Best Credit Cards With Car Rental Insurance

Best Credit Cards With Car Rental Insurance

Written by Matthew Taylor
Fact-checked by Caitlin Wood
Last Updated December 1, 2021

Depending on the amount of coverage you want, car rental insurance can cost upward of $10 to $30 a day. The good news is, 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 that offers car rental insurance, we have the top options currently available to Canadian consumers.

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.

  • 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 of up to a set amount 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.

Find out if your car insurance covers your friend driving your car.

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. 

Travelling in Canada? Find out if you need travel insurance while travelling in Canada.

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 Car 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 Your Rental 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.

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 You Are Renting

Your credit card car rental insurance may not cover you if you rent a vehicle in another country. Look into the terms for your credit card’s car rental insurance policy before you leave to make sure you’re covered.

Planning on travelling? Save money and be covered with these credit cards with travel insurance.

Period 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.

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.

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.

Find out how drunk driving can affect your car insurance.

Best Credit Card Car Rental Insurance In Canada

There are many credit cards in Canada that offer car rental insurance. Below is a list of some of the credit cards that offer the best coverage.

BMO World Elite Mastercard

This card, which is offered by BMO, has an annual fee of $150. This fee is waived in the first year that you have the card. As a welcome offer, you can get 25,000 points when you spend $3,000 in the first three months you have the card, plus 5,000 points on the first anniversary you have the card.

This card operates on a rewards system, where you earn three points for every $1 spent on travel, dining, and entertainment. You get two points for every $1 spent on all other purchases.

Find out if your credit card rewards can be taxed.

BMO World Elite Mastercard 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
– Reasonable towing charges
Coverage amountRental car with MSRP up to $85,000
Covered period48 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 Operations Centre immediately after any loss or damage

TD Aeroplan® Visa Infinite* Card

This card, which is offered by TD, 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 10,000 Aeroplan points, and a further 10,000 points when you spend $1,000 within the first 90 days you have the card. You will also get a Buddy Pass to anywhere Air Canada flies in North America so you can bring a friend on your next adventure.

You can earn 1.5 Aeroplan points for every $1 spent on gas and groceries, as well as purchases made through Air Canada. All other purchases earn one Aeroplan point for every $1 spent. 

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 amountRental car with MSRP up to $65,000
Covered period48 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

American Express Cobalt™ Card

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 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.

Got too much credit card debt? Learn how to deal with credit card debt.

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 amountRental car with MSRP up to $85,000
Covered period48 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

Scotiabank Passport Visa Infinite

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 30,000 Scotia Rewards points after spending $1,000 in the first three months you have the card. You can earn a further 10,000 Scotia Rewards points after spending $40,000 in the first year you have the card. You can also earn five times the Scotia Rewards points on travel purchases in the first three months you have the card.

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.

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 amountRental car with MSRP up to $65,000
Covered period48 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

Tangerine World Mastercard

The Tangerine World Mastercard does not have an annual fee. You can earn 10% cash back on the first $1,000 in purchases you make within two months of having the card, plus you pay 1.95% interest for the first six months. After that, you pay 19.95% interest on the card.

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.

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 amountRental car with MSRP up to $65,000
Covered period31 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

American Express Gold Rewards Card

The American Express Cobalt Card has an annual fee of $150. In the first three months, you have the card, you can earn 25,000 Membership Rewards points if you make $1,500 in purchases on the card.

You earn two Membership Rewards points for every $1 spent on gas, at drugstores, on groceries, and on travel. For all other purchases, you earn one Membership Rewards point for every $1 spent.

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 amountRental car with MSRP up to $85,000
Covered period48 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

Bottom Line

Most credit cards do not offer personal injury insurance, third-party liability insurance, and personal effects insurance for vehicles. Some credit cards, however, 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, and you must 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.


Rating of 5/5 based on 1 vote.

Matthew joined the Loans Canada writing team in 2021 while was finishing up a Bachelor's degree at the University of Saskatchewan. It was there that he discovered his love of writing. His work has appeared in several publications, including the Canadian Student Review and NewEngineer.com. In his spare time, Matthew enjoys reading, geocaching, and spending time with his family and pets.

Click on the star to rate it!

How useful was this post?

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Make Smarter Borrowing Decisions

Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.

Save With Loans Canada

Special Offers

Earn An Extra 15% Cash Back

Earn An Extra 15% Cash Back
HOT!

Apply for a Tangerine credit card by December 31, 2021, and earn an extra 15% back (up to $150).*

View Offer
Build Credit With Refresh Financial

Build Credit With Refresh Financial
Popular

Build credit while spending money with the Refresh Financial VISA card.

View Offer
Build Credit For $7/Month

Build Credit For $7/Month
Popular

With KOHO’s prepaid VISA card you can build a better credit score for just $7/month.

View Offer
Industry Spotlight

What's happening with Canada's credit industry?

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer is Canada's first consumer peer to peer lending platform and connects creditworthy Canadians looking for a loan with everyday Canadians looking...

Read Post
Locator
Find The Best Rate
In Your Region
OR
Best Personal Loan Provider by Greedy Rates
Icon

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.

When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.

Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.

Your data is protected and your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Keep Track Of Your Credit Score

Subscribe with Credit Verify to monitor your credit rating and get your free credit score.