Credit Cards That Cover Rental Car Insurance

Rates and bonus offers checked as of October 4, 2024.

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 rewards credit card already offer this benefit? Given that supplemental insurance for rental cars can cost around $13 to $30 per day or more, it's worth asking these questions first.

Figuring out card benefits before you travel is smart. However, wading through the perks offered by multiple rewards credit cards can be arduous and confusing. A recently updated study from WalletHub did the heavy lifting for you, comparing the travel benefits of 86 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:

• Lower value. 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.
• International driving. You plan to rent a car outside of the U.S. or Canada.
• Business travel. You plan to rent a car in the U.S. or abroad while traveling for business. The auto insurance on your personal vehicle does not extend coverage to a car rented for business travel.
• Weak personal auto insurance. Your personal auto insurance policy offers much less protection than a good travel credit card.
• Keep your premium low. You want to avoid your personal car's auto insurance premium rising in the event of an at-fault accident, an option if your credit card offers primary insurance.

Hot Tip: Don't wait until 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 (hello, Italy) 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.

Chase Bank offered the best rental car insurance benefits among the personal credit card issuers studied by WalletHub. Check out the chart below to see how your card compares.

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

Best coverage from Chase and Wells Fargo

First and Second Place — Chase Cards: Chase credit cards offer the best car rental insurance 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 is the Chase Sapphire Reserve® Card.

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 — Wells Fargo. The 2024 study found that Wells Fargo cards slightly edged out last year's third-place winner, American Express.

Most Wells Fargo credit cards offer rental car insurance, including popular cards like the Wells Fargo Active Cash®, Wells Fargo Autograph® and the BILT Mastercard®. Coverage is typically for up to 31 days outside of the US and 15 days within. Wells Fargo does not insure cars rented in Israel, Jamaica, the Republic of Ireland or Northern Ireland. Maximum coverage is up to $50,000.

Fourth Place — American Express. In addition to excellent coverage, American Express offers Premium Car Rental Protection** for a small fee per rental period, not per day. Unlike many other plans, this benefit extends to SUVs and luxury cars.

There's a fabulous business card sign-up deal if you're in the market for American Express cards. Read more in our article, $1,500 to $3,000 Amex Card Intro Offer. For a personal Amex card, check out our article on three Delta and American Express cobranded cards: Earn Delta SkyMiles up to $1,140. Or consider The Platinum Card from American Express, currently offering new cardholders a $1,600 sign-up bonus.

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.

Earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening, 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 $120 every four years to help offset the cost of TSA PreCheck® or NEXUS applications.

• Interest rate: 21.99% to 28.99% variable.
• Annual fee: $550; $75 for each authorized user.
• Foreign transaction fee: None
• Rewards:
• 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 and 10 points per dollar on Lyft rides through March 2025. Plus, get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027.
• Lounges: Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select. For example, you can relax at the Chase Sapphire Lounge at the NY LaGuardia Airport.
• When things go wrong: Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
• 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 Chase Travel℠, 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.
• 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 Travel℠ 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. For our review of this bonus offer, read Chase Sapphire Preferred Credit Card: $1,050 Bonus Offer.

• Sign-up bonus: 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening.
• Other benefits: $50 annual Hotel Credit. Get $50 in statement credits annually for hotel stays booked through Chase Travel℠. And on each yearly anniversary of opening your account, you get a 10% points bonus on total purchases made the previous year. Also, get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2027.
• Redemption: Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase 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 travel 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: 20.99% to 27.99% variable APR for purchases and balance transfers, and 29.74% 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: Most Wells Fargo cards, such as the

Wells Fargo Active Cash® Card

Sign-up bonus: $200 back if you spend $500 in the first three months.

This card keeps it simple: Cardholders get 2% cash back on everything they buy. Redemption options include statement credits on purchases, a credit to other qualifying Wells Fargo accounts (including a checking account or mortgage) and gift cards.

View Deal

• Sign-up bonus: $200 back if you spend $500 in the first three months.
• Rewards rate: 2% cash rewards on purchases.
• Redemption: Statement credit, cash at the ATM with a Wells Fargo debit or ATM card (in $20 increments), gift cards ($25 increments), or a credit to a qualifying Wells Fargo credit card, checking account or mortgage.
• Other benefits: Up to $600 per claim of protection for your cell phone against damage or theft if you pay your monthly wireless bill with the card.
• Interest rate: 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers, then 19.74%, 24.74% or 29.74% variable APR.
• Foreign transaction fee: 3%, so skip this card if you are planning significant travel outside the U.S.
• Annual fee: None.

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.

Avoid rental car fees

Don't just save money by using the right credit card for rental car insurance, watch out for rental car fees that could undo all of your savings. For example, price out the cost of taking an Uber, Lyft, Turo or public transportation to the airport and return your car in town to avoid airport-return fees. You can also avoid high refueling fees by dropping the car off with a full tank of gas. Avoid daily toll transponder fees by bringing your own transponder on your trip. These are just some of the rental car fees to avoid.

**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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