Best credit cards for rental car insurance in 2024
verified information
Information verified by Adeline Harmant
Our articles are written by experts in their fields (finance, trading, insurance etc.) whose signatures you will see at the beginning and at the end of each article. They are also systematically reviewed and corrected before each publication, and updated regularly.
Discover the methodologyRenting a car is expensive without having to purchase the additional collision damage waiver insurance protection offered by rental companies that can be up to an extra $50/day. Then again, if renters opt out of the extended coverage and something happens, the overall cost could be staggering.
So what do we do? Do we fork out the extra cost and purchase the car rental company’s damage waiver? Fortunately, there is an alternative: credit card rental car insurance. Credit cards exist that offer rental car insurance to specifically help you avoid the extra costs when renting a car.
This article has all the information you need about credit cards with rental car insurance including a list of the best credit cards with rental car insurance in Canada.
Credit Card Rental Car Insurance: 5 Key Takeaways
- BMO CashBack World Elite Mastercard is one of the best credit cards with car rental insurance
- A rental car will not be covered if its Manufacturer’s Suggested Retail Price is above a certain limit, normally $65,000
- Credit card rental car insurance normally only covers collision damage and theft
- You’re usually only insured if you pay for the full car rental with an eligible credit card
- It does not include third-party liability insurance which the car rental company will have to provide
What is a credit card rental car insurance?
Credit card rental car insurance is exactly what it says on the tin: it is insurance that covers your rental car. Automatically offered by some credit cards, the insurance coverage allows individuals to rent vehicles without having to purchase the extra collision damage waiver insurance sold by the car rental companies themselves.
Just like cashback, a points reward system or travel insurance, car rental insurance is a perk offered by credit card companies to entice them into using their card for purchases.
When a certain condition is fulfilled, such as paying for the vehicle rental with the credit card, then the insurance will kick in and cover the credit card holder in the event of an insurable loss. In the case of credit car rental insurance, this would be theft of or damage to the rental vehicle.
Nearly every major credit institution in Canada offers credit cards with car rental insurance as detailed later in this article.
Having car insurance is mandatory in Canada and if you're looking for traditional car insurance policies, you can explore them right here. Use our free tool below to compare car insurance quotes based on your unique needs.
Compare Canada's best car insurance plans
How does credit card rental car insurance work?
Credit card rental car insurance provides the individual renting the vehicle and the rental car itself, protection against damage and theft. Some credit card rental insurance will also cover injury to the renters of the vehicle as well as stolen items from within the rental car, although this is rare.
As mentioned above, there are usually stipulations involved for the coverage to kick in, such as paying for the vehicle rental with the eligible credit card and being present in person to rent the car. Once these preconditions have been met, the insurance will be active.
Subsequently, if the rental vehicle is damaged or stolen, the credit card rental insurance will reimburse any loss upon a successful claim. To process a claim, the renter will have to contact their credit card company, report the incident and follow the active steps to submit a claim for processing. In these situations, time is of the highest priority as the claim usually has to be reported within 24 or 48 hours to get accepted.
Good to know
Since the extent of credit card insurance varies between credit card providers, it is always recommended to review your card’s policies before abstaining from the additional insurance offered by the car rental company.
What does credit card car rental insurance cover?
Due to the number of credit cards in Canada, the actual coverage of credit card rental car insurance can vary greatly. Some cards might offer more comprehensive coverage and higher reimbursement limits, while others might not include car rental insurance at all. If you’re fortunate enough to have car rental insurance provided by your credit card, the coverage itself will depend on the policy.
The vast majority of credit cards will provide collision and damage insurance which is much like the damage waiver (DW) offered by car rental companies. It will cover reparations for any damages to the rental car regardless of who is at fault.
The financial protection may even extend to towing and administrative fees associated with an accident. Additionally, this credit card rental car coverage will likely also cover damage from vandalism and theft.
As mentioned earlier, some credit card insurance may provide additional coverage for the theft of personal belongings. It is crucial though, that those items would have had to be locked in the rental car at the time of theft for any potential claim to be made against the policy.
Know before you go
Don't wait until you're at the rental counter to consider the full scope of your coverage. Get familiar with it before you travel and call your credit card provider to ask about the specifics of your credit card's rental car insurance details.
You could also explore car insurance options that cover your rentals. You can use our free tool below to compare the best car insurance plans in Canada based on your budget and needs.
Compare Canada's best car insurance plans
What are the best credit cards with car rental insurance in Canada?
Since most credit institutions offer the same or similar credit card rental car insurance coverage, it is difficult to specifically name the best credit cards in Canada that offer this service. However, we have compiled a list of some of the top credit card providers and their credit cards that specifically include rental car insurance in the table below.
| Credit Card name | Annual fee | Maximum consecutive days of cover | MSRP coverage limit | Type of Coverage |
|---|---|---|---|---|
| RBC Avion Visa Infinite | $120 | 48 days | $65,000 | Collision/loss damage |
| TD® Aeroplan® Visa Infinite | $139 | 48 days | $65,000 | Collision/loss damage |
| CIBC Aeroplan® Visa Infinite | $139 | 48 days | $65,000 | Collision/loss damage |
| BMO CashBack World Elite Mastercard | $120 | 48 days | $65,000 | Collision/loss damage |
| Scotiabank Gold American Express | $120 | 48 days | $65,000 | Collision/loss damage |
RBC Credit Card Rental Car Insurance
Royal Bank of Canada (RBC) has several credit card options for all individuals, and all their travel credit cards include rental car insurance. From their specific Cathay Pacific and British Airways Visa cards to the RBC Avion range of credit cards, they all offer up to $65,000 in coverage limit for accidents and theft on rentals up to 48 consecutive days.
