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There are a few topics more boring and confusing than car insurance. One of the decisions we’re all faced with when picking up our rental car is whether we should take the rental car company’s collision damage plan.
However, if you ever rent a vehicle, you’re sure to find value and save money by investing a few minutes to learn about the complimentary car rental coverage that comes with the Chase Sapphire Preferred® Card. This is because the card offers some of the best rental car coverage available compared to other travel rewards credit cards.
In this article, we’ll review what is covered with the Chase Sapphire Preferred card’s collision damage waiver coverage, what you need to do to make sure you’re covered, what’s not covered, and how you file a claim.
What Is Auto Rental Collision Damage Waiver?
Auto Rental Collision Damage Waiver (CDW) is a protection that covers damage from collision or theft to most rental vehicles.
This coverage reimburses you for damages or a replacement if your rental car is involved in an incident. It’s required when you rent a vehicle and will be offered to you by the rental car company when completing the initial paperwork.
If you have coverage elsewhere, such as with the Chase Sapphire Preferred card, you can decline the coverage offered by the car rental company.
Bottom Line: The coverage offered on the Chase Sapphire Preferred card is primary rental coverage, which means you do not have to access other insurance first.
The rating for this card has been determined by our own industry experts who know the in's and out's of credit card products. Bonuses, rewards as well as rates and fees are all taken into account. Compensation from the issuer does not affect our rating. We only recommend products we either use ourselves or endorse.
A fantastic travel card with a huge welcome offer, good benefits, and perks for a moderate annual fee.
A fantastic travel card with a huge welcome offer, good benefits, and perks for a moderate annual fee.
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®.
60,000 points
$1,200
$95
Upgraded Points credit ranges are a variation of FICO®Score 8, one of many types of credit scores lenders may use when considering your credit cardapplication.
Good to Excellent (670-850)
The Chase Sapphire Preferred® card is one of the best travel rewards cardson the market. Its bonus categories include travel, dining, online grocery purchases, and streaming services, which gives you the opportunity to earn lots of bonus points on these purchases.
Additionally, it offers flexible point redemption options, no foreign transaction fees, and excellent travel insurance coverage including primary car rental insurance. With benefits like these, it’s easy to see why this card is an excellent choice for any traveler.
Pros
5x points on all travel booked via the Chase Ultimate Rewards portal
5x points on select Peloton purchases over $250 (through March 31, 2025)
5x points on Lyft purchases (through March 31, 2025)
3x points on dining purchases, online grocery purchases, and select streaming services
2x points on all other travel worldwide
$50 annual credit on hotel stays booked through the Chase Ultimate Rewards portal
6 months of complimentary Instacart+ (activate by July 31, 2024), plus up to $15 in statement credits each quarter through July 2024
Excellent travel and car rental insurance
10% annual bonus points
No foreign transaction fees
1:1 point transfer to leading airline and hotel loyalty programs like United MileagePlus and World of Hyatt
Complimentary Spot Club Platinum status with The Parking Spot for 2 years, 20% off of your first reservation, and points for 1 free day of parking (enroll by October 26, 2023)
Cons
$95 annual fee
No elite benefits like airport lounge access or hotel elite status
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.
What Makes the Chase Sapphire Preferred Card Coverage Better?
Most rental car companies pressure you to accept their own CDW, which can be quite expensive.
The CDW coverage that comes with the Chase Sapphire Preferred allows you to decline the rental car company’s coverage with confidence and still be covered.
In addition to receiving excellent rental car coverage, you’ll earn 2 Ultimate Rewards Points per dollar spent on your car rental when using the Chase Sapphire Preferred card.
You will also incur no foreign transaction fees on international car rentals.
Primary Coverage vs. Secondary Coverage
Rental car coverage that comes with credit cards can be secondary — this means that you must first file a claim with your primary insurance company before the secondary coverage will kick in.
But the coverage on the Chase Sapphire Preferred is primary coverage — you do not have to file a claim with another insurance company first.
Another positive is that Chase’s primary CDW coverage is not limited to rentals outside the country (this is common with other credit cards’ CDW coverage).
