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An excellent credit card benefit is the car rental collision damage waiver that covers damage to your rental car. To get this coverage, you just need to use your credit card and refuse the CDW option from the rental car agency.
It’s worth noting that no US cards cover liability for damage to other people’s cars or occupants.
Not all CDW coverage is created equal.
Some credit cards, including most cards from Citi, have eliminated CDW coverage.
Many credit cards only provide secondary coverage, so if you damage your rental car you’ll need to file a claim with your own insurance and coverage only kicks in for the deductible amount or if your claim is denied. If you don’t have your own insurance and aren’t covered by anyone else’s insurance then your credit card coverage would effectively be primary coverage.
Some business cards provide primary coverage, which means the credit card will pay for damage without having to file an insurance claim, but will only do so if the rental was for business purposes. This includes cards like Capital One Spark Cash, Capital One Spark Miles for Business, Chase United Business, Ink Business Preferred® Credit Card, Ink Business Unlimited® Credit Card, and Ink Business Cash® Credit Card.
AMEX cards only have secondary coverage, unless you pay $20-$25 per rental to upgrade the coverage to primary.
Cards offering primary CDW coverage include:
- Chase Chase Sapphire Preferred® Card® Card: Primary coverage plus earn 2 points per dollar. Record high 100K signup bonus points for spending $4,000 in 3 months. $95 annual fee. Read more here.
- Chase United Explorer: Primary coverage plus earn 1 point per dollar. Limited time 65K signup bonus points for spending $2,000 in 3 months and another $8,000 in 6 months. $95 annual fee. Read more here.
- Chase United Quest: Primary coverage plus earn 2 points per dollar. Limited time 100K signup bonus points for spending $5,000 in 3 months and another $5,000 in 6 months. $250 annual fee. Read more here.
- Chase United Club Infinite: Primary coverage plus earn 2 points per dollar. Limited time 75K signup bonus points for spending $3,000 in 3 months. $525 annual fee. Read more here.
- Chase Sapphire Reserve®: Primary coverage plus earn 3 points per dollar. Limited time 60K signup bonus points for spending $4,000 in 3 months. $550 annual fee. Read more here.
- Chase United Club: Primary coverage plus earn 1.5 points per dollar. $450 annual fee.
- JPMorgan Ritz Carlton. Primary coverage plus earn 2 points per dollar. $450 annual fee.
None of those cards charge foreign transaction fees, so you can also rent abroad and have coverage. In some countries, such as Israel, the rental agency requires a letter of personal coverage in order to refuse CDW coverage, so be sure to call the number on the back of your card for a letter of coverage before you travel!
Which card do you use for car rentals?
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103 Comments On "Which Credit Card Should You Use For Car Rentals?"
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What’s the advantage of primary coverage, as in, who cares who pays the claim?
If you file a claim with your own insurance your monthly premiums will go up.
I pay the rental agency for the coverage. It’s not worth saving some money up front for the headache if you have to deal with 3rd parties for a claim with the rental agency. This way, if I total the car, I can just walk away and move on with my life. Just not worth 15 bucks a day.
$15/day plus they also charge a deductible in many cases.
Would add up to thousands of dollars over the years for me!
Why would you pay for what you can get for free?
Yea, this doesn’t make sense. Something as serious as a total wreck, and a few phone calls and some paper work to email back is too tedious for you?
Honestly, I had a damaged car with Avis that I rented on my United card. I sent them the bill from Avis and didn’t hear anything else until it was settled by Chase/Visa. No hassle.
Nice!
Are there any cards other than Chase that provide primary coverage?
I have Chase, but none of these.
You can enroll in AMEX’s paid primary coverage for $20-$25/rental.
Does Amex cover Israel rentals?
Yes
Ned to be careful – the Premium Car Rental Protection does not cover Israel but the basic on does
i thought the primary coverage on chase business card was only for business purpose rental not leisure purpose rental -so you need to be mindful of your choices in renting in the purpose of your trip
Also I think it includes extras like theft from car. I was robbed in Costa Rica and rented with Amex card but didn’t upgrade ins. Had a car break-in and lost thousands worth of belongings. Another $25 wud have been reimbursed for most of it.
Prety sure US Bank Altitude Reserve Card provides primary coverage.
When I rented a car recently in Florida they required me to pay for insurance even though my chase Sapphire preferred credit card has rental insurance.
