Credit Cards That Cover Rental Car Insurance Without Extra Fee
Renting a car sounds simple until you reach the counter and they hit you with the big question: “Do you want to buy our insurance?” The rental company agents push hard because this is where they make most of their profit. The catch is their insurance costs a lot—sometimes $20, $30, even $40 extra per day. That means if you’re renting for a week, you could pay $200 or more just for coverage.
Here’s the thing most people don’t realize: many credit cards already give you rental car insurance at no extra charge, if you use that card to pay. That means you could decline the rental desk insurance, save a bunch of money, and still have peace of mind.
This article breaks down which credit cards offer rental car coverage for free, how the benefit works, the rules you must follow, and the limits you need to know. Plus, I added a full FAQ at the end for the questions everybody asks.
Why Rental Car Insurance Matters
Accidents can happen to anyone. Even a small scratch on a rental car bumper can lead to a bill of over $1,000 because rental companies also charge you for “loss of use” (the days the car is in the shop) and “admin fees.” Without protection, you’d be stuck paying that from your own pocket.
So yes, insurance matters a lot. But rental desk insurance is overpriced. That’s why using a credit card that already provides it is a smart move.
How Credit Card Rental Insurance Works
When you pay for a rental car with certain credit cards, the card automatically includes Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) protection. This means if the car is stolen or damaged, the card covers the cost up to the value of the car.
Primary coverage: Your credit card insurance kicks in first. You don’t need to involve your personal auto insurance at all. Best option.
Secondary coverage: Your credit card coverage only pays what your personal car insurance doesn’t. So you still file with your insurer, which could raise your premiums later.
Most people want primary coverage because it keeps their personal policy out of the mess.
Conditions You Must Follow
To actually get covered, you must:
- Pay the full rental with your credit card.
- Decline the rental company’s CDW/LDW coverage at the counter.
- Be the primary renter (name on contract should match cardholder).
- Rent in an eligible country (some cards exclude Ireland, Israel, Jamaica, Italy, etc).
- Keep the rental period under 31 days.
Forget one of these steps and the benefit may not apply.
Best Credit Cards That Cover Rental Car Insurance
Here are some of the strongest options in 2025 that come with solid rental car insurance included.
1. Chase Sapphire Preferred® Card
One of the most popular travel cards. It gives primary coverage on rental cars, both in the U.S. and abroad.
- Coverage: Primary
- Exclusions: Certain countries like Ireland and Jamaica
- Annual Fee: $95
2. Chase Sapphire Reserve®
The luxury version. It also provides primary rental coverage but with bigger travel benefits like lounge access.
- Coverage: Primary
- Annual Fee: $550
3. Capital One Venture X Rewards
Capital One’s premium card. It gives primary rental coverage at a lower fee than the Reserve and also comes with travel perks.
- Coverage: Primary
- Annual Fee: $395
4. American Express Cards
Amex is a bit different. By default, most Amex cards only give secondary coverage. But they offer an optional Premium Car Rental Protection program, where you pay a flat fee ($20–$25 per rental, not per day) and get strong primary coverage.
5. Citi Premier® Card
Once very strong, Citi cut back on many travel perks. It still offers secondary coverage on rentals.
- Coverage: Secondary
- Annual Fee: $95
6. United Explorer Card (Chase)
Yes, even airline cards can offer rental insurance. United Explorer gives primary coverage, making it useful for frequent flyers.
- Coverage: Primary
- Annual Fee: $95 (often waived first year)
Where Coverage Might Not Work
Common excluded countries: Ireland, Italy, Israel, Jamaica. Always confirm with your credit card benefit administrator before traveling abroad.
What’s Not Covered
- Liability for injuries or damage to others
- Exotic or luxury cars (Ferrari, Lamborghini, Bentley, etc)
- Large trucks, motorcycles, off-road vehicles
- Rentals over 31 days
Real Story Example
A friend of mine rented a car in Denver using Chase Sapphire Preferred. He declined the rental insurance. On the last day, he backed into a pole and cracked the bumper. The rental company billed $2,200. He filed a claim with Chase, and they paid the full bill in about 3 weeks. No out-of-pocket cost.
Should You Trust Credit Card Coverage Instead of Buying Rental Insurance?
In most cases: yes. If you have a card with primary coverage, it’s enough. The only times to consider buying rental company insurance are:
- You need liability coverage (credit cards don’t include it).
- You’re renting in a country excluded from your card.
- You’re driving a luxury or exotic car.
How to File a Claim
If something happens:
- Call your card’s benefits hotline immediately.
- Document everything (take pictures, save rental contract, police report if needed).
- Fill out claim forms.
- Wait for processing (normally 2–4 weeks).
FAQ: Credit Card Rental Car Insurance
1. Do all credit cards give rental car insurance?
No. Only certain travel-focused or premium cards do. Always check the benefits guide.
2. What’s better: primary or secondary coverage?
Primary is better because your personal insurance stays untouched.
3. Do I need to decline rental company insurance?
Yes, always decline CDW/LDW at the counter to use your card’s coverage.
4. Does this cover liability for other people or cars?
No, it only covers the rental car itself. Liability requires your own policy.
5. Which card is best overall?
Chase Sapphire Preferred is the best balance of cost and benefits. Reserve and Venture X are great for frequent travelers.
6. Does Amex Platinum cover rental cars?
Only as secondary coverage. But you can pay their flat-fee Premium Car Rental Protection to get primary.
7. Are Teslas and luxury cars covered?
Often excluded. Exotic cars, antique cars, and very expensive models are not covered.
8. What’s the maximum rental period covered?
Usually 31 days. Longer rentals aren’t protected.
9. What if I have an accident?
Call your benefits hotline, take photos, save all paperwork, and file a claim quickly.
10. Can I use this benefit abroad?
Yes, but not in every country. Ireland, Italy, Israel, and Jamaica are often excluded.
Final Word
Rental car insurance from the rental desk is expensive, but smart travelers don’t pay for it. By using the right credit card—like Chase Sapphire Preferred, Sapphire Reserve, or Capital One Venture X—you get free primary rental coverage. Just decline the rental company’s insurance, pay with your card, and follow the rules.
This way you save hundreds and still drive with peace of mind.
