Depending on the amount of coverage you want, car rental insurance can cost upward of $10 to $30 a day. The good news is, that you may already have complimentary car rental insurance. Your main car insurance policy may have a car rental add-on, or one of your credit cards may offer it an added perk. If you’re interested in finding a credit card with car rental insurance, we have the top options currently available to Canadian consumers.
Best Credit Cards With Car Rental Insurance In Canada
Driving a rental car without car rental insurance can be dangerous and costly. If you were to get into an accident, you could be held liable for thousands of dollars in damages. This could land you in a lot of debt. While a personal loan could help finance such damages, having car rental insurance can help avoid such circumstances.
Thankfully, there are many credit cards with car rental insurance in Canada. Below is a list of some of the credit cards that offer the best coverage.
| Card | Annual Fee | Coverage Amount |
| TD Aeroplan® Visa Infinite* Card | $139 | Rental car with MSRP up to $65,000 |
| American Express Cobalt™ Card | $155.88 | Rental car with MSRP up to $85,000 |
| Scotiabank Passport Visa Infinite | $150 | Rental car with MSRP up to $65,000 |
| Tangerine World Mastercard | $0 | Rental car with MSRP up to $65,000 |
| American Express Gold Rewards Card | $250 | Rental car with MSRP up to $85,000 |
TD Aeroplan® Visa Infinite* Card
This card, which is offered by TD Bank, has an annual fee of $139. When you first get the card, you earn 40,000 Aeroplan points.
With this card, you can earn 1.5 points for every $1 spent on eligible gas, grocery, and direct through Air Canada purchases (including Air Canada Vacations). All other eligible purchases will earn you 1 point for every $1 spent.
If you’re looking to earn more points, get twice the points when paying with your card or providing your Aeroplan number at over 150 partner brands and 170+ online retailers
You can also earn 50% more Aeroplan points by linking a TD card with a Starbucks Rewards account.
TD Aeroplan® Visa Infinite* Card Car Rental Insurance Details
The card offers coverage against damage and theft to the rental car, up to a maximum of $65,000.
| Rental car coverage | – Damage or theft to the rental car – Rental agency charges while the rental car is being repaired |
| Coverage amount | Rental car with MSRP up to $65,000 |
| Covered period | 48 consecutive days |
| Conditions | – Full cost of the rental car must be paid with the credit card – Rental agency’s collision damage waiver must be declined – Must report a claim within 48 hours of damage or loss |
Features Of The TD Aeroplan® Visa Infinite* Card
- Annual Fee: $139
- Welcome Bonus: Up to 40,000 Aeroplan points
- Extra Features:
- Savings at eligible Avis Rent A Car and Budget Rent A Car locations.
- Application fee rebate of up to $100 by enrolling for NEXUS once every 48 months (primary and additional cardholders).
- Savings on airport baggage fees for primary cardholders, additional cardholders, and up to 8 travel companions.
- Interest Rate: 20.99%
- Cash Advance Rate: 22.99%
- Eligibility: Must have a minimum personal income of $60,000 or household income of $100,000 annually. In addition, you have to be a Canadian resident and at least the age of majority in your province/territory.
American Express Cobalt™ Card
The American Express Cobalt Card has an annual fee of $155.88, which is charged on a monthly basis at $12.99. In the first year, you can earn up to 15,000 Membership Rewards points when you spend at least $750 per month on the card.
You earn five Membership Rewards points for every $1 spent at a restaurant or grocery store, three Membership points for every $1 spent on streaming subscriptions in Canada and two Membership Rewards points for every $1 spent on gas or travel. For all other purchases, you earn one Membership Rewards point for every $1 spent. You can get 1 additional point for every $1 spent on eligible hotel or car rental bookings on Amex Travel Online.
American Express Cobalt™ Card Car Rental Insurance Details
The card offers coverage against damage and theft to the rental car, up to a maximum of $85,000.
| Rental car coverage | – Damage or theft to the rental car – Rental agency charges while the rental car is being repaired |
| Coverage amount | Rental car with MSRP up to $85,000 |
| Covered period | 48 consecutive days |
| Conditions | – Full cost of the rental car must be paid with the credit card – Rental agency’s collision damage waiver must be declined – Must report a claim within 48 hours of damage or loss |
Features Of The American Express Cobalt™ Card
- Annual Fee: $12.99 monthly (Annual cost: $155.88)
- Welcome Bonus: Earn up to 1,250 Membership Rewards points per monthly billing period when you spend $750 on your card within your first year as a new Cobalt Cardmember. That’s up to 15,000 points ($150 in rewards) in a year.
- Extra Features:
- Mobile Device Insurance coverage (when you fully charge or finance the purchase price of an eligible device to your card).
- Front Of The Line® presale and reserved tickets for restaurants, concerts and other events.