Which agency?
I had it with Dollar in DC a few weeks ago.
Economy rent a car
They said the credit card doesnt cover all insurance
You get what you pay for.
perhaps it was liability insurance
Is there any card that covers for 60 day rental?
Just break up the rental in middle?
The rates will change.
I’ve learnt from you and on an expensive or long rental always put the rental on an amex with premium insurance and if nothing happens put it on the card of choice at the end of the rental.
Beware – Amex Primary covers diminution of value while Chase does not
How does that work?
Car rental agency can charge for book value diminished after repair. Amex Premium Rental covers this.
What kind of proof would be required that the rental was for business purposes
By Hertz you have to select for leisure or business when you make a reservation.
Any downside to selecting business?
Your business card may still ask for proof in case of an accident. Not sure what kind of proof they will accept.
The rates are more expensive on hertz when selecting business
Letter on letterhead stating it was for business use and copy of business card
I use AMEX Platinum and pay the $20-25 per rental. Only get 1 point/$ this way, but I value the insurance protection much more than the bonus points other cards offer on travel category.
How is the insurance protection better than what’s offered on the Chase cards?
How can we find out if our cards/ other credit cards offer primary or secondary coverage?
Look at the guide to benefits or call the number on the back of your card.
Primary coverage is very rare.
Do most car insurance coverages cover liability when you are driving rental car?
In the US, yes. But call your agent and find out.
Every time I rent a car from TLV even when I show them CDW on my credit card they always require me to have one insurance no matter what I say
Yes, you still need to take out liability insurance. But it saves you from buying their overpriced CDW with its overpriced deductible.
Why only in Israel?
So what if I do damages to other cars or property
Your personal insurance may provide coverage, otherwise you can buy liability coverage from the agency or pay out of pocket.
chase ink businuess cash has primary coverage?
Read the post?
Dan, are you saying that if I use my sapphire preferred for insurance and rear end someone, they would only cover the damage to the rental car, not the car I hit?
Correct, no card will cover damage to other cars.
Your personal insurance may provide liability coverage, otherwise you can buy liability coverage from the agency or pay out of pocket.
Well that is something I didn’t know and am really glad to have learned. I’ve been using insurance through my CC for years. Thankfully there haven’t been any incidents and I haven’t had to learn this the hard way.
I don’t own a car and don’t have personal insurance, from where are they planning to get the millions.
Is this the extra insurance that israeli car rentals require?
They can always sue you.
Yes, they require liability.
It’s really strange that I country like the US which is based on suing shouldn’t require liability insurance
I have with Hertz a few years ago a accident and was liability for that, they try to ask me by email the story, and I ignore, and that’s it, my friend also has so and they just put him on a no rentel list, it sounds like they don’t take it serious, I sew people say so on social media
Incorrect.
The AMEX Platinum ICC card does cover liability insurance
As I said in the post, talking about US cards.
HI Dan,
I Spent for a business about 1M a year on Amazon (.com/.ca/.de), Which credit card will be best for me to spend it on?
PLEASE ANSWER ME!
I dont anywhere near that much, but for small spenders you can buy an amazon gift card from office supply stores with chase Ink cards, or cards which give you 5% on pharmacy purchases and get 5% back in points or cash.
Amex Amazon for Business
doesn’t the chase ritz card also have primary insurance coverage??
It does, as does the old United Club card, though those aren’t being offered to new cardholders.
I thought you can product change to the ritz card so it is relevant
Also are all those cards you mentioned primary for personal rental or do some require it to be a business rental
Yes, added.
The ones listed are primary for all rentals.
Ritz Carlton has primary coverage, correct?
Yes, added to post.
I think every car rental comes with the state minimum liability insurance (besides California)
https://ag.ny.gov/consumer-frauds/car-rental-tip-sheet
Great information for NY! And I didn’t know this about CDW: “if you have a New York automobile insurance policy you already have this coverage for a rental vehicle, unless you declined to accept it when you purchased that policy. “
Dan Is the liability insurance that the company provides enough or would you recommend paying the extra charge?
talking about enterprise, hertz or national
Dan you are sure about this?
“Many credit cards only provide secondary coverage, so if you damage your rental car you’ll need to file a claim with your own insurance and coverage only kicks in for the deductible amount or if your claim is denied.”
secondary cc coverage will cover your personal auto coverage deductible?
