Protect Yourself and Earn Miles, Points, or Cash Back With the Best Credit Cards for Car Rentals

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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 Card for Car Rentals and Earning Ritz-Carlton (or Marriott or Starwood!) Points:   Ritz-Carlton Rewards® Credit 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 Small Business Card for Car Rentals and Earning United Airlines Miles:   United℠ Explorer Business Card
• Best Card for Car Rentals and Cash Back at Costco:   Costco Anywhere Visa® Business Card by Citi 
• Best Card for Long-Term Rentals:   Any of the Top Cards from American Express

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 your rental car?

Because saving on car rentals can be tricky, it’s important to use the right credit card for your rental.  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.

The information for the Ritz-Carlton Rewards®, United MileagePlus® Club and United MileagePlus® Club Business cards has been collected independently by Million Mile Secrets.  The card details on this page have not been reviewed or provided by the card issuer.

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.

Primary vs. Secondary Car Rental Coverage

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.

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.  Even though 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 Chase’s stricter approval rules, 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 these other business cards) in the past 24 months.

And if you qualify for a 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.  But 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

Link:   Apply for the Chase Sapphire Reserve

Link:   Chase Sapphire Reserve Benefits Guide

Link:   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.  Which 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.  So if you’re renting a very high-end car, the Chase Sapphire Reserve is a better bet.

When you sign-up for the Chase Sapphire Reserve, you’ll earn 50,000 Chase Ultimate Rewards points after you spend $4,000 on purchases in the first 3 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
• $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.  But 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

Link:   Apply for the Chase Sapphire Preferred

Link:   Chase Sapphire Preferred Benefits Guide

Link:   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 card we recommend for beginners in the miles & points hobby.  And it’s my 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 50,000 Chase Ultimate Rewards points after spending $4,000 on purchases in the first 3 months of opening your account.

You can redeem the sign-up bonus for $500 in cash back or $625 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, but it’s waived the first year.  So you can try the card out for ~11 months to see how you like it!

3.   Chase United Cards

Link:   Apply for the United℠ Explorer Business Card

Link:   Our Review of the Chase United MileagePlus Business Explorer Card

All 4 of the Chase United Airlines cards, including the United Explorer Card, United Explorer Business, United MileagePlus Club and the United MileagePlus Club Business card, provide primary coverage when you use the card to pay for your car rental.

If you’re looking for a personal card, I’d suggest the United Explorer Card.  But if you qualify for a business card, consider the United Explorer Business Card.

When you sign-up for the United Explorer Card, you’ll earn 40,000 United Airlines miles after spending $2,000 on purchases within the first 3 months of account opening.

In addition to the great sign-up bonus, you’ll also get:

• • 2 United Airlines miles per $1 you spend on purchases from United Airlines, restaurants, and hotels (when purchased directly with the hotel)
  • 1 United Airlines mile per $1 you spend on everything else
  • Free first checked bag for the cardholder and 1 companion – but you MUST use your card to pay for your ticket
  • Priority boarding
  • Global Entry or TSA PreCheck credit (up to $100)
  • 25% off in-flight purchases of Wi-Fi, food, and drinks on United Airlines operated flights
  • 2 United Club lounge passes per card membership year
  • Earn 25% bonus miles when shopping through the United Airlines MileagePlus X app
  • No foreign transaction fees

And with the United Explorer Business card, you’ll earn a 75,000 United Airlines miles sign-up bonus after spending $5,000 within the same timeframe.  And also get:

• 2 United Airlines miles per $1 you spend on United Airlines and at restaurants, gas stations, and office supply stores
• 1 United Airlines mile per $1 you spend on everything else
• Free first checked bag – but you MUST use your card to pay for your ticket
• Priority boarding
• 2 United Club lounge passes per card membership year
• Earn 25% bonus miles when shopping through the United Airlines MileagePlus X app
• No foreign transaction fees

The $95 annual fee on both cards is waived the first year.  And in my opinion, both are worth keeping even beyond the first year, because cardholders have access to more award seats!

Just remember, these cards are impacted by Chase’s stricter approval rules.  So if you’ve opened 5 or more credit card accounts (from any bank) in the past 24 months (NOT counting Chase business cards and these other business cards) it’s unlikely you’ll be approved.

4.   Chase Ritz-Carlton

Link:   Apply for the Ritz-Carlton Rewards® Credit Card

You get primary car rental insurance when using your Ritz-Carlton card to pay for your rental car.

Similar to other Chase cards, you need to charge the entire cost of the rental to your card AND decline the rental company’s collision insurance.  You are then covered up to $75,000 for theft and collision damage in both the US and internationally.

With the Chase Ritz-Carlton card, you’ll earn 2 complimentary nights at any participating Tier 1 to 4 Ritz-Carlton hotel after spending $4,000 on purchases in the first 3 months from account opening.

