Best credit cards for car rental benefits

Renting a car should be simple. That is, until the agent asks, “Do you want to include car rental insurance?” The good news is that many credit cards include rental coverage, so you may not need to purchase additional protection, but some benefits are more comprehensive than others. We’re here to explain what car rental credit cards offer, and tell you about the credit cards with the best rental car benefits. Keep in mind that many credit card rental car insurance programs have exclusions for car sharing. Your safest bet is to contact your credit card company if you have specific questions about what is and is not covered.

4 top credit cards with rental car benefits

1. Chase Sapphire Preferred

The Chase Sapphire Preferred card is considered one of the best rental car credit cards, covering you at home and abroad. It offers secondary coverage within your country of residence, so you can decline the rental agency’s collision damage waiver or loss damage waiver when you book. The card also has great travel insurance benefits, like baggage and trip delay reimbursement and trip cancellation/interruption insurance. Additionally, you can earn two points per dollar spent on car rentals and other travel purchases. All Chase credit cards cover up to 31 days of a car rental reservation. 

2. Chase Sapphire Reserve

The Chase Sapphire Reserve card offers the same benefits as the Preferred, but covers up to $75,000 in damages. You can also pay for the rental car using Ultimate Reward Points or earn 10x points when you reserve your car through the Chase Ultimate Rewards booking portal and pay with your Reserve card. This special card also offers members a $300 annual travel credit, which means you’ll receive up to $300 back as statement credits for travel purchases, including hotels or car rentals.

3. American Express Platinum

Frequent travelers love the perks of this credit card. Cardholders are eligible for elite status in loyalty programs like Avis Preferred Plus, Hertz Gold Plus Rewards and National Emerald Club — each of which comes with its own perks, such as express check-in, complimentary upgrades and exclusive offers. Like Chase Sapphire Reserve, the American Express Platinum card will cover up to $75,000 in car rental loss and damages for car rental reservations of 31 days or less.

4. Capital One Venture X

Venture X is another top-rated credit card for car rentals. You’ll earn 10x points for every dollar spent on a rental car booked through Capital One Travel. Cardholders are also eligible to enroll in the Hertz President’s Circle loyalty program. When you rent a car using your Venture X card, you can choose to decline the rental agency’s insurance since you’ll be protected by your card’s Auto Rental Collision Damage Waiver, which covers up to $75,000 in damages caused by theft or collision. The card also offers generous trip delay, interruption and cancellation benefits.  

Understanding credit cards’ car rental benefit terms

Some terms in the fine print of your credit card’s benefits booklet may be unfamiliar. We’ll review a few common ones that you will likely come across and what they mean for you.  

Collision Damage Waiver or Loss Damage Waiver

When a rental company offers you car rental insurance, they’re usually talking about a Collision Damage Waiver (CDW) or a Loss Damage Waiver (LDW), as it’s sometimes called. CDW covers the rented vehicle if it’s damaged or stolen during your booking period. It’s usually quite costly and can even double your daily rental price, which is why some of the best credit cards for car rentals, like those mentioned above, offer it as a benefit. So if you don’t already have a personal policy with this coverage, you can opt to use your card’s CDW if your rental qualifies.

Primary and secondary coverage 

You may see the terms “primary coverage” and “secondary coverage” thrown around in your credit card’s fine print or when searching for a rental car. Secondary coverage kicks in after your own auto insurance and supplements it. If something does happen to the rental car, you first have to file a claim with your own insurance company (primary coverage). 

If your credit card offers primary rental car coverage as a benefit, that means it’ll kick in before your personal car insurance. With primary coverage, you don’t have to worry about filing a separate claim with your own insurance. 

Each credit card’s car rental insurance comes with different forms of coverage. Make sure you know what you need for your rental and what your credit card company offers, as well as any exclusions that may apply.

How to activate your credit card’s car rental coverage 

For these credit card rental benefits to take effect, you have to book and pay for your rental car with the actual credit card. And when you go to pick it up, you also need to decline the rental company’s insurance. Regardless, it’s a good idea to call both your insurance company and your credit card company to get the exact details on what they cover and how you should proceed when it comes time to book your rental. 

What to know about about liability insurance 

Rental car coverage includes any damage and theft incurred on the vehicle while in your possession. But what happens if you hit another car while driving the rental car? This is called liability insurance, and most credit cards will not cover this type of insurance. Make sure you know what your personal auto insurance policy covers and whether or not you need to purchase liability insurance. 

Make booking a rental easier with Avail 

Figuring out car rental insurance can be complicated. Credit cards can help lower the cost, but sometimes it’s just not enough and requires too much additional research. That’s where Avail comes in. Avail car sharing offers Allstate coverage on every single vehicle and 24/7 roadside assistance. 

It’s possible that your credit card’s rental car insurance program may have exclusions for car sharing. If you have specific questions about what is and is not covered, contact your credit card company to ask. Worst-case scenario, Avail offers insurance coverage from Allstate and you can enjoy your trip with peace of mind. Additional fees may apply.