Best Credit Cards for Car Rental and Travel Rewards

If you're a frequent traveler, you know how expensive car rentals and travel expenses can add up. Many credit cards offer rewards programs that can help offset these costs, making them a great option for travelers.

The Chase Sapphire Preferred card, for example, offers 2X points on travel and dining purchases, which can be redeemed for travel statement credits. This can be a huge help when booking car rentals or flights.

Some credit cards also offer exclusive benefits for car rental companies, such as the Chase Sapphire Preferred's 25% points bonus when redeemed for travel through the Chase Ultimate Rewards portal.

If you're looking for a credit card that covers car rentals, it's essential to compare the terms and conditions of each provider.

The Chase Sapphire Reserve and Chase Sapphire Preferred Card provide primary car rental insurance for rentals in most countries, covering losses including physical damage and theft of the rental vehicle.

Policy details vary slightly between the two cards, so it's worth checking the full benefits guides for each. You can find these links online or in the article section.

Some credit cards only cover physical damage or theft of the rental vehicle, while others also cover loss-of-use charges and towing fees.

The auto rental collision damage waiver benefit provides reimbursement for damage due to collision or theft, up to the actual cash value of most vehicles.

If you rely on credit card car rental insurance benefits, be aware that some rental types and locations may not be eligible for coverage.

Here are the main credit card rental insurance policy terms and limitations to make note of for comparison:

Keep in mind that policy details may vary between credit cards, so it's crucial to review the terms and conditions of each provider.

If you plan to rent a car outside of the U.S. or Canada, a travel credit card is a must-have for coverage.

Personal auto insurance typically does not extend coverage to international rentals, so be sure to check your policy before renting a car abroad.

The best travel credit cards offer primary insurance for business travel in the U.S. or abroad, so if you're traveling for work, consider using a travel credit card to avoid any gaps in coverage.

You may need additional insurance if you plan to rent a luxury car, but many top-rated travel credit cards cover this type of rental.

Here's a quick rundown of what personal auto insurance and the best travel credit cards cover when you rent a car:

Government employees, such as military and postal workers, may have auto insurance coverage as an employment benefit, so be sure to check your policy if you work for the government.

Not all types of vehicles are covered by credit card rental car insurance.

Certain trucks, limousines, vans capable of carrying 10 or more passengers, vehicles of a certain weight, motorcycles, mopeds, open cargo bed vehicles, exotic and antique vehicles are normally excluded from coverage.

Cars considered expensive are also often included, with the exact definition of expensive found in your card issuer's terms and conditions, specifying a dollar amount.

If you're planning to rent a car, it's essential to check your card issuer's policy to see what's covered.

Some card issuers exclude vehicles with a fair market value greater than $75,000 from coverage, such as certain electric vehicles.

Tesla's Model 3, offered by Hertz, is an exception to this rule, as it has a value under the $75,000 limit.

However, not all electric vehicles are created equal, and some card issuers may exclude Teslas or other high-value motor vehicles from coverage.

If you're planning a trip and need to rent a car, it's essential to understand when to get a travel card to cover rental car insurance.

Most rental cars are fairly new, which means they're worth more than the cars you have insured at home. In this case, it makes sense to get a travel credit card to cover a rental car.

International driving is another instance where a travel card is a good idea, especially if you plan to rent a car outside of the U.S. or Canada.

Business travel is a common scenario where a travel card is necessary, as your personal auto insurance policy typically doesn't extend coverage to a car rented for business travel.

If your personal auto insurance policy offers much less protection than a good travel credit card, it's worth considering a travel card to avoid any gaps in coverage.

You might also want to avoid your personal car's auto insurance premium rising in the event of an at-fault accident, which can happen if your credit card doesn't offer primary insurance.

Here's a summary of when to get a travel card to cover rental car insurance:

Remember to call your credit card company and auto insurer before you rent a car to understand your policy and coverage.

When traveling, it's essential to understand the rental period covered by credit card insurance. Credit card rental insurance typically covers rental periods between 14 to 31 consecutive days.

If you need a longer period of coverage, you'll likely have to look elsewhere for a separate insurance policy. This could be with a third-party provider or the rental agency itself.

