With the right credit card, you can say “No, thanks” when the car rental company offers you insurance. Consider a card that offers primary coverage, which can be more convenient because you won’t have to file a claim with your personal insurer first.
What is car rental insurance?
Car rental insurance covers the costs of certain incidents that may occur while you’re renting a vehicle. For example, it may cover costs for vehicle repair or medical treatment.
There are different types of rental car insurance. The main ones are:
Collision damage waiver.
Personal accident insurance.
Personal effects coverage.
Supplemental liability insurance.
What does credit card car rental insurance cover?
A credit card with rental car insurance will typically offer a CDW. Though this isn’t technically insurance, it’s an agreement with your rental car provider that you won’t be financially liable if the vehicle is damaged or stolen on your watch.
What types of credit cards offer car rental insurance?
Many premium, travel and business cards offer car rental insurance as an added feature. This typically covers you for damage and theft to your rental vehicle as well as loss of use if it needs to be repaired. Often, credit cards designed for drivers will also offer car rental insurance, in addition to roadside assistance and discounts on fuel and car rentals.
Most credit card companies will need you to turn down the rental company’s CDW or loss damage waiver (LDW) coverage to qualify for their insurance. You’ll also have to charge the full amount of the car rental to your credit card and you’ll need to borrow it using your full legal name. In addition, most credit card car rental coverage will only cover the primary credit card holder – so be careful who you let behind the wheel of your rental.
Best credit card for car rental insurance Canada
Best for international car rentals: Scotiabank Gold American Express Card
The Scotiabank Gold American Express Card is a powerful everyday credit card as well as a strong travel companion. Earn 6 Scene+ points for every $1 you spend in Canada at Sobeys, Safeway, FreshCo, Foodland and more, 5 Scene+ points per $1 spent on eligible grocery, dining and entertainment purchases, 3 Scene+ points per $1 spent on eligible gas, transportation and select streaming services, and 1 Scene+ point per $1 spent on eligible purchases elsewhere. Book and redeem any flight for any time through Scotia Rewards Travel Service, a full-service travel agency. Plus, take advantage of the Best Price Guarantee on airfare. Plus, enjoy peace of mind with a broad array of travel insurance options.
Bonus rewards. Earn up to 40,000 bonus Scene+ points in your first year (that's up to $650 towards travel). Apply by July 1, 2024. To qualify for the 40,000 bonus Scene+ points offer, earn 20,000 bonus Scene+ points by making at least $1,000 in purchases in your first 3 months. Plus, earn a 20,000 Scene+ point bonus when you spend at least $7,500 in purchases in your first year.
Earn rewards. Earn 6 Scene+ points for every $1 you spend in Canada at Sobeys, Safeway, FreshCo, Foodland and more, 5 Scene+ points per $1 spent on eligible grocery, dining and entertainment purchases, 3 Scene+ points per $1 spent on eligible gas, transportation and select streaming services, and 1 Scene+ point per $1 spent on eligible purchases elsewhere.
Currency conversion. This card comes with a 0% foreign transaction fee.
Travel coverage. Enjoy peace of mind with a broad array of travel insurance options including Emergency Medical, Travel Accident, Trip Cancellation and Interruption, Flight Delay, Delayed or Lost Baggage and Rental Car Collision Loss/Damage.
Travel perks. Book and redeem any flight for any time through Scotia Rewards Travel Service, a full-service travel agency. Plus, take advantage of the Best Price Guarantee on airfare.
Other perks. American Express rewards including early ticket access, discounts and invites to exclusive events.
Annual fee. This card has an annual fee of $120.
Minimum income requirement. You'll need to earn a minimum income of $12,000 a year to be eligible for this card.
Annual Fee
$120
Purchase APR
20.99%
Cash Advance Rate
22.99%
Balance transfer APR
22.99%
Welcome offer
Earn up to 40,000 bonus Scene+ points in your first year (that's up to $650 towards travel). Apply by July 1, 2024. To qualify for the 40,000 bonus Scene+ points offer, earn 20,000 bonus Scene+ points by making at least $1,000 in purchases in your first 3 months. Plus, earn a 20,000 Scene+ point bonus when you spend at least $7,500 in purchases in your first year.
