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 increasingly bundle travel protections like rental car damage coverage. Crucially, what you get depends on your issuer and network: American Express publishes per‑benefit details on its hub (American Express Card Benefits), while Visa and Mastercard note that coverage varies by issuing bank and card tier (Visa Card Benefits; Mastercard Benefits). Issuers such as Capital One also summarize protections by product family and network (Capital One benefits).
However, one of their most valuable benefits — rental car insurance — 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 — important because at‑fault 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; NerdWallet on duration). The mechanism is straightforward: if your auto insurer pays a claim, it’s reported in CLUE and can be surcharged; if primary card coverage resolves the damage and no liability claim is filed, the incident typically doesn’t hit your policy (LexisNexis CLUE; NAIC; Insurance Information Institute).
Do I have rental car insurance through my credit card?
There is no universal policy. Most cards that include this perk provide an Auto Rental Collision Damage Waiver (also called LDW) that reimburses covered damage/theft when you pay with the card and decline the rental company’s CDW/LDW. Network and issuer specifics matter: American Express includes Car Rental Loss and Damage Insurance on many U.S. consumer and small‑business 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; AmEx Premium Car Rental Protection). Visa‑ and Mastercard‑branded 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’s Guide to Benefits (Mastercard travel benefits overview; Capital One Visa Infinite benefits).
Recent studies show awareness remains low: cardholders often don’t know whether their card includes rental coverage or how it works (J.D. Power 2024; NerdWallet Travel Study). “In general, cardholders aren’t always aware of the bevy of great protections they can get by paying with their credit card,” Emily Sherman, associate content writer at CreditCards.com, told Reviews.com. “It’s 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 – rather than filing it away and forgetting about perks.”
What’s the difference between primary and secondary coverage?
Primary CDW pays first for covered rental‑vehicle 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 — for example, Chase Sapphire Reserve/Preferred and Capital One Venture X — while many other cards provide secondary benefits. American Express typically includes secondary coverage in the U.S. but uniquely offers an opt‑in, flat‑fee program that makes coverage primary (AmEx Premium Car Rental Protection). Always confirm your card’s current Guide to Benefits.
“Most credit cards come with secondary car rental insurance coverage, meaning it’ll only pay for what your standard car insurance won’t cover,” says Sherman. “While this can save you money if your insurance doesn’t fork over the whole cost, it does create the added headache of filing two claims.”
However, there are some popular credit cards, like the Chase Sapphire Preferred and Chase Sapphire Reserve, that do offer primary rental car insurance. This is great because it means that you only have to file one claim (with the credit card company) and don’t have to risk higher premiums or paying a deductible, which could happen if you file a claim with your regular auto policy. Other strong examples include the Venture X (Visa Infinite) and select co‑branded premium cards; Discover generally does not provide rental coverage, and availability on some Citi cards is limited — verify the Guide to Benefits for your exact product (NerdWallet comparison; TPG guide).
Secondary coverage can still be valuable, as it may reimburse your auto policy deductible and eligible costs your insurer doesn’t cover; some secondary policies act as primary if you have no other applicable coverage (AmEx LDW overview). Check whether business rentals are eligible and who is covered — typically the primary renter and additional drivers listed on the rental contract (Visa Infinite benefits (issuer example)).
What’s covered?
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’s waiver. Many cards also cover reasonable loss‑of‑use, towing, and certain administrative fees when properly documented; typical no‑fee benefit caps are often around $75,000, while paid “buy‑up” options such as AmEx’s Premium Car Rental Protection can offer up to $100,000 and longer rental windows (NerdWallet overview; AmEx PCRP). Conventional EVs and hybrids are generally treated like comparable gas vehicles under CDW; exotic/antique and specialty vehicles remain common exclusions (Mastercard).
Your credit card may cover:
- Physical damage or theft of the covered rental vehicle
- Loss-of-use expenses
- Towing the vehicle to a repair facility
What’s not covered?
