Some credit cards include car rental insurance, but what it pays depends entirely on the card's own terms.
- Some cards replace the rental company's damage waiver, others reimburse the excess after you have paid it.
- Typical conditions are that you pay the full rental with that card, keep to a maximum rental length and, for some cards, decline the company's waiver.
- Read your card's benefit terms before you travel, and claim within the card insurer's deadlines.
At the rental desk, the agent offers zero-excess cover for a price that can double the rental. You remember your credit card ‘includes car hire insurance’, but you are not sure what that means. Credit card rental cover can save you money, but only if you know which type you have and meet every condition in the card's terms. This article explains the main models, the conditions that cause claims to fail, and how to claim.
Two ways card cover works
Card insurance for rental cars comes in two broad forms.
Cover that replaces the rental company's waiver. The card insurer pays for damage to or theft of the rental car, instead of the company's collision damage waiver (CDW). Visa's auto rental benefit for eligible US cards works like this: you have to decline the rental company's collision or loss damage waiver and charge the full rental to the covered card. It reimburses physical damage and theft, and also valid administrative and loss-of-use charges and reasonable towing charges.
Cover that reimburses your excess. You keep the company's standard waiver, and the card insurer pays back the excess you were charged. The Mastercard Platinum card of BIL in Luxembourg is an example. It covers repair or restoration costs up to the excess in your rental contract if you declined the company's waiver, or up to the remaining excess if you accepted it. It has a 75 euro deductible per claim, a maximum of 10,000 euros per claim and a maximum rental of 31 days.
ECC France advises checking which guarantees and insurances your credit card includes before you leave, and under which conditions they apply.
Primary or secondary cover?
These terms come from the US but appear in many card guides:
- Primary cover pays first, without you claiming on any other insurance.
- Secondary cover only pays what your other insurance does not, such as your own car insurance or the deductible.
Visa explains that its benefit is secondary when you have other insurance that covers the damage, and primary when you do not. For rentals outside the US, it is primary. For travellers from Europe, whose own car insurance rarely covers a rental abroad, this distinction matters less than the conditions below.
The conditions that trip people up
| Condition | Example from card terms | What to check |
|---|---|---|
| Pay with the card | Visa and BIL both require the rental to be paid with the covered card | Pay the full rental with that card, not a deposit only |
| Decline or accept the CDW | Visa requires you to decline it; BIL covers both cases, with different limits | What your card says about the company's waiver |
| Rental length | Visa: up to 31 days abroad; BIL: up to 31 days | Split long rentals only if the terms allow it |
| Vehicle type | BIL excludes, among others, sports cars, vehicles over 3.5 tonnes, campers and 4x4 vehicles off public roads; Visa excludes trucks and cargo vans | The car class you booked |
| Countries | Visa's US benefit is not available in Jamaica, Ireland or Israel | Your destination |
| Drivers | BIL requires drivers to be named on the rental contract | Add every driver at the desk |
| Type of damage | BIL excludes wear and tear and interior damage not caused by theft or an accident | Tyres, glass, interior and keys |
These are examples, not a full list. Terms change, so ask for the current benefit terms of your own card.
Don't pay twice
ECC Belgium warns against buying both a product that removes the excess in advance and an insurance that refunds it afterwards, because you would be paying twice for the same thing. The same logic applies to card cover. If your card reimburses the excess, a desk product that sets the excess to zero may add little. Our guide to extra insurance at the rental desk helps you decide, and the excess calculator compares the costs.
What card cover does not do
Card cover does not stop the rental company from charging you. In most cases you pay first and claim later. That means:
- the company can still block a deposit on your card, possibly a larger one if you decline its waiver;
- you still deal with the company if you think the damage claim is wrong;
- the card insurer reimburses according to its own terms and deadlines.
Visa's benefit, for example, does not cover lost or stolen personal belongings, injuries or personal liability. Your rental's third-party liability insurance and your travel insurance remain important.
Report the damage in time
Card insurers have their own deadlines. Visa's US benefit asks you to report the incident within 45 days, return the signed claim form within 90 days and send all documents within 365 days. BIL asks for the claim form within 30 days of learning of the claim. Note your card's deadlines in the deadline calculator.
Collect the documents
Card insurers usually ask for:
- the rental agreement from pick-up and the final one from return;
- the card statement showing the rental payment;
- the damage report, photos and the repair invoice or estimate;
- a police report for theft or vandalism;
- the rental company's invoice or charge for the damage.
Dispute what you think is wrong
If you think the damage claim is too high or not your fault, dispute it with the rental company as well. Ask for the evidence and the repair invoice, and use our guide on how to dispute a damage claim. Tell the card insurer about your objection. If the company lowers the claim, the insurer pays less, and if it refuses, you have a paper trail.
Submit and follow up
Send the claim with everything in one go, and keep copies. If the insurer refuses, ask for the reason and the term it relies on in writing. Our article on claiming your excess back from insurance explains the same process for standalone policies, and damage charged to your credit card covers chargebacks.
Frequently asked questions
Do all credit cards include car rental insurance?
No. It is usually a benefit of certain card types, such as premium or business cards, and the terms differ per bank and country. Ask your bank or card issuer for the benefit terms in writing before you rent.
Should I decline the rental company's CDW if my card covers it?
Only if your card's terms say so and you understand the consequence. Some cards require you to decline it, others work alongside it. If you decline it, you carry the full excess until the card insurer reimburses you, and the company may block a larger deposit.
Does card cover pay if I dispute the damage?
It pays according to its terms, usually after the rental company has charged you. You can still dispute an unfair claim with the rental company. Tell the card insurer, because it may want to see your objection and the company's answer.