Rewards
Earn 6 Scene+ points for every $1 you spend in Canada at Sobeys, Safeway, FreshCo, Foodland and more, 5 Scene+ points per $1 spent on eligible grocery, dining and entertainment purchases, 3 Scene+ points per $1 spent on eligible gas, transportation and select streaming services, and 1 Scene+ point per $1 spent on eligible purchases elsewhere.
Best for additional car rental insurance: BMO Ascend World Elite Mastercard
Designed with the frequent traveller in mind, the BMO Ascend World Elite Mastercard lets you earn reward points that can be redeemed for free merchandise or to help pay for your next trip.Get 5 BMO Rewards points per $1 spent on eligible travel purchases, 3 points per $1 spent on eligible dining and entertainment purchases, and 1 point per $1 spent on all other eligible purchases.. The annual fee of $150 can be more than offset by travel benefits such as complimentary travel insurance, lounge access, 24/7 concierge services and an attractive signup bonus.Get up to 90,000 points and get the $150 annual fee waived in the first year..
Signup bonus. Get up to 90,000 points and get the $150 annual fee waived in the first year.
Rental car collision damage insurance. Get complimentary Collision Damage Waiver benefits (MSRP of up to $65,000).
Reward points. Get 5 BMO Rewards points per $1 spent on eligible travel purchases, 3 points per $1 spent on eligible dining and entertainment purchases, and 1 point per $1 spent on all other eligible purchases.
Travel insurance coverage. Cardholders under 65 years of age get up to $2 million Out-of-Province/Out-of-Country Emergency Medical benefits for unlimited trips per year up to 21 days per trip. Other trip assistance services include emergency cash transfers (subject to available credit up to a maximum of $5,000) as well as coverage for lost/stolen/damaged baggage, trip cancellations/delays/interruptions, flight delays and lost/stolen travel documents and tickets. Cardholders aged 65-74 years old are eligible for separate coverage at an additional cost.
Extended warranty and purchase protection. Get complimentary purchase protection and extended warranty insurance on many of your card purchases. This means that eligible items are automatically covered against theft or damage for 90 days from the date of purchase. Additionally, the original manufacturer's warranty for eligible items is extended for up to 1 additional year..
Annual fee. This card has an annual fee of $150.
Foreign transaction fee. This card has a foreign transaction fee of 2.5%This will apply on any overseas purchases or any purchases made online with an international retailer.
Eligibility requirements. You'll need to earn a personal income of at least $80,000 or a combined household income of at least $150,000 annually.
Annual Fee
$0 intro annual fee for the first year ($150 thereafter)
Purchase APR
20.99%
Cash Advance Rate
23.99%
Balance transfer APR
23.99%
Welcome offer
Get up to 90,000 points and get the $150 annual fee waived in the first year.
Rewards
Get 5 BMO Rewards points per $1 spent on eligible travel purchases, 3 points per $1 spent on eligible dining and entertainment purchases, and 1 point per $1 spent on all other eligible purchases.
Best for no annual fee: Scotiabank American Express Card
For a card with a $0 annual fee, the Scotiabank American Express Card offers great value like the opportunity to earn points that can be redeemed for thousands of rewards through the Scene+ points program.Earn 3 Scene+ points on every $1 you spend at Sobeys, Safeway, FreshCo, Foodland and more, 2 Scene+ points for every $1 you spend on eligible grocery, dining, entertainment, gas, daily transit and select streaming services purchases Plus, earn 1 Scene+ point for every $1 spent on on all other eligible everyday purchases. Most items purchased with this card are eligible for price protection as well as purchase security and extended warranty protection. Cardholders also get travel perks.
Signup bonus. Earn up to 7,500 bonus Scene+ points. Earn 2,500 bonus Scene+ points when you make $250 in everyday purchases in the first 3 months. Plus, earn 5,000 Scene+ points when you spend $1,000 in everyday purchases in the first 3 months. Apply by July 1, 2024.
No annual fee. This card comes with a $0 annual fee.
