Best Credit Card with Rental Car Insurance

Best Credit Cards for Car Rental

Renting a car with a credit card can provide a way to avoid extra charges in case of an accident, as many credit card issuers include car rental insurance with their cards. Many also include numerous benefits, so it's a good idea to research as many conditions as you can on different cards. To make things easier for you, we have studied the market and compiled a list of the best credit cards for rental cars.

Short Review of Best Credit Cards for Car Rental

Who should apply

Capital One Venture X Rewards Credit Card

The Venture X Rewards​ is a great choice for people who travel a lot. To get this card, you need to pay an annual fee, but we believe that this more than pays off, thanks to the generous conditions offered. Namely, the Capital One Venture X Rewards​ Credit Card offers primary car rental insurance coverage up to $75,000. So, do not forget to refuse additional car insurance from the car rental company because Venture X Rewards​ has you covered. In addition, the card user receives 100,000 bonus miles for $10,000 spent on purchases in the first six months. After that, they get 10,000 bonus miles annually. All accumulated bonuses can be spent on car rentals and on flights and hotels. If you book a car through Capital One Travel, you can earn up to 10x miles. With the card, you get the Hertz President’s Circle status, which provides access to the President’s Circle call centerline and guaranteed upgrades.

Read more about Capital One Venture X Rewards Credit Card

Capital One Venture Rewards Credit Card

This is an affordable credit card with secondary rental car insurance and travel accident insurance. The card offers a bonus system with the opportunity to earn miles. One of the bonus categories is car rental, so you can earn 5х miles if you book a car and pay by card through the Capital One Travel portal. Capital One Venture Rewards​ cardholders can redeem Venture miles at a rate of 1 cent each. Thus, you can exchange 10,000 earned miles for a car rental at the price of $100. There are also 15 associated transfer partners so you can transfer your miles to select hotel and airline loyalty programs. Throw in rich travel rewards and a generous sign-up bonus, and you've got a card that sits firmly on the list of the best cards for car rental.

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Chase Sapphire Reserve®

A personal favorite of many, this card rightly deserves its place on our list. The Chase Sapphire Reserve® card offers generous $75,000 insurance coverage, and its coverage is primary. Based on these conditions, you can safely replace the loss damage waivers offered by car rental companies with this insurance. And let's not forget Chase Ultimate Rewards points, which you can use to save money on future travel. Each point is equal to 1.5 cents when booking through the issuer’s portal, which means that for only 20,000 points, you can rent a car that would otherwise cost you $300. On top of this, cardholders can receive car rental discounts from National, Avis, and Silvercar. The use of this card also opens access to other perks, such as an annual $300 travel credit, free entrance to lounges of many airports, and a large sign-up bonus.

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Chase Sapphire Preferred®

The second Chase Sapphire card on our list is much more affordable, with a $95 annual fee, and it also has a lot to offer. For example, you do not have to access additional insurance in case of vehicle damage because the Chase Sapphire Preferred® card provides primary rental coverage. Therefore, you can decline the coverage offered by the car rental company and use the savings at your discretion. Like the previously mentioned card from Chase, the Chase Sapphire Preferred® card will allow you to book a rental car for points. Each point is equal to 1.25 cents when booking through Ultimate Rewards; that is, 10,000 points is enough to cover a car rental worth $125. In addition, there is an opportunity to earn 10% of the sum of your purchases for the previous year with bonus points.

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Chase United℠ Explorer

It’s a handy card for frequent United flyers, which also offers excellent conditions for renting vehicles. Rental car insurance is primary and it covers the cash value of the car in case of any damage. The offer applies to most rental agreements worldwide. You can decline the car company’s collision insurance and be covered by the card. You may also spend your bonus points on car rental. Additionally, cardholders get United Club membership.

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The Platinum Card® from American Express

This card allows you to access benefits from three car rental companies at once: National, Avis, and Hertz. With National, you will get Emerald Club Executive status. The second company, Avis, will also give you a special status that will allow you to save time, collect bonus points and receive exclusive promotions. Hertz will offer you a special corporate discount code, which may come in handy for you to save on your next car rental. And there's good news for some lucky cardholders in certain locations: for residents of Utah and Vermont, car insurance will be primary. Elsewhere, you can still save on the collision damage waiver offered by the car rental agency if you are willing to file a claim with any other applicable insurance first in the event of car damage or theft. With the help of the Platinum Card®, you can earn 80,000 bonus points if you spend over $6,000 during the first six months.

Read more about The Platinum Card® from American Express

Chase United Club℠ Infinite

If secondary car rental insurance is not for you, have a closer look at this card as it offers primary coverage for most rental cars, including theft and damage. The other feature of the card is United Club membership. You can use your United miles to rent a car. Primary cardholders will also get free Hertz Gold Plus Rewards President’s Circle membership. With this elite status, you can get guaranteed upgrades, 1.5x Gold Plus Rewards points on Hertz car rentals, and access to a wider selection of vehicles with no extra charge.

