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

Credit cards can offer cardholders everything from rewards to travel perks. And some card benefits even include rental car insurance. This coverage can help cardholders when there’s damage to their rental vehicle and more. 

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 things such as theft and damage to the rental vehicle or the cost of towing if there’s been an accident.

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

• Credit card rental car insurance may be comparable to the coverage rental companies offer.

• Rental car insurance is available to eligible Capital One Venture X, Venture, VentureOne, Quicksilver, QuicksilverOne and Savor 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 to:

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

• Add all drivers to the rental car agreement.

• Decline the rental company’s optional collision damage waiver or loss damage waiver.

Keep in mind that if your rental vehicle is in an accident, credit card car rental 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 is typically either primary or secondary coverage. With primary coverage, credit card insurance is applied before a renter’s personal auto insurance kicks in. With secondary coverage, personal auto insurance is applied first and then the credit card insurance supplements it if necessary. 

If an individual rents a car using secondary credit card insurance and doesn’t have personal auto insurance, the credit card coverage generally converts to primary coverage.

If you don’t know whether the coverage through your card is primary or secondary, you may want to check your card’s benefits guide or contact the benefits administrator. Secondary coverage tends to be more common.

Rental car insurance is available through a variety of credit cards. Capital One offers rental car insurance on eligible cards such as the Venture X card. Check your guide to benefits to learn more about the benefits that come with your credit card.

Rental car insurance can vary between credit card networks and card issuers. Before your trip, you can check your benefits guide or contact the card’s benefits administrator to confirm your coverage.

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:

• Physical injury to you or others

• Damage to other vehicles

• Property damage to the belongings of others 

• Luggage or other items stolen from the rental vehicle

• Mechanical breakdown of the rental vehicle

Claims have to be filed 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. Notify your card’s claims administrator about the incident involving your rental car or initiate a claim online.

2. 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. Receive reimbursement 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. This benefit 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.