No. Credit card rental car coverage is a collision damage waiver: it pays for damage to or theft of the rental car itself. It doesn’t pay for injuries to other people, damage to other cars or property, or lawsuits after an accident you cause. That’s liability, and it has to come from your own auto insurance, the rental company, or a separate policy.
If you decline everything at the rental counter and rely only on your card, you’re covered for the car and nothing else.
What does credit card rental coverage actually cover? #
Card rental coverage is usually called an auto rental collision damage waiver (CDW) or loss damage waiver (LDW). Depending on the card, it typically pays for:
- Physical damage to the rental car from a collision, vandalism or weather.
- Theft of the rental car.
- Loss-of-use fees the rental company charges while the car is being repaired, when documented.
- Towing to the nearest repair facility.
Each card sets its own limits. The Chase Sapphire Preferred, for example, provides primary coverage with reimbursement up to $60,000 for theft and collision damage, according to Chase’s card page.
What does it never cover? #
- Injuries to other people: drivers, passengers or pedestrians.
- Damage to other property: other cars, buildings, fences, signs.
- Your own medical bills, which fall to your health insurance or any medical coverage on your auto policy.
- Belongings in the car, which may be covered by homeowners or renters insurance.
A serious accident with injuries can cost far more than the rental car is worth. That’s why liability is the gap that matters.
Why don’t credit cards offer liability coverage? #
Because the risks are completely different. The most a CDW claim can ever cost is the value of the car. Liability has no natural ceiling: medical bills, lost wages and legal costs can reach hundreds of thousands of dollars or more. Covering that requires underwriting each driver, which a card perk can’t do.
Where do you get liability coverage for a rental car? #
Your own auto insurance #
If you own a car and have auto insurance, your liability coverage usually extends to a rental for personal use in the U.S., and often Canada. Check your policy. Claims go through your insurer, and your rates can rise after an at-fault accident.
The rental company’s supplemental liability insurance #
If you don’t own a car, or you’re renting abroad where your policy doesn’t apply, you can buy supplemental liability insurance (SLI or LIS) at the counter. It’s charged per day and can add up on a long rental, but it’s the simplest way to close the gap for occasional renters.
Non-owner car insurance #
If you don’t own a car but rent or use car-sharing often, a non-owner auto policy provides liability coverage whenever you drive a car you don’t own. It’s often cheaper over a year than buying daily coverage at the counter.
An umbrella policy #
An umbrella policy adds extra liability coverage on top of an auto policy. Most require you to carry an underlying auto policy first, so it isn’t a stand-alone fix.
Primary vs. secondary coverage: does it matter for liability? #
Neither type covers liability. The difference is how a damage claim on the rental car is handled.
| Primary card coverage | Secondary card coverage | |
|---|---|---|
| Pays first? | Yes, before your auto insurance | No, your auto insurer pays first |
| Claim on your personal policy? | Not needed for the rental damage | Usually required |
| Covers your deductible? | It pays the covered damage directly | Often reimburses the deductible |
| Covers liability? | No | No |
Many Amex cards offer secondary coverage. Amex also sells Premium Car Rental Protection, which makes coverage primary for a flat fee per rental rather than per day (in most states $19.95 or $24.95 depending on the level, lower in Florida and California). It still excludes liability.
How do you make sure your card’s coverage applies? #
- Pay for the entire rental with the card that carries the benefit.
- Rent in your own name. The cardholder usually must be the primary renter.
- Decline the rental company’s CDW or LDW. Accepting it typically cancels the card coverage.
- List every driver on the rental agreement.
- Check country exclusions before renting abroad. Some card policies exclude certain countries. Ask the benefits administrator for a letter of coverage.
Note that CDW is separate from liability. You can decline the counter’s CDW, relying on your card, while still buying its liability coverage.
If you keep a card mainly for its primary rental coverage, that’s a question to settle at renewal. Credit Card Central reminds you 30, 7 and 1 day before each card’s annual fee, and you can note on the card which benefit you keep it for. That way the decision to keep, downgrade or cancel happens before the fee posts. For card protections beyond rentals, see purchase protection vs. extended warranty and how to file a cell phone insurance claim.
Frequently asked questions #
Does the Chase Sapphire Preferred cover liability? #
No. It provides primary collision damage coverage for the rental car, up to $60,000 for theft and collision damage, but nothing for other people’s injuries or property.
What happens if I have an accident with only credit card coverage? #
Your card’s coverage pays for the rental car, subject to its terms. You’re personally responsible for any injuries or property damage you caused, which is why you need liability from another source.
Does Amex Premium Car Rental Protection include liability? #
No. It upgrades the rental car’s damage and theft coverage to primary for a flat fee per rental, but it excludes liability.
Do I need the rental company’s insurance if I have a credit card? #
For damage to the car, your card may be enough if you follow its rules. For liability, you need your own auto policy, a non-owner policy or the rental company’s supplemental liability coverage.
Is a card’s rental coverage worth paying an annual fee for? #
Only if you rent often and would otherwise buy the counter’s damage waiver. Weigh it with the card’s other benefits. See is an annual fee credit card worth it.