Credit card rental car insurance: Stop paying car rental insurance
Updated: May 07, 2024
If you own a car, it's likely your car insurance applies to the rental. If not, you can get one of the best credit cards for rental car insurance and avoid having to pay what could add up to over $60 a day.
To help you figure out what your credit card covers you for, we’ve put together this credit card car rental insurance guide that will answer all your questions. Remember, every travel insurance policy is different so you always need to read the fine print.
Best credit for rental car insurance in Canada
BMO Ascend™ World Elite®* Mastercard®
Get up to 90,000 points and the annual fee waived in your first anniversary for both the primary cardholder and authorized users.*
Expires
May 31, 2024
5x
5x the points for every $1 spent on eligible travel purchases*
3x
3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments*
1x
1 point for every $1 spent everywhere else*
5x the points for every $1 spent on eligible travel purchases*
5x
3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments*
3x
1 point for every $1 spent everywhere else*
1x
20.99%
Purchase APR
23.99%
Balance Transfer Rate 21.99% for Quebec residents
23.99%
Cash Advance APR
$150
Annual Fee
2.50%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
23.99%
Cash Advance APR
23.99%
Annual Fee
$150
Foreign Transaction Fee
2.50%
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
Pros
-
High-value welcome offer
-
Flexible airport lounge access
-
BMO Rewards points can be used to cover flight taxes and fees
-
Great for those who frequently rent cars
-
Good for Costco and No Frills shoppers
Cons
-
So-so earn rates relative to its annual fee
-
Points have low redemption value compared to other travel rewards programs
-
Charges foreign transaction fees
-
Relatively high minimum income requirements
5x
5x the points for every $1 spent on eligible travel purchases*
3x
3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments*
1x
1 point for every $1 spent everywhere else*
5x the points for every $1 spent on eligible travel purchases*
5x
3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments*
3x
1 point for every $1 spent everywhere else*
1x
20.99%
Purchase APR
23.99%
Balance Transfer Rate 21.99% for Quebec residents
23.99%
Cash Advance APR
$150
Annual Fee
2.50%
Foreign Transaction Fee
Purchase APR
20.99%
Balance Transfer Rate
23.99%
Cash Advance APR
23.99%
Annual Fee
$150
Foreign Transaction Fee
2.50%
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
Pros
-
High-value welcome offer
-
Flexible airport lounge access
-
BMO Rewards points can be used to cover flight taxes and fees
-
Great for those who frequently rent cars
-
Good for Costco and No Frills shoppers
Cons
-
So-so earn rates relative to its annual fee
-
Points have low redemption value compared to other travel rewards programs
-
Charges foreign transaction fees
-
Relatively high minimum income requirements
What insurance coverage you need when renting a car
When renting a car you should consider the possibility of misfortune to your own vehicle/property, as well as the vehicles/property of others. These are the types of coverage you need to keep an eye out for:
- Damage to the rental vehicle
- Theft of the rental vehicle
- Damage to another person’s vehicle
- Injury to yourself or another person
- Property damage or loss
- Loss of use of the rental vehicle while it’s under repair
Generally speaking, as long as you charge the full amount of the rental to your credit card and decline the rental company’s collision damage waiver, your credit card car rental insurance will cover you for damage/theft to the rental vehicle, and the loss of use of the rental vehicle while it’s under repair.
Some cards may also offer additional coverage beyond just the basics.
Two key things to understand are as follows:
1. Despite the fact that your policy may say it covers you for $65,000 or $85,000 in damages, that usually maxes out at the current value of the car.
2. Your credit card car rental insurance will not provide third-party liability, which covers damage to another person’s vehicle and injury to another person. Each province in Canada sets its own level of minimum third-party liability that must be provided by the rental company. The minimum amount of third-party liability insurance required by law in Canada is $200,000, but many car rental companies have policies that cover you up to $1,000,000. Within Canada, you needn’t purchase additional liability insurance since it’s legally required to come with the car.
If you’re renting a car in a country where there are no laws about liability insurance, you can likely purchase additional insurance directly from the car rental agency so that you’re covered there. If you own a vehicle and have car insurance at home, check your policy as it may already include third-party liability insurance that you can use abroad.
Credit card rental insurance: Conditions and exclusions you should know
- You must be a Canadian citizen with a valid driver’s license.
- You must charge the full amount of the rental to your credit card (unless otherwise specified).
- Some types of vehicles are usually not covered, such as pick-up trucks, commercial vans, antique cars, motorcycles, and luxury cars (over $65K or $85K in value).
- Travel in some countries may not be covered by your credit card’s car rental insurance. (e.g. in countries for which the Canadian government has issued a formal travel advisory.
- Your credit card account must be in good standing.
- 31-48 days of rental is the maximum that your credit card will likely insure you for.
- If you book your car rental as part of a travel package, you’re still required to charge the full amount of the rental to your travel credit card.
- If your car rental is provided due to winning a contest, your car rental insurance would apply if you have a history of paying your car rentals with the credit card that includes car insurance.
- In most cases, if you book your car rental with points, then your car rental insurance would apply assuming the points you use come from the credit card that offers credit card car insurance.
