Best Credit Cards with Car Rental Insurance

 

 

Comparing the top credit cards for car rentals

A closer look at the best credit cards to rent a car

Many credit cards offer rental car insurance that can provide coverage for damage to or theft of the rental car. The coverage offered by credit cards can differ from network to network and from card to card. Some credit cards offer primary coverage, which is preferable as it doesn’t require making a claim against your personal car insurance first. Other credit cards offer secondary coverage, which means that the coverage kicks in after your personal auto insurance pays.

You will often need to decline coverage at the rental car counter for credit card coverage to be effective. As always, it’s important to check directly with your card issuers for the specifics and most up-to-date information.

Chase Sapphire Reserve

Rewards rate: Earn 10 points per dollar on hotels and car rentals booked through Chase Ultimate Rewards, five points per dollar on flights booked through Chase Ultimate Rewards, three points per dollar on travel and dining worldwide, and one point per dollar spent on all other purchases.

Annual fee: $550

Intro APR: None

Regular APR: 22.49%–29.49% variable

Signup bonus: Earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening.

Our verdict: The Chase Sapphire Reserve is among the best and most popular premium travel cards available. It offers excellent rewards and benefits for frequent travelers.

Pros:

• Generous rewards program.
• Excellent travel benefits.
• Complimentary airport lounge access through Priority Pass.
• $300 annual travel credit.
• Over $1,200 in value from partners like Lyft, DoorDash, and Instacart.

Cons:

• High annual fee.
• Not ideal for infrequent travelers.

Apply now: Chase Sapphire Reserve^®

Chase Sapphire Preferred^®

Rewards rate: Earn 5 points per dollar on travel purchased through Chase Ultimate Rewards, three points per dollar on dining, online grocery, and streaming, two points on other travel, and one point per dollar spent on all other purchases.

Annual fee: $95

Intro APR: None

Regular APR: 21.49%–28.49% variable

Signup bonus: Earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening.

Our verdict: The Chase Sapphire Preferred Card is one of the best general-purpose travel cards available. It offers excellent rewards and benefits for even infrequent travelers.

Pros:

• Generous rewards program.
• No foreign transaction fees.
• Primary rental car insurance.
• Up to $200 in value from partner benefits like DoorDash, Instacart, and Lyft.
• $50 annual statement credit on hotel stays booked through Chase Ultimate Rewards.

Cons:

• Annual fee is not waived for the first year

Apply now: Chase Sapphire Preferred^®

Capital One Venture X Rewards Credit Card

Rewards rate: 10 miles per dollar on hotels and rental cars booked through Capital One Travel ́; five miles per dollar on flights booked through Capital One Travel℠; two miles per dollar on all other purchases.

Annual fee: $395

Intro APR: None

Regular APR: 22.24% – 29.24% variable

Signup bonus: Earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening.

Our verdict: The Capital One Venture X Rewards Credit Card is a top of the line credit card with a lower annual fee than its competitors.

Pros:

• Generous rewards program.
• No foreign transaction fees.
• Up to $300 in annual statement credits.
• 10,000-mile anniversary bonus.
• Access to Capital One Lounges and Priority Pass lounges.
• Hertz President’s Circle Status.

Cons:

• Travel statement credit must be used through Capital One Travel portal

Apply now: Capital One Venture X Rewards Credit Card

United Explorer Card

Rewards rate: Earn 2 miles per dollar spent at United, on dining, and at hotels. Earn one mile per dollar spent on all other purchases.

Annual fee: $0 intro annual fee for the first year, then $95.

Intro APR: None

Regular APR: 21.74%–28.74% variable.

Signup bonus: Earn 50,000 bonus miles after you spend $3,000 on purchases in the first 3 months your account is open.

Our verdict: The United Explorer Card is perfect for folks who don’t want to add on a huge annual fee but still want that comprehensive rental car coverage. This is obviously an ideal card for United frequent flyers, but might not have much utility for those loyal to another airline.

Pros:

• Generous rewards program.
• Free checked bag for you and one companion.
• Priority boarding.
• $100 statement credit for Global Entry or TSA PreCheck applications every 4 years.

Cons:

• Limited redemption options.

Apply now: United Explorer Card

U.S. Bank Altitude® Reserve Visa Infinite® Card

Rewards rate: Earn five points per dollar spent on prepaid hotels and car rentals booked through the Altitude Rewards Center; earn three points per dollar spent on eligible travel and mobile wallet spending; earn 1X point per dollar spent on all other purchases.

Annual fee: $400

Intro APR: None

Regular APR: 22.24% – 29.24% variable

Signup bonus: Earn 50,000 bonus points after you spend $4,500 in the first 90 days of account opening.

Our verdict: The U.S. Bank Altitude® Reserve Visa Infinite® Card is a solid premium credit card. If you take advantage of all the annual statement credits, you effectively bring your annual fee down to just $75. On top of that, you get access to airport lounges and have a high earning potential if you frequently book hotels through the travel portal. However, there aren’t any bonus categories for dining or gas stations.

