Best credit cards with car rental insurance: Protect yourself and earn travel rewards at the same time
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Locking in the best price on your car rental is incredibly important. But it’s also important to ensure that you’re properly covered in the event of an accident and that you earn travel rewards for your rental.
The good news is that a number of the top credit cards for travel offer coverage on rental cars, so you don’t have to pay extra for insurance when you pick up your rental.
Here’s a rundown of the best cards for care rentals and a look at why you’ll benefit from using a credit card that offers primary car rental coverage:
Summary
- Chase Sapphire Preferred Card
- Chase Sapphire Reserve
- United Explorer Card
- Ink Business Preferred Card
- Chase Ink Business Cash Credit Card
- Any of the top cards from American Express (like The Platinum Card from American Express)
Best for beginner travelers
Chase Sapphire Preferred® Card
Annual fee
$95
Welcome offer
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
Why we like it
The Chase Sapphire Preferred is one of our top credit cards for both beginners and frequent travelers. It comes with a nice welcome bonus, solid ongoing points earning on bonus categories and some great travel perks. The travel perks like delayed baggage and flight insurance will easily cover the already reasonable annual fee of $95. It earns valuable Chase Ultimate Rewards points which is one of the best flexible points currencies: you can transfer to a number of travel partners like Hyatt and United, easily redeem for any type of travel through the Chase portal where you’ll get 25% bonus or even earn straight cash back.
Who is it best for?
The Chase Sapphire Preferred is great for just about anyone. It’s large welcome bonus makes it easy to get immediate value and you’ll easily rack up points with its broad bonus categories, earning a decent return on travel and dining purchases. Chase points allow for easy redemptions made through the Chase Travel Portal, which allows you to book any sort of travel with no blackout dates, and you’ll get better value from your points compared to other bank’s travel portals.
Credit Score Recommended
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Good to Excellent
660
850
Details
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
- Enjoy new benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash’s subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
Pros
- Flexible points
- Unique transfer partners like Hyatt and United
- Great travel and trip delay insurance
Cons
- $95 annual fee
- Ongoing points earning is lower compared to other cards
Reward Rate
- Earn 5X points on travel purchased through Chase Ultimate Rewards®.
- Earn 3X points on dining.
- Earn 2X points on all other travel purchases, plus more.
APR
15.99%-22.99% Variable
Credit Needed
Good to Excellent
Foreign Transaction Fee
$0
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Best for premium travel rewards
Chase Sapphire Reserve®
Annual fee
$550
Welcome offer
Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®
Why we like it
The Chase Sapphire Reserve is the premium Chase travel credit card. In addition to earning 3x points on travel and dining purchases, this card comes with a $300 annual travel credit and other travel and dining perks that quickly make it worth the $550 annual fee. One of our favorite benefits is the 50% point value boost that cardholders get when redeeming through the Chase Ultimate Rewards travel portal.
Who is it best for?
The Chase Sapphire Reserve is best for those who travel relatively frequently. With protection against canceled and delayed flights, access to 1,000+ airport lounges and an up to $100 Global Entry credit, those who travel internationally will enjoy this card. This card also increases the value of Chase Ultimate Rewards by 50% when redeeming through the Chase Travel Portal. This applies to rewards earned with any of their other credit cards, making it the ideal card to double up with a second Chase card with complimentary earning categories.
Credit Score Recommended
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Excellent
780
850
Details
- Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®
- $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year. Through December 31, 2021, gas station & grocery store purchases will also count towards earning your Travel Credit
- Earn 5X total points on air travel and 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases
- Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards. For example, 50,000 points are worth $750 toward travel
- With Pay Yourself Back℠, your points are worth 50% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
- 1:1 point transfer to leading airline and hotel loyalty programs
- Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $100 application fee credit for Global Entry or TSA Pre✓®
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more
Pros
- Travel credit of up to $300 covering a flexible range of travel related purchases
- Airport lounge access through Priority Pass
- 50% value boost when redeeming points through Chase Travel Portal
- Long list of travel protection benefits
- Flexible and transferrable points
Cons
- $550 annual fee, and $75 annual fee per authorized user
- Low value welcome offer compared to other high end travel cards
Reward Rate
- Earn 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards®.
