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Have you ever stood at the car rental counter, frozen and unsure whether to add insurance to your rental or risk paying for damages out of pocket? Do you feel like adding insurance to your car rental jacks up the price much higher than you were ready to pay?
If this scenario resonates, take a deep breath, rest easy, and keep the money in your wallet. To get car rental damage and theft coverage, all you need to do is pay for your rental with the right credit card.
That coverage varies depending on which card you have. Some credit card auto rental Collision Damage Waiver (CDW) policies provide primary rental coverage, while others just provide secondary coverage. Luckily, the Chase Sapphire Preferred® Card comes with primary coverage. So does the Chase Sapphire Reserve® and Ink Business Preferred® Credit Card.
The Auto Rental CDW is one of the most underrated perks of being a Sapphire Preferred cardholder. So, let me help you understand what it is, who and what it covers, and when and where you receive coverage.
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 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 Sapphire Preferred 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 takes effect 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 Sapphire Preferred Auto Rental 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 not available for use.
- Necessary towing charges to take the vehicle to the nearest qualified repair facility.
Your Sapphire Preferred‘s policy provides coverage up to the cash value of the vehicle at the time of manufacture and includes most private passenger cars, minivans, and SUVs.
However, there are some restrictions on exotic and antique vehicles, cargo vans, motorcycles, and others. So, don't expect to be reimbursed if you crash an Aston Martin or even a Tesla. You can find the full list of vehicle exclusions in the Sapphire Preferred Benefits Guide .
Other types of coverage excluded
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 for these through the rental company or through 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 Sapphire Preferred Benefits Guide .
How to get coverage
To get Sapphire Preferred Auto Rental CDW coverage, you must:
- Initiate and complete the entire rental transaction using your Sapphire Preferred. Note: If you use points from a rental car loyalty program to pay for your rental and pay the remaining portion of any taxes/fees with your Sapphire Preferred card you would be covered.
- Decline the rental company’s collision damage waiver or similar provision when picking up the car. The company may refer to the collision damage waiver as CDW or LDW in their contract or when speaking with you. If you accept the rental company's CDW, your Sapphire Preferred Auto Rental CDW will not apply.
Who is Covered by the Sapphire Preferred Auto 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.
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?
Let's talk about timing first. You're covered from the time you pick up the car until you return it, as long as 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 — aren't covered, as these companies don't qualify as “rental agencies” for this card benefit.
If you have questions if you're covered, it's worth contacting the benefits administrator to verify coverage before traveling. You can find their contact in the benefits guide.
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. 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 Auto Rental CDW Details
The Sapphire Reserve 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 the cost of your vehicle doesn't surpass it.
See more details in the Sapphire Reserve Guide to Benefits.
Ink Preferred Auto Rental CDW Details
The Auto Rental CDW on the Ink Preferred provides primary coverage “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 claiming under the card benefit. However, you still must 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 if you rent within your country of residence for personal reasons — unless you don't have a 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.
Final Thoughts
Auto Rental CDW may not be the reason you choose to apply for a card, but this perk is one of the most underrated perks for Sapphire Preferred cardholders. It can provide tangible benefits over time, allowing you to avoid the damage waiver fees every time you rent a car.
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 a long list of 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 $4,000 on purchases in the first 3 months from account opening. That's $750 when you redeem through Chase Ultimate Rewards®.
- Enjoy benefits such as 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining, and 2x on all other travel purchases, and $50 annual Ultimate Rewards Hotel Credit, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.
- Member FDIC
- 5X points on Lyft rides through March 2025
- 5X points on travel purchased through Chase
- 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
The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
Hi. I rented a car with my Sapphire for 30 days and I will need to rent again for 30 days more. Another renting, another car, same company and yes, consecutive days. Will my credit card insurance be effective for this second period?
Edgard – are you saying that you will start a 2nd rental and likely be in a different car? If so, that should be considered a new rental. If you will stay with the same car and just sign new papers, I’m not sure. I would definitely ask Chase about this, just in case. If something happens, you want to be sure you’re covered. Call the number on the back of your card and say you have a question about the car rental insurance.
