Which Credit Card Has the Best Rental Car Insurance
Best for Luxury Travel
Chase Sapphire Reserve®
Up to 10X Reward Rate
5X total points on air travel and 10X total points on hotels and car rentals when you purchase travel throughRead More
Welcome Bonus
50,000 points
Regular APR
16.99%-23.99% Variable
Credit Score
Excellent (750 - 850)
Why We Picked It
This card offers superior points earning rates if you spend frequently on travel and dining out. The $300 travel credit justifies much of the annual fee, and redeeming points for travel on Chase Ultimate Rewards or when using the Pay Yourself Back feature nets you a 50% bonus.
Pros & Cons
- $300 annual travel credit is incredibly flexible
- Generous welcome bonus
- Get 50% more value when you redeem points for travel through Chase, or for select purchases through Pay Yourself Back℠ program
- Points transfer to valuable airline and hotel partners
- High annual fee
- High variable APR on purchases
- Excellent credit recommended
Card Details
- Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
- $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year. Through December 31, 2021, gas station & grocery store purchases will also count towards earning your Travel Credit
- Earn 5X total points on air travel and 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases
- Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards. For example, 50,000 points are worth $750 toward travel
- With Pay Yourself Back℠, your points are worth 50% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
- 1:1 point transfer to leading airline and hotel loyalty programs
- Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $100 application fee credit for Global Entry or TSA Pre✓®
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more
Best Basic Travel Credit Card
Chase Sapphire Preferred® Card
Up to 5X Reward Rate
Earn 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all otherRead More
Welcome Bonus
60,000 points
Regular APR
15.99%-22.99% Variable
Credit Score
Excellent/Good (700 - 749)
Why We Picked It
Offering a rare mix of high rewards rates and redemption flexibility, this card is a dream for frequent spenders on travel & dining - while charging a modest annual fee.
Pros & Cons
- Earn high rewards on several areas of spending
- Transfer points to travel partners at 1:1 rate
- Many travel and shopping protections
- Annual fee
- No intro APR offer
- Best travel rewards are only for bookings through Chase
Card Details
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
- Enjoy new benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5X points on travel purchased through Chase Ultimate Rewards®, 3X points on dining and 2X points on all other travel purchases, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
Best for Business Travel
Ink Business Preferred® Credit Card
Up to 3X Reward Rate
Earn 3X points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable andRead More
Welcome Bonus
Earn 100,000 bonus points
Regular APR
15.99%-20.99% Variable
Credit Score
Good, Excellent (700 - 749)
Why We Picked It
Frequent business travelers who spend generously within the bonus categories will find extreme value in this card.
Pros & Cons
- Remarkable welcome bonus
- No foreign transaction fee
- Employee cards at no additional cost
- Rewards for common business expenses
- Has annual fee
- Very high cash advance fee
- Very high balance transfer fee
Card Details
- Earn 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That's $1,000 cash back or $1,250 toward travel when redeemed through Chase Ultimate Rewards®
- Earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year. Earn 1 point per $1 on all other purchases
- With Fraud Protection your card transactions will be monitored for possible signs of fraudulent activity using real-time fraud monitoring
- With Zero Liability you won't be held responsible for unauthorized charges made with your card or account information
- Redeem points for cash back, gift cards, travel and more – your points don't expire as long as your account is open
- Points are worth 25% more when you redeem for travel through Chase Ultimate Rewards®
- Purchase Protection covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account.
Best Premium Airline Credit Card for Car Rentals
United Club℠ Infinite Card
Up to 4X Reward Rate
Earn 4 miles per $1 spent on United purchases, 2 miles per $1 spent on all other travel and diningRead More
Welcome Bonus
100,000 miles
Regular APR
16.49% - 23.49% Variable
Credit Score
Excellent (750 - 850)
Why We Picked It
United's top-tier card offering ups its game with 4 miles per dollar earnings on United purchases. A suite of travel perks makes the card an even better value, with the United Club membership alone worth more than the annual fee.
