Why I Only Pay for Rental Cars With My Chase Sapphire Preferred Card

I’ve never had to worry about rental car insurance because my Chase Sapphire Preferred^® Card makes it simple and cost-effective. I use my card to skip the stress of being upsold on insurance at the rental counter, driving away without adequate coverage, or premium hikes from making a claim on my personal auto insurance. 

My Chase Sapphire Preferred card also earns rewards on every rental car purchase, whether I book directly with the rental car company or use Chase Travel. Between primary rental car insurance and valuable rewards, let’s explore the reasons why the Chase Sapphire Preferred card is my go-to whenever I need to book a rental car.

Chase Sapphire Preferred Card Rental Car Benefits

BEST BEGINNER CARD

Chase Sapphire Preferred^® Card

U.P. Rating 

The rating for this card has been determined by our own industry experts who know the ins and outs 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 great welcome offer, good benefits, and perks for a moderate annual fee.

Apply Now(at Chase's secure site)

Chase Sapphire Preferred^® Card

A fantastic travel card with a great welcome offer, good benefits, and perks for a moderate annual fee.

Welcome Offer

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening.

60,000 bonus points

UP's Offer Valuation*:

$1,200

Annual Fee

$95

APR

20.49% - 27.49% Variable

Credit Recommended

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)

Why We Like This Card

The Chase Sapphire Preferred^® card is one of the best travel rewards cards on 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 & Cons

Pros

• 5x points on all travel booked via the Chase Travel portal
• 5x points on select Peloton purchases over $150 (through March 31, 2025)
• 5x points on Lyft purchases (through March 31, 2025)

Cons

• $95 annual fee
• No elite benefits like airport lounge access or hotel elite status

Read Full Review

Card Highlights

• Earn 60,000 bonus points after you spend $4,000 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.
• Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Travel℠. 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, 2027.
• Member FDIC

Financial Snapshot

• APR: 20.49% - 27.49% Variable
• Foreign Transaction Fees: None

Rewards Center

Chase Ultimate Rewards

I didn’t stumble into using my Chase Sapphire Preferred card for rental car coverage through trial and error. It was an intentional choice because I wanted a card that offered strong travel benefits — including an auto rental collision damage waiver — for a justifiable $95 annual fee.

Rewards earning is another compelling reason to book rental cars with my Chase Sapphire Preferred card, earning up to 5 points per $1.

Primary Rental Car Coverage

The auto rental collision damage waiver is, without a doubt, the killer feature for renting cars with my Chase Sapphire Preferred card. Primary rental car insurance was the standout feature that sealed the deal, making the Chase Sapphire Preferred card my primary card for booking car rentals.

Before leaving the car rental counter, you have to decide whether to get the rental company’s insurance or decline it. Declining coverage can be tricky and leave you on the hook for repair or replacement of a rental car if you cause damage. 

With my Chase Sapphire Preferred card, I have zero anxiety about turning down the rental car’s coverage because I know the auto rental collision damage waiver from the card offers all the coverage I need.  Using primary rental car coverage means if I ever have an at-fault accident in a rental car I paid for with my card, I don’t have to file a claim with my personal car insurance company before my Chase Sapphire Preferred card coverage kicks in.

My Chase Sapphire Preferred card’s primary rental car protection covers:

• The entire rental period of up to 31 consecutive days
• Theft, damage, and loss of use charges
• Administrative fees
• Reasonable and customary towing charges

I confidently decline insurance at the rental counter every time, knowing my Chase Sapphire Preferred card covers me. My Chase Sapphire Preferred card’s primary rental car coverage applies automatically when I use it to pay for car rentals — no need to opt in or select upgraded insurance. I know I’m covered without adding costs (or complications).

Why You Should Always Have Primary Rental Car Insurance

Having primary rental car insurance is crucial because I want to avoid making a claim on my personal car insurance unless it’s absolutely necessary. My premium rates can increase if I make a claim for an at-fault accident. 

