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When you lease a automobile, you’ll nearly all the time be confronted with a call on the rental counter or while you ebook on-line: Should I get the insurance coverage supplied by the rental company? It’s tempting to say sure, since driving uninsured will not be a sensible alternative. But you don’t essentially must, as a result of should you lease the car with a card providing insurance coverage on automobile leases, you might be lined for loss and damages. That means you possibly can decline the costly loss-and-damage insurance coverage supplied by the company.
You’ll nonetheless be accountable for legal responsibility protection, both by means of your individual automobile insurance coverage coverage or by buying the rental company’s, however at the least for damages or loss, your credit card might have you ever lined.
You’ll discover automobile rental insurance coverage as a perk of many travel-focused cards, together with some airline-specific cards, and also you’ll even see it supplied by some cards with no annual price. In this text, we chosen the most effective cards providing automobile rental insurance coverage, drawing on many years of mixed NCS Underscored workforce expertise renting cars within the U.S. and overseas.
Chase Sapphire Preferred® Card: Best total card for rental cars
Chase Sapphire Reserve®: Best for total journey protections
American Express Platinum Card®: Best for standing with car-rental corporations
Capital One Venture X Rewards Credit Card: Best for premium advantages paired with simplicity
Chase Freedom Unlimited®: Best no-annual-fee card for renting cars
Most importantly, rental automobile insurance coverage by means of credit cards, also referred to as Collision Damage Waiver (CDW), will not be legal responsibility insurance coverage. It will cowl prices related to harm prompted to the car or theft, nevertheless it received’t cowl harm you might trigger to different autos or to the property of others. It additionally received’t cowl your private legal responsibility in case of damage. Those conditions should be lined by means of legal responsibility insurance coverage, which you will have already got as a driver or can buy by means of the rental company.
Credit card rental automobile insurance coverage can be main or secondary. Primary rental protection applies earlier than your private auto insurance coverage does. The benefit right here is that, if harm does happen, your insurance coverage firm received’t be notified and your premiums is not going to rise because of this. Primary protection additionally tends to be extra complete and may cowl longer rental intervals.
Secondary protection is available in after your individual and can cowl prices that your main insurance coverage received’t. In sensible phrases, you’ll nonetheless must file a declare together with your private insurance coverage supplier, and also you’ll additionally must pay in accordance with your coverage’s deductible. In any case, secondary protection tends to be much less complete than main. In this text, we’ll notice which cards present main protection and which supply secondary.
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Why it stands out: A fantastic journey card with elevated rewards on eating and first rental automobile insurance coverage, for a comparatively restricted annual price.
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Intro supply: 75,000 bonus factors after you spend $5,000 on purchases inside the first three months from account opening.
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Annual price: $95.
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Intro APR: None.
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Who it’s for: People who need journey perks and dine out continuously however don’t want all the advantages of high-annual-fee cards.
There are lots of nice travel-related credit cards, however few of them have the broad attraction and the perks of the Chase Sapphire Preferred for an annual price below three digits. Plus, on the subject of renting cars, the Preferred performs with the most effective journey cards, due to its main insurance coverage.
It earns 5 factors per greenback on Chase Travel℠, together with renting cars. It additionally earns 3 factors on eating, choose streaming and on-line groceries, and a pair of factors per greenback on all different journey purchases, additionally together with renting cars. Benefits embrace journey protections resembling journey cancellation and interruption, journey delay safety and misplaced baggage protection. This helps make the Chase Sapphire Preferred one of the most effective cards to make use of for journey. It additionally doesn’t cost international transaction charges and first protection works overseas as nicely (the coverage must be legitimate in most international locations, however do examine with Chase to verify the one you might be visiting is included). The Preferred gives rental automobile protection for harm and theft as much as $60,000 however excludes sure costly or unique autos.
The factors you’ll earn with it can be transferred to Chase’s many journey companions, apart from being redeemed for journey within the Chase portal. You received’t get lounge entry, however for a $95 annual price, the Sapphire Preferred stands out as the solely journey card many individuals want.
Learn more and apply for the Chase Sapphire Preferred® Card.
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Why it stands out: Top-notch journey protections, credit, lounge entry and first automobile rental insurance coverage make this card a powerhouse for vacationers.
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Intro supply: 125,000 bonus factors after you spend $6,000 on purchases within the first three months from account opening.
