{"id":320895,"date":"2025-11-07T15:09:21","date_gmt":"2025-11-07T20:09:21","guid":{"rendered":"https:\/\/www.reviews.com\/?p=136357"},"modified":"2025-11-07T15:09:21","modified_gmt":"2025-11-07T20:09:21","slug":"how-your-credit-card-covers-rental-car-insurance","status":"publish","type":"post","link":"https:\/\/www.reviews.com\/insurance\/car\/how-your-credit-card-covers-rental-car-insurance\/","title":{"rendered":"How Your Credit Card Covers Rental Car Insurance"},"content":{"rendered":"\n\n\n

Credit cards come with a slew of benefits nowadays. From travel points and access to airline lounges to cash-back on Amazon purchases, the best credit cards<\/a> increasingly bundle travel protections like rental car damage coverage. Crucially, what you get depends on your issuer and network: American Express publishes per\u2011benefit details on its hub (American Express Card Benefits<\/a>), while Visa and Mastercard note that coverage varies by issuing bank and card tier (Visa Card Benefits<\/a>; Mastercard Benefits<\/a>). Issuers such as Capital One also summarize protections by product family and network (Capital One benefits<\/a>).<\/p>\n\n\n\n

However, one of their most valuable benefits \u2014 rental car insurance \u2014\u00a0 is often hidden in the fine print. On most cards this is a collision\/loss damage waiver (CDW\/LDW) for damage to or theft of the rental vehicle; it is not liability insurance. Using a card with primary coverage (or a paid upgrade that makes coverage primary) can help you avoid filing a claim with your personal auto insurer \u2014 important because at\u2011fault claims on your policy commonly raise premiums by roughly 42% on average and often for multiple years (about three years, sometimes up to five, depending on state\/insurer) (Bankrate analysis<\/a>; NerdWallet on duration<\/a>). The mechanism is straightforward: if your auto insurer pays a claim, it\u2019s reported in CLUE and can be surcharged; if primary card coverage resolves the damage and no liability claim is filed, the incident typically doesn\u2019t hit your policy (LexisNexis CLUE<\/a>; NAIC<\/a>; Insurance Information Institute<\/a>).<\/p>\n\n\n\n

Do I have rental car insurance through my credit card?<\/h2>\n\n\n\n

There is no universal policy. Most cards that include this perk provide an Auto Rental Collision Damage Waiver<\/a> (also called LDW) that reimburses covered damage\/theft when you pay with the card and decline the rental company\u2019s CDW\/LDW. Network and issuer specifics matter: American Express includes Car Rental Loss and Damage Insurance on many U.S. consumer and small\u2011business cards (generally secondary in the U.S.; liability not included) and offers an optional paid upgrade that can be primary (AmEx Car Rental Loss & Damage Insurance<\/a>; AmEx Premium Car Rental Protection<\/a>). Visa\u2011 and Mastercard\u2011branded cards depend on the issuing bank and card tier (e.g., Visa Signature vs. Visa Infinite; Mastercard World vs. World Elite); many premium cards include this benefit, but terms (primary vs. secondary, rental length limits, excluded vehicles\/countries) are set in your card\u2019s Guide to Benefits (Mastercard travel benefits overview<\/a>; Capital One Visa Infinite benefits<\/a>).<\/p>\n\n\n\n

Recent studies show awareness remains low: cardholders often don\u2019t know whether their card includes rental coverage or how it works (J.D. Power 2024<\/a>; NerdWallet Travel Study<\/a>). \u201cIn general, cardholders aren\u2019t always aware of the bevy of great protections they can get by paying with their credit card,\u201d Emily Sherman<\/a>, associate content writer at CreditCards.com, told Reviews.com. \u201cIt\u2019s definitely not the most exciting read, but I advise every new cardholder to thoroughly peruse the guide to benefits you get in the mail when your new card comes in \u2013 rather than filing it away and forgetting about perks.\u201d <\/p>\n\n\n\n

What\u2019s the difference between primary and secondary coverage?<\/h2>\n\n\n\n

Primary CDW pays first for covered rental\u2011vehicle damage\/theft without involving your personal auto policy; secondary generally pays after other insurance (often covering your deductible and eligible leftovers). Primary coverage is concentrated on premium travel products \u2014 for example, Chase Sapphire Reserve\/Preferred<\/a> and Capital One Venture X<\/a> \u2014 while many other cards provide secondary benefits. American Express typically includes secondary coverage in the U.S. but uniquely offers an opt\u2011in, flat\u2011fee program that makes coverage primary (AmEx Premium Car Rental Protection<\/a>). Always confirm your card\u2019s current Guide to Benefits.<\/p>\n\n\n\n

\u201cMost credit cards come with secondary car rental insurance coverage, meaning it\u2019ll only pay for what your standard car insurance won\u2019t cover,\u201d says Sherman. \u201cWhile this can save you money if your insurance doesn\u2019t fork over the whole cost, it does create the added headache of filing two claims.\u201d<\/p>\n\n\n\n

However, there are some popular credit cards, like the Chase Sapphire Preferred and Chase Sapphire Reserve, that do offer primary rental car insurance<\/a>. This is great because it means that you only have to file one claim (with the credit card company) and don\u2019t have to risk higher premiums or paying a deductible<\/a>, which could happen if you file a claim with your regular auto policy.<\/a> Other strong examples include the Venture X (Visa Infinite) and select co\u2011branded premium cards; Discover generally does not provide rental coverage, and availability on some Citi cards is limited \u2014 verify the Guide to Benefits for your exact product (NerdWallet comparison<\/a>; TPG guide<\/a>).<\/p>\n\n\n\n

Secondary coverage can still be valuable, as it may reimburse your auto policy deductible and eligible costs your insurer doesn\u2019t cover; some secondary policies act as primary if you have no other applicable coverage (AmEx LDW overview<\/a>). Check whether business rentals are eligible and who is covered \u2014 typically the primary renter and additional drivers listed on the rental contract (Visa Infinite benefits (issuer example)<\/a>).<\/p>\n\n\n\n

What\u2019s covered?<\/h2>\n\n\n\n

Coverage differs for every credit card, so we recommend consulting the guide to benefits for your specific card. Generally, the perk is designed for collision or theft damage to the rental car (CDW\/LDW) when you pay with the card and decline the agency\u2019s waiver. Many cards also cover reasonable loss\u2011of\u2011use, towing, and certain administrative fees when properly documented; typical no\u2011fee benefit caps are often around $75,000, while paid \u201cbuy\u2011up\u201d options such as AmEx\u2019s Premium Car Rental Protection can offer up to $100,000 and longer rental windows (NerdWallet overview<\/a>; AmEx PCRP<\/a>). Conventional EVs and hybrids are generally treated like comparable gas vehicles under CDW; exotic\/antique and specialty vehicles remain common exclusions (Mastercard<\/a>).<\/p>\n\n\n\n

Your credit card may cover:<\/p>\n\n\n\n