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Have you heard? Several credit card companies are scaling back on their travel perks, including coverage for car rental insurance. It’s a perk that some credit card issuers have decided to drop. Card companies say they are dropping this perk due to “low usage.” If you’re someone who uses car rental insurance, listen up. Your card may be on this list.
Credit Cards With Discontinued Car Rental Insurance
A number of Citi credit cards are dropping car rental insurance, including some of the best Citi credit cards. Discover and American Airlines are also on this list.
Here are the Citi cards with discontinued perks:
- Citi Prestige® Credit Card
- Citi Premier® Card
- Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
- Citi® Dividend Card
- Citi® Double Cash Card
Other credit cards with discontinued perks:
- All Discover cards
- American Airlines AAdvantage® MileUp®
- AT&T Access Card
- Kroger REWARDS World Mastercard®
Do you need car rental insurance from your credit card?
This really depends on things like:
- How often you rent a car
- Your level of risk and wanting peace of mind
- Your personal car insurance and what it offers for rentals
Depending on your personal car insurance, you may not need car rental insurance. Mainly, it depends on what your personal car insurance covers and if there’s a deductible.
However, car rental insurance is often a free perk from many credit cards. If your credit card is discontinuing car rental insurance and you feel strongly about needing this line of defense, consider switching to a different credit card.
Learn more: Best credit cards with car rental perks
Cards That Still Offer Car Rental Insurance
Not all credit cards are dropping car rental insurance. Here are two best credit cards with travel insurance that continue to offer car rental insurance.
Chase Sapphire Reserve
Though the Chase Sapphire Reserve® has a high $550 annual fee, it comes with many great travel perks (including car rental insurance).
- Trip cancellation and trip interruption insurance
- Baggage delay reimbursement
- Trip delay reimbursement
- Primary auto rental collision damage waiver
- TSA Pre-Check fee credit
- $300 annual travel credit
- Priority Pass membership
If you travel a lot, this is a great card. It has top-tier protection plus, the Chase Sapphire Reserve benefits also far exceed the cost from the annual fee. But if you don’t travel often, consider its sister, the Chase Sapphire Preferred® Card.
Learn more: Chase Sapphire Rental Car Insurance Benefits Guide
United Explorer Card
As with many airline co-branded credit cards, the United℠ Explorer Card earns you many additional perks when you fly United. It’s also one of the best miles credit cards.
- Trip cancellation and trip interruption insurance
- Baggage delay reimbursement
- Trip delay reimbursement
- Primary auto rental collision damage waiver
- Two United Club one-time passes per year
- Priority boarding
- 25% back on United® inflight purchases
- Fee credit, up to $100 for Global Entry or TSA PreCheck
One advantage of the United Explorer Card car rental insurance is that it also covers international rentals.
New United℠ Explorer Card cardholders can earn 50,000 bonus miles after spending $3,000 on purchases in the first 3 months of account opening.
Plus, there’s a $0 introductory annual fee for the first year, then $95.
What does car rental insurance cover?
When you’re at the counter getting your rental car, there’s one topic that always comes up: rental car coverage. If your credit card offers car rental insurance, do you need the extra coverage?
Car coverage purchased at the rental car company
Let’s look at what the rental car coverage is. First of all, the coverage offered by rental car companies is not technically insurance. They have their own insurance. Instead, if you pay the daily fee for coverage, the rental car company will not come after you financially if the car is damaged or stolen. Think of it as a waiver, releasing you of liability.
For instance, if you bought the coverage and accidentally crash the car, you won’t have to pay a cent. Your credit card’s car rental insurance does not help if you buy rental car coverage.
If you don’t buy rental car coverage
You still have two lines of defense if you choose not to buy rental car coverage:
- Your personal car insurance may cover some or most of the costs. The exact details depend on your insurance plan. You will probably still need to pay your deductible. This is where car rental insurance comes in.
- If your personal insurance does not cover all the damage or you have a deductible, your credit card’s car rental insurance may cover the costs.
In case it’s still confusing, here’s an overview of how costs are paid when you don’t buy rental car coverage.
- Your personal car insurance
- Your credit card’s car rental insurance
- You, out of pocket
Credit card car rental insurance is often called secondary coverage because it comes after your primary car insurance. Check with your insurance and your credit card for exact details.
Final Words Regarding Credit Cards Discountinued Car Rental Insurance
Credit card perks are useful to help you through the toughest travel situations that may arise, including accidents when renting a car. If you travel frequently and rent a car on the regular, you may want to consider switching to a card that still offers this perk. Then, you can use one of the best gas credit cards and hit the road.
“One advantage of the United Explorer Card car rental insurance is that it also covers international rentals.”
I would think the advantage is that it also covers domestic as primary, not just international. I haven’t seen a card that only covers domestic, whether primary or secondary. The paragraph on primary/secondary could also use a revision – the two cards you featured both offer primary insurance worldwide.
Also, isn’t the AT&T Access also a Citi card?