We write a lot about how miles and points can help you save on airfare and hotels. But what about some of the other major expenses that can be a part of planning a vacation, like renting a car?
Because saving on car rentals can be tricky, it’s important to use one of the best credit cards for car rentals. One, so you know you’re covered in the event of an accident (without spending extra money for coverage through the rental company!). And two, so you’re earning travel rewards or cash back for your purchase.
Let’s take a look at the best credit cards to use for rental cars. And quickly review just why you’ll benefit from using a card that offers primary car rental coverage.
The Best Credit Cards for Car Rentals
- Best Card for Car Rentals and Premium Travel Rewards: Chase Sapphire Reserve
- Best Card for Car Rentals and Beginner Travelers: Chase Sapphire Preferred Card
- Best Card for Car Rentals and Earning United Airlines Miles: United Explorer Card
- Best Small Business Card for Car Rentals and Earning United Airlines Miles: United Explorer Business Card
- Best Small Business Card for Car Rentals: Chase Ink Business Preferred Credit Card
- Best No-Annual-Fee Small Business Card for Car Rentals: Chase Ink Business Cash Credit Card
- Best Card for Long-Term Rentals: Any of the Top Cards from American Express
Understanding 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. Many folks are shocked to learn that it might not be what you initially suspected.
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 US and you got in an accident in the US, the secondary car rental credit card insurance will only cover what’s left over 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 raises in your premiums. And it would NOT cover damage to the other car, any property damaged, and injuries to you or others.
If you don’t have a car insurance policy in the US, secondary rental car insurance on a credit card will work as primary rental car insurance and will usually pay for physical damage and damage due to theft, loss-of-use charges, and towing charges for the rental car. Although you’d still liable for damages to other property and persons.
Similarly, outside the US, most secondary credit card rental car insurance will actually be primary rental car insurance and will pay for physical damage and damage due to theft, loss-of-use charges, and towing charges for the rental car. You will still be liable for damages to other property and persons.
In comparison, if you charge the rental to a credit card offering primary car rental coverage and decline the Collision Damage Waiver (CDW) 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 and your personal car insurance policy may cover those claims.
For these reasons, 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!
Top Credit Cards for Car Rentals
It’s important to remember that because of the Chase 5/24 rule, we almost always suggest getting any Chase cards you want first. Chase will NOT approve you for most of their cards if you’ve opened 5+ cards from any bank (NOT counting Chase business cards and certain other business cards) in the past 24 months.
And if you qualify for a small business card, you could consider any of the small business cards on the list, because they don’t appear on your personal credit report and hinder your ability to be approved for any great Chase offers in the future.
Just remember, organization is key when you’re in the miles & points hobby. And we always suggest paying your bills on time and in full every month, because any interest you accrue will likely negate any rewards you earn.
You can use sites like MyBankrate to check your credit score. However, your score isn’t the only factor banks consider when evaluating credit card applications. They also look at income and financial stability, and the decision to approve you or not is always ultimately up to the bank!
It’s also worth noting that the following countries are often excluded from credit card rental coverage: Israel, Ireland, Jamaica, Northern Ireland, Italy, Australia, and New Zealand. But Chase cards and Citi cards have no exclusions. So if you’re renting in any of those locations and intend to use your credit card’s coverage, it’s best to pick a Chase or Citi card.
Chase Cards
1. Chase Sapphire Reserve
Apply Here: Chase Sapphire Reserve
Read our review of the 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 (often called CDW or LDW).
The Chase Sapphire Reserve rental car insurance applies to rentals of 31 consecutive days or less in the US and most foreign countries (but it’s always best to call the benefits administrator to verify coverage). You’re covered for damage due to collision or theft to your vehicle, but not damage to other vehicles, property, or injuries.
And because coverage is primary, you won’t have to file a claim with any other insurance policy you have first. This could end up saving you lots of money in the event of an accident or damage to your vehicle!
Plus, the Chase Sapphire Reserve has fewer exclusions than the Chase Sapphire Preferred Card. So if you’re renting a very high-end car, the Chase Sapphire Reserve is a better bet.
When you apply for for the Chase Sapphire Reserve, you’ll earn 50,000 Chase Ultimate Rewards points after you spend $4,000 on purchases in the first three months from account opening.
The sign-up bonus can get you $750 worth of travel when you redeem points for flights, hotels, car rentals, and more through the Chase travel portal, because when you have the Chase Sapphire Reserve, your points are worth 1.5 cents each on travel booked through Chase!
With the Chase Sapphire Reserve, you’ll also get:
- 3X Chase Ultimate Rewards points per $1 on travel (excluding $300 travel credit) and dining
- Up to $300 statement credit for travel purchases (like airfare, Airbnb, hotels, car rental, Uber, etc.) each account anniversary year
- Priority Pass Select for access to airport lounges
- $100 statement credit for Global Entry
- NO foreign transaction fees
The card comes with a $450 annual fee, NOT waived the first year. However, you can offset this fee with perks like the $300 travel statement credit and airport lounge access.
