Does Mastercard Come with Rental Car Coverage?

Last Updated on February 3, 2022

If you have a Mastercard credit card, then you may have rental car insurance.

Most Mastercard credit cards come with rental car insurance, although some cards do not. Typically, Mastercard’s rental car coverage covers physical damage and theft of the vehicle, loss of use charges, towing costs, and other costs, up to $50,000 or the value of the vehicle.

Do you have rental car coverage with Mastercard? How does Mastercard’s rental car coverage work? Keep reading to discover everything you need to know about Mastercard’s rental car insurance.

Table of Contents:

Most Mastercard Credit Cards Include Rental Car Insurance

If you have a Mastercard credit card, then you could have insurance for your rental car. Some Mastercard credit cards include rental car coverage, while others do not.

To qualify for coverage, you need to pay for the entire rental car using your credit card. You must also decline the collision damage waiver (CDW) or loss damage waiver (LDW) from the car rental company.

All Visa credit cards include rental car insurance, but not all Mastercard credit cards include rental car insurance. Coverage also varies between cards. Depending on your tier, you may have significantly more or less coverage than other drivers.

How Mastercard Rental Car Insurance Works

Mastercard’s rental car insurance works similar to the rental car insurance included with Visa and other credit cards. If you pay for your rental car entirely with your Mastercard credit card, then Mastercard may provide insurance for that rental period.

If your Mastercard credit card has rental car coverage, then Mastercard will cover certain damages to the rental car, including collision damages and theft. Mastercard covers up to $50,000, the actual repair amount, or the value of the vehicle, whichever is less.

Many rental car companies charge loss of use after a loss. The rental car cannot use the vehicle while it’s being repaired, so they charge you a daily fee for this loss of use. Mastercard will cover loss of use on your rental car.

Mastercard’s rental car coverage is available worldwide, except in places where it conflicts with a country’s laws or where it’s prohibited by law.

What Is Not Covered with Mastercard Rental Car Insurance?

Mastercard’s car rental insurance does not cover all types of vehicles or all types of losses. It also doesn’t include liability insurance.

Some of the things not covered by your Mastercard rental car insurance include:

  • Trucks, including pickup trucks
  • Certain other large vehicles, including cargo vans
  • Alternative vehicles, including off-road vehicles, limousines, and sport utility trucks
  • Trailers, motorcycles, motorbikes, and other vehicles with fewer than four wheels
  • Antique and exotic vehicles, including vehicles with an MSRP over $50,000
  • Liability damages, including all property damage and bodily injury damage for which you may be liable
  • Theft or loss of personal items within the vehicle (including the vehicle keys, portable GPS units, and luggage that may have been in the vehicle at the time of the loss)

Mastercard Is Secondary Auto Insurance

Mastercard is secondary auto insurance – not primary auto insurance. That means it forms the second layer of protection after you make a claim through your primary auto insurance policy.

You can only make a claim through your Mastercard car rental insurance after you make a claim through one of the following primary insurance providers:

  • The rental car company’s insurance agency
  • Your primary auto insurance policy (for your personal vehicle)
  • The authorized driver’s primary auto insurance policy (for their personal vehicle)
  • Other types of auto insurance

Although Mastercard provides secondary rental car coverage, the company should cover your deductible from your primary coverage. If you pay a $500 collision coverage deductible with your personal auto insurance policy, for example, then Mastercard should reimburse you.

Mastercard Coverage Limitations

Mastercard has specific coverage limitations. These limitations may vary between cards.

For most cards, Mastercard will pay the lesser of the following:

  1. The actual repair amount
  2. Wholesale market value minus salvage and depreciation costs
  3. The rental agency’s purchase invoice minus salvage and depreciation
  4. $50,000 USD

Mastercard also limits loss of use coverage to $500 per incident.

How to Use Mastercard Rental Car Insurance

Using Mastercard’s rental car insurance is straightforward. Just pay for the rental car with Mastercard, decline the rental car company’s coverage, and file a claim within 60 days of the incident.

Here’s how it works:

  1. Pay for your whole car rental using an eligible Mastercard.
  2. Decline the rental car company’s coverage, including the loss damage waiver (LDW) and collision damage waiver (CDW) and any additional insurance coverage options.
  3. After a loss, file a police report if necessary.
  4. Contact your primary insurance company (like your personal auto insurance provider) after the loss to begin the claims process.
  5. Contact Mastercard within 60 days of the incident to file a claim. Mastercard requires certain documentation, including a signed and completed claim form, the receipt for your rental, copies of the rental agreement, a police report (if necessary), an itemized repair estimate, and certain other documentation, depending on the loss.

Who Is Covered by Mastercard Rental Car Insurance?

Mastercard covers the covered cardholder and those designated in the rental agreement as authorized drivers.

How Long Does Mastercard’s Rental Car Coverage Last?

On most cards, Mastercard’s rental car coverage cannot exceed 15 days. However, some cards extend the rental period for up to 30 days.

Where Is Mastercard Rental Car Coverage Available?

Mastercard’s rental car coverage is available worldwide except for the Republic of Ireland, Northern Ireland, Israel, and Jamaica.

Mastercard’s rental car coverage is also not available in countries where it’s prohibited by law or in conflict with the laws of that country.

Other Items Not Covered by Mastercard Rental Car Insurance

Mastercard doesn’t cover all losses or damages to your vehicle. Mastercard will not cover things like:

  • Vehicle keys or portable GPS units damaged or stolen from the vehicle
  • Vehicles not rented by the cardholder or authorized user on the covered card
  • Any accidents involving someone not authorized as a driver on the rental car agreement
  • Any losses that occur while driving under the influence of drugs or alcohol
  • Any losses associated with racing or reckless driving
  • Any losses caused by intentional actions
  • Mechanical failures caused by wear and tear, gradual deterioration, or mechanical breakdowns
  • Tire blowouts
  • Any losses involving a rental vehicle being used for hire, for commercial use, or for business purposes

How to File a Mastercard Rental Car Insurance Claim

To file a Mastercard rental car insurance claim, call 1-800-Mastercard to request a claims form.

You must contact Mastercard within 60 days of the incident. Otherwise, your claim may not be honored.

Mastercard requires you to submit documentation validating the claim within 180 days of the incident. This could include a signed and completed claims form, itemized statement of losses or repairs, a copy of the rental agreement, and other required documents.

Check Your Mastercard Documents to Verify Coverage

Mastercard provides different levels of rental car coverage across different cards. Depending on your card, you could have significantly more or less coverage than other cardholders.

Check your policy documentation for things like:

  • Maximum rental period
  • Maximum coverage
  • Authorized users
  • Types of losses and damages covered

It’s possible some cards cover certain incidents while other cards do not. Check your Mastercard documentation to verify coverage.

Final Word on Mastercard Rental Coverage

Most Mastercard credit cards include rental car coverage. If you buy the rental car fully using your Mastercard credit card, then Mastercard could extend rental car coverage to you. This rental car coverage is secondary insurance that covers certain losses or damages to the vehicle exceeding your primary insurance coverage.

To learn more about your Mastercard rental car insurance coverage, or to initiate a Mastercard rental car insurance claim, contact Mastercard today.

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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