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When you're renting a car, you have the option to add extra coverage offered by the car rental agency. That, of course, comes at a fee added to your daily rate.
Before you purchase insurance at the counter, check if you're covered by either your personal auto insurance policy or your credit card. Most travel rewards cards come equipped with special car rental insurance which allows you to skip the rental company's insurance.
Ahead, CNBC Select explains how credit card car rental coverage works and lists some of the best cards that offer this perk with information on the car rental insurance coverage you get with each.
How does credit card car rental insurance work?
First and foremost, if you want to be covered by your credit card's car rental insurance, you must pay for the full rental cost (plus fees) with that card. Car rentals booked with points are generally included.
Typically, the cardholder also must be the primary renter, though other drivers are often covered if they are on the rental contract. Finally, your credit card's terms usually require that you decline the car rental agency's Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW).
CDW covers damage to the rental vehicle in case of an accident. LDW offers the same protection, as well as coverage if the car is stolen. Since these terms are sometimes used interchangeably, pay attention to the fine print to know what kind of coverage you're getting.
Don't worry: Opting out of the car rental agency's insurance simply makes it possible to use the coverage provided by your credit card in the event of an accident. Just make sure that you know exactly what your card covers and whether it offers primary coverage and/or secondary coverage.
Note that not all types of cars are covered. Luxury cars and recreational vehicles, for instance, are often not included. There's also usually a limit on the number of days that you can take out coverage, often up to two weeks (14 days) or a month (31 days).
Primary vs. secondary coverage
Most credit cards offer secondary coverage, which means the coverage kicks in after your personal car insurance policy. In the case of an accident, theft or damage, you'd first need to file a claim with your own car insurance company before submitting a claim through your credit card's insurance provider. If you don't have a personal auto insurance policy (i.e. if you don't own and/or drive your own car), secondary coverage may still kick in — just check your policy to make sure you're covered.
Primary coverage, on the other hand, is just like the name suggests. With credit cards that offer primary insurance coverage, you can submit an accident claim right away by calling the number on the back of your card, without first submitting it to a personal policy.
What about liability coverage?
Liability coverage isn't included in most credit card and/or rental car CDWs, which only cover damage to and/or theft of the rental car (but not bodily damage or other personal property damage). If you're involved in an accident resulting in injury to another person, you probably won't be covered.
Full liability protection comes with the rental company's insurance. You typically have to add it on at the counter and/or at the time of reserving the car, unless you have extended rental car coverage through your personal auto insurance policy. Liability protection is likely more expensive for rental cars than for your own car; it runs about $8 to $25 per day. Some countries may actually require that you opt into liability coverage when renting a car.
Do all credit cards come with car rental insurance?
Not all credit cards offer car rental coverage. For example, Discover doesn't provide car rental insurance. Citi also dropped this benefit on most of its cards. Some Capital One cards offer this perk as a benefit from the card network. American Express includes secondary car rental coverage on many of its cards with the option to buy a Premium Car Rental Protection policy that provides primary coverage. Most Chase cards come with this benefit as well.
CNBC Select reviewed our list of the best credit cards and chose the following options as the best for car rentals. Below, we include details about each card's rental car coverage.
- Best for car rentals: Chase Sapphire Reserve® (see rates and fees) and Chase Sapphire Preferred® Card (see rates and fees)
- Best for gas: PenFed Platinum Rewards Visa Signature® Card
- Best for dining and takeout: American Express® Gold Card
- Best for groceries: Blue Cash Preferred® Card from American Express
Best for car rentals
The Chase Sapphire Reserve® is a standout premium credit card with plenty of luxury perks and statement credits to justify its annual fee.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn 150,000 bonus points after you spend $6,000 on purchases in the first 3 months from account opening.
- Get $3,000 in annual value with Sapphire Reserve.
- Earn 8x points on all purchases through Chase TravelSM, including The EditSM and 4x points on flights and hotels booked direct. Plus, earn 3x points on dining worldwide & 1x points on all other purchases
- $300 annual travel credit as reimbursement for travel purchases charged to your card each account anniversary year.
- Access over 1,300 airport lounges worldwide with a complimentary Priority PassTM Select membership, plus every Chase Sapphire Lounge® by The Club with two guests. Plus, up to $120 towards Global Entry, NEXUS, or TSA PreCheck® every 4 years
- 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.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Coverage, Lost Luggage Insurance, no foreign transaction fees, and more.
- Get complimentary Apple TV+, the exclusive streaming home of Apple Originals. Plus Apple Music — all the music you love, across all your devices. Subscriptions run through 6/22/27 — a value of $288 annually
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
The Chase Sapphire Preferred® Card packs a punch for a $95 annual fee card, offering annual travel credits, comprehensive travel protections and more.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
- Enjoy benefits such as 5x on travel purchased through Chase TravelSM, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases
- Earn up to $50 in statement credits each account anniversary year for hotel stays through Chase TravelSM
- 10% anniversary points boost - each account anniversary you'll earn bonus points equal to 10% of your total purchases made the previous year.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Complimentary DashPass which unlocks $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.
