Best Credit Cards For Car Rental Insurance

Credit card rental car insurance: Stop paying car rental insurance

Fact checked by Cory Santos

Updated Apr 15, 2025

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Top Canadian credit cards with car rental insurance

  • Why you can trust Money.ca's best car rental insurance credit cards in Canada list

    +

    Money.ca rates all credit cards on a numeric scale of 1 to 5 stars, with 1 being the lowest and 5 the highest rating, respectively. Money.ca’s proprietary scoring formulas break down the confusing language, complex points, rewards and earn rates to give you the real data that caters to your needs first, not ours.

    Our partnerships have no impact on our ratings, which are solely determined by the merits of each card. To learn more about how we researched and ranked these cards, read our full credit card review methodology.

Credit card rental car insurance gives you the peace of mind that you're protected from damage or loss

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 overall

Welcome Bonus: Get up to 90,000 points and the annual fee waived on your first anniversary for both the primary cardholder and authorized users.* Expires Jan 31, 2026

On BMO'sSecure Site

Get this card if you...

  • are a high-earning globetrotter, looking for travel perks
  • value travel insurance, lounge access, and concierge services
  • appreciate a great welcome offer

The BMO Ascend™ World Elite®* Mastercard®* is one of the few credit cards that includes a car rental personal effects benefit as part of its car rental insurance policy.

The card also provides car rental accidental death and dismemberment benefits*. Obviously it’s a claim that you’ll hopefully never have to make, but the card entitles you (or your beneficiary) to lump sum payouts depending on your loss as a result of an accidental bodily injury while occupying an eligible rental car.

Car rental insurance features:

  • Coverage: Damage, theft, towing charges, lost or stolen personal effects, accidental death and dismemberment
  • Coverage amount: Rental cars up to $65,000 MSRP for up to 48 consecutive days
  • Why it stands out: It is one of the few cards that includes personal effects coverage (up to $1,000 per person, maximum $2,000 per vehicle) and accidental death and dismemberment benefits

Disclosures:

  • *Terms and conditions apply.
  • *Terms and conditions apply.

    BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.

Best for US car rentals

On Rogers Bank'sSecure Site

Get this card if you...

  • want to earn cash back with no annual fee
  • are an existing Rogers or Fido customer
  • want complimentary lounge access

If you regularly travel to the U.S., look for a credit card that both provides car rental insurance and helps you defray foreign transaction fees. Enter the Rogers Red World Elite® Mastercard®, which covers a car rental up to 31 days.

Car rental insurance features:

  • Coverage: Loss or damage to the rental vehicle
  • Coverage amount: Rental cars up to $65,000 MSRP for up to 31 consecutive days
  • Why it stands out: No annual fee plus 3% cash back on USD purchases, effectively neutralizing the 2.5% foreign transaction fee while earning an additional 0.5%

Best for cash back rewards

Welcome Bonus: Get 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 $2,000†.

On CIBC'sSecure Site

Get this card if you...

  • want to earn cash back on everyday purchases
  • value a generous welcome offer
  • want additional perks such as travel insurance

The CIBC Dividend Platinum® Visa* Card is a cash back credit card that rewards cardholders for everyday purchases, particularly in categories like gas, EV charging, and groceries. It also offers additional benefits such as car rental savings and access to the CIBC Mobile Banking App for convenient account management.

Car rental insurance features:

  • Coverage: Auto rental collision/loss damage, common carrier accident insurance up to $500,000
  • Coverage amount: Rental cars up to $65,000 MSRP for up to 48 days
  • Why it stands out: Lower income requirement of just $15,000 annually, making premium rental insurance accessible to more Canadians

Disclosures:

  • †Terms and Conditions Apply. This offer is not available for residents of Quebec.
  • This is a digital-exclusive offer.†

    To be eligible for this offer:

    1) this offer must have been directly communicated to you from CIBC or from a partner/affiliate; and

    2) you must apply for the eligible card through the link provided in the CIBC or partner/affiliate communication to you.†

    This offer is reserved for you. Please do not forward it to anyone else.

    CIBC may approve your application, but you are not eligible to receive this Offer if you have opened, transferred or cancelled another Dividend card within the last 12 months.†

    Any opinions, analyses, reviews, or recommendations expressed on this page are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by our advertising partners.

Best for luxury travel

Welcome Bonus: Earn up to 180,000 Membership Rewards® points* - that’s up to $1,800 towards a weekend away. Expires Aug 18, 2025

On American Express'Secure Site

Get this card if you...

  • are a frequent traveler who wants luxury perks like lounge access
  • want to rack up rewards quickly
  • want great travel insurance, perks and concierge services

The American Express Platinum Card® is a premium travel rewards credit card offering elevated Membership Rewards® points on eligible purchases, with a substantial welcome bonus for new cardholders. Cardholders enjoy exclusive benefits such as access to over 1,300 airport lounges worldwide through the American Express Global Lounge Collection™, comprehensive travel insurance, and personalized concierge services.

Car rental insurance features:

  • Coverage: Theft, loss, and damage of your rental car
  • Coverage amount: Vehicles up to $85,000 MSRP for 48 days or less
  • Why it stands out: Higher vehicle value coverage plus premium perks like airport lounge access and comprehensive travel insurance

Disclosures:

  • Contact American Express for the most up-to-date referral bonus figures.

