Credit card rental car insurance: Stop paying car rental insurance
Updated: December 06, 2024
If you own a car, your car insurance likely applies to the rental. But to avoid an increase to your personal car insurance due to an accident with the rental car, you can get one of the best credit cards for rental car insurance and avoid having to pay what could add up to over $60 a day in rental car insurance.
To help you figure out what your credit card covers you for, we’ve put together this guide that will answer all your questions. Remember, every travel insurance policy is different so you always need to read the fine print.
Best credit card for car rental insurance in Canada
BMO Ascend World Elite®* Mastercard®*
4.5
up to 90K pts
Welcome offerExcellent
Suggested credit scoreGet up to 90,000 points and the annual fee waived in your first anniversary for both the primary cardholder and authorized users.*
Expires
Jun 1, 2025
Pros
-
High-value welcome offer
-
Flexible airport lounge access
-
BMO Rewards points can be used to cover flight taxes and fees
-
Great for those who frequently rent cars
-
Good for Costco and No Frills shoppers
Cons
-
So-so earn rates relative to its annual fee
-
Points have low redemption value compared to other travel rewards programs
-
Charges foreign transaction fees
-
Relatively high minimum income requirements
Eligibility
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
5x
Earn 5x the points for every $1 spent on eligible travel purchases*
3x
Earn 3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments*
1x
Earn 1 point for every $1 spent everywhere else*
4
Complimentary membership in Mastercard Travel Pass provided by DragonPass, with 4 annual complimentary passes
Earn 5x the points for every $1 spent on eligible travel purchases*
5x
Earn 3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments*
3x
Earn 1 point for every $1 spent everywhere else*
1x
Complimentary membership in Mastercard Travel Pass provided by DragonPass, with 4 annual complimentary passes
4
20.99%
Purchase APR
23.99%
Balance Transfer Rate 21.99% for Quebec residents
23.99%
Cash Advance APR
$150
Annual Fee first year waived
2.5%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
23.99%
Cash Advance APR
23.99%
Annual Fee
$150
Foreign Transaction Fee
2.5%
Pros
-
High-value welcome offer
-
Flexible airport lounge access
-
BMO Rewards points can be used to cover flight taxes and fees
-
Great for those who frequently rent cars
-
Good for Costco and No Frills shoppers
Cons
-
So-so earn rates relative to its annual fee
-
Points have low redemption value compared to other travel rewards programs
-
Charges foreign transaction fees
-
Relatively high minimum income requirements
Eligibility
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
5x
Earn 5x the points for every $1 spent on eligible travel purchases*
3x
Earn 3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments*
1x
Earn 1 point for every $1 spent everywhere else*
4
Complimentary membership in Mastercard Travel Pass provided by DragonPass, with 4 annual complimentary passes
Earn 5x the points for every $1 spent on eligible travel purchases*
5x
Earn 3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments*
3x
Earn 1 point for every $1 spent everywhere else*
1x
Complimentary membership in Mastercard Travel Pass provided by DragonPass, with 4 annual complimentary passes
4
20.99%
Purchase APR
23.99%
Balance Transfer Rate 21.99% for Quebec residents
23.99%
Cash Advance APR
$150
Annual Fee first year waived
2.5%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
23.99%
Cash Advance APR
23.99%
Annual Fee
$150
Foreign Transaction Fee
2.5%
What insurance coverage you need when renting a car
When renting a car you should consider the possibility of misfortune to your own vehicle/property, as well as the vehicles/property of others. These are the types of coverage you need to keep an eye out for:
- Damage to the rental vehicle
- Theft of the rental vehicle
- Damage to another person’s vehicle
- Injury to yourself or another person
- Property damage or loss
- Loss of use of the rental vehicle while it’s under repair
Generally speaking, as long as you charge the full amount of the rental to your credit card and decline the rental company’s collision damage waiver, your credit card car rental insurance will cover you for damage/theft to the rental vehicle, and the loss of use of the rental vehicle while it’s under repair.
Some cards may also offer additional coverage beyond just the basics.
Two key things to understand are as follows:
1. Despite the fact that your policy may say it covers you for $65,000 or $85,000 in damages, that usually maxes out at the current value of the car.