- Dining, retail, entertainment, wellness and onsite benefits through American Express® Experiences.
- Interest Rate: 21.99%
- Cash Advance Rate: 21.99%
- Eligibility: Must be a Canadian resident, have a Canadian credit profile, and be at least the age of majority in your province/territory. No income requirements were specified.
Scotiabank Passport Visa Infinite*
The Scotiabank Passport Visa Infinite card has an annual fee of $150, which is waived in the first year. As a welcome bonus, you can earn up to 35,000 Scene+ points.
You can earn two Scotia Rewards points on every $1 spent on all other groceries, restaurants, entertainment, and transit purchases. For all other purchases, you can earn one Scotia Rewards point for every $1 spent. You can earn even more points (3 Scene+ points for every $1) when you shop at Sobeys, Safeway, Foodland, participating co-ops, and more.
Scotiabank Passport Visa Infinite* Car Rental Insurance Details
The card offers coverage against damage and theft to the rental car, up to a maximum of $65,000.
| Rental car coverage | – Damage or theft to the rental car – Rental agency charges while the rental car is being repaired – Reasonable towing and administration charges |
| Coverage amount | Rental car with MSRP up to $65,000 |
| Covered period | 48 consecutive days |
| Conditions | – Full cost of the rental car must be paid with the credit card – Rental agency’s collision damage waiver must be declined – Must notify the insurance administrator immediately after any loss or damage |
Features Of The Scotiabank Passport Visa Infinite*
- Annual Fee: $150
- Welcome Bonus: Earn up to $1,100 in value for the first 12 months, including up to 35,000 Scene+ points and your annual fee waived for the first year.
- Extra Features:
- No foreign transaction fees for purchases made online or outside of Canada.
- Complimentary Visa Airport Companion Program membership, plus 6 free visits to over 1,200 lounges globally per year from your date of enrollment.
- Complimentary Avis (Rent A Car) Preferred Plus membership to all card members.
- Interest Rate: 20.99%
- Cash Advance Rate: 22.99%
- Eligibility: Must have a minimum personal income of $60,000 or minimum household income of $100,000 or a minimum of $250,000 worth of assets under management of. No age or residency requirements specified.
Tangerine World Mastercard
The Tangerine World Mastercard does not have an annual fee. The card’s Money-Back Rewards program is unique in the sense that you can choose what you want to earn 2% cash back on. You can pick two categories for which you want to earn 2% cash back: grocery, furniture, restaurants, hotel-motel, gas, recurring bill payments, drug store, home improvement, entertainment, and public transportation and parking. Outside of the two categories you pick, you earn 0.50% cash back on your other purchases.
Special Offer
Right now, you can earn a bonus 10% cash back, worth up to $100.
Tangerine World Mastercard Car Rental Insurance Details
The card offers coverage against damage and theft to the rental car, up to a maximum of $65,000.
| Rental car coverage | – Damage or theft to the rental car – Rental agency charges while the rental car is being repaired – Reasonable towing and administration charges |
| Coverage amount | Rental car with MSRP up to $65,000 |
| Covered period | 31 consecutive days |
| Conditions | – Full cost of the rental car must be paid with the credit card – Rental agency’s collision damage waiver must be declined – Must notify the insurer immediately after any loss or damage |
Features Of The Tangerine World Mastercard
- Annual Fee: $0
- Welcome Bonus: Earn a bonus 10% cash back up to $100.
- Extra Features:
- Get a third 2% Money-Back Category when you deposit your rewards into a Tangerine Savings Account.
- Complimentary Mastercard Travel Pass (provided by DragonPass).
- Rental Car Collision/Loss Damage Insurance when you rent a vehicle for up to 31 consecutive days and charge the full rental cost to your card.
- Interest Rate: 20.95%
- Cash Advance Rate: 22.95%
- Eligibility: Must be at least the age of majority in your province/territory and consent to a credit check. No income requirements specified.
American Express® Gold Rewards Card
The American Express Gold Card has an annual fee of $250. In your first year, you can earn up to 5,000 Membership Rewards points each monthly billing period if you make $1,000 in purchases on the card. That’s a total of 60,000 Membership Rewards available to earn in your first year.
You earn two Membership Rewards points for every $1 spent on gas, at drugstores, travel, groceries, and travel. For all other purchases, you earn one Membership Rewards point for every $1 spent. You can earn 1 additional point for every $1 spent on eligible hotel and car rental bookings on Amex Travel Online.
