Rental car insurance comes built into many premium credit cards, but the coverage varies widely by card and by what you're renting
Many credit cards offer rental car damage coverage as a cardholder benefit — meaning the card issuer will pay for collision and theft damage to a rental car if you book and pay with that card. The coverage is not automatic across all cards. It typically appears on mid-tier and premium cards, rarely on basic cash-back cards. The amount covered, what counts as a covered rental, and whether the card covers you as a driver or only as the primary renter all depend on the specific card and its terms.
This guide walks through which cards offer the coverage, what the limits are, and what you need to do to use it. The information here is current as of early 2025, but card benefits change — always check your card's current benefits guide before you rent.
Key Takeaways
- Rental car coverage is most common on premium travel cards and some mid-tier cards, not on basic rewards cards.
- Coverage limits range from $25,000 to $100,000 depending on the card, and most cover only collision and theft, not liability or personal belongings.
- You must book and pay for the entire rental with the covered card to trigger the benefit.
- The coverage is secondary to your personal auto insurance, meaning your own policy pays first if you have one.
- Some cards exclude certain rental types — like luxury cars, commercial rentals, or rentals longer than 30 days — so read the fine print before you book.
How rental car coverage actually works
When a credit card offers rental car damage coverage, it means the card issuer will reimburse you for physical damage to the rental car (dents, collision, theft) up to a stated limit. You pay the rental company's deductible out of pocket, then submit a claim to the card issuer with your receipt, the rental agreement, and photos or the damage report. The card issuer then reimburses you up to the coverage limit.
The coverage is secondary, not primary. If you carry your own auto insurance, your policy covers the rental car first, and the credit card covers what your insurance doesn't pay — or covers the deductible your insurance requires you to pay. If you don't have auto insurance, the card coverage becomes primary.
You must book the rental and pay for it entirely with the covered card. If you book with one card and pay with another, or if you pay part of the bill out of pocket, the coverage may not explore. Some cards also exclude certain types of rentals: luxury or exotic cars, commercial use, rentals longer than 30 days, or rentals in countries outside your card's coverage area.
Premium travel cards with rental car coverage
The highest coverage limits appear on premium travel cards with annual fees. The Chase Sapphire Reserve includes up to $100,000 in rental car damage coverage with no deductible. The American Express Platinum Card covers up to $100,000 as well. The Citi Prestige Card offers up to $100,000. These cards are aimed at frequent travelers and charge annual fees of $395 to $695.
Mid-tier travel cards often include coverage too, though with lower limits. The Chase Sapphire Preferred covers up to $50,000. The Capital One Venture X covers up to $100,000. The Ink Business Preferred (a business card) covers up to $50,000. Annual fees on these cards range from $95 to $395.
Not all premium cards include the benefit. Some focus on cash-back rewards or category bonuses instead. Always check the benefits guide for your specific card before you assume coverage is included.
Mid-tier cards that may include coverage
Some mid-tier cards with no annual fee or low annual fees ($0 to $99) include rental car coverage, though the limits are usually lower — often $25,000 to $50,000. The Wells Fargo Autograph Card (no annual fee) includes up to $50,000 in coverage. The U.S. Bank Altitude Reserve ($400 annual fee) covers up to $100,000. The Discover It Miles (no annual fee) covers up to $50,000.
Coverage on no-annual-fee cards is less common than on premium cards, and the limits tend to be lower. If rental car coverage is important to you, a mid-tier card with a modest annual fee often provides better limits than a no-fee card.
What rental car coverage does and does not cover
Rental car damage coverage pays for physical damage to the rental car itself: collision damage, theft, vandalism, and weather damage. It covers the cost of repairs or the actual cash value of the car if it is totaled. Most cards cover damage from accidents you cause, accidents caused by other drivers, and theft.
What it does not cover: liability (damage you cause to other cars or property), medical payments, personal belongings left in the car, fuel charges, late fees, or traffic violations. It also does not cover wear and tear, mechanical breakdown, or damage from off-road use. If you cause an accident and the other driver sues, your credit card coverage will not pay their claim — that is what liability insurance is for, and you need your own auto policy or a liability waiver from the rental company.
Some cards exclude certain rental types. Luxury cars, sports cars, and exotic vehicles are often excluded. Commercial rentals (using the car for business purposes like rideshare or delivery) are typically not covered. Rentals longer than 30 days may fall outside the coverage window. Rentals in certain countries or regions may not be covered depending on the card's terms.
How to use your card's rental car coverage
Book the rental car through any rental company — Hertz, Enterprise, Budget, Avis, or others. Pay for the entire rental with the credit card that offers the coverage. Do not use a debit card, cash, or a different card, or the coverage will not explore.
When you pick up the car, the rental company will offer you a damage waiver or collision damage waiver (CDW). You can decline this waiver because your credit card will cover damage. Declining the waiver saves you $15 to $30 per day. If you accept the waiver, you are paying out of pocket for coverage you already have on your card.
If the car is damaged, report it to the rental company when ready and get a damage report in writing. Take photos of the damage. Keep your rental agreement, the damage report, and any receipts for repairs or the final bill.
After you return the car, submit a claim to your credit card issuer. Most cards have a claims process on their website or a phone number in your benefits guide. You will need to provide the rental agreement, the damage report, photos, and proof of payment. The card issuer will review the claim and reimburse you up to the coverage limit, usually within 30 to 60 days.
What to check before you rely on this coverage
Read your card's current benefits guide — not a website summary, but the actual guide from the issuer. Benefits change, and what was true last year may not be true now. The guide will tell you the exact coverage limit, what is and is not covered, any exclusions, and the claims process.
Call the card issuer's customer service line before you rent if you have questions about whether a specific rental is covered. Ask whether the rental type, the rental location, or the rental duration is covered under your card's terms. Get the answer in writing if possible.
Check whether your personal auto insurance covers rental cars. If it does, your auto policy will be primary, and the credit card will cover only what your insurance doesn't pay or the deductible you owe. Knowing this in advance helps you decide whether to accept the rental company's damage waiver.
If you do not have auto insurance, the credit card coverage becomes primary — but it still does not cover liability. You will need to buy liability coverage from the rental company or through a third-party provider.
Frequently Asked Questions
Do I need to buy the rental company's damage waiver if my card has coverage?
No. If your card covers rental car damage and you meet all the conditions (booked and paid with that card, rental type is covered, etc.), you can decline the rental company's damage waiver and save the daily fee. The card will cover damage up to its limit. However, the card does not cover liability, so you still need liability coverage from the rental company or your own auto policy.
What happens if the damage costs more than my card's coverage limit?
You are responsible for the amount over the limit. If your card covers up to $50,000 and the damage costs $60,000, you pay the extra $10,000. This is another reason to check your card's limit before you rent an expensive car.
Does my card cover me if I'm not the primary renter?
Most cards cover only the primary renter and when ready family members on the same rental agreement. If you are an additional driver but not the primary renter, coverage may not explore. Check your card's benefits guide or call the issuer to confirm.
Can I use my card's coverage if I book through a third-party site like Kayak or Expedia?
Yes, as long as you pay the final bill with the covered card at the rental counter or through the rental company's website. Some third-party booking sites charge a non-refundable booking fee that is separate from the rental cost — make sure the rental itself is paid with your card.
Does rental car coverage work in other countries?
Coverage varies by card and by country. Some cards cover rentals worldwide; others exclude certain regions or countries. Check your benefits guide or call the issuer before you rent a car outside the United States.