Pros & Cons
- No foreign transaction fee
- United Club membership is worth more than the annual fee
- First and second checked bag free when you pay for your flight with your card
- Very high annual fee
- No intro APR offer
- High regular APR
Card Details
- Earn 100,000 Bonus Miles
- Earn 4 miles per $1 spent on United purchases including tickets, Economy Plus, inflight food, beverages and Wi-Fi, and other United charges
- Earn 2 miles per $1 spent on all other travel
- Earn 2 miles per $1 spent on dining including eligible delivery services
- Earn 1 mile per $1 spent on all other purchases
- Up to $100 Global Entry or TSA PreCheck® fee credit
- Free first and second checked bags – a savings of up to $320 per roundtrip. Terms Apply
- 25% back as a statement credit on purchases of food, beverages and Wi-Fi on board United-operated flights when you pay with your Club Infinite Card.
Best Airline Card for Car Rentals
United℠ Explorer Card
Up to 2X Reward Rate
Earn 2 miles per $1 spent on dining, hotel stays and United purchases. 1 mile per $1 spent on allRead More
Welcome Bonus
60,000 miles
Annual Fee
$0 Intro for First Year, then $95
Regular APR
16.49% to 23.49% Variable
Credit Score
Good, Excellent (700 - 749)
Why We Picked It
A top choice for casual or moderate United fliers; the perks can easily outweigh the annual fee. If you're prepared to spend on dining and hotels in addition to United purchases, you'll earn 2 miles per dollar.
Pros & Cons
- Annual fee waived the first year
- Free First Checked Bag when you pay with your card & Priority Boarding
- Earn unlimited miles with no caps
- No blackout dates
- Seat limitations on Saver Awards
- Everyday Awards flight pricing is expensive
- No 0% intro APR offer
- High regular APR
Card Details
- Earn 60,000 bonus miles after you spend $3,000 on purchases in the first 3 months your account is open.
- $0 introductory annual fee for the first year, then $95
- Earn 2 miles per $1 spent on dining, hotel stays, and United purchases
- Up to $100 Global Entry or TSA PreCheck® fee Credit
- 25% back on United inflight purchases
- Check your first bag for free (a savings of up to $140 per roundtrip) when you use your card to purchase your ticket
- Enjoy priority boarding privileges and visit the United Club℠ with 2 one-time passes each year for your anniversary
- Earn 2 miles per $1 spent on dining including eligible delivery services
Methodology
When it comes to travel credit cards that offer car rental insurance, we focused our search on cards that offer primary coverage. Since primary auto rental insurance can be used before any other auto rental coverage you have, including your own policy, this type of insurance is far superior.
In addition to our analysis of auto rental coverage various cards offer, we also looked for credit cards that offer excellent rewards programs as well as additional travel perks. We compared annual fees and other fees as well, mostly to ensure that any fees charged made sense in terms of the overall value of each offer.
Best Credit Cards for Car Rental Insurance
A Note About American Express Credit Cards that Offer Auto Rental Coverage
There are plenty of American Express cards that offer secondary auto rental coverage, including The Platinum Card® from American Express and the American Express® Gold Card. While secondary coverage can also be helpful if you have a personal auto insurance policy you prefer to use for car rental agreements, we thought it was useful to mention an American Express program that lets you purchase primary rental car coverage for extended periods of time.
With American Express Premium Auto Rental Protection, you can pay a flat fee for up to 42 consecutive days of primary auto rental coverage. Two different levels of protection are offered, but the highest level comes with up to $100,000 in coverage against damage or theft, $100,000 in coverage against accidental death or dismemberment, $15,000 in secondary medical expenses per person and up to $5,000 in secondary coverage per person for personal property. Terms apply.
This coverage also works worldwide, except for in Australia, Ireland, Israel, Italy, Jamaica and New Zealand.
Terms apply to American Express offers. See the card application for more details.