A list of RBC’s credit cards that have rental car insurance are:
- RBC Rewards Visa Preferred
- RBC British Airways Visa Infinite
- RBC Cathay Pacific Visa Platinum
- RBC Avion Visa Infinite
- RBC Avion Visa Infinite Business
- RBC Avion Visa Infinite Privilege
Check out our complete review of RBC Car Insurance.
TD Credit Card Rental Car Insurance
TD Bank is an incredibly reputable financial institution in Canada and it is no surprise that millions of people use their credit cards every day. With a maximum coverage of $65,000 and up to 48 days of consecutive coverage, TD credit card rental car insurance is up there with the rest of them.
Naturally, TD Bank doesn’t only offer one credit card with car rental insurance and you can get this additional cover by using any of their credit cards below.
- TD First Class Travel Visa Infinite
- TD Cash Back Visa Infinite
- TD Aeroplan Visa Infinite
- TD Aeroplan Visa Infinite Privilege
Check out our complete review of TD Car Insurance.
CIBC Credit Card Rental Car Insurance
CIBC offer one of the largest selections of credit cards which all include car rental collision and theft protection. From 48 consecutive days to an upper limit of $65,000, the limits do not differ from the other top credit institutions in Canada.
The CIBC credit cards with rental car insurance are listed below.
- CIBC Aeroplan Visa Infinite
- CIBC Aeroplan Visa Infinite Privilege
- CIBC Aventura Visa
- CIBC Aventura Gold Visa
- CIBC Aventura Visa Infinite
- CIBC Aventura Visa Infinite Privilege
- CIBC Dividend Visa Infinite
- CIBC Dividend Platinum Visa
BMO Credit Card Rental Car Insurance
BMO offers some of the best credit cards in Canada, most of which include rental car collision and loss insurance.
- BMO CashBack World Elite MasterCard
- BMO Ascend World Elite Mastercard
- BMO eclipse Visa Infinite
- BMO eclipse Visa Infinite Privilege
- BMO AIR MILES World Elite MasterCard
- BMO World Elite MasterCard
BMO credit card rental car insurance is limited to 48 consecutive days of rental cover, a maximum $65,000 limit and collision damage and theft protection.
Watch out!
While some of BMO’s credit cards offer cardholders death and dismemberment cover as well as loss or damage of personal effects, most of their cards do not. Make sure to always contact your credit institution to ensure that you know the full extent of your coverage before assuming protection is in place.
Scotiabank Credit Card Rental Car Insurance
Scotiabank has numerous credit cards that come with rental car insurance that provides coverage for collision damage and loss. The coverage extends to the full value of the vehicle, not exceeding $65,000. Similar to the other credit institutions, the limit of consecutive rental days covered is 48.
Scotiabank credit cards with rental car insurance include:
- Scotia Gold American Express
- Scotiabank Passport Visa Infinite
- Scotiabank Platinum American Express
- ScotiaGold Passport Visa
- Scotiabank Passport Visa Infinite Business
- Scotia Momentum Visa Infinite
Watch out!
None of the credit cards listed above include third-party liability insurance and you will have to check with the car rental company to ensure that they have this coverage in place. You could also explore traditional car insurance policies for more comprehensive coverage using our free tool below.
Compare Canada's best car insurance plans
What is meant by MSRP in credit card rental car insurance?
The MSRP mentioned within credit card rental insurance policies has to do with the Manufacturer’s Suggested Retail Price (MSRP) of the rental vehicle itself. Naturally, the more expensive the car the higher the MSRP. Since the risk of insuring a car increases with its value, a lot of insurers limit their risk by not covering expensive vehicles.
Therefore, all credit cards with rental car insurance will have a maximum MSRP that they will cover and for most, the MSRP is $65,000. In other words, credit card rental car insurance will not apply to, or provide any coverage for any vehicles that are worth more than the MSRP listed within their terms and conditions.
It is, therefore, highly recommended that before assuming that your rental vehicle will be insured by your credit car cover, you confirm the MSRP value with the car rental agency and establish that it is within the limits of your insurance MSRP.
Other limitations to consider with your credit card rental insurance
Notably, from the paragraph above, the MSRP is an incredibly important part of the rental car insurance policy and has to be considered before any vehicle is rented. The assumption that simply any car will be covered by credit card insurance could be disastrous.
Just like any other insurance policy, credit card rental car insurance comes with numerous other conditions that have to be met to be eligible for cover, in addition to standard exclusions where no cover will be applied.
For example, insurance will normally only be applied if:
- The vehicle rental process is initiated by using the eligible credit card when booking or reserving the vehicle
- The credit card holder is present at the rental agency for the vehicle hire
- The vehicle rental is processed and paid for by the eligible credit card
- If the rental company’s own collision and damage waiver (CDW) is declined (where the CDW cannot be declined, the credit card insurance will only pay for the deductible, if any)
- The rental car’s MSRP does not exceed the maximum limit of the insurance policy
Where these conditions have been met and insurance is applied to the vehicle rental, limitations to the insurance policy and certain exclusions may still void coverage. These include:
- The insurance won’t cover any third-party liability
- Claims must be reported within 24 or 48 hours for a claim to be valid and successful
- Personal injury and property loss are commonly not covered unless specifically stated in the insurance policy
- If the car is being used for any illegal purposes
- Damage incurred to the vehicle while the driver is under the influence
- Wear and tear or gradual deterioration of the vehicle itself
- Certain types of vehicles such as pick-up trucks, cargo vans, buses, mini-buses, limousines, trucks etc.
- Exotic vehicles, including but not limited to, Aston Martin, Bentley, Bricklin, Daimler, DeLorean, Excalibur, Ferrari, Jensen, Lamborghini etc.
- Vehicles used for commercial or delivery types services such as Uber or Lyft
- Vehicles rented for more than 48 consecutive days
