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If you’ve rented a car in the past, you probably know that rental companies offer insurance coverage to protect you on the road. The most common coverage type is a loss damage waiver, which protects your rental from damage due to theft, vandalism, a collision, and more. While this coverage gives you valuable protection, you might not actually need it. That’s because your credit card might offer the coverage you need as a complimentary benefit.
Here’s how credit card rental car insurance works and which cards offer primary insurance as a safeguard for your travels.
Credit card rental car insurance can serve as alternative protection to a rental company’s coverage. But there are a few caveats to consider. First, you’ll need a credit card offering complimentary rental car insurance as a perk. You’d also need to rent a car with your card in order to access its insurance benefit. And finally, you must decline the rental agency’s collision damage waiver if you want to rely on your credit card’s rental car insurance for protection.
Rental car insurance options and limits vary by card. Secondary coverage, which supplements your own car insurance, is the most common option. For example, if you back into another vehicle while driving your rental, you’d need to first file a claim with your primary car insurance company. Your personal insurer could cover the cost of repairs to the rental, and your credit card’s secondary coverage could pay for things like your insurance deductible.
Primary coverage is a rarer option, but it’s still available with certain credit cards — often higher-tier rewards credit cards. With primary coverage, you don’t need to file a claim with your personal insurer first. Instead, you can simply call your credit card company for assistance after an accident or incident, and your personal insurance serves as backup to your primary coverage. Relying on this coverage could help you avoid potential premium increases that might happen after filing a claim with your personal insurer.
A card with primary rental car coverage could be beneficial no matter how often you travel. In addition to primary coverage, many of the following cards offer added benefits like cash back or travel rewards, credits, and more.
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Annual fee
$395
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Welcome offer
Limited-time offer: Earn 100,000 bonus miles when you spend $10,000 in the first 6 months from account opening
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Rewards rate
- 10x miles on hotels, vacation rentals, and rental cars booked through Capital One Travel
- 5x miles on flights and vacation rentals booked through Capital One Travel
- 2x miles on all other purchases
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Benefits
- $300 annual credit for travel bookings through Capital One Travel
- 10,000 annual bonus miles (worth $100 in travel spending; starts on your first account anniversary)
- Unlimited access for you and two guests to Capital One Lounges and 1,300+ more lounges through partner networks after enrollment
With the Capital One Venture X Rewards Card (COF) you’ll get primary rental car coverage and a host of other perks. Unfortunately, Capital One isn’t very transparent about how much rental car coverage the Venture X Rewards provides.
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Annual fee
$795
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Welcome offer
Earn 125,000 bonus points after spending $6,000 in the first 3 months
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Rewards rate
- 8x points on all purchases through Chase Travel℠*
- 4x points on flights and hotels booked direct*
- 3x points on dining worldwide
- 1x points on all other purchases
- *After the first $300 is spent on travel purchases annually
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Benefits
- Get up to $150 in statement credits every six months for a maximum of $300 annually for dining at restaurants that are part of Sapphire Reserve Exclusive Tables
- Trip Cancellation/Interruption Insurance, Auto Rental Coverage, Lost Luggage Insurance, no foreign transaction fees, and more
- Receive up to a $120 statement credit every four years to cover the application fee for Global Entry, TSA PreCheck®, or NEXUS
The Chase Sapphire Reserve (JPM) is another premium travel rewards card offering big benefits and primary rental car insurance. Cardholders who rent cars using their card get up to $75,000 in coverage for most rentals of up to 31 consecutive days.
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Annual fee
$95
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Welcome offer
Earn 75,000 bonus points after spending $5,000 in the first 3 months
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Rewards rate
- 5x points on travel purchased through Chase Travel℠
- 3x points on dining, select streaming services, and online groceries
- 2x points on all other travel purchases
- 1x points on all other purchases
- $50 Annual Chase Travel Hotel Credit
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Benefits
- Complimentary DashPass with $0 delivery fees & lower service fees for a min. of one year when you activate by 12/31/27, plus a $10 promo each month on non-restaurant orders
- Earn up to $50 in annual statement credits for hotel stays purchased through Chase Travel
- On every account anniversary, earn bonus points equal to 10% of your total purchases made the previous year
If you want primary rental car coverage but you’d prefer a lower annual fee, the Chase Sapphire Preferred may be worth considering. You’ll get up to $65,000 in primary coverage for most rental cars valued at $125,000 or less, and this card’s annual fee is just $95. Remember that you’ll need to use your card to rent your car and decline the rental agency’s coverage to be eligible for this primary insurance.
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Annual fee
$0
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Welcome offer
Earn $750 bonus cash back after spending $6,000 in the first 3 months
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Rewards rate
- 5% cash back on the first $25,000 in combined spending at office supply stores and on internet, cable, and phone services each account anniversary year
- 2% cash back on the first $25,000 in combined spending at gas stations and restaurants each account anniversary year
- 1% cash back on all other purchases
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Benefits
- Get automatically checked for a credit line increase every 6 months or sooner
- Set individual spending limits on employee cards and earn rewards even faster
The Ink Business Cash, a small business credit card, offers rental car coverage similar to that of the Chase Sapphire Preferred. When you use your card to book your car rental and decline the rental company’s collision damage waiver, you’ll get up to $60,000 in primary insurance on most rental cars. And the best part? The Ink Business Cash has a $0 annual fee.
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Annual fee
$95
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Welcome offer
90,000 bonus points after you spend $8,000 in the first 3 months
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Rewards rate
- 3x points on the first $150,000 spent in combined purchases in the following categories each account anniversary year: Shipping purchases, advertising purchases made with social media sites and search engines, internet, cable and phone services, travel
- 1x points on all other purchases
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Benefits
- Redeem rewards for cash back, gift cards, travel experiences, and more through Chase Ultimate Rewards; points don’t expire as long as your account is open
- Set individual spending limits on employee cards and earn rewards even faster
- *All information about the Ink Business Preferred Credit Card has been collected independently by and is no longer available through Yahoo Finance.
The Ink Business Preferred is a small business travel rewards credit card offering up to $65,000 in primary rental car coverage for most rentals. Like the Ink Business Cash, this card offers a range of perks, including a hefty 90,000-point welcome offer if you spend $8,000 within three months of account opening.
Cardmembers also benefit from business-focused rewards categories, free employee cards, and other perks. This card has a $95 annual fee.
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Annual fee
$0
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Welcome offer
Earn $750 bonus cash back after spending $6,000 in the first 3 months
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Rewards rate
1.5% unlimited cash back on every business purchase
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Benefits
- $0 annual fee
- Generous intro APR on purchases
- You won’t be held responsible for unauthorized charges made with your card or account information
Another great option for small businesses is the Ink Business Unlimited. This card gives you primary auto rental coverage of up to $60,000 for cars valued at $125,000 or less. Unlike other cards on our list, the Ink Business Unlimited offers a generous introductory APR on purchases for 12 months, which could be ideal if you plan on a large purchase in the near future.
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to the Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.