2. Your credit card car rental insurance will not provide third-party liability, which covers damage to another person’s vehicle and injury to another person. Each province in Canada sets its own level of minimum third-party liability that must be provided by the rental company. The minimum amount of third-party liability insurance required by law in Canada is $200,000, but many car rental companies have policies that cover you up to $1,000,000. Within Canada, you needn’t purchase additional liability insurance since it’s legally required to come with the car.
If you’re renting a car in a country where there are no laws about liability insurance, you can likely purchase additional insurance directly from the car rental agency so that you’re covered there. If you own a vehicle and have car insurance at home, check your policy as it may already include third-party liability insurance that you can use abroad.
Credit card rental insurance: Conditions and exclusions you should know
- You must be a Canadian citizen with a valid driver’s license.
- You must charge the full amount of the rental to your credit card (unless otherwise specified).
- Some types of vehicles are usually not covered, such as pick-up trucks, commercial vans, antique cars, motorcycles, and luxury cars (over $65K or $85K in value).
- Travel in some countries may not be covered by your credit card’s car rental insurance. (e.g. in countries for which the Canadian government has issued a formal travel advisory.
- Your credit card account must be in good standing.
- 31-48 days of rental is the maximum that your credit card will likely insure you for.
- If you book your car rental as part of a travel package, you’re still required to charge the full amount of the rental to your travel credit card.
- If your car rental is provided due to winning a contest, your car rental insurance would apply if you have a history of paying your car rentals with the credit card that includes car insurance.
- In most cases, if you book your car rental with points, then your car rental insurance would apply assuming the points you use come from the credit card that offers credit card car insurance.
How you use the rental car may also affect your ability to make a claim. Most policies don’t allow you to use your rental car for commercial purposes, which includes moving your own stuff. Your policy would also be void if you get into an accident while under the influence of drugs or alcohol.
Other credit cards with car rental insurance in Canada
Though many credit cards’ car rental insurance policies have overlapping features, there are some distinctions from card to card that are worth noting.
Best credit card for car rentals in the United States
Rogers Red World Elite® Mastercard®
4.0
Excellent
Suggested credit scoreto receive the latest news, tips and offers by email
Pros
-
Lucrative cash back rates on USD and CAD purchases, especially for Rogers, Fido or Shaw customers
-
No annual fee with valuable insurance benefits
-
Competitive against foreign transaction fee cards
-
Convenient cash back redemption options
-
Redemption bonus of 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases
-
Travel insurance perks and airport lounge access
Cons
-
High income requirement: $80,000 personal or $150,000 household
-
Foreign transaction fee applies
-
Limited redemption options for statement credits
Eligibility
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
3%
Earn 3% unlimited cash back on purchases made in US dollars
2%
Earn 2% unlimited cash back on all eligible non-US dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw
1.5%
Earn 1.5% unlimited cash back on everything else
1.5x Cash Back
Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases
Earn 3% unlimited cash back on purchases made in US dollars
3%
Earn 2% unlimited cash back on all eligible non-US dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw
2%
Earn 1.5% unlimited cash back on everything else
1.5%
Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases
1.5x Cash Back
20.99%
Purchase APR
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR
$0
Annual Fee No annual fee
2.5%
Foreign Transaction Fee 2.5% of the transaction in CDN
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Foreign Transaction Fee
2.5%
Pros
-
Lucrative cash back rates on USD and CAD purchases, especially for Rogers, Fido or Shaw customers
-
No annual fee with valuable insurance benefits
-
Competitive against foreign transaction fee cards
-
Convenient cash back redemption options
-
Redemption bonus of 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases
-
Travel insurance perks and airport lounge access
Cons
-
High income requirement: $80,000 personal or $150,000 household
-
Foreign transaction fee applies
-
Limited redemption options for statement credits
Eligibility
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
3%
Earn 3% unlimited cash back on purchases made in US dollars
2%
Earn 2% unlimited cash back on all eligible non-US dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw
1.5%
Earn 1.5% unlimited cash back on everything else
1.5x Cash Back
Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases
Earn 3% unlimited cash back on purchases made in US dollars
3%
Earn 2% unlimited cash back on all eligible non-US dollar purchases if you have 1 qualifying service with Rogers, Fido or Shaw
2%
Earn 1.5% unlimited cash back on everything else
1.5%
Get 1.5x more cash back every time you redeem for Rogers, Fido or Shaw purchases
1.5x Cash Back
20.99%
Purchase APR
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR
$0
Annual Fee No annual fee
2.5%
Foreign Transaction Fee 2.5% of the transaction in CDN
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Foreign Transaction Fee
2.5%
Best credit card for car rentals for lower income applicants
CIBC Dividend Platinum® Visa* Card
3.7
10% back
Welcome offerVery Good
Suggested credit scoreGet a first-year annual fee rebate for you and up to three Authorized Users† and earn 10% cash back for the first 4 statements on net purchases of up to $3,000†.