How you use the rental car may also affect your ability to make a claim. Most policies don’t allow you to use your rental car for commercial purposes, which includes moving your own stuff. Your policy would also be void if you get into an accident while under the influence of drugs or alcohol.
The best credit cards for rental car insurance in Canada
Though many credit cards’ car rental insurance policies have overlapping features, there are some distinctions from card to card that are worth noting.
Best credit card for car rentals in the United States
Rogers™ World Elite Mastercard
$25 Welcome Bonus in cash back rewards upon first card purchase within 3 months of receiving your card2
3%
Earn 3% unlimited cash back on purchases made in U.S. dollars.
1.5%
Earn 1.5% unlimited cash back on everything else.
Earn 3% unlimited cash back on purchases made in U.S. dollars.
3%
Earn 1.5% unlimited cash back on everything else.
1.5%
19.99%
Purchase APR Increasing to 20.99% April 2024
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR
$0
Annual Fee To maintain eligibility, you must spend at least $15,000/year.
Purchase APR
19.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
Pros
-
Lucrative cash back rates on USD and CAD purchases
-
No annual fee with valuable insurance benefits
-
Competitive against foreign transaction fee cards
-
Convenient cash back redemption options
-
Travel insurance perks and airport lounge access
-
Welcome bonus in cash back rewards
Cons
-
High income requirement: $80,000 personal or $150,000 household
-
Foreign transaction fee applies
-
Limited redemption options for statement credits
3%
Earn 3% unlimited cash back on purchases made in U.S. dollars.
1.5%
Earn 1.5% unlimited cash back on everything else.
Earn 3% unlimited cash back on purchases made in U.S. dollars.
3%
Earn 1.5% unlimited cash back on everything else.
1.5%
19.99%
Purchase APR Increasing to 20.99% April 2024
22.99%
Balance Transfer Rate
22.99%
Cash Advance APR
$0
Annual Fee To maintain eligibility, you must spend at least $15,000/year.
Purchase APR
19.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$0
Excellent
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Recommended Credit Score
Excellent
Required Annual Personal Income
$80,000
Required Annual Household Income
$150,000
Pros
-
Lucrative cash back rates on USD and CAD purchases
-
No annual fee with valuable insurance benefits
-
Competitive against foreign transaction fee cards
-
Convenient cash back redemption options
-
Travel insurance perks and airport lounge access
-
Welcome bonus in cash back rewards
Cons
-
High income requirement: $80,000 personal or $150,000 household
-
Foreign transaction fee applies
-
Limited redemption options for statement credits
Best credit card for car rentals for lower income applicants
CIBC Dividend Platinum® Visa* Card
Get a first-year annual fee rebate and earn 10% cash back welcome bonus of up to $200!†
3%
cash back on eligible gas, electric vehicle charging, and groceries.
2%
cash back on eligible transportation, dining and recurring payments.
1%
cash back on all other eligible purchases.
90 days
purchase security from damage and theft on eligible items purchased with your card.
1 year
on top of the original manufacturer's warranty
$500,000
common carrier accident insurance
$65,000
MSRP for rental cars for up to 48 consecutive days
cash back on eligible gas, electric vehicle charging, and groceries.
3%
cash back on eligible transportation, dining and recurring payments.
2%
cash back on all other eligible purchases.
1%
purchase security from damage and theft on eligible items purchased with your card.
90 days
on top of the original manufacturer's warranty
1 year
common carrier accident insurance
$500,000
MSRP for rental cars for up to 48 consecutive days
$65,000
20.99%
Purchase APR non-Quebec residents†
22.99%
Balance Transfer Rate non-Quebec residents†
22.99%
Cash Advance APR non-Quebec residents†
$99
Annual Fee First year annual fee rebate†
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$99
Very Good
Recommended Credit Score
$15,000
Required Annual Personal Income
$15,000
Required Annual Household Income
Recommended Credit Score
Very Good
Required Annual Personal Income
$15,000
Required Annual Household Income
$15,000
Pros
-
Very impressive welcome offer
-
Elevated cash back rates (2-3%) in five everyday spending categories†
-
No limit in total cash back you can collect
-
The $15,000 minimum annual income requirement† is very low for a cash back card of this calibre
Cons
-
$99 annual fee may not be worthwhile for all consumers
-
The $20K annual spending limit for earning cash back at the accelerated 2-3% rates is lower than the limits offered by some competing cash back credit cards
3%
cash back on eligible gas, electric vehicle charging, and groceries.
2%
cash back on eligible transportation, dining and recurring payments.
1%
cash back on all other eligible purchases.
90 days
purchase security from damage and theft on eligible items purchased with your card.
1 year
on top of the original manufacturer's warranty
$500,000
common carrier accident insurance
$65,000
MSRP for rental cars for up to 48 consecutive days
cash back on eligible gas, electric vehicle charging, and groceries.
3%
cash back on eligible transportation, dining and recurring payments.
2%
cash back on all other eligible purchases.
1%
purchase security from damage and theft on eligible items purchased with your card.
