Best Credit Cards With Rental Car Insurance for 2024

When you rent a car, purchasing insurance provides peace of mind and protection if anything goes wrong. Although this add-on normally costs extra, you can get coverage free of charge from credit cards with rental car insurance.

There are quite a few cards offering rental car protection as a complimentary perk -- here are our top picks.

How does credit card rental car insurance work?

Credit card rental car insurance can cover the cost if your rental car is damaged or stolen. For this insurance to apply, you need to pay for the full cost of the rental car with your credit card and decline the insurance offered by the rental car company.

Exact terms for car rental insurance depend on the credit card. You can find this information in the guide to benefits.

What does rental car insurance cover?

Rental car insurance covers damage or theft. While insurance coverage varies depending on the credit card and the card issuer, most travel credit cards with rental car insurance have similar policies. Here are more details on what the typical credit card rental insurance policy covers.

Damage and theft

If the rental vehicle is physically damaged or stolen in a covered incident, then credit card rental insurance pays the repair or replacement cost. The maximum amount paid out will be either the actual cash value of the vehicle or the policy's coverage maximum, whichever is less.

Towing charges

Rental insurance reimburses reasonable and customary towing charges to take the vehicle to the nearest qualified repair facility after a covered loss.

Loss-of-use charges

Rental insurance covers valid loss-of-use charges incurred by the rental car agency after a covered loss.

Cardholder and authorized drivers

Credit card rental insurance applies when the cardholder or an authorized driver allowed by the rental agreement is driving the car. Depending on the policy, it may also cover the cardholder's spouse or domestic partner.

What does rental car insurance not cover?

Each credit card rental insurance policy has a list of exclusions. These vary depending on the card, and there can be quite a few of them. Below, we've provided some of the most common things that aren't covered by credit card rental car insurance.

Liability insurance

Credit cards don't offer any liability coverage. If you're liable for an accident and anyone is injured, credit card insurance won't cover that. In this situation, you'd need to file a claim with your auto insurance. If you don't have auto insurance, then you may be required to pay for damages yourself.

Long-term rentals

Credit card rental insurance only covers short-term rentals. Most policies only cover vehicle rentals that don't exceed and aren't intended to exceed either 30 days or 31 days, with the exact time frame depending on the card.

This means if you rent a car for two months, your credit card's rental insurance likely wouldn't cover it at all, because your rental period exceeds the maximum time frame.

Certain types of vehicles

Special types of vehicles normally aren't covered by credit cards with car rental insurance. Examples of vehicle types that are excluded from most policies include:

• Expensive and exotic vehicles
• Antique automobiles
• Motorcycles
• Large-capacity vehicles, such as cargo vans or recreational vehicles
• Off-road vehicles

Violations of the rental car agreement

If you violate the rental policy, this can void your car rental insurance. One of the most common violations is letting someone who isn't an authorized driver on the rental agreement use the car.

Leases and vehicle sharing agreements

Credit card insurance strictly covers reservations with rental car companies. It doesn't apply to lease agreements or rentals made through any type of vehicle sharing or peer-to-peer rental service.

How to pick the best credit card for rental car insurance

If rental car coverage is one of the most important credit card features for you, it's worth reviewing the details of each card's insurance policy. Here are the items to look for to find a card that fits your needs.

• Type of coverage: See whether the card offers primary or secondary rental car insurance. Not everybody needs a card with primary coverage, but it is a notable advantage.
• Restricted areas: Credit card rental car insurance works outside the United States, but there may be certain countries that are excluded. If you frequently rent a car while traveling abroad, make sure to check for any geographic restrictions on a card's rental insurance.
• Coverage limits: Some credit cards offer higher rental coverage limits than others. This might be an important factor if you often rent expensive cars.

Our travel credit cards methodology

At The Motley Fool Ascent, we rate travel credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria Includes rewards systems and bonus categories, rewards redemption flexibility, and sign-up bonuses.

Our highest-rated travel credit cards have:

• Rewards system and bonus categories (the earn rate of flat-rate rewards, or tiered spending categories)
• Rewards redemption flexibility and points programs (booking travel, transfer partners, statement credit, etc.)
• Sign-up bonuses that can drastically boost card value in the first year
• Perks that can offset annual fees like airport lounge access, travel credits, and TSA PreCheck reimbursement

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best travel card recommendations. Our aim is to maintain a balanced best-of list featuring top-scoring travel credit cards from reputable brands.

Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how The Ascent rates credit cards.