What’s the difference between primary vs. secondary rental car insurance?

When renting a car, you’ll be offered numerous rental car insurance options during the checkout process. Many have confusing names that seem important. In some cases, these coverage options can be more than the daily cost of the rental car itself.

Credit card rental car benefits provide coverage for the vehicle and savings for your wallet. Depending on which credit card you have, you’ll receive primary or secondary rental car insurance. This article explains how rental car insurance works, the difference between primary and secondary coverage and how to tell if your credit card offers these benefits.

Renting a car can be confusing: Here’s what you need to know ahead of time.

How does rental car insurance work?

To use your credit card’s rental car insurance benefits, start by using your card to book your reservation. Most credit cards require that you pay the entire reservation with your card, while others may only require that a portion be charged to the card.

When you pick up the vehicle, you must decline the “collision damage waiver” offered by the rental car company. If you accept the rental company’s insurance, it cancels coverage by your credit card benefits.

If you have a damage or theft claim during your rental period, contact your credit card customer service. A third-party company often provides these benefits, and customer service will provide their contact information or transfer you to its representatives so you can start filing your claim.

In most cases, these insurance benefits cover up to the actual cash value of the rental car (up to maximum limits stated in the coverage terms). Additionally, these benefits cover reasonable towing charges if the vehicle is disabled and valid loss-of-use charges incurred by the rental car company. Coverage is for a limited time as well. Generally, coverage applies for limited rental periods. For example, Chase offers coverage for up to 31 days, while Capital One’s coverage is up to 15 days in your home country or 31 days in a foreign country.

Credit card rental car insurance does not cover all types of vehicles. Exotic or antique automobiles, work trucks, large passenger vans, motorcycles, limousines and recreational vehicles are all excluded from coverage, for example.

Do you have to have rental car insurance? Here’s why coverage can be a smart money move.

Primary vs. secondary coverage: Which is better?

While both types of rental car insurance offer savings when renting a car, primary rental car coverage is better.

Secondary rental car coverage supplements your personal auto insurance policy. It covers your deductible and fills in the gaps in coverage limits to ensure that the damage or theft of the rental car is covered up to benefit limits.

Primary rental car insurance does not involve your personal auto insurance if there is a claim. This insurance handles all claims for damage, theft, towing and loss of use up to its coverage limits.

How do I know which coverage my credit card provides?

There are a few ways to find out if your credit card offers rental car insurance and whether it’s primary or secondary.

• Look at the card’s marketing page. Banks often highlight valuable credit card benefits – like rental car protection – on their website to encourage new applications.
• Guide to benefits. Banks include a guide to benefits when they mail customers their new cards. Additionally, these guides are available online through the bank’s website or an internet search. Search for your card’s name and guide to benefits in your browser if you can’t find it on the bank’s website.
• Contact customer service. Call customer service at the number on the back of your card to ask about your card’s benefits. Some banks also allow you to send a secure message or initiate a chat to ask questions about your account.

Cards that offer primary rental car coverage

Numerous credit cards offer protections to reduce financial risks while traveling. Here’s a list of personal and small business credit cards that include primary rental car coverage as part of the card benefits package:

• Chase Sapphire Preferred® Card
• Chase Sapphire Reserve®
• Ink Business Preferred® Credit Card * The information for the Ink Business Preferred® Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
• Ink Business Cash® Credit Card
• United℠ Explorer Card * The information for the United℠ Explorer Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
• United Club℠ Infinite Card * The information for the United Club℠ Infinite Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer.
• Capital One Venture X Rewards Credit Card * The information for the Capital One Venture X Rewards Credit Card has been collected independently by Blueprint. The card details on this page have not been reviewed or provided by the card issuer. ¹
• Bilt World Elite Mastercard® – Auto Rental Collision Damage Waiver (primary coverage not eligible in New York)

My card doesn’t offer primary insurance, can I still get it?

If your credit card doesn’t offer primary rental car insurance, you can get it by using another credit card that does to pay for your rental car. As you can see from the list above, there are numerous options that include this benefit at no extra charge.

Some travel insurance policies offer primary rental car protection, so keep this in mind when comparing policies. However, you’ll need to compare prices and coverage options for these policies against what the rental car company offers.

American Express also offers Premium Car Rental Protection as a stand-alone policy. It charges a flat rate per rental period for up to 42 consecutive days of protection. When you enroll your American Express card in this program, you’ll receive primary rental car coverage every time you rent a car with that card.

Final verdict

Credit card rental insurance saves travelers money and provides protection against damage or theft to the vehicle. While it doesn’t cover medical claims or damage to other property, it does provide peace of mind.

If your credit card offers coverage, it will be either primary or secondary rental car insurance. Primary rental car insurance is best because it doesn’t involve your personal insurance policy in case of a claim. For those who are unsure what type of benefits their credit card offers, contact the card issuer, look at the card’s marketing page or review your guide to benefits. If you aren’t satisfied with the coverage, consider swapping out your credit card with one that has better benefits.

Frequently asked questions (FAQs)

^{¹For Capital One products listed on this page, some of the above benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.}