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If you’ve ever stood at the rental car counter debating whether to pay extra for the insurance or take your chances, you’re not alone. The cost of the Collision Damage Waiver (CDW) that rental companies offer can sometimes rival the cost of the rental itself, and the fear of being stuck with a hefty repair bill makes it a tempting option.
But what many travelers don’t realize is that they may already be covered, simply by using the right credit card.
The Chase Sapphire Preferred® Card includes primary rental car insurance — a valuable benefit that can potentially save you hundreds of dollars each year. Unlike secondary coverage, which only kicks in after your personal auto insurance, primary coverage lets you skip your own policy altogether when filing a claim. It protects you against theft or damage to the rental vehicle, covers valid loss-of-use charges, and even includes necessary towing costs — all without you having to pay extra for coverage at the rental desk.
In this guide, we’ll explain exactly what’s covered, who qualifies, how to activate the benefit — and why this is one of the most underrated perks in the world of travel rewards.
Page Contents
- What Is an Auto Rental Collision Damage Waiver?
- What Is Covered by the Chase Sapphire Preferred Rental Car Insurance?
- Who Is Covered by the Chase Sapphire Preferred Rental Car Insurance?
- When and Where Are You Covered?
- Getting Proof of Coverage
- Auto Rental CDW With the Sapphire Reserve and Ink Preferred Cards
- Bottom Line
What Is an Auto Rental Collision Damage Waiver?
Auto Rental Collision Damage Waiver (CDW) is a form of insurance that will cover you — the cardholder — against certain damages to or the theft of your rental car. Coverage varies by credit card but can protect you up to the actual cash value of the car on most credit cards, including the Sapphire Preferred.
The Chase Sapphire Preferred rental car insurance provides primary coverage. That means you don't need to file a claim with your personal insurance (or any other insurer) before filing a claim under the card benefit.
In contrast, secondary coverage covers you after you process a claim through your personal auto insurance provider and can reimburse remaining expenses, such as a deductible.
What Is Covered by the Chase Sapphire Preferred Rental Car Insurance?
The Sapphire Preferred Auto Rental CDW covers the cardholder or authorized driver for theft and damage while the vehicle is in your control for a rental period not exceeding 31 consecutive days. Covered losses include:
- Physical damage and theft of the covered rental vehicle.
- Valid loss-of-use charges assessed by the rental company while the damaged vehicle is being repaired and is unavailable for use.
- Necessary towing charges to take the vehicle to the nearest qualified repair facility.
Your Chase Sapphire Preferred rental car insurance policy provides reimbursement for damages caused by theft or collision up to $60,000 and includes many private passenger cars, minivans, and SUVs.
Do note that there are some restrictions. If you choose an exotic or antique vehicle, cargo van, motorcycle, limo, or any car that would be considered high value, your card will not cover any damages to these. If you've been dreaming of driving that Aston Martin, Bentley, Lambo, or even a Tesla off the lot, know you won't be covered.
You can find the complete list of vehicle exclusions in the Sapphire Preferred Benefits Guide.
Other types of coverage excluded
This Auto Rental CDW does not provide liability insurance. That means it doesn't cover damage to other vehicles, property, or injuries to people. Therefore, it's essential to understand whether your existing insurance covers these when operating a rental car. If not, you should consider purchasing coverage through the rental company or a separate third-party provider.
Additionally, you will not be covered if you violate any of the terms of your rental agreement if the rental period exceeds 31 consecutive days or if you take the car off-roading. You can find all the exclusions within the Auto Rental CDW section of the benefits guide.
How to use Chase Sapphire car rental insurance
To get Sapphire Preferred Auto Rental CDW coverage, you must:
- Initiate and complete the entire rental transaction using your Sapphire Preferred. Note: You will be covered if you use Ultimate Rewards points to pay for your rental — as long as you pay any remaining portion of any taxes/fees with your Sapphire Preferred card.
- Decline the rental company’s collision damage waiver or similar provision when picking up the car. Agencies refer to the collision damage waiver as CDW or LDW in the contract or when speaking with you. Accepting the rental company's CDW will cancel out your Sapphire Preferred Auto Rental CDW.
Rental car companies may insist that you purchase their insurance. In fact, many of its employees earn a commission when you do. If you're unsure how to respond, the benefits guide suggests you contact the benefits administrator for assistance. You can find the contact information in the benefits guide.
How to file a claim through Chase Sapphire Preferred car rental insurance
Ideally, you'll never need to file a claim. However, you should still know how in case something goes awry.
There are two ways to file: online via the Assurant website or over the phone through the benefits administrator. You can reach the benefits administrator by calling 1-800-349-2634. If you're outside the U.S., call collect at 1-214-503-2951.
You must initiate the claims process within 100 days of the rental car's damage or theft. The benefits administrator will send you a claim form that you must fill out within 120 days of the incident. Finally, all other supporting documentation, such as your credit card account statement showing the charge for the rental car and other substantiating evidence, must be submitted within 365 days of the incident date. Otherwise, your claim may be denied.