The coverage is provided on a primary basis in the U.S. and worldwide in most countries.
Coverage Extends to Other Drivers
Another reason to use the Chase Sapphire Preferred card to pay for your rental car is the extension of coverage to other drivers. The following drivers are covered for CDW when using the card:
Primary cardholder when driving the car
Any additional driver listed on the rental agreement
Authorized users on your Chase Sapphire Preferred card who rent with their card
Any additional driver listed on the authorized user rental agreement
Bottom Line: Authorized users receive the same CDW coverage as primary cardholders when using their Chase Sapphire Preferred card to rent a car.
The peace of mind knowing you’ll be covered if your rental car is damaged or stolen is priceless. Image Credit: stockphoto mania via Shutterstock
Requirements During the Rental Sign Up
To ensure you receive coverage under the Chase Sapphire Preferred card’s CDW, you will need to do the following:
Provide your Chase Sapphire Preferred card when reserving, picking up, and completing the car rental transaction.
Decline the rental car company’s CDW coverage. This coverage is sometimes called “loss damage waiver” or LDW.
If you provide an alternative card to the Chase Sapphire Preferred card when completing the rental, you will forfeit the coverage provided through your Chase Sapphire Preferred card. You will also forfeit coverage if you accept the rental car company’s CDW/LDW coverage.
It is acceptable to use a combination of Chase Ultimate Rewards points and your Chase Sapphire Preferred card to rent a vehicle — you will still qualify for CDW coverage.
Bottom Line: To ensure you have CDW coverage, use only your Chase Sapphire Preferred card for all elements of your rental car transaction and decline the rental car company’s CDW/LDW coverage.
What’s Covered
The card’s CDW coverage will reimburse you for covered expenses incurred on the rental vehicle, including:
Damage or theft to the covered rental vehicle (up to the actual cash value of the vehicle)
Loss of use charges assessed by the rental car company
Reasonable towing charges to the nearest repair facility
Primary coverage for car rentals is valid in most countries.
You should contact the benefits administrator prior to your trip to obtain a coverage letter and confirm that you will have coverage in the country where you’re renting the vehicle.
Having a credit card with primary CDW can help make those vacation dollars go further. Image Credit: kurhan via Shutterstock
What’s Not Covered
There are important exclusions to the CDW coverage, including the following:
Coverage is not valid for rentals that exceed 31 days
Expensive, exotic, and antique cars; certain vans and trucks; motorcycles, mopeds, and motorbikes; limousines; recreational vehicles
Open cargo bed vehicles and vans that carry more than 8 people
Losses due to using the vehicle off-road
It’s important to note that the CDW applies to damage and theft of the rental vehicle only. You still need to have personal liability coveragewhen renting a vehicle.
Liability coverage, which covers injuries/damage to others, is usually included in the cost of renting a car. Your own personal car insurance can also be a source of this coverage.
You have up to 60 days after the incident to report a claim, but you’ll want to do it as soon as possible. You may be charged immediately by your rental car company, so you’ll want to start the process quickly.
Be aware that the claim will be settled on a reimbursement basis, so you’ll be out some money during the claim processing period.
The first step is to call the benefits administrator when your rental car is in an accident or stolen.
You will be asked some questions about the incident and sent a claim form to complete.
Then, you will be required to submit documentation, which could include:
A copy of your credit card statement showing the entire rental was paid for with your card
A copy of the entire rental agreement
A copy of the accident report showing the amount you’re responsible for
A police report
Photos of the damage
Repair estimates
Any additional documentation the benefits administrator deems necessary
You have 100 days from the date of the incident to send in the claim form, but if you are unable to retrieve some of the documents, the claim can be left open for up to 365 days total.
To summarize the important deadlines from the date of the incident:
Contact the administrator right away. The claim will be denied if it has been more than 60 days.
Send in the completed claim form with or without all the required documents within 100 days.
Ask for assistance from your benefits administrator if you are unable to obtain the required documentation.
Hot Tip: It’s good to be aware in advance of the information and documentation you would need if you have an accident or your rental car is stolen. Some items can be difficult and time-consuming to retrieve after the fact.