- Earn 5X total points on air travel through Chase Ultimate Rewards®.
- Earn 3X points on other travel and dining.
- Earn 1 point per $1 spent on all other purchases
APR
16.99%-23.99% Variable
Credit Needed
Excellent
Foreign Transaction Fee
$0
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Best for earning United Airlines miles
United℠ Explorer Card
Annual fee
$0 Intro for First Year, then $95
Welcome offer
Earn 40,000 bonus miles after you spend $2,000 on purchases in the first 3 months your account is open.
Why we like it
This card makes you immune to most Basic Economy fare restrictions. You’ll receive preferred boarding, you can bring a free carry-on bag and you can bring a free checked bag (when paying for your ticket with the card — even award flight taxes and fees qualify). So you can buy the cheapest tickets United sells without being treated like cattle.
Who is it best for?
Anyone who checks a bag with United even a couple times per year will benefit from this card. Plus, if you’ve got a stash of United miles, the card opens up secret award inventory for you — award seats that only cardholders can see!
Credit Score Recommended
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Good to Excellent
660
850
Details
- Earn 40,000 bonus miles after you spend $2,000 on purchases in the first 3 months your account is open.
- $0 introductory annual fee for the first year, then $95
- Earn 2 miles per $1 spent on dining, hotel stays, and United purchases
- Up to $100 Global Entry or TSA PreCheck® fee Credit
- 25% back on United inflight purchases
- Check your first bag for free (a savings of up to $140 per roundtrip) when you use your card to purchase your ticket
- Enjoy priority boarding privileges and visit the United Club℠ with 2 one-time passes each year for your anniversary
- Earn 2 miles per $1 spent on dining including eligible delivery services
Pros
- Complimentary checked bags for you and one person on your reservation (when using your card for the reservation)
- Preferred boarding
- Increased award availability
- TSA PreCheck/Global Entry credit (worth up to $100)
- Excellent travel coverage (including primary rental car insurance)
- (2) one-time United Club lounge passes each year
Cons
- Mediocre mileage earning rates for spend
Reward Rate
- Earn 2 miles per $1 spent on dining, hotel stays, and United purchases
- Earn 2 miles per $1 spent on dining including eligible delivery services
- 1 mile per $1 spent on all other purchases
APR
16.49% to 23.49% Variable
Credit Needed
Good to Excellent
Foreign Transaction Fee
$0
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Best small-business overall
Ink Business Preferred® Credit Card
Annual fee
$95
Welcome offer
Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That’s $1,000 cash back or $1,250 toward travel when redeemed through Chase Ultimate Rewards®
Why we like it
The Ink Business Preferred is the best small business card on the market thanks to its gargantuan welcome bonus and ongoing benefits that can save literally $1,000+ per year. It provides primary coverage when renting a car for business purposes (a potential $12+ per day savings over purchasing in-house rental insurance), it gives you $600 in cell phone coverage simply for using the card paying your phone bill, and it earns 3x points on travel (on up to $150,000 in combined purchases per account anniversary year).
Who is it best for?
This card is best for small business owners and anyone who pays out-of-pocket for cell phone insurance. If you fly Southwest or United, or if you stay wit Hyatt, the rewards this card accrues can also be transferred to valuable travel partners like these.
Credit Score Recommended
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Good to Excellent
660
850
Details
- Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That’s $1,000 cash back or $1,250 toward travel when redeemed through Chase Ultimate Rewards®
- Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year. Earn 1 point per $1 on all other purchases
- With Fraud Protection your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring
- With Zero Liability you won’t be held responsible for unauthorized charges made with your card or account information
- Redeem points for cash back, gift cards, travel and more – your points don’t expire as long as your account is open
- Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards®
- Purchase Protection covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account.