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Chase Freedom Unlimited®

​This card is affordable and full of attractive bonuses. The Chase Freedom Unlimited®​ cash back program provides an opportunity to get cash back rewards when renting a car. For example, you earn an increased 5% in cash back rewards for each $1 spent on car rentals. At the same time, cash back doesn’t expire, so you can use it at any time, and there are no restrictions on how much of it you can earn every year. The cash back can be redeemed for renting a vehicle, among other redemption options. The card provides secondary insurance coverage. In addition, the card boasts 0% APR on purchases and balance transfers during the first 15 months (20.49% - 29.24%​ variable APR thereafter).

Read more about Chase Freedom Unlimited®

How to Choose the Best Credit Card to Use for Car Rentals

The market is full of options for those who prefer to pay for renting a car with a credit card. With so many choices, it’s easy to miss key details. Before you pick a card, keep the following points in mind.

1. Find out what is included in primary rental car coverage and what you can get with secondary car rental insurance. The differences between these two types will be explained further. Only a few cards offer primary rental car insurance.
2. Think about the kind of rewards you’re looking to earn. Looking to earn Would you like bonus points for dining or travel? Or maybe you’d rather earn a higher rate on all purchases without worrying about bonus categories? Consider your spending habits to choose the right card.
3. Next, think about credit card benefits you consider important. Some cards offer a Priority Pass membership, luggage and travel insurance, a TSA Precheck or Global Entry membership, and other perks. Pick what you need the most.
4. Pay attention to the welcome bonus. There is usually a certain time limit and a minimum amount you have to spend to get the bonus. Do the conditions seem realistic to you?
5. In which countries are you going to rent a car? Some card issuers may not offer car rental coverage in countries excluded from their policy.
6. What is the coverage limit, and is it enough for you? If you often rent expensive cars, the limit must be considerably higher. Moreover, credit card coverage often excludes expensive or exotic cars.
7. What annual fee is acceptable for you? Some premium credit cards with car rental coverage may be quite expensive.

The answers to these simple questions will help you find the best option for you. The research may take some time, but the perfect credit card is worth it.

How Rental Car Insurance on Credit Cards Works

Terms may differ, but in general, you need to pay for a car rental with an eligible card. Usually you need to be the primary driver, but other drivers may be included in the rental agreement as well.

Next, you need to decline the collision damage waiver offered by the rental company. If your rental gets damaged or stolen, you either file a claim with your credit card company (if you have primary car rental insurance) or your insurance provider first if your card only offers secondary coverage. In that case, your credit card coverage will kick in after your own insurance coverage is exhausted.

Primary vs. Secondary Car Rental Coverage

In case of an accident, primary coverage pays first, meaning you can bypass your personal car insurance and avoid paying a deductible.

Secondary coverage requires that you go through your insurance first. Once your insurance pays the claim, your credit card coverage can cover your deductible and other potential costs. Collision Damage Waivers (CDW) and Loss Damage Waivers (LDW)

Collision damage waiver (CDW) will have your back in case an accident happens. It covers all damage to the rental without charging a deductible. However, that coverage only applies to your rental, meaning if you’re in an accident and cause damage to property or another car, the CDW won’t cover it.

Loss damage waiver (LDW) adds theft protection on top of CDW CDW. This coverage pays for car replacement if your rental vehicle is stolen.Note that car rental companies often use terms CDW and LDW interchangeably. Make sure to read the coverage details carefully to know what you’re getting.

Don’t forget that both CDW and LDW are valid if you haven’t broken the rules of the car rental company.

Pros and Cons of Credit Card Car Rental Insurance

Having insurance that kicks in automatically when you pay for a rental car with your credit card is quite handy. However, there are some things you should keep in mind:

• Most cards offer only secondary coverage
• If primary coverage is crucial for you, you may face higher annual fees
• The coverage only covers the vehicle you’re renting and excludes damage to property and other vehicles

Pros and Cons of Renting a Car with a Credit Card

Tips for Renting a Car with a Credit Card

Here are some things you need to think about:

• Credit cards with primary insurance have higher annual fees, but this type of insurance is more valuable than secondary coverage.
• Read all the terms and conditions carefully. Don’t hesitate to ask the bank some questions. Being aware of what your car rental coverage can help you with can save you a lot of money during your business trip or holiday.
• See how a credit card can bring you value outside of renting cars. Have a look at all the bonuses and benefits. Some credit cards have lucrative bonus categories, such as travel, food, hotels and others). If possible, pick a card that fits your spending.
• Find out what exclusions and limitations your car rental coverage has. For example, credit card rental insurance policies usually cover your rental for up to 31 days. However, this may change from card to card. This means that in some instances, your card won’t cover you for the entire rental period.

How to Maximize Car Rental Credit Card Rewards

If you want to make the most out of your car rental credit card, here are some things that may come in handy:

1. Find out if your credit card offers an elite status at certain rental car services. In this case, you may be entitled to reduced rates, automatic upgrades, and more points.
2. Don’t forget about the card’s welcome bonus. Make sure you use your new card for purchases outside of car rentals to hit the minimum spend on time. Look into your card issuer’s travel portal. You may be able to earn extra points if you book your car rental through it.
3. Maximize the card’s value by using it to shop in bonus categories. For example, you may get more points dining at restaurants, booking hotels and or even just buying groceries.