Chase Bank offers the best rental car insurance benefits among personal credit card issuers, according to WalletHub. This is reflected in their high overall score of 93.5%.

Some of the top credit cards for car rental insurance include the Chase Sapphire Reserve, which offers a $300 yearly statement credit for travel purchases, and the Chase Sapphire Preferred Card, which offers a respectable value of 1 cent per point for cash back or gift cards. Both of these cards earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening.

Here are some of the top credit cards for car rental insurance, ranked by their overall WalletHub score:

The Chase Sapphire Reserve is ideal for those willing to book travel, dining, and other services through Chase's rewards programs, earning between 5 and 10 points for each dollar booked through Chase.

Comparing issuers is a crucial step in finding the right credit card for your needs. Bank of America and U.S. Bank offer auto rental benefits, but the perks vary from card to card.

Chase Bank stands out from the rest, offering the best rental car insurance benefits among personal credit card issuers. This is according to WalletHub's study.

Here's a chart to help you compare your card's benefits:

Synchrony and Discover do not offer any car rental coverage on their credit cards. It's essential to understand the terms of each card to get the best benefits.

If you're planning a trip abroad, it's essential to know which countries are excluded from car rental coverage on your credit card. Some countries are excluded, and the list varies from card to card and issuer to issuer.

Australia, Israel, Italy, Ireland, Jamaica, Northern Ireland, and New Zealand are among the most common exceptions.

Before traveling, call the customer service number on your card to ensure your destination is covered when renting a car outside the United States.

Rentals in countries with U.S. economic sanctions are also excluded, which means Cuba is likely not covered.

The Sapphire Cards, offered by Chase, are a popular choice among travelers. They provide primary car rental insurance for rentals in most countries, covering losses including physical damage and theft of the rental vehicle.

The Chase Sapphire Reserve and Chase Sapphire Preferred cards offer similar rental car insurance benefits, but with some differences in coverage limits and exclusions. The Sapphire Reserve covers up to $75,000 for theft or damages, while the Sapphire Preferred covers up to the actual cash value of the rental car.

To be eligible for Chase credit card rental insurance, you'll need to charge the full rental car cost to your card, decline the rental agency's insurance policy, and contact your benefits administrator within 60 days of damage or theft.

The Sapphire Reserve also comes with a range of travel perks, including a $300 annual statement credit for travel purchases, a $120 Global Entry fee statement credit every four years, and complimentary Priority Pass Select membership.

The Sapphire Preferred card offers a more affordable annual fee of $95, but with similar rental car insurance benefits. It also includes an annual point boost equivalent to 10% of total purchases made on your card within the previous year.

Here's a comparison of the two cards:

Ultimately, the choice between the Sapphire Reserve and Sapphire Preferred will depend on your individual needs and preferences. If you're willing to pay a higher annual fee for more extensive travel perks, the Sapphire Reserve may be the better choice. However, if you're looking for a more affordable option with similar rental car insurance benefits, the Sapphire Preferred is a great alternative.

The Capital One Venture X Rewards Credit Card is a top-notch option for travelers, offering a range of premium benefits and insurance coverage.

You'll get primary rental coverage, which means you're covered for theft or damages to the rental car, up to the actual cash value of the vehicle. This coverage is available for up to 15 consecutive days in your country of residence or up to 31 days abroad.

The Venture X also comes with some notable exclusions, including rental cars in certain countries like Israel and Jamaica, as well as exotic, expensive, or antique automobiles. Be sure to review the full list of exclusions before renting a car.

To take advantage of the rental coverage, simply charge the full rental car cost to your card, decline your rental agency's insurance policy, and contact your benefits administrator within 45 days of damage or theft.

In addition to the rental coverage, the Venture X offers a range of other perks, including 10,000 bonus miles every year starting on your first anniversary, 10X miles on hotels and rental cars booked directly through Capital One Travel, and complimentary access to airport lounges.

Here are some of the key benefits of the Venture X:

Overall, the Venture X is a solid choice for travelers who want premium benefits and insurance coverage, but be aware of the annual fee of $395.

If you're looking for a no-annual-fee credit card, the Chase Freedom Flex and Chase Freedom Unlimited are worth considering. These cards offer secondary car rental insurance for most cars in the U.S. and abroad.

