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.
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 | $120 | Rental car with MSRP up to $85,000 |
| Scotiabank Passport Visa Infinite | $139 | 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 | $150 | Rental car with MSRP up to $85,000 |
This card, which is offered by TD Bank, has an annual fee of $139. This fee is waived during the first year you have the card. When you first get the card, you earn 55,000 Aeroplan points. With this 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.
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 |
The American Express Cobalt Card has an annual fee of $120. In the first year, you have the card, you can earn 2,500 Membership Rewards points for each month you spend $500 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.
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 |
The Scotiabank Passport Visa Infinite card has an annual fee of $139, which is waived in the first year. As a welcome bonus, you can earn up to 40,000 Scotia Rewards points. In general, you can earn two Scotia Rewards points on every $1 spent on 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.
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 |
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.
When you apply for a Tangerine World Credit Card by January 31, 2023, you’ll earn an extra 15% back on up to $1000 in everyday purchases within your first 2 months.*
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 |
The American Express Gold Card has an annual fee of $250. In the first three months, you have the card, you can earn 40,000 Membership Rewards points if you make $3,000 in purchases on the card within the first 3 months of owning it.
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.
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 |
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.
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 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.
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.
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.
When using rental insurance from your credit card, there are a few things to consider.
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.
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.
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.
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.
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.
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.
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.
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.
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Bryan is a graduate of Dawson College and Concordia University. He has been writing for Loans Canada for five years, covering all things related to personal finance, and aims to pursue the craft of professional writing for many years to come. In his spare time, he maintains a passion for editing, writing screenplays, staying fit, and travelling the world in search of the coolest sights our planet has to offer.
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