Credit card rental car insurance: Stop paying car rental insurance
Updated: April 01, 2024
If you own a car, it's likely your car insurance applies to the rental. If not, you can get one of the best credit cards for rental car insurance.
While your credit card car rental insurance probably won’t cover all your needs, it likely does provide at least a decent amount of insurance. More importantly, if you accept the collision damage waiver (CDW) or loss damage waiver (LDW) from the agency, your credit card car rental insurance will likely no longer be valid.
To help you figure out what your credit card covers you for, we’ve put together this credit card car rental insurance 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 for rental car insurance
BMO Ascend™ World Elite®* Mastercard®*
5x 5x the points for every $1 spent on eligible travel purchases*
3x 3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments*
1x 1 point for every $1 spent everywhere else*
$150 Annual Fee
20.99% Purchase APR
23.99% Cash Advance APR
23.99% Balance Transfer Rate 21.99% for Quebec residents
2.50% Foreign Transaction Fee
Excellent Recommended Credit Score
$80,000 Required Annual Personal Income
$150,000 Required Annual Household Income
Welcome Offer Ends May 31, 2024
Get up to 90,000 points and the annual fee waived in the first year for both the primary cardholder and authorized users.*
Learn moreWhat 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.
The best credit cards for rental car 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™ World Elite® Mastercard®
3% Earn 3% unlimited cash back on purchases made in U.S. dollars.
1.5% Earn 1.5% unlimited cash back on everything else.
$0 Annual Fee To maintain eligibility, you must spend at least $15,000/year.
19.99% Purchase APR Increasing to 20.99% April 2024
22.99% Cash Advance APR
22.99% Balance Transfer Rate
Excellent Recommended Credit Score
$80,000 Required Annual Personal Income
$150,000 Required Annual Household Income
Welcome Offer
$25 Welcome Bonus in cash back rewards upon first card purchase within 3 months of receiving your card2
Learn moreBest credit card for car rentals for lower income applicants
CIBC Dividend Platinum® Visa
3% cash back on eligible gas, electric vehicle charging, and groceries.
2% cash back on eligible transportation, dining and recurring payments.
1% cash back on all other eligible purchases.
90 days purchase security from damage and theft on eligible items purchased with your card.
1 year on top of the original manufacturer's warranty
$500,000 common carrier accident insurance
$65,000 MSRP for rental cars for up to 48 consecutive days
$99 Annual Fee First year annual fee rebate†
20.99% Purchase APR non-Quebec residents†
22.99% Cash Advance APR non-Quebec residents†
22.99% Balance Transfer Rate non-Quebec residents†
Very Good Recommended Credit Score
$15,000 Required Annual Personal Income
$15,000 Required Annual Household Income
Welcome Offer
Get a first-year annual fee rebate and earn 10% cash back welcome bonus of up to $200!†
Learn moreBest credit card to rent luxury vehicles
American Express The Platinum
2x Earn 2 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
$799 Annual Fee Includes $200 annual travel credit and $200 annual dining credit
20.99% Purchase APR The Preferred rate of 20.99% applies to your Flexible Payment Option balance.
2.50% Foreign Transaction Fee
Excellent Recommended Credit Score
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 |
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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
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