Pros
- Best publicly available welcome bonus of any card
- Great return for travel and various business expenses
- Complimentary cell phone insurance
- Excellent travel and purchase protections
Cons
- You must have a for-profit venture to qualify
- High minimum spending requirement to earn welcome offer
- $95 annual fee
Reward Rate
- Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year
- Earn 1 point per $1 on all other purchases – with no limit to the amount you can earn
APR
15.99%-20.99% Variable
Credit Needed
Good to Excellent
Foreign Transaction Fee
$0
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Best no-annual-fee small business card
Ink Business Cash® Credit Card
Annual fee
$0
Welcome offer
Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
Why we like it
This card is perhaps the single best credit card for earning Chase Ultimate Rewards points. Though its highest bonus category is a little on the obscure side (purchases at office supply stores, on cellular phone, landline, internet and cable TV services), you can earn 5% cash back on the first $25,000 spent in combined purchases on these things each account anniversary year. And you can often buy things at office supply stores that aren’t just office supplies!
Who is it best for?
This card is best for small business owners looking for a steady flow of Chase Ultimate Rewards points. It’s especially powerful if you pair it with the Chase Sapphire Reserve®, Chase Sapphire Preferred® Card, or Ink Business Preferred — you can pool your Chase points onto one of those cards and then transfer them to valuable Chase’s transfer partners!
Credit Score Recommended
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Good to Excellent
660
850
Details
- Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening
- Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
- Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
- With Fraud Protection your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring
- With Zero Liability you won’t be held responsible for unauthorized charges made with your card or account information
- No Annual Fee
- Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®
- 0% introductory APR for 12 months on purchases
Pros
- Huge cash-back intro bonus
- Primary rental car insurance (when renting for business purposes)
- One of the best return rates of any credit card
- No annual fee
Cons
- The card incurs foreign transaction fees
- You must have a small business to qualify (but things like dog-walking, Uber, freelance writing, babysitting, etc. count)
Reward Rate
- Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
- Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
- Earn 1% cash back on all other card purchases with no limit to the amount you can earn
APR
13.24% – 19.24% Variable
Credit Needed
Good to Excellent
Foreign Transaction Fee
3% of each transaction in U.S. dollars.
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Best for long-term rentals
The Platinum Card® from American Express
Annual fee
$695
Welcome offer
Earn 100,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership.
Why we like it
The Amex Platinum is a staple in the travel cards landscape with its unmatched travel benefits, for frequent flyers these benefits alone can far exceed the cost of the annual fee. Beyond that, this card has great on-going rewards and the card also comes with a generous welcome bonus of 100,000 Amex Membership Rewards points after spending $6,000 on purchases within the first six months of opening your account. You’ll also earn 10x points on eligible purchases on the card at restaurants worldwide and when you “Shop Small” in the U.S., on up to $25,000 in combined purchases, during the first six months of card membership.
Who is it best for?
The Platinum Card is best for frequent travelers that value luxury travel perks: think incredible airport lounge access and Gold elite status with Marriott and Hilton. Cardholders can also cash in on hundreds of dollars of credit for travel expenses all the while earning 5X Membership Rewards Points on flights (booked directly with the airline or through American Express Travel, on up to $500,000 on these purchases per calendar year and on prepaid hotels booked with American Express Travel.
Credit Score Recommended
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Good to Excellent
660
850
Details
- Earn 100,000 Membership Rewards® Points after you spend $6,000 on purchases on the Card in your first 6 months of Card Membership.
- Plus, earn 10x points on eligible purchases on the Card at restaurants worldwide and when you Shop Small in the U.S., on up to $25,000 in combined purchases, during your first 6 months of Card Membership.
- Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
- $200 Hotel Credit: Get $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card®.
- $240 Digital Entertainment Credit: Get up to $20 in statement credits each month when you pay for eligible purchases with the Platinum Card® at your choice of one or more of the following providers: Peacock, Audible, SiriusXM, and The New York Times. Enrollment required.
- $155 Walmart+ Credit: Cover the cost of a $12.95 monthly Walmart+ membership with a statement credit after you pay for Walmart+ each month with your Platinum Card. Cost includes $12.95 plus applicable local sales tax.
- American Express has expanded The Centurion® Network to include 40+ Centurion Lounge and Studio locations worldwide. Now there are even more places your Platinum Card® can get you complimentary entry and exclusive perks.
- $200 Airline Fee Credit: Get up to $200 in statement credits per calendar year in baggage fees and more at one select qualifying airline.
- $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only.
