Credit card rental car insurance: What it is & how it works

Some credit cards include rental car insurance as a cardholder benefit. This coverage can help pay for damage to or theft of a rental vehicle when certain requirements are met. Typically, coverage applies to the rental vehicle itself and doesn’t include liability protection.

What you’ll learn:

• Credit card issuers may offer cardholder benefits, like rental car insurance, with some of their credit cards.

• Credit card rental car insurance may cover theft or damage to the rental vehicle or towing costs if there’s been an accident.

• In some cases, credit card rental car insurance can supplement personal auto insurance. 

• Rental car insurance is available to eligible Capital One cardholders.

When you rent an eligible vehicle with a qualifying credit card, you may automatically receive rental car insurance. To take advantage of the insurance, you’ll need:

• Payment: Pay the entire rental amount with your qualifying credit card.

• Authorization: List all the drivers on the rental car agreement.

• Coverage: Decline the rental company’s optional collision damage waiver (CDW) or loss damage waiver.

Keep in mind that if your rental vehicle is in an accident, credit card rental car insurance will only cover the damage to the rental car. You may need to purchase additional coverage, especially when traveling outside of the United States.

And some vehicles, like antique cars, exotic cars and high-capacity vans, are excluded from coverage. If you’re unsure whether your rental is covered, contact the card’s benefits administrator before your trip to ensure you make an informed decision at the rental counter.

Credit card rental car insurance typically comes in two coverage forms: primary or secondary. Here’s how they work:

Primary coverage directly covers eligible damage to or theft of the rental car up to the policy limit and generally doesn’t require involving your personal auto insurance. Primary coverage may help you avoid paying your personal auto insurance deductible and may help keep the claim off your personal insurance record. 

Typically, this coverage is available as a built-in travel benefit on premium credit cards—like the Capital One Venture X card—as long as you pay for the rental car with the eligible card and decline the rental agency’s CDW at the counter.

Secondary coverage covers eligible costs not paid by other available insurance, such as your personal auto policy. If you don’t own a car, this type of coverage can effectively function as primary coverage, and some low- or no-fee credit cards provide this benefit (though benefits vary by card).

Similar to primary coverage, you must pay for the rental with the eligible card and decline the agency’s CDW. If an accident or other covered event occurs, your personal auto policy coverage will be considered by the benefits administrator when determining the claim payout, if applicable. Because there are specific filing requirements, you can file personal auto policy and credit card rental car claims at the same time. 

It’s important to note that credit card rental coverage typically covers damage to the rental vehicle, not liability for injuries or damage to other people’s property.

Several eligible Capital One credit cards provide rental car insurance, including the Venture X card. 

Rental car insurance can vary between credit card networks and card issuers. Capital One cardholders can check their benefits guide or contact a benefits administrator to confirm coverage before traveling.

Credit card rental car insurance coverage varies by card and location. If eligible, here are some types of coverage the benefit may provide:

• Collision coverage: For physical damage to your rental car in case of a collision

• Theft coverage: In case a rental vehicle is stolen

• Towing charge coverage: To recover a rental vehicle if it needs to be towed after an accident

• Loss-of-use charge coverage: When the rental company seeks compensation for lost rental revenue when your vehicle is damaged and can’t be rented while it’s being repaired

Here are claims that aren’t typically covered by credit card rental car insurance:

• Bodily injury: Physical injury to you or others

• Property damage: Damage to other vehicles; property damage to the belongings of others 

• Personal items: Luggage or other items stolen from the rental vehicle

• Auto breakdown: Mechanical breakdown of the rental vehicle

To file a claim for a rental car, you must file within a certain amount of time. For that reason, you may want to provide notice of an incident as soon as possible. Information on how to initiate a claim and how soon it must be done is typically found in your card’s benefits guide. But here’s how the process might work:

1. Notification: Alert your card’s claims administrator about the incident involving your rental car or initiate a claim online.

2. Documentation: Complete a claim form and provide documentation, which may include things like the vehicle rental agreement, the police report from the incident and an itemized repair estimate.

3. Reimbursement: Receive compensation for proven losses within the time frame specified by the benefits administrator. You may also be given the option to have the payment sent directly to the rental car company.

Here are answers to frequently asked questions about credit card rental car insurance:

Credit card issuers sometimes offer rental car insurance through their credit cards, but coverage depends on your card’s specific benefits. Credit card rental car insurance can be used on its own or in combination with personal car insurance to give extra peace of mind. 

Capital One offers travel rewards credit cards with valuable benefits—some including rental car insurance—and elevated rewards to help make your travel experience more enjoyable. 

• Explore travel rewards cards with unlimited miles you can actually use. 

• Elevate your next adventure with the Venture X card, which offers premium travel benefits and more.

• Earn unlimited 2X miles on every purchase, every day, and earn a one-time 75,000-mile bonus with the Venture card. 

• Earn unlimited 1.25X miles on every purchase, every day, with the VentureOne card.