Thank you for the info. In Italy, basic CDW is included in the car rental agreement so Chase would be a secondary insurance by default. From what I understand, you would have to pay for any damages & deductible out-of-pocket before filing a claim & being reimbursed. Do you have any examples or info about this? Thank you.
just found that the primary CDW is no longer provided for CSP
That information is INCORRECT. Primary CDW waiver is very much a benefit of the CSP as of this posting.
No it isn’t. https://www.chase.com/content/chasecom/en/card-benefits/benefit-details/Sapphire/sapphire-damage-waiver-primary-consumer.html
Maybe it once was but it is not good that there is so much misinformation on this. Even on Chase’s website when you apply it says covers most cars rented in the US, but when you goto claims it gives the line that it is only primary insurance in foreign countries. The card benefit rep on the phone said that there is no PDW on the sapphire preferred.
Hey Sam, the benefit you’ve pointed out is on the Sapphire card, not the Sapphire Preferred or Sapphire Reserve.
I just checked the Sapphire Preferred benefits. It is primary coverage. The page posted above is not for Sapphire Preferred.
Your column is helpful but it makes no mention of a deductible. Is there one? And if so, how much?
There is none as of this posting. You should contact the benefits administrator to discuss any insurance related questions to make sure you fully understand the benefit and how it can help.
So I just spoke with the benefits agent. She said to take the damage waiver that is included in the rental price but to decline any excess coverage. When I asked about tyres and windscreen, she said I am covered through the Chase card. Does that sound right?
They always look for damage to the rims over there so I am being cautious.
Thanks
I’ve confirmed with Chase Card Benefit Services that yes, indeed, these are both covered.
Awesome thanks Howie!!
@John Im not sure what you are saying. .. can u kindly clarify? Thanks in advance!
plan b is to rent same car for 30 days then get another for a few more
I am wondering because it states “Vehicle rental periods that do not exceed NOR INTEND to exceed 31 consecutive days.
The original “intention was for more than 31 days…
I started a rental originally for more than 31 days. If i return it early, to make it less than 31 days, will chase sapphire preferred cover this rental since it was less than 31 days, or not because original agreement was for more. Thanx!
I am not sure. In theory, yes, but this is a unique condition that isn’t explained in the terms. I’d recommend you call for clarification.
If after a collision, my auto insurance company provides a rental (@$30) per day and I use a sapphire to guarantee the rental, am I covered? This is assuming that there are no additional taxes or fees not covered by my auto insurance. Is there a difference in using the preferred or reserve for this? Thanks, Mike
I can’t speak to how your personal insurance policy works, and you should talk with your insurance agent specifically. That said, the differences between the CSP/CSR is minor as indicated in the article. If I were in your shoes, based on what you’ve said, I’d be comfortable using either the CSP/CSR.
You said: Just remember that you must pay the cash portion of your rental car in full using your Chase Sapphire Preferred® Card and decline the CDW offered by the rental agency for this benefit to be in effect….however you also said ….
Note: If you use points from a rental car loyalty program to pay for your rental and pay the remaining portion of any taxes/fees with your Sapphire Preferred card you would be covered.
I’m confused–can i USE the Sapphire preferred for the additional taxes and fees ONLY to benefit or do I need to use the card for the rental fees as well??
I want to use another card to pay partial amount of the rental and use the preferred for the rest of the rental, including taxes and fees–is that possible?
As I understand the terms of all rental car insurance protections, you cannot split the cash cost of a rental across two credit cards and receive benefit from either card.
If you pay for a rental entirely with a credit card you must use one card to receive the benefit. If you pay for a rental with points and cover the taxes/fees with a credit card, you must pay those taxes and fees with one card to receive the benefits. You could use Hertz points and pay the fees with the Sapphire Preferred to receive protection. You could not use the Arrival+ to pay for part and then the Sapphire Preferred for another part and receive the benefit.
You cannot do what you’re looking to do and receive the insurance benefits.