- $300 Equinox Credit: Get up to $25 back each month on select Equinox memberships when you pay with your Platinum Card®. Enrollment required.
- $179 CLEAR® Credit: Use your Card and get up to $179 back per year on your CLEAR® membership.
- $695 annual fee.
- Terms Apply.
- See Rates & Fees
Pros
- Access to Centurion Lounges, Priority Pass lounges, Delta Sky Clubs and more (enrollment required)
- Complimentary Hilton Gold elite status and Marriott Gold elite status (enrollment required)
- Long list of travel protections
- Excellent customer experience
Cons
- $695 annual fee
- Earning on travel categories exclusive to airfare and prepaid hotel stays
Reward Rate
- Earn 10x points on eligible purchases on the Card at restaurants worldwide and when you Shop Small in the U.S., on up to $25,000 in combined purchases, during your first 6 months of Card Membership.
- Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year.
- Earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
APR
See Pay Over Time APR
Credit Needed
Good to Excellent
Foreign Transaction Fee
None
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| Card | Intro bonus | Annual fee |
|---|---|---|
| Chase Sapphire Preferred® Card | Earn 60,000 bonus points after you spend $4,000 in the first three months from account opening.. | $95 |
| Chase Sapphire Reserve® | Earn 50,000 bonus points after you spend $4,000 in the first three months from account opening. | $550 |
| United℠ Explorer Card | Earn 40,000 bonus miles after you spend $2,000 on purchases in the first three months of account opening. | $95 annual fee, waived the first year |
| Ink Business Preferred Credit Card | 100,000 Chase Ultimate Rewards points after spending $15,000 on purchases within the first three months of opening your account | $0 |
| Ink Business Cash® Credit Card | $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening. | $0 |
| Any of the best American Express cards | varies | varies |
Deep dive into the best credit cards for car rentals
Chase Sapphire Preferred Card
The Chase Sapphire Preferred offers excellent travel protections, including primary car rental insurance that covers damage due to theft or collision to your rental car, when you pay for the rental with your card. This is great for personal trips, since many cards restrict the primary insurance to business trips. You also earn 2x Chase Ultimate Rewards points on travel and 3x points on dining and there are no foreign transaction fees.
We recommend the Chase Sapphire Preferred as a first credit card for beginners to the miles-and-points hobby. And it’s our top pick to use for car rentals if you aren’t interested in a premium card like the Chase Sapphire Reserve. When you sign up and are approved, you’ll earn 60,000 bonus points after you spend $4,000 in the first three months from account opening.
You’ll also get:
- 5x total points on all travel purchased through Chase Ultimate Rewards
- 3x points on dining, including eligible delivery services, takeout and dining out
- 3x points on select streaming services
- 3x points on online grocery purchases (excluding Target, Walmart and wholesale clubs)
- 2x points on all other travel
- 1x point on all other purchases
- Trip delay reimbursement – Get up to $500 back per ticket when your trip is delayed more than 12 hours
The card has a $95 annual fee. Here’s our review of the Chase Sapphire Preferred.
Chase Sapphire Reserve
You’ll get primary rental insurance when you use your Chase Sapphire Reserve card to pay for your car rental and decline the rental agency’s collision damage waiver (CDW) or loss damage waiver (LDW).
The Chase Sapphire Reserve rental-car insurance applies to rentals of 31 consecutive days or less in the U.S. and most foreign countries. (Always call the benefits administrator to verify coverage.) You’re covered for damage from collision or theft but not damage to other vehicles or property, or for injuries. Because the coverage is primary, you won’t have to file a claim with your own insurance company first.
The Chase Sapphire Reserve has fewer exclusions than the Chase Sapphire Preferred Card. If you’re renting a high-end car, the Chase Sapphire Reserve is a better bet.
When you apply and are approved for the Chase Sapphire Reserve, you’ll earn 50,000 bonus points after you spend $4,000 in the first three months from account opening.
The sign-up bonus is worth $750 in travel benefits when you redeem points for flights, hotels, car rentals and more through the Chase travel portal. With Chase Sapphire Reserve, your points are worth 1.5 cents each on travel booked through the Chase site.
