{"id":1626,"date":"2025-07-29T11:59:21","date_gmt":"2025-07-29T11:59:21","guid":{"rendered":"https:\/\/ft365.org\/index.php\/2025\/07\/29\/how-a-rental-car-is-covered-by-a-credit-card-bankrate\/"},"modified":"2025-07-29T11:59:21","modified_gmt":"2025-07-29T11:59:21","slug":"how-a-rental-car-is-covered-by-a-credit-card-bankrate","status":"publish","type":"post","link":"http:\/\/ft365.org\/index.php\/2025\/07\/29\/how-a-rental-car-is-covered-by-a-credit-card-bankrate\/","title":{"rendered":"How A Rental Car Is Covered By A Credit Card | Bankrate"},"content":{"rendered":"
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Speak to any rental car company employee before renting a car, and you\u2019ll surely be asked if you want to purchase extra insurance. But at $15 to $30 a day (typically), buying this additional coverage is like paying $5,000 to $11,000 a year to insure your car.<\/p>\n

Thankfully, you may be able to receive similar coverage through your credit card<\/u>. In fact, rental car coverage<\/u> may be one of the most valuable benefits offered by some credit cards. However, it\u2019s important to understand how this coverage works, and what its limitations are.<\/p>\n

Key rental car statistics<\/h2>\n
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Auto Car Icon<\/title> <\/svg> <\/p>\n
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Key rental car statistics <\/p>\n

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    • The global car rental market size was valued at $149.87 billion in 2024 and is projected to reach $278.03 billion by 2030. (Grand View Research)<\/li>\n
    • In 2023, there were 3,362 car rental companies in the U.S. (Consumer Affairs)<\/li>\n
    • Three companies hold 94% of market share in the rental car industry: Enterprise Mobility (which owns National and Alamo), Avis Budget Group (which owns Budget, Payless Car Rental and Zipcar) and Hertz (which owns Dollar and Thrifty). (Consumer Affairs)<\/li>\n
    • The car rental market in North America accounted for 36% of the global market revenue in 2024. (Grand View Research)<\/li>\n
    • 48 million Americans, or approximately 18% of Americans over the age of 18, used a car rental service in 2023. (Consumer Affairs)<\/li>\n
    • The average cost of a rental car has increased by $35\/day since 2019, in large part due to the effects of the COVID-19 pandemic. (Hertz)<\/li>\n<\/ul>\n<\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<\/p><\/div>\n

      What is car rental insurance?<\/h2>\n

      Whenever you rent a car, you should always have insurance that covers at least theft or damage. If you own a car, then your personal car insurance might cover you when you rent a car in the U.S. Nevertheless, you might not want to rely on your personal coverage, or you might need coverage when you rent outside of the country.<\/p>\n

      Many credit cards include a form of coverage called an auto collision damage waiver at no additional cost. When you pay for your rental car with your credit card and decline the optional insurance, this coverage can take the place of the expensive policies sold by rental car companies.<\/p>\n

      Do credit cards cover rental car insurance?<\/h2>\n

      Rental car insurance is a benefit found on certain credit cards, usually higher-end travel cards. This benefit might be called something like \u201cauto rental collision damage waiver\u201d and typically provides reimbursement for damages caused by theft or collision of a rental car.<\/p>\n

      The best way to find out if your credit card includes rental car coverage is to call the number on the back of your card or read the most recent version of the card\u2019s benefits guide.<\/p>\n

      How rental car insurance works<\/h3>\n
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      1. Check to make sure that your credit card offers rental car coverage.<\/li>\n
      2. Review the card\u2019s benefits guide to ensure that the coverage applies to the type of car you\u2019re renting and, if renting outside the U.S., the country you\u2019re renting in.<\/li>\n
      3. Reserve your car using the credit card that offers you coverage.<\/li>\n
      4. Decline the optional damage and theft insurance sold by the rental car company.<\/li>\n
      5. Pay for your entire rental using the credit card that offers you coverage.<\/li>\n
      6. Abide by the rules of the rental car agreement.<\/li>\n
      7. If your rental car ends up damaged due to collision, theft, or any other incident covered by your credit card\u2019s insurance, file a claim with your credit card company or the benefit administrator. Check your credit card\u2019s benefits guide for the full list of documentation needed, any deadlines to follow, and detailed instructions on how to file a claim.<\/li>\n<\/ol>\n