- Member FDIC
Balance transfer fee
Either $5 or 5% of the amount of each transfer, whichever is greater
The Chase Sapphire Reserve® and its lower annual fee cousin, the Chase Sapphire Preferred® Card, are our top picks for the best cards for car rentals. Both cards provide primary car rental coverage for car rentals in most countries. These cards offer coverage for rentals of up to 31 consecutive days at a time. The Sapphire policy covers losses, including physical damage and/or theft of the rental vehicle, valid loss-of-use charges assessed by the rental company and reasonable and customary towing charges related to a covered loss.
View the Sapphire benefits guides for more in-depth info on rental car coverage:
Best for gas
PenFed Platinum Rewards Visa Signature® Card
Rewards
5X points on gas purchases at the pump and electrical vehicle charging stations, 3X points on purchases at the supermarket (including most Target and Walmart locations†), restaurants, and TV, radio, cable, streaming services
Welcome bonus
15,000 points when you spend $1,500 in first 90 days
Annual fee
$0
Intro APR
0% introductory APR for 12 months on balance transfers made in the first 60 days after account opening.*
Regular APR
17.99% variable on purchases; 17.99% non-variable on balance transfers
Balance transfer fee
3%
Foreign transaction fee
None
Credit needed
Good/Excellent
Terms apply.
0% introductory APR for 12 months on balance transfers made in the first 60 days after account opening. After that, the APR for the unpaid balance and any new balance transfers will be a non-variable rate of 17.99%. 3% balance transfer fee per transaction. Subject to credit approval. If you take advantage of this balance transfer, you will immediately be charged interest on all purchases made with your credit card unless you pay the entire account balance, including balance transfers, in full each month by the payment due date.
The PenFed Platinum Rewards Visa Signature card comes with Visa Signature perks including a secondary auto collision damage waiver (CDW) that reimburses cardholders for the covered theft or damage as well as valid administrative and loss-of-use charges imposed by the auto rental company and reasonable towing charges that occur while you are responsible for the rental vehicle.
Coverage lasts up to 15 consecutive days within your country of residence or 31 consecutive days outside the U.S.
Best for groceries
The Blue Cash Preferred® Card from American Express is a low-fee card with generous cash-back rewards and useful ongoing benefits, such as a monthly Disney Bundle credit. (Enrollment required for select benefits mentioned)
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply and find out your welcome offer. As High As $300 cash back* after you spend $3,000 in purchases on your new Card within the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply, and if approved: 1. Find out your offer amount 2. Accept the Card with your offer 3. Spend $3,000 in 6 months 4. Receive the cash back. *Cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
- $0 intro annual fee for the first year, then $95.
- Enjoy 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.49%-28.49%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don't have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you'll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at DisneyPlus.com, Hulu.com, or Stream.ESPN.com U.S. websites. Subject to auto-renewal.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7% of each transaction after conversion to US dollars
The Blue Cash Preferred® Card from American Express provides *auto collision damage waiver (CDW) covering theft and/or damage up to the cost of the vehicle for up to 30 consecutive days. Learn more about Amex's rental car insurance. Terms apply.
Best for dining and takeout
The American Express Gold Card is great for earning valuable Membership Rewards® points at restaurants worldwide and U.S. supermarkets.
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you're approved and find out your exact welcome offer amount – all with no credit score impact. If you're approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You'll know upfront exactly how much you'll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That's up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
- See Rates & Fees
Foreign transaction fee
None
The American Express® Gold Card provides an auto collision damage waiver (CDW) covering theft and/or damage up to the cost of the vehicle for up to 30 consecutive days. Learn more about Amex's rental car insurance*. Terms apply.
*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/ benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.
FAQs
What's the difference between LDW and CDW?
CDW covers damage to the rental vehicle in case of an accident. LDW offers the same protection, as well as coverage if the car is stolen. Since these terms are sometimes used interchangeably, pay attention to the fine print to know what kind of coverage you're getting.
How do I know if my credit card has car rental insurance?
You can check whether your card comes with car rental coverage by reading your card's benefits guide. You can also log in to your card account online and see if you can find the list of benefits. Finally, you can always call the number on the back of your card with any questions about the benefits available to you.
How much is car rental insurance on a credit card?
When car rental insurance is included as a benefit on your credit card, you don't need to pay to use it. However, if you want additional coverage, you might have to purchase it. For example, Premium Car Rental Protection from Amex costs $19.95 to $24.95 per rental period, depending on the coverage selection.
What happens if you don't have a credit card for a rental?
Most major car rental companies accept debit cards, even though you might face additional requirements, such as a refundable deposit or credit check. That said, to use your credit card's car rental insurance benefits, you must charge the full rental cost to it.
Read more
Bottom line
Car rental insurance can be a valuable credit card benefit that allows you to skip purchasing coverage at the rental counter. If you frequently rent a car, check if any of your credit cards offer coverage so that you know which one to use for booking. And if none do, it may be a good idea to look into cards that offer this perk to have peace of mind every time you're driving a rental.
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For rates and fees of the Blue Cash Preferred® Card from American Express, click here.
For rates and fees of the American Express® Gold Card, click here.
