Can a credit card cover rental car damage instead of the counter's waiver?
Sometimes. Some credit cards include a rental car benefit that covers theft of, or physical damage to, the rental car. It can take the place of the collision damage waiver (CDW) that the rental desk offers, but only if you meet the card's conditions. The main conditions are paying for the full rental with that card and declining the desk's waiver. The benefit covers the car only. It does not cover injury or damage to other people's property.
Cars Renta does not sell rental cover, and it does not handle claims. Cover is sold by the rental supplier or by the booking partner, DiscoverCars, and card benefits come from your card issuer. Bookings are completed on DiscoverCars, and only DiscoverCars support can change or cancel one.
What is a collision damage waiver?
A collision damage waiver, also called a loss damage waiver (LDW), is an optional add-on sold with the rental. It is not insurance. It waives or limits your financial liability for damage to the rental car, or for its full value if the car is stolen or written off. The sources describe it as typically costing a daily charge, and one of them puts it at around $30 per day. When a waiver is in place, the rental company's own insurer pays for repairs or replacement, and in many cases there is no deductible.
Which cards offer rental car cover, and is it primary or secondary?
The two cards named in the sources differ in one important way. Primary cover pays first, before your personal auto policy. Secondary cover only applies after your other insurance has been used up.
| Chase Sapphire Preferred | American Express (Platinum Card) | |
|---|---|---|
| Type of cover | Primary | Secondary |
| Stated limit | Up to $60,000 for most vehicles | Up to $75,000, per American Express's published terms, which say eligibility and benefit level vary by card |
| Liability included | No | No |
| Key condition | Pay for the entire rental with the card and decline the CDW or similar cover | Reserve and pay with the card, and decline the CDW or similar cover |
The Chase figure comes from the NerdWallet guide to the card. The American Express wording is taken from its own benefit text, quoted in the same guide. Limits and eligibility change, so check the issuer's current guide to benefits before you travel.
What must you do to keep card cover?
Card cover is not automatic just because you hold the card. The published conditions for the Chase card are typical of the category:
Pay for the whole rental with the card, not only part of it.
Decline the rental company's collision damage waiver or any similar damage cover at pick-up. If you buy one, the card cover does not apply.
Check the car for existing damage before you drive off, and make sure it is recorded. The card issuer does not cover damage that happened before you picked the car up or after you returned it.
Drive the car according to the rental agreement.
File the claim on time.
What does card cover not include?
Card cover is narrower than most people expect. Based on the sources, check these points before you rely on it:
Liability. The card does not pay for damage to other vehicles or property, or for injuries to you, your passengers or anyone else. You need liability cover from your own auto policy or the rental company.
Personal items. Losses of personal property are excluded.
Rental type. Peer-to-peer rentals, such as through Turo, and hourly rentals, such as through Zipcar, are not covered by the Chase card. Leases and rentals longer than 31 days are also excluded. Other issuers set shorter limits, with some stopping at 15 days.
Vehicle type. The Chase card excludes high-value models such as Corvette, Ferrari, Jaguar and Porsche, as well as exotic and antique cars, cargo vans, motorcycles, limousines, recreational vehicles, and passenger vans with seating for more than nine people. Tesla vehicles are excluded too. Other cards have their own lists.
Conduct. Damage caused by breaking the rental agreement is not covered. For collision damage waivers in general, the sources also exclude racing, driving while impaired, reckless driving, leaving keys in the car, letting an unauthorised person drive, towing, off-road driving, and criminal acts.
Exclusions differ by issuer, so read the guide for your own card.
How do you make a card claim?
If you are in an accident in a rental car, the steps are roughly the same whichever cover you rely on:
Get a police report if there is any damage, even minor. If another driver is involved, exchange details and make any required reports.
Tell the rental company about the incident.
Contact your card issuer's benefits administrator and start the claim. With Chase, you can start online through its claims site or by phone.
Respect the deadlines. The NerdWallet guide gives Chase's published timetable as: start the claim within 100 days of the damage or theft; return the claim form within 120 days; and submit all supporting documents within 365 days.
Handle any liability claim separately, through your own auto policy or the rental company's liability cover.
How does card cover compare with the counter waiver and your own policy?
Each option pays for the car in a different way:
Counter waiver. You pay a daily charge. The sources say it typically has no deductible, and the rental company's insurer pays for the repairs.
Card cover. It costs nothing extra, but you must meet the conditions, and it pays up to the stated limit. A primary card pays before your own policy; a secondary card pays after it.
Your own auto policy. Collision cover pays for damage from a crash, and comprehensive cover pays for theft, fire, severe weather and similar causes, but you pay your deductible first. A liability-only policy does not cover the rental car at all.
If your own policy includes rental car cover, read its deductibles, limits and driver list before deciding whether to skip the counter waiver. Some policies exclude rental cars or require you to add the cover.
Frequently asked questions
Does a credit card cover the rental car if I decline the counter waiver?
Only if the card has rental car cover and you met its conditions. Most cards in the sources require you to pay for the whole rental with the card and to decline the collision damage waiver at pick-up. If you do not meet these conditions, the card cover may not apply.
Does card cover pay for injuries or damage to other people's property?
No. The card benefit covers theft of or damage to the rental car itself. You need separate liability cover for injuries and for damage to other vehicles or property.
Is primary or secondary card cover better?
Primary cover pays first and can help you avoid using your personal policy, which may affect your premiums. Secondary cover pays only after your other insurance has been used. Check which type your card offers before you decide.