Read the fine print or call to ask about the card in question.
but you wrote this because this is the norm?
does the bank of America cash rewards Mastercard have secondary coverage?
US Bank Altitude Reserve has primary as well.
Thanks, Dan
You wrote “Your personal insurance may provide coverage” what’s a personal insurance policy, a HO-6 homeowners/renters policy with liability coverage or an auto ins like GEICO or something different?
Can I pay the amex $20-25 primary charge after my rental to cover damages?
No
Is the additional driver cover by the primary’s credit card insurance?
What about an authorized card holder who rents a vehicle are they covered?
Yes and yes.
BTW in some states (ie NY) the car rental company’s legally need to have liability coverage on their cars.
But it’s a limited amount of coverage, so might not be worth relying on.
Hatzlacha!
I learned the hard way that CDW insurance only covers the rental car, and not the damage to any other car, property or person(s) involved in an accident, that’s liability insurance.
I was actually “lucky” and only paid $600 to fix the damage to the car my wife crashed into. This was less than my insurance deductible and my premium was unaffected.
Since then, I decline CDW but accept liability insurance from the rental company. I wonder if I can buy cheaper liability insurance somewhere else???
you can use your amex card for the hold at the beginning of the rental and add the extra 25$ fee and pay with a diff card minus the fee when you return the vehicle. I have been doing this for long time
What does the AMEX coverage give you that the Chase cards don’t?
I have a Diners Club/Mastercard from BMO. Does this card provide primary coverage? Thank you.
its worth noting that with amex they cover up to 100k on any car as opposed to the chase cards you would have to call up to see which cars are covered as they have a specific list
Thank you Dan for posting this. The info in the post as well as clearly stating that no CC offers liability insurance is really helpful. Ensuring you know all the details of your coverage will save MUCH heartache.
If you dont have personal car insurance and using a CC, purchase the liability option
So which one is BEST?
I know it depends on which you have but Dan which do you use?
The Sapphire options.
Hi Dan,
You didn’t discuss how much these cards will cover. This is very important to know when renting a luxury car with the value exceeding 50,000 which some cards won’t cover.
Are there currently any cards that give coverage for Turo car sharing rentals?
Not that I know of.
I have credit one platinum master card . and visa platinum are they good ?
If I use my authorized user card from my wife’s Sapphire preferred account, to rent a car, will I be covered ?
Sure, but why not signup for your own Sapphire?
i dont get the whole liability thing. if they dont cover you damaging another vehicle then whats the point? anyways i hit a car and insurance covered so i dont really get it
Because many times you scratch or dent your own car without hitting another car?
Because even if you have liability, you’re still on the hook for your own car?
It is worth noting a few things from a recent personal experience with damage to a rental car (which I won’t detail because I am still awaiting Chase approval and may need to litigate).
– Your personal auto policy may not cover driving outside of US and Canada. That means if you decline coverage (especially liability coverage) you have exposure when driving overseas. The ONLY coverage you likely have overseas is CDW from Chase/Amex, not third-party liability. It is probably worth taking out liability coverage when renting overseas.
– The estimates/damages charged by rental agencies may be inflated. My alleged damages were probably about as much as the cost of the vehicle. I am not sure if the cardmember/renter is obligated to object to the charges at the time, but it may be worth refusing to pay the damages upfront on your own credit card and forcing the rental company and Chase to hash out what will be paid. Especially if you don’t have the credit line to make payment or cannot afford to get stuck holding the bag while Chase takes its time approving your claim.
– I am told by my auto insurance policy adjuster that even though I made a claim (which is likely to be denied because it was overseas), my premium would not be affected unless and until there is a payout. Hence, there is no harm done in making the claim.
Is the $20 upgrade to primary coverage with amex per day or per rental? also where can I purchase it?
Dan. bottom line- what should someone who does not have personal auto insurance do regarding liability? Should purchase it at the rental company? it is a lot of money each day
I just got the Capital One Venture X which is covered for primary however up to 75 K. What is the amount that Chase Sapphire preferred covers you up to?
Does anyone know if amex will cover a crash if the card is canceled.
What if you have a solo provider business chase card can you file a claim as a business?
Dan,
I called Visa benefits and they told me that if I use a free day to pay for my rental VISA will not cover LDW. Do you know if this is true and do you have a guide to rental car coverage when using free days or Hertz points?