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Note: This post was published on September 22, 2020. Card details and benefits may have changed since then.
That’s a great question.
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First let’s look at the two questions you may have before that.
In this article
What is Collision Damage Waiver Coverage? (CDW)
When you rent a car, you’ll be asked if you want coverage for accidental damage to the vehicle. This could be from anything, like someone opening a car door hard into yours and denting it, to a car flat out ramming yours and leaving the scene.
Rental-company damage waivers can add a significant daily cost. Before paying for one, check whether your credit card already includes eligible auto rental coverage.
Some credit cards include this benefit. Follow your card’s Guide to Benefits: it may require using the covered card and/or eligible rewards for the entire rental transaction and declining the rental agency’s collision damage waiver or loss damage waiver. This does not mean declining separate liability protection.
Coverage limits, vehicle exclusions and rental periods vary by card. Do not assume a vehicle is excluded or covered just because another card has a particular rule. For example, the Chase Sapphire Reserve® Guide to Benefits excludes trucks other than pickups, with separate restrictions for pickup-bed damage. Check the guide or call the benefit administrator before the rental.
What is the Difference between Primary vs Secondary CDW Insurance Coverage
The distinction matters. Secondary coverage generally pays after your personal auto insurance and may reimburse eligible costs such as a deductible. It does not guarantee that your total responsibility will be limited to that deductible.
Primary card coverage can pay for eligible rental damage before your personal auto policy, subject to the card’s terms and exclusions. It does not guarantee that your own insurer will never be involved or that your premiums cannot change.
One important exception appears in the current Chase Sapphire Reserve® Guide to Benefits: for New York residents renting inside the United States who have personal automobile insurance, the coverage is excess rather than primary. Check the guide applicable to your card and rental.
As an example, I had damage to a Hertz vehicle in 2018 (a Jaguar no less). While I have personal auto insurance, I didn’t have to contact them since I paid with my Chase Sapphire Reserve® card which has Primary CDW as a benefit. Hertz worked with Chase’s insurance company to get paid and my involvement was limited to the initial claim form and a few follow up emails.
Caveat: No credit card covers liability coverage. Check with your personal insurance carrier to make sure you have this. An accident can cost you far more than incidental damage, especially if you injure or kill someone. The included coverage with a rental car is minuscule and won’t really cover you in a bad accident. You can buy additional liability with the car rental if needed or look for third-party coverage. Don’t overlook this just because you have the credit card damage coverage. CDW also won’t cover loss of your personal property or damage to another vehicle. Also be sure that the person with the card coverage is the primary renter and if anyone else will drive, make sure they are listed as an authorized driver by the car rental agency.
Examples of Cards with Primary Auto Rental Coverage, Subject to Card Terms
Personal Credit Cards
- Chase Sapphire Preferred® Card
- Chase Sapphire Reserve
- United℠ Explorer Card
- United Club Infinite Card
- The Ritz Carlton Credit Card (no longer available to new applicants; you can product change from a Marriott Bonvoy Boundless® Credit Card or Bold if you’d like).
Both premium Chase Sapphire cards include auto rental coverage, subject to the terms and residency exceptions in their Guides to Benefits. The main difference is that the Chase Sapphire Reserve covers a higher limit on the car value ($75,000 as of time of writing – confirm when applying). However, the Chase Sapphire Preferred has a much lower annual fee and a massive signup bonus.
Note that if you don’t qualify for Chase cards, most American Express credit cards provide secondary rental coverage.
Business Credit Cards
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- Chase Ink Business Preferred® Credit Card ($95 annual fee)
- Chase Ink Business Cash® Credit Card (no annual fee)
- Chase Ink Business Unlimited® Credit Card (no annual fee)
- United℠ Business Card ($150 annual fee)
When using a Business credit card domestically for a car rental, please keep in mind the coverage is only primary if the car rental is for legitimate business purposes. Our top choices for this benefit alone are the Chase Ink Unlimited or Ink Business Cash because they don’t carry annual fees.
One more thing…
Free-day certificates can affect eligibility, so check your card’s payment requirements before combining them with a rental. The current Sapphire Reserve guide requires the entire rental transaction to be paid with the covered account and/or eligible rewards. That is different from a blanket rule that every points-based rental is excluded: eligible Ultimate Rewards redemptions can qualify under the applicable Chase guide.
The Bottom Line on CDW
It’s super important to have the protection offered on damage, but it’s even more important to understand the coverage you have. Don’t assume. If you don’t have a card with primary coverage, I would definitely recommend getting one. And if you are in any doubt as to the limitations of what your card provides, call them before starting your rental. Once you drive off the lot, it’s too late to change cards.
Questions or Thoughts?
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The US Bank Altitude Reserve does too and its effective annual fee is only $75
I thought Citi Bank dropped rental car coverage benefits on all their line of personal and business cards with a single exception of Citi Costco card.
Is the “CitiBusiness / AAdvantage Platinum Select World Mastercard” in the same category?
Hi Peter, It definitely did have it before, but I cannot seem to definitively confirm that it still does. As you suggest it likely lost the benefit last year. Data is conflicting. This post says it still has it and is from 5 days ago: https://www.forbes.com/advisor/credit-cards/reviews/citibusiness-aadvantage-platinum-select-mastercard/ That said, I cannot find a single mention on a Citi page about it that isn’t from 2016. So, I think you are right and I removed it from the post. Thanks.