Summer is approaching, and many of us will be hitting the road! Here's our updated 2024 guide to credit card auto rental insurance coverage.

What is Credit Card Auto Rental Insurance (CDW)?

If you rely on rental cars rather than owning a vehicle, you might wonder about accident coverage. When renting a car and getting into an accident, you're typically responsible for damages to the rental company. However, your credit card might have you covered – though coverage varies significantly by card.

Many credit cards offer collision damage coverage for rental cars, stepping in to pay damages to the rental company instead of you having to pay out of pocket. Let's explore what's covered, what's not, and which cards offer the best protection.

Collision vs. Liability Coverage

Credit card auto rental insurance typically covers:

• Damage to your rental car (collision)
• Does NOT cover damage to other vehicles (liability)

Good News: In most U.S. states, rental companies must provide state minimum liability coverage for renters. (California and Texas are exceptions with no state minimum requirement.)

Pro Tip: If you have personal auto insurance, your policy usually extends to rental cars. Without personal auto insurance, you can either purchase liability coverage from the rental company or get a "Non-owners policy" from providers like Geico (available by calling a local agent).

Important Terms and Conditions

Vehicle Coverage Limitations

Every credit card has specific limitations:

• Maximum coverage value (typically $50,000-$75,000)
• Excluded vehicles:
  • Antique automobiles
  • Vans carrying more than 9 people
  • Open cargo bed vehicles
  • Trucks
  • Motorcycles and mopeds
  • Limousines
  • Recreational vehicles

Primary vs. Secondary Coverage

Primary Coverage pays even if you have other insurance coverage. Cards offering primary coverage include:

Personal Cards:

• Chase Sapphire Preferred® Card ($95 annual fee)
• Chase Sapphire Reserve® ($550 annual fee)
• Citi Strata Premier℠ Card ($95 annual fee)
• Capital One Venture X Rewards Credit Card ($395 annual fee)
• United Club℠ Infinite Card ($525 annual fee)

Business Cards:

• Ink Business Preferred® Credit Card ($95 annual fee)
• Ink Business Cash® Credit Card ($0 annual fee)
• Ink Business Unlimited® Credit Card ($0 annual fee)
• United℠ Business Card ($99, waived 1st year)

Secondary Coverage requires you to file claims with other insurance first, which may:

• Delay the process
• Increase your insurance premiums

Note: American Express cardholders can purchase Premium Protection for about $25 per rental to get primary coverage.

Rental Duration Limits

• Capital One: Some cards limit coverage to 15 days for domestic rentals
• American Express:
  • Standard coverage: Up to 30 days
  • Premium plan: Up to 42 days

Warning: Maximum day limits usually apply to the entire rental agreement. If your agreement exceeds the limit, you may not be eligible for coverage from day one.

Geographic Restrictions

• Capital One: Excludes Israel, Jamaica, Republic of Ireland, Northern Ireland
• American Express: Excludes Australia, Italy, New Zealand
• Chase: Worldwide coverage

Always check your cardmember agreement before international travel.

How to Activate Coverage

To ensure coverage:

1. Reserve AND pay the entire rental charge on your eligible card
2. Decline the rental company's collision damage waiver (CDW/LDW)

Common Mistake: Don't reserve with one card and pay with another at pickup. Most agreements require both reservation and payment on the eligible card.

Using Reward Points

Coverage typically applies when:

• Paying entirely with your eligible credit card
• Using Chase Ultimate Rewards points
• Using American Express Membership Rewards points

Coverage usually doesn't apply when:

• Using third-party reward programs
• Using rental agency reward programs
• Using certificates
• Exception: Eligible Mastercards may provide coverage if at least one day is paid on the card

Long-Term Rentals

Major rental companies handle long-term rentals differently:

• Avis, National, and Enterprise create new contracts every 30 days
• This can work for extended rentals, but be aware:
  • Some credit card agreements consider consecutive contracts as one long rental
  • While rarely enforced, this could affect claim eligibility

Letter of Eligibility for European Rentals

Some European rental companies require proof of credit card insurance coverage. Request letters from:

• American Express
  • U.S.: 800-338-1670
  • International: 216-617-2500
• Capital One
  • U.S.: 800-825-4062
  • International: 1-804-965-8071 (collect)
• Chase
  • Online: Available through Chase website
  • U.S.: 888-320-9961
  • International: 804-673-1691
• Barclays
  • U.S.: 800-627-8372
  • International: 636-722-7111

Safe Travels!

Before your next road trip, review your credit card benefits carefully to understand your coverage. Make sure you know what's covered – and what isn't – before you hit the road.

Last updated: December 2024