Credit Card Rental Car Insurance: Best Cards and What it Covers

Road trips can be a big part of the travel experience so it’s no surprise that many credit cards (especially travel rewards cards) offer rental car insurance. 

This guide walks you through what credit card car rental insurance covers, how it works, and outlines some options for credit cards offering primary coverage. 

How credit card car rental insurance works 

Some credit cards, especially travel rewards credit cards, offer a form of car rental insurance known as collision damage waivers (CDW) as a benefit to cardholders. Also known as loss damage waivers (LDW), a CDW is a policy that covers damage and theft of any rental car you charge to the card, up to the value of the vehicle.

If you were to get into an accident with the rental car, the CDW that your credit card provides may cover some or all of the damages. However, just be aware that there may be limits to coverage. 

How to use your credit card's rental car insurance benefit

To use your card's rental car insurance, you need to ensure that the cardholder will  be required to be the primary renter. Generally, secondary drivers will only be covered if they are listed as drivers on the rental contract. 

For your credit card insurance protection to be valid, you’ll have to pay for the rental with the card offering the insurance. You’ll also normally have to decline the rental agency’s collision damage waiver for your credit card insurance to kick in. 

How to activate credit card rental car insurance

In order to use your credit card's rental insurance policy, follow these steps. 

1. Choose a card with primary coverage (see more below).
2. If you're traveling abroad, check your policy closely for country exclusions (we list commonly excluded countries below).
3. Reserve a rental car and charge the full amount with the credit card whose car rental insurance you want to use.
4. Make sure that the cardholder is the primary driver on the reservation. 
5. Decline the rental car insurance offered by the rental car company.

Of course, please be aware that these are general steps, and you should first consult your card's specific policy regarding how to use it. 

Primary vs. secondary car insurance

Rental car insurance comes in two forms: primary coverage or secondary coverage. 

Primary coverage means that the policy kicks in first. If you have primary coverage on a credit card rental car insurance policy, you file a claim with that insurance. The advantage of primary coverage is that you do not need to file a claim with your personal auto insurance, meaning that the premiums on your personal policy will not be affected. 

Secondary coverage on credit card rental car insurance means that your personal auto insurance policy takes priority. Essentially, secondary insurance only reimburses you for costs not covered by other insurance policies. If you are in an accident with a rental car and have secondary coverage, you will have to first file a claim through your own car insurance before any of the credit card's insurance benefits kick in. This could mean you'd have to pay a deductible on your personal insurance policy and even a future hike in your premiums. 

Benefits of primary coverage

• Avoids filing a claim with your personal auto insurance company
• Removes dealing with multiple claims for one incident
• You might avoid a future rate hike on your personal insurance premiums
• May not have to pay a deductible

What credit card car rental insurance doesn't cover

That said, credit card rental insurance is far more limited in scope than a personal auto insurance policy. Here are some common components of auto insurance that are not included in credit card rental car insurance:

• Liability insurance: Liability insurance has two parts: bodily injury liability insurance which protects you against injuries your vehicle may cause to others outside the car, and property damage, which covers damage to physical structures or damage to other vehicles. You may be able to purchase daily liability protection through your rental car company.
• Personal accident insurance: This type of insurance covers expenses such as ambulance or hospital bills if you or your passengers get hurt in a car accident. 
• Personal belongings: (such as a purse or wallet stolen from a car) are often excluded from coverage. 

Other limits to credit card rental car insurance

• Limits on car values: Most credit card providers cap the value of the car they will cover (for example, a car with a manufacturer’s suggested retail price up to a maximum of $75,000). 
• Limits on car types: Some credit cards may also put limits on the type of vehicles you can rent and may exclude specialty vehicles, like vans, vintage cars, exotic or luxury cars like Lexus, Alfa Romeo, and Ferrari, and motorcycles. 
• Limited days: There is also a limit on the amount of days coverage is valid; so, for example, you might be covered for a rental for up to 20 consecutive days in your home country or up to 30 consecutive days in foreign countries. 
• Limits on countries covered: Some policies, like American Express Premium Car Rental Protection coverage, exclude Ireland, Israel, Jamaica, Australia, Italy, and New Zealand.