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Annual price: $795.
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Intro APR: None.
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Who it’s for: Frequent vacationers trying for a prime card that comes with many perks.
Trips purchased with the Chase Sapphire Reserve, together with automobile leases, are lined by the most effective journey protections round, which is a component of how the cardboard can justify its $795 annual fee.
The Sapphire Reserve gives main protection of as much as $75,000 for theft and collision harm on automobile leases, and with no international transaction charges, it’s additionally an excellent instrument for renting cars outdoors the U.S. Unlike the Sapphire Preferred, protection doesn’t exclude unique autos.
A draw back is that on basic journey, which incorporates renting cars, it earns only one level per greenback. That’s half the incomes fee of the Sapphire Preferred. Still, the Reserve appeals for its many credit and advantages, together with top-notch journey cancellation and interruption insurance coverage, misplaced baggage insurance coverage and a delay insurance that can really come in handy.
Unlike the Preferred, it comes with airport lounge entry, which incorporates Chase’s personal lounges and greater than 1,300 Priority Pass lounges worldwide. Its standing as a prime journey card is cemented by its incomes charges on journey bookings bought by means of Chase Travel, together with rental cars (5 factors per greenback), Lyft rides (5 factors per greenback, by means of Sept. 30, 2027) and bookings made immediately with an airline or lodge (4 factors per greenback). Its 3 factors per greenback on eating can also be a purpose that the Reserve is one of our best cards to use at restaurants.
Car leases are additionally lined below the Reserve’s $300 journey credit. This is one of the most effective options of this card, supplying you with an computerized credit on all journey purchases that resets yearly in your membership anniversary. (Purchases that qualify is not going to earn factors.)
For basic journey purchases that don’t earn a bonus, you might be better off using other cards, but when journey protections are what you’re after, then the Chase Sapphire Reserve is tough to beat.
Learn more and apply for the Chase Sapphire Reserve®.
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Why it stands out: Status with a number of rental corporations in addition to different advantages making it a prime journey card.
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Intro supply: You could also be eligible for as many as 175,000 Membership Rewards® factors after spending $8,000 within the first six months.
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Annual price: $895 (see rates and fees).
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Intro APR: None.
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Who it’s for: Frequent vacationers who worth luxurious perks and may offset the excessive annual price.
The American Express Platinum Card competes immediately with the Chase Sapphire Reserve, and costs a fair greater annual price of $895 (see rates and fees) which may nevertheless be offset through the use of sufficient of its many credit.
It’s additionally a powerhouse for factors incomes on flights and accommodations. It earns 5 Membership Rewards factors per greenback on flights booked immediately with airways or by way of Amex Travel® (on as much as $500,000 per 12 months) and on pay as you go accommodations booked by means of Amex Travel. On all different purchases, together with basic journey and automobile leases, it earns only one level per greenback.
Its attractiveness for renting cars lies within the standing it provides you with three of the largest rental corporations in North America:
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Avis: You’ll get pleasure from Avis Preferred Plus standing, the center of the three tiers of Avis standing. (Avis Preferred is the bottom and solely requires enrollment; President’s Circle is the very best.) With Preferred Plus standing, you possibly can skip the rental automobile counter, get complimentary upgrades when obtainable and earn 25% extra Avis Preferred factors should you select them over airline miles. You’ll additionally be capable to name an Avis Preferred Plus quantity for reservations and customer support.
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Hertz: Like Avis, the Hertz Gold Plus Rewards loyalty program has three tiers, however having the Amex Platinum will vault you immediately into the very best, the President’s Circle, a degree that may in any other case require 15 leases or spending $3,000 per 12 months. The standing provides you the power to skip the counter, get assured upgrades, add a partner or associate for free and earn 1.5x Gold Plus Rewards factors (should you select to earn these over airline miles).
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National: The Amex Platinum provides computerized Emerald Club Executive standing, the center of the three tiers at National Car Rental. At this degree, you’ll earn a free rental day each six credit (basic members want seven credit, with a credit given for every qualifying rental) and haven’t any charges so as to add a second driver. In the U.S. and Canada, you’ll be capable to select any automobile (full measurement and above) however solely pay the reserved midsize fee, and also you’ll be assured a free improve while you reserve a full-size by means of luxurious car.
