Credit Cards That Cover Rental Car Insurance

Rates checked as of January 24, 2023.

Should you tick the box for rental car insurance at the Avis, Budget or other rental car counter? Or does your personal auto insurance or credit card already offer this benefit? Given that supplemental insurance for rental cars can cost around $15 to $30 per day or more, it's worth asking these questions first.

Figuring out card benefits before you travel is smart. But it can be arduous and confusing to wade through the perks offered by multiple rewards credit cards. A recent study from WalletHub did the heavy lifting for you, comparing the travel benefits of 94 credit cards from the ten largest issuers.

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But before you compare travel credit cards for rental insurance perks, consider that you might not even need this insurance.

Do you need rental car insurance?

If you live in the U.S. and own a car for personal use, you likely don't need additional insurance when you rent a car in the U.S. That's because your own auto insurance policy will cover your rental car. But some U.S. states, like Florida and New Hampshire, only require more limited coverage for auto insurance. If your personal auto policy lacks collision and comprehensive insurance, your rental car could be underinsured in an accident or mishap.

Some of the better travel credit cards for travel also have rental car coverage in many international locations. But there are exceptions.

Either way, you should call both your credit card and your auto insurer before you rent a car, as your policy may have changed. And make sure you understand the different types of auto insurance.

Here is a summary of what personal auto insurance and the highest-rated travel credit cards may cover when you rent a car:

*Government employees, such as military and postal workers, may have auto insurance coverage as an employment benefit. If you work for a private employer, check if you are covered under a company policy.

So, even if you have a personal auto insurance policy, it makes sense to get one of the best travel cards to cover a rental car in the following instances:

• The car or cars you have insured are worth much less than the car you intend to rent. Since most rental cars are fairly new, this is a common scenario.
• You plan to rent a car outside of the U.S. or Canada.
• You are planning to rent a car in the U.S. or abroad while traveling for business.
• Your personal auto insurance policy offers much less protection than a good travel credit card. 

Hot Tip: Don't wait utnil you get to the car rental counter to set up insurance based on your credit card, especially for international rentals. You may be told that some insurance is required by national law, and that the car cannot be rented without some form of domestic insurance. Clear up any of these issues ahead of time.

Comparing credit card issuers

Many financial institutions, like Bank of America or U.S. Bank, offer auto rental benefits. And perks will vary from card-to-card, so it's important to understand the terms of each card. 

WalletHub found that of the personal credit card issuers in the chart below, Chase Bank offered the best rental car insurance benefits. 

No coverage: Citi, Synchrony and Discover do not offer any car rental coverage on any of their credit cards.

Best coverage from Chase and American Express

Chase credit cards offer the best car rental insurance when compared to other issuers. Chase will insure rentals globally, including in countries like Italy and Ireland that other cards may prohibit. Chase also boasts the highest per-vehicle coverage amount (up to $75,000), and coverage extends up to 31 days, whereas most competitors will insure only up to 15 days in your home country.

Finally, Chase cards cover damage that occurs when driving on a dirt or gravel road, and damage to tires and rims. 

The top-scoring personal credit card according to WalletHub is Chase Sapphire Reserve®. 

All other Chase consumer cards scored second for car rental benefits. For example, the Chase Sapphire Preferred® Card has a lower annual fee than the Sapphire Reserve card, but still offers solid travel benefits. For details, read our review of the Chase Sapphire Preferred bonus offer.

Third place goes to all American Express personal credit cards. In addition to excellent coverage, American Express offers Premium Car Rental Protection** for a small fee per rental period, not per day. This benefit also extends to SUVs and luxury cars, unlike many other plans. For a review of the Green, Gold and Platinum American Express cards, read American Express Credit Cards: the Best Pick for You.

First Place: Chase Sapphire Reserve®

This card is ideal for those willing to book travel, dining, and other services through Chase's rewards programs. Earn between 5 and 10 points for each dollar booked through Chase. Plus get a $300 yearly statement credit for travel purchases.

According to WalletHub, this card offers the best rental car insurance for coverage at home and abroad.

Get 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening; that's a $750 bonus value toward travel when you redeem through Chase Ultimate Rewards®, more than offsetting the $550 annual fee.

This card provides the kind of travel perks you would expect from a high-end card, like access to VIP airport lounges, hotel room upgrades, and up to $100 every four years to help offset the cost of TSA PreCheck® or NEXUS applications.