Pros:

• Generous rewards program.
• Up to $325 in annual statement credits.
• Complimentary airport lounge access.
• TSA PreCheck or Global Entry application statement credit.

Cons:

• High annual fee.

Apply now: U.S. Bank Altitude® Reserve Visa Infinite® Card

Bilt World Elite Mastercard

Rewards rate: Earn three points per dollar on dining, two points per dollar on travel, one point per dollar on rent payments (with no transaction fee) and all other purchases. You must use your card five times each billing cycle to earn points.

Annual fee: $0

Intro APR: None

Regular APR: 21.49%, 24.49%, or 29.49% variable.

Signup bonus: None

Our verdict: The Bilt World Elite Mastercard is a great option for those who want a credit card that offers rewards for rent payments without paying a transaction fee. You earn double points on the first of every month, except for rent payments. That means six points per dollar on dining and four points per dollar on travel, which is an excellent deal.

Pros:

• No annual fee for the first year.
• Generous rewards program.
• No foreign transaction fees.

Cons:

• No welcome offer.

Apply now: Bilt World Elite Mastercard

The Platinum Card from American Express

Rewards rate: Earn 5 points per dollar on prepaid hotels and flights booked directly with the airline, 1 point per dollar on all other purchases.

Annual fee: $695

Intro APR: None

Regular APR: 21.24% to 29.24% variable.

Signup bonus: Earn 80,000 Membership Rewards® points after you spend $8,000 on purchases on your new Card in your first six months of Card Membership.

Our verdict: The Platinum Card from American Express is a good credit card for car rentals, especially if you travel frequently and it includes complimentary elite status with Avis, Hertz, and National. However, it has a high annual fee of $695. This makes it important to weigh the benefits against the cost to decide if it’s the right card for you. You should pair this card with a card that earns more than one point per dollar on purchases other than flights and hotels to maximize your earnings.

Pros:

• Over $1,500 in annual statement credits.
• Complimentary status for Avis Preferred®, Hertz President’s Circle, and National Car Rental® Emerald Club.
• Complimentary access to the ultra-premium Centurion Lounges

Cons:

• High annual fee.
• Not ideal if you don’t take advantage of the statement credits.

Apply now: The Platinum Card from American Express

How to pick a credit card for car rentals?

1. Assess your needs: Before diving into the world of credit card options, take a moment to consider your car rental needs. Are you a frequent traveler who rents cars regularly, or is this an occasional requirement? Knowing your usage pattern will help you decide whether a credit card with dedicated car rental perks is worth it.
2. Check for car rental benefits: Not all credit cards offer the same level of car rental benefits. Look for cards that provide rental car insurance, which can cover costs in case of accidents, theft, or damage to the rental vehicle. Some cards also offer roadside assistance, which can be incredibly useful during emergencies.
3. Review insurance coverage: When considering a credit card for car rentals, thoroughly review the insurance coverage it offers. Understanding what is and isn’t covered will help you make an informed decision. Remember that coverage levels can vary widely between credit cards, so choose one that aligns with your needs.
4. Compare annual fees: While credit cards with car rental benefits can be enticing, they often come with annual fees. Compare these fees against the potential savings you might get from the insurance coverage and other perks. If you’re an infrequent renter, opting for a high-fee card might not be cost-effective.
5. Look for worldwide acceptance: If you’re a globetrotter, ensure the credit card’s benefits extend to international car rentals. Some cards might limit coverage to rentals in specific countries, so choose one that provides worldwide coverage to ensure peace of mind no matter where you travel.

What you need to know about car rental insurance?

Ensure your rental is eligible

Credit card rental car insurance typically requires paying for the rental using that specific credit card. Read the card’s terms and conditions to ensure you meet this requirement to avail of the insurance coverage.

Not all car types are covered

It’s essential to understand that the type of vehicle you rent matters. Many credit card insurance policies might exclude coverage for luxury cars, exotic vehicles, or large vans. Always check the policy details to avoid surprises.

Liability insurance is not included

While credit card rental car insurance can cover damage to the rental vehicle, it usually does not include liability insurance. This means you might be responsible for any damage you cause to other vehicles or property. Check if your personal car insurance or travel insurance covers liability in such cases.

Some countries are excluded

Certain countries might be excluded from the credit card’s insurance coverage due to high-risk factors. Before traveling, confirm whether your destination is covered by your credit card’s car rental insurance.

There’s a limit on the number of days

Most credit card rental car insurance policies have a maximum number of days for which coverage applies. If you plan on renting a car for an extended period, consider alternative insurance options.

Methodology

To compile this list, we picked cards that offered primary rental coverage over secondary rental coverage. Then, we wanted to include a variety of cards, from those with no annual fee all the way up to a $695 annual fee. Each card offers something unique, whether it be statement credits, bonus category earnings, or from a different card issuer.

The product information provided here is based on research conducted up to a specific date and may have changed. For the latest and most accurate information, we recommend you to visit the respective card’s website before proceeding.

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