Who Is Covered by the Chase Sapphire Preferred Rental Car Insurance?
Primary account holders of a Sapphire Preferred issued in the U.S. are covered. This policy also covers additional drivers listed on the same rental car agreement. If you plan on sharing the driving duties of your rental, make sure to include them on the rental agreement for them to be covered.
Additionally, if you have authorized users on your Sapphire Preferred, they are covered also — so long as they have a card with their name on it.
When and Where Are You Covered?
You're covered from the time you pick up the car until you return it, provided that's 31 days or less.
The benefit is available in the United States and most foreign countries. However, coverage is not available where prohibited by law. Your Sapphire Preferred auto rental coverage also doesn't apply anywhere it violates local rental regulations.
Note that peer-to-peer car rentals — like Turo or Zipcar — aren't covered, as these companies don't qualify as “rental agencies” for this card benefit. Confirm with the benefits administrator in advance.
If you have questions about your coverage, it's worth contacting the benefits administrator to verify coverage before traveling.
Getting Proof of Coverage
It's worth noting that some rental agencies (especially outside the U.S.) may not be familiar with rental car insurance via credit cards. They may even require that you show them a policy listing benefits as coverage might be mandatory before you drive off the lot.
You should contact the benefits administrator before traveling and ask for proof of coverage. You'll receive a document via email, and it will outline coverage limits and covered persons. You can show this to the rental agency when picking up the car.
Related: How To Get Proof of CDW/LDW Insurance From Your Credit Card Provider
Auto Rental CDW With the Sapphire Reserve and Ink Preferred Cards
Sapphire Reserve rental car insurance details
The Sapphire Reserve (Rates & Fees) Auto Rental CDW is nearly identical to that of the Sapphire Preferred. You're covered for rentals up to 31 days and covered for the same types of fees, damages, and theft. There are two key differences, however:
- There is no exclusion for exotic cars, and the antique cars exclusion only applies to cars that are 20+ years old or haven't been manufactured in 10+ years.
- There is a defined maximum coverage of $75,000.
Since coverage on the Sapphire Reserve allows for certain exotic and antique cars, pay attention to this limit and be sure to pick a car with a value under that cap. Otherwise, you'll be on the hook for the overage amount not covered under the policy. See more details in the Sapphire Reserve Guide to Benefits.
Ink Preferred rental car insurance details
The Auto Rental CDW on the Ink Preferred provides primary coverage when “renting primarily for business purposes, renting outside your country of residence for personal reasons, or if you do not have automobile insurance.”
This means you do not need to file a claim with any other insurer before filing a claim under the card benefit. However, you must still decline the rental company's insurance and pay for the total rental cost on your Ink Preferred for coverage to be in effect.
Coverage is secondary for rentals within your country of residence for personal reasons — unless you have no car insurance policy. So, when you're renting for work, use this card. When renting a car for personal reasons, use your Sapphire Preferred or Sapphire Reserve.
See more details in the Ink Preferred Benefits Guide.
Bottom Line
Auto Rental CDW may not be the main reason you choose to apply for a card, but the Chase Sapphire Preferred rental car insurance should be the reason to pull this card out of your wallet every time you book a rental car. It can provide tangible benefits over time, allowing you to avoid the damage waiver fees whenever you're on the road.
Just remember that you must pay the cash portion of your rental car in full using your Sapphire Preferred and decline the CDW offered by the rental agency for this benefit to be in effect.
It's no surprise the Sapphire Preferred has become the favorite credit card for so many in the points-collecting community. Aside from primary rental car coverage, this card includes myriad benefits that justify keeping it in your wallet. For more details, see our full review of the Chase Sapphire Preferred® Card.
- Earn 60,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.
- Enjoy benefits such as 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases, $50 Annual Chase Travel Hotel Credit, plus more.
- Earn up to $50 in statement credits each account anniversary year for hotel stays through Chase Travel℠
- 10% anniversary points boost - each account anniversary you'll earn bonus points equal to 10% of your total purchases made the previous year.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Complimentary DashPass which unlocks $0 delivery fees & lower service fees for a min. of one year when you activate by 12/31/27. Plus, a $10 promo each month on non-restaurant orders.
- Member FDIC
- Rates & Fees
- 5X points on Lyft rides through September 2027
- 5X points on travel purchased through Chase Travel℠
- 3X points on dining at restaurants worldwide
- 3X points on eligible streaming services
- 3X points on online grocery purchases (excluding Target, Walmart, and wholesale clubs)
- 2X points on all other travel
- 1X point per dollar spent on all other purchases
For rates and fees of the cards mentioned in this post, please visit the following links: Chase Sapphire Reserve® (Rates & Fees), and Chase Sapphire Preferred® Card (Rates & Fees)
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