Reward points. Earn 3 Scene+ points on every $1 you spend at Sobeys, Safeway, FreshCo, Foodland and more, 2 Scene+ points for every $1 you spend on eligible grocery, dining, entertainment, gas, daily transit and select streaming services purchases Plus, earn 1 Scene+ point for every $1 spent on on all other eligible everyday purchases.
Travel insurance coverage. Get up to $1,000,000 Travel Emergency Medical coverage for up to 8 consecutive days if you're under 65 years old or up to 3 consecutive days if you're 65+. Pus, enjoy coverage for Travel Accidents, Trip Interruptions and Rental Car Collision Loss/Damage.
Car rental perks. Get up to 25% discount at participating Budget and AVIS car rental locations in Canada and the US.
Foreign transaction fee. This card has a foreign transaction fee of 2.5%This will apply on any overseas purchases or any purchases made online with an international retailer.
Minimum credit limit. The credit limit for this card starts at $1,000, so it may not be suitable if you want a card with very restrictive spending.
Minimum income requirement.. You'll need to earn a personal income of at least $12,000 to be eligible for this card.
Annual Fee
$0
Purchase APR
19.99%
Cash Advance Rate
22.99%
Balance transfer APR
22.99%
Welcome offer
Earn up to 7,500 bonus Scene+ points. Earn 2,500 bonus Scene+ points when you make $250 in everyday purchases in the first 3 months. Plus, earn 5,000 Scene+ points when you spend $1,000 in everyday purchases in the first 3 months. Apply by July 1, 2024.
Rewards
Earn 3 Scene+ points on every $1 you spend at Sobeys, Safeway, FreshCo, Foodland and more, 2 Scene+ points for every $1 you spend on eligible grocery, dining, entertainment, gas, daily transit and select streaming services purchases Plus, earn 1 Scene+ point for every $1 spent on on all other eligible everyday purchases.
We’ve chosen the cards on this page based on the providers available through Finder. These cards are not representative of the entire market. Our top credit cards for car rentals offer coverage for your car rental, a high value of rewards or cashback, exclusive perks such as travel insurance coverage and roadside assistance and a signup bonus. We’ve also considered annual fees and balance transfer fees.
No single credit card will be the best choice for everyone, so compare your options before picking your new card.
Credit card car rental insurance by bank
Below is a summary of credit card car rental insurance offered by major banks in Canada along with sample credit cards that offer this. Keep in mind that not all big bank credit cards come with credit card car rental insurance. Be sure to check the fine print before applying for a credit card.
Car rental insurance covers you and authorized drivers. If you want additional drivers to qualify for coverage, they must be listed on your agreement with the rental car company.
How to get car rental insurance
Your rental car provider will sell insurance as you book your rental vehicle. You can also buy coverage through car insurance companies and even travel insurance providers.
How to qualify for credit card car rental insurance
If your credit card offers car rental insurance, check its guide to benefits to see how to qualify for coverage. Typically this involves:
Paying for your entire car rental with the credit card that offers the insurance. If you don’t pay for your reservation with this card, you won’t be covered.
Decline the collision damage waiver offered to you by the rental company. This might be abbreviated as CDW or called a loss-damage waiver (LDW) in the company’s contract. If you accept the rental company’s collision damage waiver, you won’t be eligible for your credit card’s car rental insurance.
How to choose the best credit card for car rental insurance Canada
Decide if you want to pay a fee. You might spend less upfront on a no-fee card, but it can offer less in the way of rewards or cashback. Be sure to weigh out which type of card has the most value for you.
Ensure ample coverage. You may not be eligible for coverage under your plan in particular countries or for certain types of vehicles. Make sure you check the fine print before you settle on a card – and don’t always assume you’re covered.
Search for extended protection. Most credit cards will offer coverage from 31–48 days, but not always, so search for a provider that will provide insurance for an adequate amount of time.
Stock up on driver benefits. Aim to lock in a card that offers additional benefits for drivers like more points or cashback on gas purchases, discounts on car rentals, roadside assistance plans, travel insurance and more.
Shoot for bonus rewards. Look for a card that offers a decent return on points or cashback as well as a signup bonus offer.