Generally, your credit card’s rental car insurance will not cover:
- Bodily injury liability
- Property damage
- Personal injury protection
- Comprehensive
- Medical payments
- Uninsured and underinsured motorists
- Loss of personal belongings
Depending on the terms, your credit card also may not cover:
- Luxury vehicles (e.g., Aston Martin, Rolls Royce)
- Antique vehicles
- Motorcycles
- Pick-up trucks
- Large passenger vans
- Extended rentals (more than a month)
- Rental vehicles in other countries
- Car-sharing services, like ZipCar
We recommend checking your credit card’s guide to benefits for the full list of coverage and exclusions. Issuer/network hubs can help you locate the right document for your card: American Express, Visa, Mastercard, and Capital One.
How do I activate coverage?
“In almost all cases, your card benefits don’t require activation for you to take advantage of them,” Sherman says. However, to be covered in the first place, you will need to take the following steps: If you want an optional upgrade (e.g., AmEx Premium Car Rental Protection), separate enrollment is required. Eligibility nuances are common: coverage typically applies to the primary renter and any additional drivers named on the rental agreement; some cards exclude certain business uses or commercial rentals (Visa Infinite benefits (issuer example)).
- Book the rental car on the applicable credit card
- Book the rental car under the name of the primary cardholder or authorized user
- Decline the rental car company’s CDW/LDW coverage
“If you are in an accident in a rental car, simply check your guide to benefits for information about where to send your claim,” Sherman says. “It’ll usually give you a breakdown of which documents need to be included.” You can often file and track claims online through the administrator’s portal (e.g., eClaimsLine), which supports digital document uploads and status updates.
How do I file a claim?
Unless your credit card provides primary coverage, you first need to file a claim with your primary insurance company (i.e., your personal auto policy). “Be diligent about saving documentation regarding damage assessments, repair costs, and reimbursement,” Sherman says. You can also open a claim promptly with the card’s benefits administrator (often online at eClaimsLine) so you know the exact documents and deadlines (Chase benefits summary).
“If at the end of your claim you find your insurance did not cover the entire cost of the damage, you can submit a secondary claim to your credit card issuer. Check your benefits guide for contact information, and be sure to send in copies of all the documentation you’ve collected.” Typical timelines in issuer guides require notifying the administrator within about 60–100 days of the incident and submitting supporting documents within roughly 180 days, but follow the exact windows in your card’s Guide to Benefits (Chase Sapphire Reserve Guide to Benefits; Visa Infinite Guide to Benefits example).
Those whose credit cards offer primary coverage will only need to file a claim with the credit card issuer. You will need to do so within the time period specified in the guide to benefits (often similar notice/documentation windows). Primary coverage can help you avoid a claim on your personal auto policy, which reduces the chance of multi‑year premium surcharges tied to at‑fault claims (Bankrate; NerdWallet).
Will my credit card cover international travel?
It depends on your card. American Express explicitly excludes vehicles rented in Australia, Italy, and New Zealand for both its included Car Rental Loss & Damage Insurance and its paid Premium Car Rental Protection (AmEx LDW details; AmEx PCRP terms). By contrast, recent Visa/Mastercard issuer guides generally describe worldwide applicability but exclude rentals in jurisdictions where coverage would violate U.S. economic or trade sanctions or where prohibited by law (see examples from Chase Sapphire Reserve and Capital One Visa Infinite). For sanction‑related exclusions, consult the Office of Foreign Assets Control sanctioned country list.
If you’re planning on renting a car overseas, check what countries are included in your personal auto insurance policy, the guide to benefits from your credit card company, and your international travel insurance policy, if applicable.
When do I need separate rental car insurance?
Rental car insurance isn’t typically required, but it may be a good idea to buy the CDW/LDW coverage at the rental car company if your card’s benefit is secondary (and you want to avoid using your personal auto policy), your trip exceeds your card’s rental‑length cap (often around 31 days), the vehicle type or country is excluded, or you’re renting via a peer‑to‑peer platform that your card doesn’t cover (NerdWallet; AmEx LDW). Consider paid “buy‑up” options (e.g., AmEx PCRP) if you need primary coverage and higher limits.
- You don’t own a car
- You don’t have a personal auto insurance policy with collision coverage
- You don’t want to risk higher premiums or paying a deductible on your personal auto insurance policy
- You’re renting a car in a country not covered by your auto insurance policy or credit card
