Which Credit Cards Have Primary Rental Car Insurance?

Credit cards can offer a valuable benefit for travelers: rental car insurance. This coverage can eliminate the need to purchase additional insurance from rental agencies, potentially saving a significant amount on rental costs. Understanding how this benefit works, particularly the distinction between primary and secondary coverage, is important for maximizing its utility and ensuring proper protection during travel.

Understanding Primary and Secondary Coverage

Credit card rental car insurance typically falls into one of two categories: primary or secondary coverage. Primary coverage is generally preferred because it pays out directly in the event of damage or theft to the rental vehicle, without requiring you to involve your personal auto insurance policy first. This means you can avoid filing a claim with your personal insurer, which could otherwise lead to a higher deductible payment or an increase in your personal insurance premiums.

In contrast, secondary coverage only activates after your personal auto insurance policy has been exhausted. It acts as a supplement, covering costs that your primary personal policy does not, such as your deductible or other remaining expenses. While still beneficial for covering out-of-pocket costs, secondary coverage necessitates engaging your personal insurance first, which many consumers prefer to avoid. If you do not have a personal auto insurance policy, some secondary credit card coverages may convert to primary coverage.

Credit Cards Offering Primary Rental Car Insurance

A select number of credit cards provide primary rental car insurance, a benefit often associated with premium travel cards. Prominent examples include certain Chase Sapphire cards, such as the Chase Sapphire Preferred® Card and the Chase Sapphire Reserve®. These cards typically offer primary coverage for theft or collision damage up to the actual cash value of most rental vehicles, often with limits up to $75,000, and coverages extending for rentals up to 31 consecutive days.

Other cards offering primary coverage include the Capital One Venture X Rewards Credit Card (up to $75,000 for theft or collision), certain United Airlines co-branded cards (United℠ Explorer Card, United Quest℠ Card, United Club℠ Card), and for business travelers, some Chase Ink Business cards (Ink Business Cash® Credit Card, Ink Business Preferred® Credit Card, Ink Business Unlimited® Credit Card) for business rentals. Cardholders should consult their card’s guide to benefits for specific details, as terms vary. American Express, while typically offering secondary coverage, provides primary coverage through an optional “Premium Car Rental Protection” program for an additional fee.

Activating Your Card’s Rental Car Insurance

To activate your card’s rental car insurance, you must use the eligible credit card to reserve and pay for the entire rental car transaction. This action triggers the card’s built-in coverage.

Decline the rental company’s optional collision damage waiver (CDW) or loss damage waiver (LDW) at the counter, as accepting their coverage can nullify your credit card’s benefit. In the event of an incident, such as a collision or theft, promptly contact your credit card’s benefits administrator to report it. This usually involves providing documentation like the rental agreement, a police report if applicable, and an itemized repair estimate.

Common Coverage Limitations

Credit card rental car insurance policies have exclusions and limitations. Certain vehicle types are excluded from coverage, including exotic or luxury cars, large passenger vans, trucks, and motorcycles. Some policies may also exclude vehicles with a high manufacturer’s suggested retail price (MSRP) above a certain threshold, such as $75,000.

Rental duration is another common limitation, with coverage capped at a maximum period, such as 15 consecutive days for domestic rentals or 31 days for international rentals. Damages resulting from specific scenarios, like off-road driving, driving on unpaved roads, or negligence, are also excluded. Geographical restrictions can apply, with some countries or regions, such as Israel, Jamaica, Ireland, Italy, Australia, and New Zealand, commonly excluded from coverage. Credit card rental car insurance covers damage to or theft of the rental vehicle itself, but does not cover liability for damage to other vehicles or property, personal injury, or loss of personal belongings. These types of coverages require your personal auto insurance or separate policies.