        Credit cards that provide rental car insurance<\/h3>\n

        Here are some of the best credit cards that provide rental car insurance:<\/p>\n

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        • Chase Sapphire Preferred\u00ae Card<\/u><\/strong>:<\/strong> Provides reimbursement for damages caused by theft or collision up to the actual cash value of most rental cars. This coverage is primary. <\/li>\n
        • Chase Sapphire Reserve\u00ae<\/u><\/strong>:<\/strong> Provides reimbursement for damages caused by theft or collision up to $75,000. This coverage is primary coverage.<\/li>\n
        • Capital One Venture X Rewards Credit Card<\/u><\/strong>:<\/strong> Reimburses you for damages caused by theft or collision up to the actual cash value of rental vehicles with an original manufacturer\u2019s suggested retail price of up to $75,000 when new. This coverage is primary. <\/li>\n
        • The Platinum Card\u00ae from American Express<\/u><\/strong>:<\/strong> Provides coverage for damage to or theft of a rental vehicle, up to $75,000, in a covered territory. This coverage is secondary. <\/li>\n
        • American Express Gold Card<\/u><\/strong>:<\/strong> Provides coverage for damage to or theft of a rental vehicle, up to $50,000, in a covered territory. This coverage is secondary.<\/li>\n
        • Bilt Mastercard\u00ae<\/u><\/strong>:<\/strong> Reimburses you up to $50,000 if a covered accident or theft occurs to the rental car. In the U.S., this coverage is primary (except for New York residents, for whom this coverage is secondary). Outside the U.S., where this benefit is available, this coverage is primary even if you have another insurance policy. <\/li>\n<\/ul>\n

          Types of rental car insurance<\/h2>\n

          It\u2019s important to note that credit cards offer different types of rental car coverage, usually in the form of primary or secondary coverage<\/u>.<\/p>\n

          \n\n\n\n\n
          Primary rental car coverage<\/strong><\/td>\nIf your credit card offers primary coverage, then you won\u2019t need to ever file a claim with your personal automobile policy. Since this insurance is \u201cprimary,\u201d it will apply before any other coverage.<\/td>\n<\/tr>\n
          Secondary rental car coverage<\/strong><\/td>\nIf your credit card offers secondary coverage, it requires that you make a claim with your personal automobile insurance first, if you have any. The secondary coverage will kick in to cover whatever is not covered by the primary insurance.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

          Keep in mind that all of the rental car policies offered by credit cards generally only insure the car you\u2019re renting against theft and damage. If you are responsible for damage to another vehicle, injure a person or cause any other property damage, then any rental car coverage provided by your credit card won\u2019t cover these losses.<\/p>\n

          Top rental car companies in the U.S.<\/h3>\n

          According to the J.D. Power 2024 North America Rental Car Satisfaction Study<\/u>, National ranks the highest in overall customer satisfaction. Here\u2019s how J.D. Power ranks the top 10 rental car companies:<\/p>\n

          \n\n\n\n\n\n\n\n\n\n\n\n\n\n
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          Rental car company<\/strong><\/p>\n<\/td>\n

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          Score (out of 1,000 points)<\/strong><\/p>\n<\/td>\n<\/tr>\n

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          National<\/p>\n<\/td>\n

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          736<\/p>\n<\/td>\n<\/tr>\n

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          Enterprise<\/p>\n<\/td>\n

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          729<\/p>\n<\/td>\n<\/tr>\n

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          Sixt<\/p>\n<\/td>\n

          		\n

          708<\/p>\n<\/td>\n<\/tr>\n

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          Advantage Rent a Car<\/p>\n<\/td>\n

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          702<\/p>\n<\/td>\n<\/tr>\n

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          Alamo<\/p>\n<\/td>\n

          		\n

          701<\/p>\n<\/td>\n<\/tr>\n

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          Hertz<\/p>\n<\/td>\n

          		\n

          692<\/p>\n<\/td>\n<\/tr>\n

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          ACE Rent a Car<\/p>\n<\/td>\n

          		\n

          690<\/p>\n<\/td>\n<\/tr>\n

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          Payless<\/p>\n<\/td>\n

          		\n

          683<\/p>\n<\/td>\n<\/tr>\n

          \n

          Avis<\/p>\n<\/td>\n

          		\n

          669<\/p>\n<\/td>\n<\/tr>\n

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          Fox Rent a Car<\/p>\n<\/td>\n

          		\n

          655<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

          Additional ways credit cards cover your travel<\/h2>\n

          Rental car insurance is just one of many types of travel insurance perks<\/u> that can be offered by your credit card. Other benefits may include trip delay insurance, trip cancellation and interruption coverage<\/u>, lost luggage coverage and medical coverage.<\/p>\n

          Many credit cards also offer roadside assistance coverage<\/u>. With this coverage, you can call to receive help when your car breaks down, but you\u2019ll have to pay for any services received. However, some credit cards provide basic services (like lockout service or changing a flat tire) at no extra cost.<\/p>\n

          Bottom line<\/h2>\n

          A credit card with rental car insurance can save you money while traveling, as it keeps you from having to buy a separate policy from your rental car provider. Every card has its own coverage policy, but generally covers damages caused by theft or collision of a covered rental vehicle. Be sure to read your card\u2019s guide to benefits to understand the terms and conditions of your coverage, including coverage limits, any limitations to what types of vehicles or what locations are covered, whether the coverage is primary or secondary and how to file a claim.<\/p>\n

          FAQs<\/h2>\n