Everything Else You Need To Know
It’s always prudent to look over a rental car before driving away from the agency to ensure there is no existing damage.
Take pictures with your cell phone and let the rental agent know before leaving if you find any damage. Get written documentation of any damage found prior to leaving the facility so you are not held liable.
Both the Chase Sapphire Preferred card and the Chase Sapphire Reserve® offer the same primary CDW coverage. The Chase Sapphire Reserve card, however, has a $75,000 maximum limit on the coverage.
Hot Tip: Foreign rental car agencies may not understand the coverage offered on U.S. credit cards. Request a letter of coverage from Chase before you leave on your trip by calling the benefits administrator at 888-320-9961, or collect outside the U.S. at 804-673-1691.
Chase Business Credit Cards With Primary Car Rental Insurance
While the Chase Sapphire Preferred card is one of our favorite travel rewards credit cards, you may need a business credit card that provides the same valuable car rental CDW benefits.
The Chase CDW coverage on these cards is primary and applies when renting for business or personal purposes outside your residence country.
In your country of residence, the coverage is primary when renting “primarily” for business purposes and secondary when renting for personal use.
The following Chase business credit cards offer this CDW coverage:
Bottom Line: Chase business credit cards provide primary CDW coverage when renting a vehicle for personal purposes outside of your residence country.
Final Thoughts
The CDW coverage offered with the Chase Sapphire Preferred card can save you a lot of money if you frequently rent a vehicle. Having the coverage can also make the rental process easier as there are fewer decisions to make.
If you do not have auto insurance, there’s also a certain peace of mind gained by knowing you’ll be covered without accepting the expensive CDW/LDW offered by the rental car company.
If you do have auto insurance, you would benefit from having the coverage, too — you will not have to file a claim with your own insurance company first (as you would with credit card rental coverage that is secondary).
This is a favorable alternative because filing a claim with your auto insurance company could result in higher rates and even cancellation.
The Chase Sapphire Preferred card is not only one of our favorite choices as an excellent travel rewards credit card — it provides many benefits that can actually save you money.
The rental car coverage that comes with the Chase Sapphire Preferred card provides protection if your rental car is involved in an accident or is stolen.
The coverage is provided free of charge and reimburses you for damage, towing, and loss of use expenses you become responsible for due to damage or theft of your rental car.
You must reserve and charge the rental car with the Chase Sapphire Preferred card and refuse the car rental company’s CDW coverage.
Is there a Chase credit card with rental car coverage with no annual fee?
Two of Chase’s business credit cards do not charge an annual fee and provide primary collision damage waiver coverage.
The Ink Business Cash Card and the Ink Business Unlimited Card do not charge an annual fee and offer complimentary CDW coverage.
Are other drivers covered when driving the rental car?
In order for other drivers to be covered under the Chase Sapphire Preferred card CDW coverage, they must be listed on the rental car agreement.
Authorized users that you have added to the Chase Sapphire Preferred card are also covered for the same primary CDW coverage when renting a vehicle and using their card.
However, if an authorized user is traveling with you and driving, they should also be listed as a driver on the rental agreement to ensure coverage.
What is the difference between primary coverage and secondary coverage?
Secondary CDW coverage requires you to utilize other insurance first before covering you. You would need to file a claim with a primary insurance company first, then the secondary coverage would kick in.
With primary CDW coverage, you do not need to file a claim with any other insurance company first.
What does "pay for loss of use" mean?
When a rental car is damaged or stolen, the rental car company cannot rent out that vehicle and will potentially lose that income.
The amount of lost revenue due to the incident may then be charged to the renter.
The CDW coverage on the Chase Sapphire Preferred card covers this “loss of use” responsibility.
Christine ran her own business developing and managing insurance and financial services. This stoked a passion for points and miles and she now has over 2 dozen credit cards and creates in-depth, detailed content for UP.
This bonus value is an estimated valuation calculated by UP after analyzing redemption options, transfer partners, award availability and how much UP would pay to buy these points.