90 days
on top of the original manufacturer's warranty
1 year
common carrier accident insurance
$500,000
MSRP for rental cars for up to 48 consecutive days
$65,000
20.99%
Purchase APR non-Quebec residents†
22.99%
Balance Transfer Rate non-Quebec residents†
22.99%
Cash Advance APR non-Quebec residents†
$99
Annual Fee First year annual fee rebate†
Purchase APR
20.99%
Balance Transfer Rate
22.99%
Cash Advance APR
22.99%
Annual Fee
$99
Very Good
Recommended Credit Score
$15,000
Required Annual Personal Income
$15,000
Required Annual Household Income
Recommended Credit Score
Very Good
Required Annual Personal Income
$15,000
Required Annual Household Income
$15,000
Pros
-
Very impressive welcome offer
-
Elevated cash back rates (2-3%) in five everyday spending categories†
-
No limit in total cash back you can collect
-
The $15,000 minimum annual income requirement† is very low for a cash back card of this calibre
Cons
-
$99 annual fee may not be worthwhile for all consumers
-
The $20K annual spending limit for earning cash back at the accelerated 2-3% rates is lower than the limits offered by some competing cash back credit cards
Best credit card to rent luxury vehicles
The Platinum Card
Earn 70,000 Membership Rewards® points1*
2x
Earn 2 points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x
points for every $1 in Card purchases on eligible travel
1x
point for every $1 in all other Card purchases
Earn 2 points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x
points for every $1 in Card purchases on eligible travel
2x
point for every $1 in all other Card purchases
1x
21.99%
Purchase APR The Preferred rate of 21.99% applies to your Flexible Payment Option balance.
$799
Annual Fee Includes $200 annual travel credit and $200 annual dining credit
2.50%
Foreign Transaction Fee
Purchase APR
21.99%
Annual Fee
$799
Foreign Transaction Fee
2.50%
Excellent
Recommended Credit Score
Recommended Credit Score
Excellent
Pros
-
Earn 5X Rewards Points for flights and on prepaid hotels booked with American Express Travel
-
Access to a wide range of luxury perks, including premium concierge service
-
Complimentary lounge membership providing access to over 1,200 airport lounges worldwide
-
Annual statement credits: $200 airline fee credit, $200 hotel credit, $240 digital entertainment credit
-
Special insurance coverages like trip cancellation/interruption, flight delay, lost or stolen baggage and rental car theft & damage.
-
Provides extended warranty (2 years) and purchase protection (120 days).
Cons
-
High annual fee of $799, one of the heftiest among Canadian cards
-
The rewards system can be complicated, especially for users not familiar with maximizing credit card points
-
Requires good to excellent credit for eligibility
2x
Earn 2 points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x
points for every $1 in Card purchases on eligible travel
1x
point for every $1 in all other Card purchases
Earn 2 points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x
points for every $1 in Card purchases on eligible travel
2x
point for every $1 in all other Card purchases
1x
21.99%
Purchase APR The Preferred rate of 21.99% applies to your Flexible Payment Option balance.
$799
Annual Fee Includes $200 annual travel credit and $200 annual dining credit
2.50%
Foreign Transaction Fee
Purchase APR
21.99%
Annual Fee
$799
Foreign Transaction Fee
2.50%
Excellent
Recommended Credit Score
Recommended Credit Score
Excellent
Pros
-
Earn 5X Rewards Points for flights and on prepaid hotels booked with American Express Travel
-
Access to a wide range of luxury perks, including premium concierge service
-
Complimentary lounge membership providing access to over 1,200 airport lounges worldwide
-
Annual statement credits: $200 airline fee credit, $200 hotel credit, $240 digital entertainment credit
-
Special insurance coverages like trip cancellation/interruption, flight delay, lost or stolen baggage and rental car theft & damage.
-
Provides extended warranty (2 years) and purchase protection (120 days).
Cons
-
High annual fee of $799, one of the heftiest among Canadian cards
-
The rewards system can be complicated, especially for users not familiar with maximizing credit card points
-
Requires good to excellent credit for eligibility
The best credit cards for rental car insurance: Summary
Credit cards that cover car rental insurance | Rental car insurance coverage | Apply |
---|---|---|
Rental car coverage: Damage, theft, towing charges, lost or stolen personal effects, accidental death and dismemberment.
Amount: rental car up $65,000 for up to 48 consecutive days. |
Apply now | |
Rental car coverage: Loss or damage to the rental vehicle.
Amount: Rental car up to $65,000 for up to 31 consecutive days. |
Apply now | |
Rental car coverage: Auto rental collision/loss damage (CDW/LDW), Common carrier accident insurance up to $500,000
Amount: Rental car up to $65,000 up to 48 days |
Apply now | |
Rental car coverage: Theft, loss and damage of your rental car.
Amount: Vehicles up to $85,000 MSRP for 48 days or less. |
Apply now |
American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment
Barry Choi is a Toronto-based personal finance and travel expert who makes frequent media appearances. When he's not educating people on how to be smarter with money, he's earning and burning miles and points for luxury travel.
Disclaimer
The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.