How to Pick a Credit Card with Auto Rental Coverage
While the top credit cards for auto rental coverage we've listed above are easily the best options on the market today, there are other factors to consider. These tips can help you wind up with the right travel credit card for your needs, including your need for auto insurance.
- Consider the type of rewards you'll earn. You'll probably notice that the cards we've highlighted above dole out different types of rewards. Some let you earn cash back while others let you rack up flexible rewards or airline miles. As you compare credit cards that offer auto rental coverage, make sure you are looking for cards that let you earn rewards you can actually use. If you rarely fly, for example, there's probably no use in racking up in airline miles.
- Weigh annual fees against cardholder benefits. Some cards that come with primary auto rental coverage charge much higher fees than others, and that's usually because they offer additional cardholder perks that make up for higher fees. If you choose a credit card that does charge a high annual fee, make sure the perks and rewards you're receiving are worth it.
- Take a close look at welcome bonuses and minimum spending requirements. Also consider the potential of earning a welcome bonus, which you may be able to do if you meet a minimum spending requirement within a few months after opening the card. In the case of cards with an exceptionally high minimum spending requirement like the Ink Business Preferred Credit Card, you should take stock of your business expenses to make sure you can meet the threshold with organic spending.
- Compare primary and secondary auto rental coverage. Also decide whether you want primary or secondary rental car coverage. If you prefer secondary coverage that only kicks in after you exhaust your own auto rental insurance coverage limits, then there are considerably more cards you can choose from.
To view rates and fees of the American Express® Gold Card, please visit this page .
Frequently Asked Questions
Which credit card is best for rental car insurance?
A number of credit cards carry some form of rental car coverage. To determine which one is best for you, consider the fees and rewards of each card and decide which is a best fit for you. This list of best cards for rental car insurance is a great place to start.
What does primary and secondary coverage mean?
Knowing whether a credit card has primary or secondary car rental insurance is an important distinction. Primary coverage means that you don't have to file a claim with your car insurance company if you damage your rental car. Secondary coverage means that you are covered for whatever amount your personal car insurance doesn't cover. That said, remember that rental coverage covers only the rental car, not any other property or more importantly any medical expenses resulting from an accident, so additional liability insurance may be needed.
Which credit card has the best car rental coverage if I don't have auto insurance?
If you don't have auto insurance, you may need to have more than rental car coverage provided by any credit card. The reason: Rental car insurance covers the car, not you. In other words, you'll be on the hook for any damage done to any other car, property, or more importantly for any medical expenses resulting from an accident. If you don't have auto insurance, make sure to purchase liability insurance from your rental car provider.
That said, the distinction between primary and secondary car rental insurance coverage doesn't matter if you don't have a personal auto policy.
Can I pay for the car rental with points and still have rental car coverage?
In general, as long as you charge a portion of your rental to your card, you can take advantage of rental car coverage. Chase goes further and allows you to receive coverage on rental cars purchased with points through their travel portal.
What are the pros and cons of credit card rental car insurance?
The main pro of credit card rental insurance is that it's free if you have the right credit card. If you already have auto insurance that covers liability, having credit card coverage saves you money because you won't have to purchase the rental company's collision insurance and offers convenience if something happens to the rental car.
The con is that rental car insurance covers the car, not you. You are still responsible for any damage done to any other car, property, or more importantly for any medical expenses resulting from an accident. If you don't have auto insurance, make sure to purchase liability insurance from your rental car provider.
How Rental Car Insurance on Credit Cards Works
To take advantage of rental car insurance from your credit card, decline the collision damage waiver (CDW) from your rental car company. If you damage your rental car, you need to submit a claim to your credit card company if you have primary coverage, or submit a claim to your auto insurance, then a claim for any left over expenses to your credit card company.
Other Credit Cards To Be Considered
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Which Credit Card Has the Best Rental Car Insurance
Source: https://www.forbes.com/advisor/credit-cards/best/car-rental-insurance/
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