What Does Your Credit Card Cover When Renting a Car?
Last Updated on December 12, 2025
Many credit cards include rental car insurance coverage — but that doesn’t mean your card gives you “full coverage” on a rental car.
In most cases, credit card rental car coverage is a type of collision damage waiver (CDW) / loss damage waiver (LDW) benefit that helps pay for damage to the rental car (or theft of the rental car). It usually does not cover liability (injuries or damage you cause to other people).
So what does your credit card cover when renting a car? When is coverage primary vs. secondary? And when should you buy the rental company’s protection at the counter? Here’s what to know before you grab the keys.
Key Takeaways
- Credit card rental car insurance is usually CDW/LDW-style coverage that helps pay for damage to the rental car or theft — not full “car insurance.”
- Most credit cards provide secondary rental coverage (your auto insurance pays first), but some premium cards offer primary coverage that may let you avoid filing a claim on your personal policy.
- To activate coverage, you typically must pay for the rental with the card, keep the rental in your name, and decline the rental company’s CDW/LDW at the counter.
- Credit card benefits usually do not cover liability or injuries — so confirm your liability protection through your own auto policy or consider buying supplemental liability coverage from the rental company.
- Quick Answer: What Credit Card Rental Car Insurance Covers (and Doesn’t)
- How Insurance Covers a Rental Car
- How Credit Card Insurance Covers a Rental Car
- Secondary vs. Primary Coverage: What’s the Difference?
- Some Credit Cards Offer Primary Coverage
- Which Credit Cards Offer Rental Car Coverage?
- Questions to Ask Your Credit Card Company About Rental Car Coverage
- Top Credit Cards for Rental Car Insurance
- FAQs on Credit Card Rental Car Insurance
- Final Word on Credit Cards and Rental Car Insurance
Quick Answer: What Credit Card Rental Car Insurance Covers (and Doesn’t)
Credit card rental coverage typically helps with:
- Damage to the rental vehicle (collision-related repairs)
- Theft of the vehicle (or theft-related damage)
- Some rental-company charges like towing, administrative fees, and loss of use (depends on your card’s terms)
Credit card rental coverage typically does NOT help with:
- Liability for injuries or property damage you cause to others
- Medical payments or injuries (those are handled by auto insurance, health insurance, or the rental company’s optional coverages)
- Personal belongings stolen from the rental car (often covered by renters/homeowners insurance, not the credit card CDW)
- Damage that violates the rental agreement (reckless driving, off-roading, DUI, using the wrong fuel, unlisted drivers, etc.)
Important: To activate most credit-card rental coverage, you usually must (1) pay for the rental with the card and (2) decline the rental company’s CDW/LDW at the counter.
How Insurance Covers a Rental Car
Rental car coverage can feel confusing because there are multiple “layers” that may apply at the same time. Here’s the typical order of operations.
1) The rental company offers protection at the counter
When you rent a car, the agent will usually offer add-ons like:
- CDW/LDW (damage waiver): This is often the big one. It’s not traditional “insurance” — it’s a waiver that can limit (or eliminate) what the rental company can charge you if the vehicle is damaged or stolen.
- Supplemental Liability Insurance (SLI): Adds extra liability protection above whatever liability applies from your personal policy or the rental company’s minimum coverage.
- Personal Accident Insurance (PAI): Limited medical-type coverage for occupants.
- Personal Effects Coverage (PEC): Helps with stolen personal items (coverage limits vary a lot).
Rental companies like Alamo, Avis, Budget, Enterprise, Hertz, Sixt, Dollar, and Thrifty package these options differently, so always read the summary of coverage before you accept.
2) Your personal auto policy often provides primary coverage
If you have an ordinary auto insurance policy, it often extends to rental cars for personal use. In many cases, your coverage on the rental car mirrors what you carry on your own vehicle (liability, collision, comprehensive), subject to your policy terms and deductibles.
That said, not every policy is the same. Some policies limit coverage based on rental length, location (especially outside the U.S.), vehicle type, or business use. Always check your policy details before you travel.
3) Your credit card may add another layer of protection
When you pay for a rental with a credit card that includes CDW/LDW coverage, your card may reimburse you for covered damage/theft costs.
Most cards provide secondary coverage (meaning your personal policy pays first). However, some cards provide primary coverage — which can let you avoid filing a claim with your auto insurer, helping you avoid a deductible and potentially avoiding higher rates in the future.
How Credit Card Insurance Covers a Rental Car
Think of credit card rental coverage as protection for the rental vehicle itself (damage/theft), not protection for everything that could happen while driving.
If your credit card coverage is secondary, a rental claim usually goes like this:
- You file a claim through your auto insurance first (the primary coverage).
- Your credit card benefit may then reimburse eligible “gaps” — like your deductible or certain rental-company fees your primary policy doesn’t cover (depending on the card’s terms).
If your credit card coverage is primary, you may be able to handle the claim through the card benefit administrator without involving your personal auto insurer (again, subject to the card’s terms and exclusions).
Rental car costs covered by your credit card can include:
- Damage to the rental vehicle (collision-related damage)
- Theft of the vehicle
- Loss of use charges (if your card’s terms include it and the rental company can substantiate it)
Every card has limits, excluded vehicle types, and rental length restrictions. Many benefits only apply to rentals up to a set number of consecutive days (often somewhere in the 15–31 day range).
Secondary vs. Primary Coverage: What’s the Difference?