With all of these great perks AND the fact the card offers primary car rental insurance coverage when declining the car rental agency’s collision damage waiver, the Chase Sapphire Reserve is the #1 premium travel credit card to use for rental cars.
2. Chase Sapphire Preferred
Apply Here: Chase Sapphire Preferred Card
Read our review of the Chase Sapphire Preferred
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 dining and no foreign transaction fees!
In fact, the Chase Sapphire Preferred is the #1 first credit card we recommend for beginners in the miles & 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, you’ll earn 60,000 Chase Ultimate Rewards points after spending $4,000 on purchases in the first three months of opening your account.
You can redeem the sign-up bonus for $600 in cash back or $750 in travel when you book through the Chase Travel Portal. And potentially more value if you transfer points directly to airline and hotel partners, like Hyatt.
You’ll also get:
- 2X Chase Ultimate Rewards points per $1 spent on travel and dining worldwide
- 1X Chase Ultimate Rewards point per $1 spent on all other purchases
- Primary car rental insurance – Covers damage due to theft or collision to your rental car, when you pay for the rental with your card
- Trip delay reimbursement – Get up to $500 back per ticket when your trip is delayed more than 12 hours
The Chase Sapphire Preferred has a $95 annual fee.
3. Chase United Explorer Card
Apply Here: United Explorer Card
Read our review of the Chase United Explorer
4. Chase Ink Business Preferred
Apply Here: Ink Business Preferred Credit Card
Read our review of the Chase Ink Business Preferred
The Chase Ink Business Preferred earns Chase Ultimate Rewards points, which are our favorite type of flexible points! Plus, you’ll get primary car rental coverage when renting a car for business purposes.
The Ink Business Preferred card comes with an 80,000 Chase Ultimate Rewards point sign-up bonus after you spend $5,000 on purchases in the first three months from account opening.
That’s enough for:
- $800 in cash back
- $1,000 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 you spend 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 cell phone insurance when you pay your cell phone bill with the card
The card’s $95 annual fee is NOT waived the first year. And the cell phone 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.
Just keep in mind, this card IS affected by Chase’s 5/24 rule.
5. Chase Ink Business Cash
Apply Here: Ink Business Cash Credit Card
Read our review of the 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.
Plus, with the highest-ever Ink Business Cash welcome bonus, you’ll earn $500 cash back (50,000 Chase Ultimate Rewards points) after spending $3,000 on purchases in the first three months of account opening. Earning $500 in cash from a card with no annual fee is an AWESOME deal, especially if you frequently rent cars for business purposes.
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
- Primary car rental insurance (CDW) when renting for business purposes, covering damage due to collision or theft to your rental car when you pay with your Chase Ink Business Cash card. Secondary coverage when renting for personal reasons
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 can really add up!
American Express Cards
Most American Express cards include secondary rental car coverage. But all Amex cards offer primary car coverage program 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 about this same price per day, which can quickly add up. But the American Express Premium Car Rental Protection program offers similar primary coverage for nearly the the same price as a single flat fee for the entire rental.
They do NOT, however, cover rentals in Australia, Ireland, Israel, Italy, Jamaica and New Zealand.
You can read more about the best American Express card offers. Applying for Amex small business cards will NOT hurt your chances of card approvals with Chase if you’ve had 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.
Bottom Line
Our best credit cards for car rentals are:
- Best Card for Car Rentals and Premium Travel Rewards: Chase Sapphire Reserve
- Best Card for Car Rentals and Beginner Travelers: Chase Sapphire Preferred Card
- Best Card for Car Rentals and Earning United Airlines Miles: United Explorer Card
- Best Small Business Card for Car Rentals and Earning United Airlines Miles: United Explorer Business Card
- Best Small Business Card for Car Rentals: Chase Ink Business Preferred Credit Card
- Best No-Annual-Fee Small Business Card for Car Rentals: Chase Ink Business Cash Credit Card
- Best Card for Long-Term Rentals: Any of the Top Cards from American Express
Just remember, credit card primary rental car insurance only pays for damages to your rental car, NOT damage to the other car, property, or injuries. And you could be liable for millions of dollars in personal injuries.
So don’t rely on your credit card’s rental car insurance if you’re not comfortable with the risks. Check with your own insurance to see if you’ve got liability coverage through your policy, or pay for it directly through the car rental company.
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Have you ever had to use your credit card’s primary car rental coverage? Tell me about your experience in the comments below!
Is the CSR coverage good in Australia?
Great site, info. Thanks for very useful concise info
Hi there!
Thanks for your site and continued promotion of points. Both have served me well and I’m very appreciative!
My question is about renting a car directly through the Chase Sapphire site with points or simply pay for it with the card.
Both options will provide me the insurance, but would redeeming the miles serve me better than using them via the site?
Thank you!
Do you know which card is best for award rentals? For example, if I use Hertz points for the rental and just pay the taxes on the card, which card(s) will cover the insurance on that rental? Thanks!
Does anyone know how to get liability insurance in the cheapest possible way (in addition to using the primary or secondary credit card insurance offered by one of these credit cards)?