You’ll also get perks like:

• 5X points at Ritz-Carlton, Marriott, and Starwood hotels
• 2X points on flights purchased directly from airline, rental cars, and restaurants
• Upgrade to the Ritz-Carlton Club Level 3 times annually on paid stays up to 7 nights
• $300 annual travel credit to use for qualifying airline purchases such as seat upgrades, baggage fees and preferred lounge memberships or passes
• $100discount on multi-passenger, domestic round-trip itineraries purchased through the Visa Infinite Discount Air Benefit with participating airlines – with no limit on the number of times you can use the discount
• Priority Pass Select for access to airport lounges 
  
• $100 hotel credit for dining, spa or other recreational activities with each paid stay of 2 nights or longer at participating Ritz-Carlton hotels
• $100 statement credit for Global Entry
• Gold elite status at Ritz-Carlton & Marriott (after the first year you have to spend $10,000 on the card to keep Gold status)
• Platinum elite status if you spend $75,000+ in a year
• 10% bonus points premium earned through card purchases each calendar year

The card comes with a $450 annual fee.  But you can easily make up for it with benefits like the annual $300 travel credit and Priority Pass lounge access.

Plus, the Chase Ritz-Carlton card is NOT affected by Chase’s 5/24 rule!  So this is a good option for folks looking to earn bonus hotel points and have a card that offers primary car rental insurance on personal and business trips.

5.   Chase Ink Business Preferred

Link:   Apply for the Chase Ink Business Preferred

Link:   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 3 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 (watch this step-by-step video guide below to learn how!)

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.

Team member Keith can confirm the cell phone insurance perk actually works! He filed a claim and received an $85 check to cover the cost of repairing his damaged iPhone screen.  So he’ll definitely continue to keep this card in his wallet!

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.

6.   Chase Ink Business Cash

Link:   Apply for the Ink Business Cash℠ Credit Card

Link:   Biggest No-Brainer Deal of the Year: $500 Cash Back (50,000 Chase Ultimate Rewards Points!)

The Chase Ink Business Cash card comes with primary rental car insurance coverage when used for renting a car for business.

Plus, with the highest-ever Ink Business Cash sign-up bonus, you’ll earn $500 cash back (50,000 Chase Ultimate Rewards points!) after spending $3,000 on purchases in the first 3 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!

Citi Cards

1.   Citi Costco Anywhere

Link:   Apply for the Costco Anywhere Visa® Business Card by Citi 

If you spend a lot at Costco and are looking to earn straightforward cash back with a card that offers primary car rental coverage, consider the Citi Costco Anywhere Business card.

With this card, you’ll earn 2% cash back on purchases at Costco and Costco.com.  You’ll also earn:

• 4% cash back on on the first $7,000 of purchases each annual reward period (1% thereafter) of gasoline at Costco and gas stations worldwide (excluding superstores, supermarkets, convenience stores, and warehouse clubs other than Costco)
• 3% cash back at restaurants & bars worldwide
• 3% cash back for eligible travel purchases including airfare, hotel stays (excluding timeshares, banquets, and events), car rentals, and purchases from Costco Travel
• 1% cash back on all other eligible purchases

Plus, this card has no annual fee if you have a paid Costco membership.

The only drawback with this card is you can only redeem your cash back rewards as a check once per year.  So if you cancel the card for any reason before receiving the cash back, you’ll lose all the rewards you’ve earned.  And some folks prefer the option to redeem cash back rewards at the end of each billing cycle.

Note:   The Citi Prestige® Card and Citi Premier Card  have primary car rental insurance for rentals outside the US.  And unlike with many other cards, there are NO country exclusions. 

American Express Cards

You can pay for primary insurance coverage with AMEX cards.

You can enroll for free in the American Express Premium Car Rental Protection program.  But you’ll 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).

They do NOT, however, cover rentals in Australia, Ireland, Israel, Italy, Jamaica and New Zealand.

You can read more about the best AMEX card offers for 2018 here.  And don’t forget, applying for AMEX small business cards may NOT hurt your chances of card approvals with other banks 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 Big Travel.

Other Cards That Offer Primary Coverage for Car Rentals

You get primary rental car insurance worldwide (except where prohibited by law) when you pay for your rental car with your Diners Club card (not available to new applicants).  You can also get primary rental car insurance when you pay with your JP Palladium card (only available to invited Chase Private Bank customers).

More Ways to Save on Car Rentals

Be sure to check out Million Mile Secrets team member Jason’s post about ways to avoid overpaying for your rental car.  Including tips like using AutoSlash!

Or, if you have a Visa Infinite card, remember that you can use any Visa Infinite card to get a 30% discount when you rent from Silvercar and enter the promo code “VINFINITE“.  You can read more details about the offer here.

Visa Infinite cards include:

• Chase Sapphire Reserve℠
• Chase Ritz-Carlton Card
• US Bank Altitude™ Reserve Visa Infinite® Card

If you’re not sure if your Visa qualifies, look for the word “Infinite” under the Visa logo on your card.

And Citi cardholders can save 5% to 20% on Hertz rentals and get a free weekend day through Citi and Hertz’s partnership.  You can read more about this promotion here.

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
• Best Card for Car Rentals and Earning United Airlines Miles:   United Explorer Card
• Best Card for Car Rentals and Earning Ritz-Carlton (or Marriott or Starwood!) Points:   Ritz-Carlton Rewards® Credit Card
• Best Small Business Card for Car Rentals:   Chase Ink Business Preferred
• Best No-Annual-Fee Small Business Card for Car Rentals:   Chase Ink Business Cash
• Best Small Business Card for Car Rentals and Earning United Airlines Miles:  United℠ Explorer Business Card
• Best Card for Car Rentals and Cash Back at Costco:   Costco Anywhere Visa® Business Card by Citi 
• 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.

Have you ever had to use your credit card’s primary car rental coverage?  Tell me about your experience in the comments below!