Pros
-
Very impressive welcome offer
-
Elevated cash back rates (2-3%) in five everyday spending categories†
-
No limit in total cash back you can collect
-
The $15,000 minimum annual income requirement† is very low for a cash back card of this calibre
Cons
-
$99 annual fee may not be worthwhile for all consumers
-
The $20K annual spending limit for earning cash back at the accelerated 2-3% rates is lower than the limits offered by some competing cash back credit cards
Eligibility
Very Good
Recommended Credit Score
$15,000†
Required Annual Household Income
Recommended Credit Score
Very Good
Required Annual Household Income
$15,000†
3%
cash back on eligible gas, EV charging, and grocery purchases.†
2%
cash back on eligible transportation, dining purchases and recurring payments†
1%
cash back on all other purchases†
$500,000
common carrier accident insurance
$65,000
MSRP for rental cars for up to 48 consecutive days
cash back on eligible gas, EV charging, and grocery purchases.†
3%
cash back on eligible transportation, dining purchases and recurring payments†
2%
cash back on all other purchases†
1%
common carrier accident insurance
$500,000
MSRP for rental cars for up to 48 consecutive days
$65,000
20.99%†
Purchase APR non-Quebec residents†
22.99%†
Balance Transfer Rate non-Quebec residents†
22.99%†
Cash Advance APR non-Quebec residents†
$99
Annual Fee First-year annual fee rebate† -$30 each for up to 3 additional cards — first year rebated†
2.5%
Foreign Transaction Fee
Purchase APR
20.99%†
Balance Transfer Rate
22.99%†
Cash Advance APR
22.99%†
Annual Fee
$99
Foreign Transaction Fee
2.5%
Pros
-
Very impressive welcome offer
-
Elevated cash back rates (2-3%) in five everyday spending categories†
-
No limit in total cash back you can collect
-
The $15,000 minimum annual income requirement† is very low for a cash back card of this calibre
Cons
-
$99 annual fee may not be worthwhile for all consumers
-
The $20K annual spending limit for earning cash back at the accelerated 2-3% rates is lower than the limits offered by some competing cash back credit cards
Eligibility
Very Good
Recommended Credit Score
$15,000†
Required Annual Household Income
Recommended Credit Score
Very Good
Required Annual Household Income
$15,000†
3%
cash back on eligible gas, EV charging, and grocery purchases.†
2%
cash back on eligible transportation, dining purchases and recurring payments†
1%
cash back on all other purchases†
$500,000
common carrier accident insurance
$65,000
MSRP for rental cars for up to 48 consecutive days
cash back on eligible gas, EV charging, and grocery purchases.†
3%
cash back on eligible transportation, dining purchases and recurring payments†
2%
cash back on all other purchases†
1%
common carrier accident insurance
$500,000
MSRP for rental cars for up to 48 consecutive days
$65,000
20.99%†
Purchase APR non-Quebec residents†
22.99%†
Balance Transfer Rate non-Quebec residents†
22.99%†
Cash Advance APR non-Quebec residents†
$99
Annual Fee First-year annual fee rebate† -$30 each for up to 3 additional cards — first year rebated†
2.5%
Foreign Transaction Fee
Purchase APR
20.99%†
Balance Transfer Rate
22.99%†
Cash Advance APR
22.99%†
Annual Fee
$99
Foreign Transaction Fee
2.5%
Best credit card to rent luxury vehicles
The Platinum Card®
3.6
up to 140k pts
Welcome offerExcellent
Suggested credit scoreEarn up to 140,000 Membership Rewards® points* – that’s up to $1,400 in value.