For all three statuses, that you must enroll by logging into your American Express account and registering within the Benefits Dashboard.
When renting cars with the Amex Platinum card, you’ll get secondary insurance coverage masking as much as $75,000 per rental for harm or theft, however with the choice of upgrading to main. Upgrading to main insurance coverage from secondary prices as much as $25 per rental and requires enrolling in American Express Premium Car Rental Protection.
As with the Chase Sapphire Reserve, the draw back is that you just’ll earn only one level per greenback on automobile leases, however the benefits of having standing with some large rental companies, in addition to having insurance coverage, might outweigh the worth of the additional factors you may earn with one other card. Add wonderful airport lounge entry and different journey protections apart from automobile rental protection, and also you’ll see why the Amex Platinum is on the prime of the travel-card heap with the Chase Sapphire Reserve.
Learn more and apply for the American Express Platinum Card®.
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Why it stands out: Elevated rewards on on a regular basis spending, with 2 miles per greenback on each buy, mixed with journey perks.
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Intro supply: Earn 100,000 bonus miles while you spend $10,000 on purchases within the first six months from account opening.
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Annual price: $395.
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Intro APR: None.
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Who it’s for: People who need elevated journey advantages but in addition a easy technique to earn and spend rewards.
The Capital One Venture X Rewards Credit Card is one of our favourite journey cards. Travel editor and credit card knowledgeable Kyle Olsen uses it every day and finds it straightforward to greater than offset the annual price of $395. The Venture X presents a $300 annual journey credit by means of the Capital One Travel portal, which incorporates automobile leases in addition to flights and accommodations. And yearly you renew your Venture X card, Capital One presents you 10,000 bonus miles, price $100 towards bookings on the Capital One Travel portal. Add that to the $300 journey credit, and also you’re getting greater than the annual price in worth proper there.
Travel protections embrace main automobile rental protection as much as $75,000 to cowl damages or loss, in addition to trip-delay reimbursement, lost-luggage protection and travel-accident insurance coverage. Notably, you additionally get Hertz President’s Circle standing with the cardboard. For frequent renters from Hertz, this prime standing, main insurance coverage and incomes 2x Capital One miles on automobile leases as a substitute of only a level per greenback with the Chase Sapphire Reserve or the Amex Platinum make the Venture X a greater choose than its costlier competitors.
The Venture X card additionally consists of nice lounge entry. You’ll get a Priority Pass Select membership, offering entry to over 1,300 airport lounges worldwide, however most of all, complimentary entry to Capital One’s personal community of lounges, that are persistently among the many greatest within the U.S. They are presently discovered at 5 airports: Dallas-Fort Worth, Denver, Las Vegas, New York JFK and Washington Dulles.
The Venture X adopts a easy construction when incomes miles: 10 miles per greenback on accommodations and rental cars booked by means of Capital One Travel, 5 on flights booked by means of Capital One Travel and a pair of on each different buy.
Simplicity is the purpose when redeeming miles too. Fixed-value redemptions allow you to erase journey purchases at 1 cent per mile (e.g., 10,000 miles equates to $100), which you should do inside 90 days. But you will get higher worth by transferring miles to journey companions. Capital One has more than 15 companions, though solely JetBlue is amongst U.S. airways. You can use worldwide associate applications to ebook flights on U.S. carriers, however that requires a bit of studying. That will not be a significant disadvantage for a card whose simplicity, mixed with the firepower of cards with a much bigger annual price, appeals to individuals who might not wish to cope with the intricacies of redeeming factors.
Learn more and apply for the Capital One Venture X Rewards Credit Card.
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Why it stands out: Elevated earnings on eating and drugstores, mixed with a comparatively excessive cash-back return on all different purchases.
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Intro supply: $300 bonus money again after you spend $500 on purchases within the first three months.
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Intro APR: 15-month 0% introductory APR on purchases and steadiness transfers, then variable APR of 18.49% to 27.99%.
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Who it’s for: People who need most flexibility in a no-annual-fee credit card.
Like the Capital One Venture X, the Chase Freedom Unlimited could possibly be a sensible choice as a single card for all purchases. Unlike the opposite cards on this roundup, it costs no annual price and earns money again, though it does so within the type of Chase Ultimate Rewards® points.