With the Chase Sapphire Reserve, you’ll also get:
- 3x Chase Ultimate Rewards points per $1 on travel (excluding $300 travel credit) and dining
- A statement credit of up to $300 for travel purchases (i.e., airfare, Airbnb, hotels, car rental or Uber) each account anniversary year
- Priority Pass Select membership for access to airport lounges
- $100 statement credit for Global Entry or TSA PreCheck
- No foreign transaction fees
The card comes with a $550 annual fee, which is not waived the first year. However, you can offset this fee with perks like the $300 travel statement credit and airport lounge access.
These perks and the primary car rental insurance coverage make the Chase Sapphire Reserve our top pick among premium travel credit cards to use for rental cars. Here’s our review of the Chase Sapphire Reserve.
United℠ Explorer Card
If you want to earn United Airlines MileagePlus miles, the United Explorer card is a good choice because it comes with rental car insurance for most rentals under 31 days when you charge the entire amount of the rental to your United℠ Explorer Card. This insurance kicks in before you have to file a claim with your personal insurance company.
With the United Explorer, you’ll earn 40,000 bonus miles after you spend $2,000 on purchases in the first three months of account opening.
You’ll also get:
- 2x United Airlines miles $1 spent on United Airlines purchases
- 2x United Airlines miles $1 spent at restaurants and on hotel stays
- 1x United Airlines mile $1 spent on everything else
You can read our review of the United Explorer Card here.
Ink Business Preferred Credit Card
The Chase Ink Business Preferred earns Chase Ultimate Rewards points, which are our favorite flexible points. You’ll also get primary car rental coverage when renting a car for business purposes.
The Ink Business Preferred card comes with a sign-up bonus of 100,000 Chase Ultimate Rewards points after you spend $15,000 on purchases in the first three months from account opening.
That’s enough for:
- $1,250 in travel by booking airfare, hotel stays or car rentals through Chase’s travel portal (with no blackout dates)
- Potentially even more value by transferring points directly to airline and hotel partners, like Hyatt, Southwest or United Airlines
With the Ink Business Preferred, you also get:
- 3x Chase Ultimate Rewards points for every $1 spent on travel, shipping purchases, internet, cable and phone services, advertising purchases made with social media sites and search engines (up to a maximum of $150,000 in combined purchases per account anniversary year)
- 1x Chase Ultimate Rewards points on all other purchases
- Up to $600 in cellphone insurance when you pay your phone bill with the card
The card’s $95 annual fee is not waived the first year. And the cellphone insurance perk actually works.
This is a small-business card but you might qualify without realizing it. Check our step-by-step guide to completing a Chase business-card application.
This card comes under the Chase’s 5/24 rule. You’ll find our review of the Chase Ink Business Preferred here.
Ink Business Cash Credit Card
The Chase Ink Business Cash card comes with primary rental car insurance coverage when used for renting a car for business purposes and the highest-ever Ink Business Cash welcome bonus — $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening. It’s an awesome deal and the card has no annual fee.
The Ink Business Cash also comes with:
- 5% cash back (5x Chase Ultimate Rewards points) on the first $25,000 spent in combined purchases at office supply stores and on phone, internet and cable TV services each account anniversary year
- 2% cash back (2x Chase Ultimate Rewards points) on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
- 1% cash back (1x Chase Ultimate Rewards point) on all other purchases
The primary car rental insurance is for rentals for business purposes and you have to pay with your Chase Ink Business Cash card. It provides only secondary coverage when renting for personal use. I’ve kept this card in my wallet for years because it has no annual fee. And I always use it to earn 5% cash back (5x points) at Staples when shopping for my vacation rental business. Bonus points like that really add up. Here’s our review.
Top American Express cards
Most American Express cards include secondary rental car coverage, but all Amex cards offer primary car rental coverage for a small additional fee, which can definitely be worth it.
You can enroll and see more details about the American Express Premium Car Rental Protection program online. What makes this program unique is that you pay ~$25 (~$18 for California residents and ~$15 for Florida residents) per rental for up to 42 consecutive rental days (30 consecutive rental days for Washington State cardholders).
Most car rental companies charge this same price daily. The American Express Premium Car Rental Protection program does not, however, cover rentals in Australia, Ireland, Israel, Italy, Jamaica and New Zealand.