Above all, when it comes to what is and is not covered by your credit card’s rental benefit, the most crucial point is that it’s imperative to read the fine print of the rental car insurance that comes with your card. 

Each credit card provider could have slightly different rules, and the only way to be sure you are covered is to read the details of your policy and follow up with questions with your credit card provider if you’re uncertain about anything.

Best credit cards for rental car insurance

The following credit cards offer primary coverage on rental car insurance:

• Chase Sapphire Reserve® Card
• Chase Sapphire Preferred® Card
• Capital One Venture X Rewards Credit Card
• United (SM) Explorer Card
• United Quest Card
• United Infinite Card

The following cards offer primary coverage when you are renting a car for business purposes:

• Ink Business Preferred® Credit Card
• Ink Business Cash® Credit Card
• Ink Business Unlimited® Credit Card
• United Business Card

Chase Sapphire Reserve® and Chase Sapphire Preferred® Card

Sapphire Reserve insurance coverage: 

• Primary coverage for US and abroad
• The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision up to the a car’s value of $75,000 
• You (and secondary drivers listed on the rental contract) are covered for up to 31 consecutive 

Sapphire Preferred insurance coverage: 

• Primary coverage for US and abroad
• The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision 
• You (and secondary drivers listed on the rental contract) are covered for up to 31 consecutive days

Capital One Venture X Rewards Credit Card

Capital One Ventue X insurance coverage: 

• Primary coverage for US and abroad
• The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision up to the a manufacturer’s suggested retail price of $75,000 
• The policy covers you and authorized drivers listed on the rental agreement for up to 15 consecutive days in your country of residence and 31 consecutive days when abroad.
• Free upgrade to Hertz President’s Circle status.*

^{*Upon enrollment, accessible through the Capital One website or mobile app, eligible cardholders will remain at upgraded status level through December 31, 2024. Please note, enrolling through the normal Hertz Gold Plus Rewards enrollment process (e.g. at Hertz.com) will not automatically detect a cardholder as being eligible for the program and cardholders will not be automatically upgraded to the applicable status tier. Additional terms apply.}

United Airlines credit cards

United Airlines offers four personal credit cards that offer primary coverage for rental car insurance. The annual fees and accompanying perks vary for each. They are:  

Rental car insurance coverage: 

• Primary coverage for US and abroad
• The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision up to the cost of the car (amount maximum not specified)
• The policy covers you and authorized drivers listed on the rental agreement for up to 31 consecutive days 

Ink Business cards Cash® Credit Card

Rental car insurance coverage: 

• Primary coverage if your rental is for business purposes in your country of residence and internationally.
• Secondary if you are renting the car for non-business (aka personal) purposes in your country of residence
• The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision up to the cost of the car (amount maximum not specified)
• The policy covers you and authorized drivers listed on the rental agreement for up to 31 consecutive days 
• Additional card benefits: Travel and Emergency Assistance Services and Roadside Dispatch 

Honorable mention: The Platinum Card® from American Express

American Express cardholders have the option of enrolling in American Express Premium Car Rental Protection to obtain primary coverage. The policy is a flat-rate cost for the rental period (varying depending on the state of residence).

Rental car insurance coverage: 

• Secondary coverage* for US and abroad (aside from a few excluded countries)
• The auto rental collision damage waiver benefit provides reimbursement for damages caused by theft or collision up to the manufacturer’s suggested retail price of $75,000 
• The policy covers you and authorized drivers listed on the rental agreement for up to 30 consecutive days when abroad
• You do have the option of paying an extra flat rate fee, ranging from $19.95 to $24.95 (note that the fee is for the entire rental period, not per day) to upgrade to Amex’s Premium Car Rental Protection insurance. This insurance functions as primary coverage for up to 42 consecutive days and with up to $100,000 in coverage against damage or theft.
• Additional benefits: Complimentary memberships in Hertz Gold Plus Rewards, Avis Preferred and National Car Rental Emerald Club Executive

^{*Enrollment required for select benefits. Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.}