The function that may make this card an excellent all-rounder for many individuals is the best way it earns money again in on a regular basis use. The Chase Freedom Unlimited earns 5% on journey bought by means of Chase Travel℠, 3% on eating at eating places together with takeout and eligible supply providers, 3% on drugstore purchases and 1.5% on all different purchases, together with automobile leases. That’s a 50%-better return on automobile leases and basic purchases than its fancy Chase sibling, the Sapphire Reserve.
When it involves journey protections, together with automobile rental insurance coverage, the Chase Freedom Unlimited has a number of that no-annual-fee cards normally don’t present. This consists of rental automobile safety plus journey cancellation and interruption insurance coverage. Granted, the automobile rental protection is secondary, however for a card that prices you $0 a 12 months to carry, that is an excellent perk, masking damages as much as $60,000. The card additionally presents insurance coverage that protects you in case your flight or different journey is canceled or interrupted, though not in case of a delay.
Another necessary function is the no-interest interval of 15 months for purchases and steadiness transfers. This is an efficient card to make use of should you’re planning a big buy you wish to pay over time, however beware that it is best to pay your steadiness earlier than the intro interval expires to keep away from excessive curiosity costs.
Cash again from the Freedom Unlimited might be redeemed as assertion credit or a examine at a worth of 1 cent per level. But if the Freedom Unlimited is paired with a Chase card that costs an annual price, such because the Sapphire Preferred or Reserve, that money again might be transferred to the extra premium card after which to at least one of Chase’s 14 airline and lodge journey companions, like United Airlines. This possibility makes the Freedom Unlimited a helpful card for folks with a multicard technique in addition to those that wish to hold incomes and redeeming easy. One disadvantage? The Freedom Unlimited costs international transaction charges, which might negate the worth of the money again.
Learn more and apply for the Chase Freedom Unlimited®.
According to NCS Underscored’s credit card methodology, we consider cards primarily based on a spread of elements, gauging their utility for real-world customers, not simply card specialists. The principal elements we contemplate are the next:
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Earning fee versus redemption worth: A excessive incomes fee is efficacious, however provided that the rewards are too. We steadiness each elements to evaluate a card’s total worth.
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Fees towards advantages: We evaluate annual charges with the tangible worth of a card’s perks. Travel advantages, resembling lounge entry, assertion credit and insurance coverage protections are weighed relative to a card’s annual value.
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Welcome supply: A large welcome supply might make making use of for a card worthwhile in itself, however provided that the spending goal in all fairness attainable.
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Ease of redemption: We consider whether or not rewards might be simply redeemed and whether or not cards with transferable factors have robust airline and lodge companions.
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Travel and buy protections: Trip delay and interruption protection, baggage safety and rental automobile insurance coverage add vital worth to travel-focused credit cards. Purchase protections like prolonged warranties and worth safety may make sure cards stand out.
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Interest charges and steadiness switch presents: While we advise avoiding curiosity costs, we consider 0% APR introductory presents for customers trying to handle debt strategically.
The following FAQs have been answered by NCS Underscored senior cash editor and credit card knowledgeable Alberto Riva.
If you might be after the most effective automobile rental insurance coverage a credit card can have, then the Chase Sapphire Reserve has essentially the most intensive, main protection for harm and theft. If you’re trying for a card that provides elite standing with rental companies, the American Express Platinum can get you to skip the road with Avis, Hertz and National, nevertheless it solely gives secondary rental automobile insurance coverage protection, though you possibly can improve to main for a small price.
In phrases of most quantity lined for damages to or loss of the car, some of the Chase and Capital One cards on this article cowl as much as $75,000 and supply main insurance coverage, though some unique or costly autos, or some international locations, could also be excluded.
Using a credit card is all the time extra advisable when renting cars. Not solely will you earn rewards that debit cards don’t earn however credit cards can present rental automobile insurance coverage towards harm or theft in addition to different advantages.
NCS Underscored’s workforce of knowledgeable editors and contributors fastidiously critiques credit cards, journey rewards and loyalty applications to assist readers navigate modifications and make knowledgeable monetary selections. For this story, senior cash editor and credit card knowledgeable Alberto Riva — who has the highest President’s Circle standing with each Avis and Hertz, and two of the six cards chosen for this text — utilized his journey trade information and private expertise as a frequent automobile renter within the U.S. and overseas to make sure each element on this story is correct.
Click here for charges and costs of the American Express Platinum card