    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.

"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."

Barry Choi, credit card expert and Money.ca contributor

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

Primary vs. secondary coverage

Your credit card's rental insurance will be either primary or secondary coverage—a crucial distinction to understand:

  • Files claims directly with the credit card company, bypassing your personal auto insurance
  • No impact on your personal insurance premiums
  • Rare among Canadian credit cards
  • Simplifies the claims process

  • Only kicks in after your personal auto insurance is applied
  • Your personal policy handles most of the claim
  • Credit card coverage may pay your personal insurance deductible
  • More common among Canadian credit cards
  • Becomes primary coverage if you don't have personal auto insurance

What car rental insurance won’t cover

While credit card car rental insurance provides valuable protection for the vehicle itself, it comes with important limitations you need to understand before declining the rental counter's coverage at the counter.

Credit card rental insurance typically won't cover:

  • Third-party liability: Damage to other vehicles or property
  • Personal injury: Medical costs for you or others following an accident
  • Personal belongings: Your valuables stolen from the rental (with rare exceptions like the BMO Ascend World Elite Mastercard)
  • Mechanical breakdowns: Damage as a result of a faulty part or wear and tear

If you already have personal auto insurance, these gaps may be covered by your existing policy. If not, you'll need to purchase additional protection for complete coverage.

Other limitations to car rental coverage

There are other limitations to credit card rental coverage. For example, your credit card rental insurance won't apply if you:

  • Rent exotic cars, motorcycles or vehicles with over eight seats
  • Use the car rental for commercial purposes
  • Drive under the influence
  • Visit a country with a government travel warning
  • Fail to report a claim within 24-48 hours

For most typical vacations or personal rentals, your credit card coverage should be more than enough. When in doubt, contact your card issuer before your trip to confirm your specific coverage details to ensure your rental is covered by your card’s coverage.

  • 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.

Making a claim: Step-by-step process

If you need to make a claim on your credit card rental insurance:

  1. 1 Document everything at the accident scene (photos, witness information)
  2. 2 File a police report if required (theft, vandalism, collision with another vehicle)
  3. 3 Notify your credit card company immediately by calling the number on the back of your card
  4. 4 Complete the claim form provided by your card issuer
  5. 5 Submit all required documentation, which typically includes the rental agreement, a police report, an itemized repair estimate or bill and photos of the vehicle’s damage. You will also need your receipt showing you paid with the credit card.
  6. 6 Follow up regularly until your claim is processed

Summary of our car rental credit card picks

Credit cards that cover car rental insurance Rental car insurance coverage Apply
BMO Ascend World Elite 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.
Rogers World Elite Mastercard Rental car coverage: Loss or damage to the rental vehicle.
Amount: Rental car up to $65,000 for up to 31 consecutive days.
CIBC Dividend Platinum cash back credit card 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
American Express The Platinum card Rental car coverage: Theft, loss and damage of your rental car.
Amount: Vehicles up to $85,000 MSRP for 48 days or less.

Conclusion

Before your next trip, take time to understand your credit card's rental car insurance benefits. The right card can save you money at the rental counter while providing comprehensive protection on the road.

Remember: Always read the fine print of your specific card's insurance policy, and when in doubt, contact your credit card issuer directly to confirm coverage details for your destination.

Auto rental insurance FAQs

  • Does credit card car rental insurance cover windshield damage?

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    Repairs for cracked or damaged windshields may be covered by your credit card's car rental insurance coverage depending on your level of protection. Check the terms and conditions of your card's insurance coverage as rules can differs significantly between banks.

  • Do you need extra insurance when renting a car in the USA?

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    Your card's car rental insurance (sometimes referred to as Auto Collision Damage Waiver, covers vehicle rentals from most major car rental agencies, meaning you'll be covered by your card should you rent a vehicle abroad and use your Canadian credit card for the insurance protection. As always, read your card's terms and conditions for full answers.

  • What does credit card car rental insurance cover?

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    Credit card car rental insurance typically provides coverage for damage to or theft of a rental vehicle. It may also offer liability coverage for bodily injury or property damage caused by the rental vehicle. However, it's important to note that coverage can vary depending on the credit card issuer and the specific terms and conditions of the insurance policy. It's always recommended to review the details of your credit card car rental insurance before relying on it for coverage.

  • Does credit card rental insurance cover other drivers?

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    Rental coverage covers the cardholder, other drivers on the rental agreement, and potentially the spouse or domestic partner. If someone not listed as an authorized driver causes damage in a wreck while driving the rental car, it may not be covered.

  • What doesn't credit card car rental insurance cover?

    +

    Your auto insurance through your credit card does not cover all facets of the car rental experience. For example, physical injury (to yourself or others) is not covered under the policy. Additionally, property damage, luggage damage and mechanical breakdowns are not covered under the basic policy.

Barry Choi Contributor

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 Credit card editor

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, BlogTO, Debt.ca, AOL, MSN and Medium as well as financial podcasts like KOFE Talk. He's also the creator and author of the annual Money.ca Credit Card Awards.

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†Terms and Conditions apply.