Credit card rental car insurance: Stop paying car rental insurance

🗓️

Updated: December 06, 2024

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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 for rental insurance

Best credit card for car rental insurance in Canada

BMO Ascend World Elite®* Mastercard®*

Apply now

4.5

up to 90K pts

Welcome offer

Excellent

Suggested credit score

Get 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

Recommended Credit Score

Excellent

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

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

Recommended Credit Score

Excellent

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

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

Purchase APR

20.99%

Balance Transfer Rate

23.99%

Cash Advance APR

23.99%

Annual Fee

$150

Foreign Transaction Fee

2.5%

  • Why the BMO Ascend World Elite Mastercard is the best credit card for rental car insurance

    +

    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. What this means is that any personal property stolen in your car rental is covered up to $1,000 per person with a maximum of $2,000 per vehicle*.

    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. For example, you’d be paid $50,000 if you lose a thumb or $200,000 if you suffer a loss of life.

    Terms and conditions apply

    Read our complete: BMO Ascend™ World Elite®* Mastercard®* review.

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.

Fine print terms to know

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 for US travel

Best credit card for car rentals in the United States

Rogers Red World Elite® Mastercard®

Apply now

4.0

Excellent

Suggested credit score

to 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

Recommended Credit Score

Excellent

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

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

Recommended Credit Score

Excellent

Required Annual Personal Income

$80,000

Required Annual Household Income

$150,000

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

Purchase APR

20.99%

Balance Transfer Rate

22.99%

Cash Advance APR

22.99%

Annual Fee

$0

Foreign Transaction Fee

2.5%

  • How you're covered with the Rogers Red World Elite® Mastercard®

    +

    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, and offers payouts of up to $65,000 in damages. The card has no annual fee and gives 3% cash back on USD purchases, enough to cover the 2.5% foreign transaction fee and add an extra 0.5% cash back on top. Those are some great features for a card with no annual fee, but keep in mind that the Rogers Red World Elite® Mastercard® does have a relatively high minimum annual income requirement of $80,000 for an individual or $150,000 for a household, which may exclude a number of potential applicants.

    Read our complete Rogers Red World Elite® Mastercard® review.

Best for lower incomes

Best credit card for car rentals for lower income applicants

CIBC Dividend Platinum® Visa* Card

Apply now

3.7

10% back

Welcome offer

Very Good

Suggested credit score

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 $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

Recommended Credit Score

Very Good

Required Annual Household Income

$15,000†

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

Recommended Credit Score

Very Good

Required Annual Household Income

$15,000†

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

Purchase APR

20.99%†

Balance Transfer Rate

22.99%†

Cash Advance APR

22.99%†

Annual Fee

$99

Foreign Transaction Fee

2.5%

  • How you're covered with the CIBC Dividend Platinum® Visa

    +

    The CIBC Dividend Platinum® Visa’s car rental insurance is competitive with other credit cards featured on this page, providing coverage on rental vehicles with an MSRP up to $65K for up to a 48-day rental period†. But what makes it stand out from other cards providing similar rental car insurance levels is its accessibility: It’s available to those with an annual income of $15,000 or more†, whereas most cards providing strong rental car insurance require a minimum annual income of $80K or so. Just check your credit score before applying to make sure it’s in the good/excellent range, between around 740-850.

    Another thing that makes the CIBC Dividend Platinum® Visa stand out is that it’s a cash back card, whereas most credit cards that provide strong rental car insurance are oriented toward travel rewards. If you prefer the seamlessness of earning cash back, you might gravitate toward the CIBC Dividend Platinum® Visa’s high earn rates. Cardholders earn 3% cash back on eligible gas, electric vehicle charging, and groceries†, 2% cash back on transportation, dining and recurring payments† and 1% cash back on everything else†.

    Click here to apply or learn more by reading our complete CIBC Dividend Platinum® Visa review.

    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.

    The information for the CIBC Dividend Platinum® Visa* Card has been collected independently by Money.ca. The card details on this page have not been reviewed or provided by the card issuer.

Best for luxury cars

Best credit card to rent luxury vehicles

The Platinum Card®

Apply now

3.6

up to 140k pts

Welcome offer

Excellent

Suggested credit score

Earn 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

Recommended Credit Score

Excellent

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

Recommended Credit Score

Excellent

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

Variable APR

21.99% - 28.99%

Annual Fee

$799

Foreign Transaction Fee

2.5%

  • How Amex's The Platinum credit card has you covered

    +

    A premium rewards card with a premium price tag of $799, The Platinum Card® comes with many benefits that cardholders enjoy when driving or parking. Its Car Rental Theft and Damage Insurance can cover you for theft, loss, and damage of your rental car with an MSRP of up to $85,000 for rentals of 48 days or less when you fully charge your rental to The Platinum Card®. To take advantage of this protection, simply decline the Collision Damage Waiver (CDW), Loss Damage Waiver (LDW), or similar option offered by the car rental agency*. When driving into or parking at Toronto’s Pearson Airport, cardholders will appreciate complimentary valet service at Express and Daily Parking, plus a discount off there as well.

    Other exclusive benefits of The Platinum Card® are its unlimited and free access to over 1,400 airport lounges worldwide in the The American Express Global Lounge CollectionTM , and an extensive suite of travel insurance.

    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.

Summary

The best credit cards for rental car insurance: Summary

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.
Apply now
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.
Apply now
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
Apply now
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.
Apply now

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.

FAQs

Auto rental insurance FAQs

  • Does credit card car rental insurance cover windshield damage?

    +

    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?

    +

    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?

    +

    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?

    +

    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 Finance 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, St. Louis Post-Dispatch, Debt.ca, AOL, MSN and Medium as well as financial podcasts like KOFE Talk.

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