American Express® Gold Rewards Card Car Rental Insurance Details
The card offers coverage against damage and theft to the rental car, up to a maximum of $85,000.
| Rental car coverage | – Damage or theft to the rental car – Rental agency charges while the rental car is being repaired |
| Coverage amount | Rental car with MSRP up to $85,000 |
| Covered period | 48 consecutive days |
| Conditions | – Full cost of the rental car must be paid with the credit card – Rental agency’s collision damage waiver must be declined – Must make a claim within 48 hours of any theft or damage |
Features Of The American Express Gold Rewards Card
- Annual Fee: $250
- Welcome Bonus: Earn up to 60,000 Membership Rewards points when you charge at least $1,000 to your card each billing period within the first year of membership ($600 value).
- Extra Features:
- One $100 Annual Travel Credit to redeem for bookings through American Express Travel Online.
- $50 CAD statement credit when a NEXUS application or renewal fee is charged to your card.
- 4 free visits to Plaza Premium Lounges across Canada per calendar year (entry fees will apply once your complimentary visits have been used).
- Interest Rate: 21.99%
- Cash Advance Rate: 21.99%
- Eligibility: Must be a Canadian resident, have a Canadian credit profile, and be at least the age of majority in your province/territory. No income requirements specified.
3 Steps On How To Choose The Right Credit Card
How To Choose A Credit Card With Car Rental Insurance
Looking for the best credit card options?
Credit Card Car Rental Insurance Coverage
There are several types of car rental insurance that you might get with your credit card. You might be offered a collision damage waiver, rental car accident insurance, or rental car personal effects insurance. Just keep in mind that you likely won’t get all three options with your credit card.
Collision Damage Waiver
This kind of insurance provides coverage if a rental car is stolen or damaged. Your personal car insurance may also extend to rental cars. Most credit cards offer this coverage, even if the damage is your fault.
Rental Car Accident Insurance
Rental car accident insurance provides coverage if you get into a car accident. It replaces personal accident insurance offered by rental car companies, but can also supplement it. This kind of insurance offers a lump sum payout per accident in the event of death or dismemberment.
Rental Car Personal Effects Insurance
This kind of insurance provides coverage if any personal belongings are stolen from a rental car. For example, if your rental car is broken into and a personal laptop is stolen from inside, the theft of the laptop would be covered. Rental car personal effects insurance can replace the personal effects coverage offered by a rental car company, which provides a set amount to claim against. Homeowners’ and tenants’ insurance may also replace rental car personal effects insurance.
What Is Not Covered Under Credit Card Car Rental Insurance?
Both third-party liability insurance and personal injury insurance are not covered under credit card car rental insurance. Third-party liability insurance covers damage caused to someone else’s property, while personal injury insurance covers medical costs stemming from an accident.
Many credit cards also do not offer personal effects insurance, which protects valuables. For example, if you leave your wallet in a rental car that gets stolen, you won’t be compensated for the wallet.
Similarly, most credit cards do offer third-party liability coverage. However, third-party liability insurance is legally required to drive in Canada. As such, most car rental agencies already have third-party liability insurance included in their rates. Be sure to ask your car rental agency to find out how much you’re covered.
Things To Look Out For With Credit Card Car Rental Insurance
When using rental insurance from your credit card, there are a few things to consider.
Charge The Entire Rental Amount To Your Credit Card
If you pay some of the cost of your car rental with a form of payment other than your credit card, you might not be covered by your credit card’s car rental insurance policy. Charge the entire amount of a car rental to your credit card to be sure that you’re covered.
Decline The Rental Company’s Car Insurance
If you accept the coverage provided by a car rental company, you will fall under their insurance, not your credit card provider’s insurance. Decline the coverage provided by the car rental company to use your credit card car rental insurance.
Check Your Coverage Limits
Your credit card’s car rental insurance policy might not cover certain types of vehicles or vehicles over a certain price. Take a look at your credit card’s car rental insurance policy to verify any coverage limits.
Where Are You Renting The Vehicle?
Your credit card car rental insurance may not cover you if you rent a vehicle in another country. Look into the terms of your credit card’s car rental insurance policy before you leave to make sure you’re covered.
Check How Long You’re Covered For
Different credit card companies will cover you for different periods of time. Look into your credit card’s car rental insurance policy to see the number of days you’re insured for.
Make Sure Your Credit Card Is In Good Standing
Your credit card account must be in good standing, including not owing more than a certain amount on your credit card and having a good payment history. If your account is not in good standing, you may be denied coverage.
Will There Be Any Secondary Drivers?
Your credit card might only cover you as a driver. Double-check that your credit card car rental insurance covers secondary drivers such as a friend or family member.
Bottom Line
Most credit cards offer car rental insurance to cover damage or theft, which protects you if something happens to a car you rent. There is a set period under which you are covered, and you are covered up to a certain amount. To use a credit card’s car rental insurance, you usually have to pay the full cost of the rental using the credit card in question. You must also decline any collision damage waiver offered by a rental agency. As long as you follow the policies set out in your cardholder’s agreement and the certificates of insurance, you should have no problem making any claims to your insurance provider.