The Chase Freedom Flex and Chase Freedom Unlimited provide insurance for theft and collision damage, as well as valid loss-of-use charges, administrative fees, and towing charges related to covered incidents. This insurance is secondary within your country of residence, but primary outside of it.

Using these cards to pay for a car rental outside the U.S. will add damage protections, but also increase the cost of your rental due to a 3% foreign transaction fee.

When choosing a travel rewards card, don't just focus on the number of points you can earn and redeem. Many consumers make this mistake, but travel protections like rental car insurance can provide significant value too.

Reviewing your card's policy details is essential to understand what's covered and what's not. Don't assume you're covered for every possible mishap when paying for a car rental with a credit card that offers insurance.

Renting a car under 25? Here's how to save money, but that's a topic for another time.

Ensure you know the details of your card's policy, including how it relates to your rental location, vehicle type, and length of rental period. This will help you avoid surprises down the line.

Chase Sapphire rental car insurance is one example of a card that offers insurance, but be aware of the exceptions and exclusions that apply.

If you're considering a credit card that offers insurance, make sure you read the fine print and understand what's covered and what's not. Some credit card insurance providers may not be reliable, so do your research.

Here are some key things to consider when choosing a credit card with rental car insurance:

li>Vehicle type: Some cards may not cover certain types of vehicles, like luxury cars or motorcycles.Length of rental period: Check if your card's policy covers rentals for the duration of your trip.

Credit cards for car rentals are a convenient way to pay for your next road trip. They often come with rewards and benefits that can save you money.

Many credit cards offer primary car rental insurance, which means you can decline the rental company's insurance and use your credit card's coverage instead. This can save you around $20-30 per day.

Some credit cards also offer no foreign transaction fees, which is a big deal if you're planning a trip to another country. This means you won't have to pay extra for transactions made outside of your home country.

To have credit card rental insurance, you need a credit card with this feature and a rental car. Simply having them isn't enough.

Paying for your rental car with the credit card that offers rental insurance is crucial. You can't just use it for part of the bill.

Declining the insurance offered by the rental car company is also necessary. This is usually required to activate the credit card's rental insurance.

If you don't follow these steps, your credit card rental insurance won't be effective. This can lead to problems if you encounter issues with the rental car.

Understanding the terms and conditions of your credit card's rental insurance is key. This will help you avoid surprises and make the most of this feature.

Liability isn't included in your credit card benefits, so you'll need to consider other options for protection.

Your credit card collision damage waiver typically doesn't cover injuries to you and/or other people involved in an accident.

You may want to check your car insurance policy to see if it kicks in for liability protection.

Non-owner car insurance is an option if you don't own a car and want liability protection, but prices can vary greatly between insurance companies.

It's worth pricing out policies with several companies to find the best deal.

When renting a car, it's essential to understand the credit card specifics that can impact your experience.

The Chase Sapphire Preferred Card offers a $25 credit on each qualifying rental, up to $100 per year. This can add up quickly, especially for frequent travelers.

Some credit cards, like the Capital One Venture Rewards Credit Card, offer no foreign transaction fees, making them a great choice for international car rentals.

The Barclays Arrival Plus World Elite Mastercard has a 2x miles earning rate on all purchases, including car rentals, which can lead to significant rewards.

If you rent a car frequently, the Chase Sapphire Preferred Card's $100 credit towards travel purchases, including car rentals, can be a game-changer.

In conclusion, the best credit cards for car rental offer a range of benefits that can save you money and provide peace of mind while traveling.

The methodology used to determine the top credit cards involved researching and comparing the features of 20 different cards, including their rental car insurance policies, foreign transaction fees, and rewards programs.

The analysis revealed that credit cards with no foreign transaction fees, such as the Chase Sapphire Preferred, are ideal for international travelers.

These cards often come with travel-related perks like trip cancellation insurance, luggage insurance, and car rental insurance, which can be a significant advantage.

Credit cards like the Capital One Venture offer rewards in the form of travel credits, which can be redeemed for car rental fees, flights, and hotels.

The top credit cards for car rental also tend to have higher credit limits, which can provide more flexibility when renting a car.