Pros
-
Access to a wide range of luxury perks, including premium concierge service
-
Complimentary lounge membership providing access to over 1,400+ airport lounges worldwide
-
Annual statement credits: $200 annual travel credit, $200 annual dining credit
-
Special insurance coverages like trip cancellation/interruption, flight delay, lost or stolen baggage and rental car theft & damage.
-
Provides extended warranty (2 years) and purchase protection (120 days).
Cons
-
High annual fee of $799, one of the heftiest among Canadian cards
-
The rewards system can be complicated, especially for users not familiar with maximizing credit card points
-
Requires good to excellent credit for eligibility
Eligibility
Excellent
Recommended Credit Score
Recommended Credit Score
Excellent
2x
points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x
points for every $1 in Card purchases on eligible travel
1x
point for every $1 in all other Card purchases
1
additional point on Amex Travel Online for eligible hotel or car rental bookings
points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x
points for every $1 in Card purchases on eligible travel
2x
point for every $1 in all other Card purchases
1x
additional point on Amex Travel Online for eligible hotel or car rental bookings
1
21.99% - 28.99%
Variable APR Applies to your Flexible Payment Option balance. This charge card has both Due in Full and Flexible Payment Option balances.
$799
Annual Fee Supplementary Platinum Cards: $250 each
2.5%
Foreign Transaction Fee
Variable APR
21.99% - 28.99%
Annual Fee
$799
Foreign Transaction Fee
2.5%
Pros
-
Access to a wide range of luxury perks, including premium concierge service
-
Complimentary lounge membership providing access to over 1,400+ airport lounges worldwide
-
Annual statement credits: $200 annual travel credit, $200 annual dining credit
-
Special insurance coverages like trip cancellation/interruption, flight delay, lost or stolen baggage and rental car theft & damage.
-
Provides extended warranty (2 years) and purchase protection (120 days).
Cons
-
High annual fee of $799, one of the heftiest among Canadian cards
-
The rewards system can be complicated, especially for users not familiar with maximizing credit card points
-
Requires good to excellent credit for eligibility
Eligibility
Excellent
Recommended Credit Score
Recommended Credit Score
Excellent
2x
points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x
points for every $1 in Card purchases on eligible travel
1x
point for every $1 in all other Card purchases
1
additional point on Amex Travel Online for eligible hotel or car rental bookings
points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x
points for every $1 in Card purchases on eligible travel
2x
point for every $1 in all other Card purchases
1x
additional point on Amex Travel Online for eligible hotel or car rental bookings
1
21.99% - 28.99%
Variable APR Applies to your Flexible Payment Option balance. This charge card has both Due in Full and Flexible Payment Option balances.
$799
Annual Fee Supplementary Platinum Cards: $250 each
2.5%
Foreign Transaction Fee
Variable APR
21.99% - 28.99%
Annual Fee
$799
Foreign Transaction Fee
2.5%
The best credit cards for rental car insurance: Summary
Credit cards that cover car rental insurance | Rental car insurance coverage | Apply |
---|---|---|
Rental car coverage: Damage, theft, towing charges, lost or stolen personal effects, accidental death and dismemberment.
Amount: rental car up $65,000 for up to 48 consecutive days. |
Apply now | |
Rental car coverage: Loss or damage to the rental vehicle.
Amount: Rental car up to $65,000 for up to 31 consecutive days. |
Apply now | |
Rental car coverage: Auto rental collision/loss damage (CDW/LDW), Common carrier accident insurance up to $500,000
Amount: Rental car up to $65,000 up to 48 days |
Apply now | |
Rental car coverage: Theft, loss and damage of your rental car.
Amount: Vehicles up to $85,000 MSRP for 48 days or less. |
Apply now |
American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment.
Auto rental insurance FAQs
Barry Choi is a Toronto-based personal finance and travel expert who makes frequent media appearances. When he's not educating people on how to be smarter with money, he's earning and burning miles and points for luxury travel.
Cory Santos is a finance writer, editor and credit card expert with nearly a decade of experience in personal finance. Cory joined Wise Publishing from BestCards, with bylines in numerous print and digital publications across North America, including the Miami Herald, St. Louis Post-Dispatch, Debt.ca, AOL, MSN and Medium as well as financial podcasts like KOFE Talk.
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