This is the biggest detail to confirm before relying on a credit card for rental coverage.
| Type of coverage | What it usually means | Why it matters |
|---|---|---|
| Primary | The claim can be handled through the credit card benefit first (for covered damage/theft). | You may avoid filing with your auto insurer, which can help you avoid a deductible and keep the claim off your personal policy history (when applicable). |
| Secondary | Your auto insurer is billed first (if you have auto insurance). Your card may cover remaining eligible costs. | You may still pay a deductible upfront and you’ll typically have a claim tied to your personal policy. |
In both cases, credit card benefits usually cover damage/theft to the rental car only — not liability and not injuries. If someone else is hurt or their property is damaged, you’re typically relying on liability coverage from your auto policy and/or the rental company’s liability options.
Some Credit Cards Offer Primary Coverage
Primary rental coverage is valuable because it may keep a rental claim from hitting your personal auto insurance. Cards known for strong primary rental protection include premium travel cards and certain co-branded or business cards.
Even with “primary” coverage, read the fine print: primary coverage usually applies to damage/theft to the rental car, and you still need to think about liability and injuries.
Which Credit Cards Offer Rental Car Coverage?
Many Visa and Mastercard cards include some version of auto rental CDW/LDW coverage, and many American Express cards include rental damage coverage (often secondary by default, with optional upgrades on some products).
Discover is the major exception: Discover generally does not include rental car insurance benefits like CDW/LDW on its cards today, so don’t assume a Discover card will protect the rental vehicle.
Because coverage depends on the specific card (and sometimes even your card’s tier), always check your card’s “Guide to Benefits” or call the benefit administrator before your trip.
Questions to Ask Your Credit Card Company About Rental Car Coverage
Coverage varies between cards. Before you rely on your credit card for a rental, confirm answers to these questions:
- Do I have primary or secondary coverage? Secondary is more common. Primary is a big perk if you want to avoid filing with your insurer.
- What do I need to do to activate coverage? Usually you must pay for the rental with the card and decline the rental company’s CDW/LDW. Also, the driver at the time of the incident typically must be listed on the rental agreement.
- What does the credit card cover? Many cards cover the rental vehicle’s damage/theft and may include extras like towing, administrative fees, and loss of use (varies by card).
- What does the credit card NOT cover? Most cards do not cover liability or injuries. If you cause a crash and someone needs medical treatment, that’s usually handled by auto insurance / health insurance / the rental company’s liability options — not the credit card’s CDW.
- Are all vehicle types covered? Many cards exclude exotic vehicles, certain high-value vehicles, motorcycles, and moving trucks like U-Haul. Some also exclude large passenger vans, cargo vans, or specialty vehicles.
- Are rentals from “non-traditional” companies covered? Some benefits exclude peer-to-peer or car-sharing rentals (for example, coverage may differ for services like ZipCar).
- How long does coverage last? Many credit card benefits only apply to rentals for a limited number of consecutive days.
- Do country restrictions apply? Some cards exclude certain countries or require a letter of coverage. Confirm before you fly.
Top Credit Cards for Rental Car Insurance
Benefits and fees can change, so treat this list as a starting point and verify details in your card’s official Guide to Benefits.
- Chase Sapphire Preferred Card: Chase Sapphire cardholders typically get strong rental coverage that can apply as primary for covered damage/theft when you pay with the card and decline the rental company’s CDW/LDW. Annual fee: $95
- Chase Sapphire Reserve Card: Premium travel card with primary rental coverage for covered damage/theft when you pay with the card and decline the rental company’s CDW/LDW. Annual fee: $795
- United Explorer Card: Primary rental coverage for covered damage/theft when you pay with the card and decline the rental company’s CDW/LDW. $0 intro annual fee for the first year, then $150
- United Club Infinite Card: Primary rental coverage for covered damage/theft when you pay with the card and decline the rental company’s CDW/LDW. Annual fee: $695
- Wells Fargo Autograph Visa: Auto Rental Collision Damage Waiver is included when you pay with the card and decline the rental company’s waiver. Coverage terms (primary vs secondary) depend on the benefit rules in your Guide to Benefits. No annual fee
- Capital One Quicksilver: Capital One cards can include rental car damage coverage when you pay with the card and decline the rental company’s CDW/LDW. Many Capital One cards provide secondary coverage for damage/theft. No annual fee
- Chase Freedom Unlimited: Chase Freedom Unlimited cardholders typically get auto rental CDW coverage when you pay with the card and decline the rental company’s waiver. In many cases, it’s secondary within your country of residence. No annual fee
- Ink Business Preferred Credit Card: Primary rental coverage can apply (especially when renting for business purposes) when you pay with the card and decline the rental company’s CDW/LDW. Annual fee: $95
- Any American Express Credit Card: All American Express credit cards can include rental car damage coverage (terms vary by card). Amex also offers optional Premium Car Rental Protection in many states, which can provide primary-style coverage for damage/theft for a flat fee per rental (pricing and coverage levels vary).
- Capital One VentureOne Rewards Credit Card: Secondary coverage is common on many cards in this family for covered rental car damage/theft when you pay with the card and decline the rental company’s waiver. No annual fee
- Citi Strata Premier® Card: Rental car collision damage coverage (often secondary in the U.S.; terms vary by country and rental length). To activate, pay for the rental with the card and decline the rental company’s CDW/LDW (see our guide: Do Citi Credit Cards Come With Rental Car Insurance?).
FAQs on Credit Card Rental Car Insurance
Final Word on Credit Cards and Rental Car Insurance
Credit card rental car insurance can be a great money-saver — but it’s easy to misunderstand. In most cases, it’s CDW/LDW-style protection that helps with damage to the rental car (or theft), not liability or injuries.
Before you decline coverage at the counter, verify what your personal auto policy covers, confirm whether your credit card coverage is primary or secondary, and make sure your rental (vehicle type, location, length) is eligible. When in doubt — especially for international rentals or unusual vehicles — consider purchasing the rental company’s coverage for peace of mind.