• Interest rate: 22.49% to 29.49% variable.
• Annual fee: $550; $75 for each authorized user.
• Foreign transaction fee: None
• Rewards: Get 10 points per dollar on spending at participating restaurants through the Chase Dining program as well as on hotel and car rentals booked through Chase Ultimate Rewards; five points per dollar on flights booked through Chase; three points per dollar on other restaurant and travel spending and one point per dollar on the rest of your purchases.
• Other benefits: An annual statement credit of up to $300 for travel purchases (purchases that qualify for the credit do not earn points until the $300 travel credit has been applied), a Priority Pass Select membership for airport lounge access, perks at properties in the Luxury Hotel & Resort Collection, 10 points per dollar on Lyft rides through March 2025, at least a year of free membership to DoorDash's delivery subscription service, and a $10 monthly statement credit toward purchases from home delivery service Gopuff.
• Redemption: Points are transferable to partner airline and hotel loyalty programs, or trade points at a healthy rate of 1.5 cents each when you redeem them for travel bookings through Ultimate Rewards, or for statement credits against purchases in rotating categories through Chase's Pay Yourself Back program (including Airbnb, dining, charitable donations, and other categories).
• Sign-up bonus: 60,000 points if you spend $4,000 in the first three months, for a total value of $900 toward travel when you redeem through Chase ultimate rewards.
• Member FDIC

Second Place: Other Chase personal credit cards like the Chase Sapphire Preferred® Card 

The Chase Ultimate Rewards® points that you earn with this card are redeemable for travel bookings through Chase at a heightened value of 1.25 cents each, or get a respectable value of 1 cent per point for cash back or gift cards. Alternatively, transfer points to a solid list of partner travel loyalty programs, including Southwest Airlines Rapid Rewards, United MileagePlus, Marriott Bonvoy and World of Hyatt. 

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®. For our review of this bonus offer, read Chase Sapphire Preferred Credit Card Launches $750 Bonus Offer.

• Sign-up bonus: 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening; that's $750 when redeemed for travel through Chase Ultimate Rewards®.
• Rewards: 
  • Five points per dollar on travel purchased through Chase Ultimate Rewards® and two points per dollar on other travel spending; 
  • three points per dollar on dining, select streaming services and online groceries; and 
  • one point per dollar on other spending. 
• Other benefits: $50 annual Ultimate Rewards Hotel Credit. Get $50 in statement credits annually for hotel stays booked through Chase. And on each yearly anniversary of opening your account, you get a 10% points bonus on total purchases made the previous year.
• Redemption: Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel. You can transfer Chase points to a partner like British Airways at a one-to-one ratio, where one Chase point is equal to one British Airways frequent flyer point. But if you book your trip through the Chase Ultimate Rewards portal, your points are worth 1.25 miles on British Airway's frequent flier program. This 25% boost does not expire, but is built in the Ultimate Rewards program.
• Interest rate: 21.49% to 28.49% variable APR for purchases and balance transfers, and 29.99% variable APR on cash advances.
• Annual fee: $95
• Foreign transaction fee: None, so this is an excellent card for international travel.
• Member FDIC

Third Place: All American Express cards, like

American Express® Green Card 

This is a solid travel card, offering three points per dollar spent on travel, transit and restaurants. The card recently reduced its welcome offer from 60,000 points to 40,000 points, but it's still worth considering for consumers who want American Express rewards without a high annual fee. See rates and fees.

If you want an American Express card with a higher rewards rate, read our article on how to pick the best American Express credit card for you.

• Intro offer: Earn 40,000 Membership Rewards® Points after you spend $3,000 on purchases on your new Card in your first 6 months of Card Membership, worth about $400 when redeemed for travel.
• Interest rate: Pay Over Time APR: 21.24% to 29.24%, based on your creditworthiness and other factors as determined at the time of account opening.
• Annual fee: $150
• Foreign transaction fee: None
• Rewards: Earn three Membership Rewards® points for every dollar spent on travel and transit (airfare, hotels, cruises, tours, car rental, campgrounds, vacation rentals, trains, taxis, rideshares, ferries, tolls, parking, buses and subways). Also earn three points for every dollar spent on eligible dining, including takeout and delivery in the U.S.
• Airport Security Clearance: Receive up to $189 per calendar year in statement credits when you pay for your CLEAR Plus membership (subject to auto-renewal) with the American Express® Green Card.
• Other Travel Benefits: Trip delay insurance up to $300 for certain expenses on a round-trip ticket paid for exclusively with your card - see terms for limitations; plus get a $100 annual statement credit toward LoungeBuddy, an app that helps you gain access to travel lounges
• Redemption: There is no option for cash back; the greatest value comes from booking travel with points, and from the many discounts and other perks
• Disclosure: All information about the American Express® Green Card has been collected independently by Kiplinger.
• Terms apply

How to use your card for rental car insurance

Using your card's travel benefits, rather than the rental company's insurance, is simple. Once you have obtained or decided to use a card with solid rental car insurance, use that card to reserve a rental car. Then decline the theft and damage insurance offered by the rental company, and be sure to pay for the car rental with the same credit card.

**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.

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