the dealership. The rental is covered for free by the dealership while my car is getting service, but I gave enterprise my CSP card to place a $150 hold for incidentals. Upon me returning the car in time, the $150 hold was released and my final bill with enterprise was zero dollars. What if I got in an accident and needed to make a claim through chase, as I declined all enterprises protection. Would I be covered in this case? Even though my final bill was zero dollars because the dealer covered it? I’m sure this is a very common scenario, would be great to get the real answer. TIA.

  3. This is not what Chase told me via SM to their customer service, here’s a link to my reddit post where I cite sources:
    https://www.reddit.com/r/churning/comments/4em4z6/csp_ur_redeemed_for_rental_car_covered_by_csp/

    The catch seems to be wording of coverage, but the CS rep stated that the CDW coverage is a Visa benefit not a Chase benefit and when redeeming points you’re SOL.

  4. Darius/Emily, do u have an answer for Mr. Chase’s question? I have the same exact question….

  5. @Joe – I can’t think of any reason why not.

    @mr Chase – I spoke to the Chase benefits folks. Because your card isn’t actually being used to pay for the rental, you would NOT be covered.

    @Brandon – That’s very strange. I’ve spoken to 3 Chase representatives from the benefits department and they’ve all said the same thing. If you pay with points from your Chase Sapphire Preferred account (either in full or in part, with the balance paid with the Chase Sapphire Preferred card), you will be covered.

    Their number is 888-320-9961. I’m curious to see if you get a different result when you call them directly as opposed to a secure message from your account.

    @Mike – See my response above.

  6. I had the Chase Sapphire Preferred and downgraded to the Chase Sapphire card after the first year of no-annual fee was up. Does the Chase Sapphire offer this same travel coverage?

  7. I’ve used the Chase Ultimate Rewards points for car rental last month, and got hit probably in the parking lot where I was not on the scene.
    I submitted the benefit claim, but got the response back saying the entire car rental period was not charged to the covered card. I believe I got the car rental through the Chase Ultimate Rewards Travel Portal.
    I don’t understand why this is happening. Could you please clarify what I should do?

  8. I’ve used my CSP ultimate rewards points to rent a car last month through the Chase Ultimate Rewards Travel Portal.
    I got hit probably at the parking lot where I was not on the scene. This gives me scratch on the car door. I claimed to card benefit services about the damage coverage but got rejected.
    It should be covered based on what this post says. I don’t know why this is happening, could you please clarify how should I resolve this?

  9. Pingback: How to Rent a Car Cheaply (or for free*) this Thanksgiving! - Make Smarter Decisions

  10. What is the final verdict on this ? From the post above, it appears that there is no cdw coverage when paying with points.

    • If you pay the ENTIRE cost with Chase UR points, you will be covered. Or if you pay with a mixture of UR points and a UR card.

      • I called the benefits department and they told me that yes it will be covered even when booked with UR points. I then asked them to send/confirm this over via an email.

        The rep just emailed the standard letter that stated – CDW is in effect when the rental is secured and paid by the card.

        I replied back and asked them to confirm the coverage when booked with UR points.
        No reply so far and it has been over 48 hours.

        Given the claim denial above, I seriously believe that the reps are mis-stating the coverage over the phone. From what I have read, the coverage is by Visa so, booking with points may in fact jeopardize the coverage.