You can read more about the best American Express card offers.
It’s also worth noting that applying for Amex small-business cards will not hurt your chances for card approvals with Chase (if you’ve applied for many new cards recently) because Amex small-business cards do not appear on your personal credit report. So if you qualify, applying for an Amex small-business card can be a great way to earn bonuses for free travel.
FAQ about cards with car rental insurance
What’s the difference between primary vs. secondary car rental coverage?
One of the biggest causes for confusion with credit cards is understanding how the popular “car rental insurance” perk actually works. It’s important to understand the difference between primary and secondary coverage.
Say you charge a car rental to a credit card that offers secondary car rental insurance and decline the collision damage waiver (CDW) offered by the car rental agency. Lots of folks do this in order to save money because the CDW can get pricey (it isn’t uncommon for it to double the cost of your rental).
If you have a car insurance policy in the U.S. and you get in an accident in the U.S., the secondary car rental credit card insurance will only cover what’s leftover after you file a claim with your primary car insurance provider. You will still be responsible for the deductible through your insurance company and you will need to report the accident to them, which can lead to an increase in your premium. The secondary insurance on your credit card also would not cover damage to the other car, any property damage or injuries to you or others.
If you don’t have a car insurance policy in the U.S., secondary rental car insurance on a credit card will work as primary rental car insurance and will usually pay for physical damage to the car and damage due to theft, loss-of-use charges and towing charges for the rental car. You’d still liable for damages to other property and persons.
Similarly, outside the U.S. most secondary credit card rental car insurance will actually be primary rental car insurance and will pay for physical damage to the car and damage due to theft, loss-of-use charges and towing charges for the rental car. You will still be liable for damage to other property and persons.
By comparison, if you charge the rental to a credit card offering primary car rental coverage and decline the collision damage waiver offered by the car rental agency, the credit card insurance will usually pick up the bill for physical damage and damage due to theft, loss-of-use charges, and towing for the rental car if you get into an accident (up to the coverage limit) without requiring you to file a claim with your personal car insurance company.
That said, like secondary car rental insurance, the primary car rental insurance will not cover damage to the other car, any property damaged, and injuries to you or others. And you are still liable for those damages. Your personal car insurance policy may cover those claims.
Using a card that offers primary car rental insurance when you decline the collision damage waiver through the car rental agency can end up saving you a lot if something happens. Most credit cards offer secondary rental car insurance coverage, but a handful offer primary rental car insurance coverage.
Do most credit cards offer rental car insurance?
No, you shouldn’t assume that your credit card offers car rental insurance, as many of them don’t. Regardless of which credit card(s) you have, it’s always prudent to check on your card’s coverage to ensure you have the appropriate amount of protection.
Should you still get car rental insurance if your card offers coverage?
If your card offers primary coverage and you’ve followed the steps to ensure that you’re covered (i.e. using the appropriate card to pay for your rental, declining the coverage from the rental company) you shouldn’t need to pay extra for car rental insurance. That said, remember that cards that offer primary rental car insurance only pay for damage to your rental car, not damage to the other cars, property or personal injuries. So you shouldn’t rely on your credit card’s rental car insurance if you’re not comfortable with the risks.
Here’s a detailed guide to help you determine when you need to pay for car rental insurance.
How to get your card issuer to cover damages to a rental car
The process will depend on which card you have and which issuer you’re dealing with. In general, you’ll need to file your claim within the appropriate time frame and provide the card issuer with the necessary documentation. Ultimately, it’s up to the card issuer and benefits coordinator to determine whether your not your claim is eligible.
Here’s a first hand account of MMS writer Joseph’s experience filing a claim through his Chase Sapphire Reserve card.
Bottom line
Credit card companies that offer primary rental car insurance only pay for damage to your rental car, not damage to the other cars, property or personal injuries. Don’t rely on your credit card’s rental car insurance if you’re not comfortable with the risks. Check with your insurance company to see if you’ve got liability coverage for personal injuries through your policy.
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Have you ever had to use your credit card’s primary car rental coverage? We’d love to hear about your experience in the comments below!
Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)
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