Find out if you’re eligible. Be sure to check that you meet income, residency and age requirements for the card you want before applying.
Secondary vs. primary coverage for credit card car rental insurance
To evaluate whether credit card car rental insurance works for you, it’s helpful to know the difference between secondary and primary coverage. You can see what type of coverage a card has in its guide to benefits.
Secondary coverage applies after your personal car insurance. This means after an incident, you must file a claim with your personal insurer and pay the required deductible. Most credit card car rental insurance policies offer secondary coverage. However, even if your card has secondary coverage, it might cover the deductible of your personal insurance.
Primary coverage applies before your personal car insurance. This is usually much more convenient, as it means you won’t have the hassle of filing a claim with your personal insurer. Several credit cards offer primary coverage, most of them issued by Chase.
What is car rental excess insurance?
Car rental excess is the deductible you’ll have to pay if you get into an accident. The amount of the excess or deductible can vary, but typically ranges between $500 and $2,000 depending on the age and model of the vehicle. You can protect yourself against having to pay this amount by purchasing car rental excess insurance.
Compare some of the best products for credit card car rental insurance
How can I use credit card car rental insurance?
Before driving your rental vehicle, look up your benefit administrator’s contact information. Your benefit administrator is the company that pays your claims in the event of an accident. Look for your administrator’s phone number in your card’s guide to benefits. If you don’t have the guide, call your card issuer for your administrator’s contact information.
If there is an incident, call your benefit administrator. Do this immediately after the vehicle theft or damage. Your benefit administrator will give you next steps and relevant information — such as which supporting documents to prepare — and send you a claim form.
Return the claim form by the deadline. Include additional documents and return the material to your benefit administrator. Typically, you’ll have 100 to 180 days from the incident to do so. If you don’t return the form in time, your claim may be denied.
Do you really need car rental and excess insurance?
Car insurance can save you a lot of money in the long run and can be required by law, although rental companies have to work some form of third party liability insurance into your initial costs. However, car rental excess insurance isn’t mandatory. You might decide not to get excess insurance at all, as long as you don’t mind potentially paying a sizeable deductible if you get into an accident.
How do I claim car insurance from my credit card provider?
For starters, most credit card companies will need you to decline the rental company’s insurance. You’ll then need to sign up as the primary driver and pay for the rental in full on your credit card. If you get into an accident, you should contact your rental company and credit card provider to work out how to file a claim.
Bottom line
Many credit cards offer car rental insurance. Choosing the best credit card for car rental insurance in Canada can take some time. Be sure to do your research. Consider looking for those that offer primary coverage. To find the insurance that works for you,compare travel credit cards and their benefits.
Frequently asked questions
Look for the guide to benefits when your provider mails your card to you. You can also log in to your online card account, where you’ll find links to the guide and other important documents.
This depends on what coverage you need. Keep in mind your personal auto or health insurance may cover you for car rentals as well. Check these policies to make sure. Learn about other forms of insurance and whether you should get them.
It might, especially if it’s a travel card. You might see other types of coverage such as lost luggage, baggage delay, and trip cancellation and interruption insurance.
Yes, a minimum level of third party liability insurance is required by law for all rental cars in Canada. Depending on the province and rental car agency, your coverage could range from $200,000 to $1 million and should already be factored into your rental costs.
This depends on your provider. If you plan to drive outside Canada, you’ll need to make sure you have a valid international driver’s licence. From there, you can ask for a written approval from your credit card provider stating that you’ll be covered overseas.
This depends on the card, but you’ll likely be covered for anywhere between 31 and 48 consecutive days of renting.
MSRP stands for manufacturer’s suggested retail price and is commonly referred to as the listing price for a vehicle. This is the price that manufacturers recommend a dealership sell the car for. Credit card rental coverage will only cover a vehicle up to a certain MSRP – usually between $65,000 and $85,000. Keep this in mind when you go to rent that Lamborghini or Ferrari with your card.
Veronica Ott was a writer at Finder. She's written for numerous finance and business websites including Loans Canada, Borrowell and Fresh Start Finance. She previously worked as a professional chartered accountant in the private equity and advertising industries.
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