If I need to claim an at-fault accident with my personal vehicle, that’s one thing, but making a claim for an accident with a rental car is another. If I caused damage to a rental car vehicle, my Chase Sapphire Preferred card would pay for it, and nothing would change with my personal car insurance — keeping my everyday rates low.

Rental car company insurance often costs $30 or more per day. I can decline that coverage when I pay for a rental with my Chase Sapphire Preferred card and keep the savings. On a 4-day trip, that’s a $120 savings — more than the card’s $95 annual fee. 

Earning Rewards on Car Rentals

When I book a rental car through Chase Travel, I earn 5 Ultimate Rewards points per $1. If I book directly with the rental car company, I earn 2 points per $1.

I can redeem Ultimate Rewards points earned on my Chase Sapphire Preferred card for:

• Transfers to airline and hotel partners
• Reservations via the Chase Travel portal
• Chase Experiences and Chase Sapphire Dining
• Cash-back as a statement credit or direct deposit
• Gift cards
• Shopping via Amazon.com or Apple 

Booking Through Chase Travel

My Chase Sapphire Preferred card gives me access to the Chase Travel portal, which offers a lot of flexibility. I can use Chase Travel to book travel with points I’ve earned with my Chase Sapphire Preferred card, pay for it with my card, or use a combination of both.

I could probably get more value from my Ultimate Rewards points by transferring them to Chase travel partners. And using points to pay for my rental means I won’t earn 5 points per $1 on bookings through the portal. Still, it’s nice to know I can cash them in if I really want to avoid forking out money for a car rental.

I like using Chase Travel to compare pricing and options for particular travel dates and destinations. The portal makes finding the lowest-priced car rental easy with my preferred rental car companies.

My Chase Sapphire Preferred card’s primary rental car coverage applies whether I pay a rental car company directly using my card or book using Chase Travel with points earned with my card.

Why the Chase Sapphire Preferred Card Has the Best Value in Car Rental Insurance

I could get primary rental car insurance from other travel credit cards, but my Chase Sapphire Preferred card gives me the most value. Let’s compare the primary rental car coverage on premium cards that I’ve considered using for car rentals:

• The Chase Sapphire Reserve^® offers a primary auto rental collision damage waiver at no additional cost, just like the Chase Sapphire Preferred card. The big difference is the annual fee. The Chase Sapphire Reserve card has a $550 annual fee compared to the $95 annual fee on my Chase Sapphire Preferred card.
• The Capital One Venture X Rewards Credit Card also has a primary auto rental collision damage waiver that applies automatically. But its $395 annual fee (rates & fees) far exceeds the low annual fee of my Chase Sapphire Preferred card.
• The Platinum Card^® from American Express is different because it automatically offers secondary car rental loss and damage insurance, but you can purchase primary coverage for about $12.25 to $24.95 per rental period. The annual fee for the Amex Platinum card is $695 (rates & fees), significantly higher than the $95 Chase Sapphire Preferred card annual fee.
• The American Express^® Gold Card is another Amex card that offers secondary car rental loss and damage insurance, with an option to purchase primary coverage for a $12.25 to $24.95 fee per rental period. Its annual fee is $325 (rates & fees), which, like the other cards with primary coverage, far outpaces the Chase Sapphire Preferred card’s low $95 annual fee.

The icing on the cake? I can add an authorized user to my Chase Sapphire Preferred card for no additional charge, and authorized users get the same primary rental car coverage. That means my husband is covered when he rents a car without me, and my teen can do the same when he starts driving and renting cars. No other card offers this much coverage for such a low price.

Final Thoughts

The Chase Sapphire Preferred card offers more than an everyday travel credit card, providing primary rental car insurance for stress-free car rentals. I’m protected without involving my personal auto policy, earn rewards with every rental, and get it all for a low annual fee.

For Capital One products listed on this page, some of the benefits may be provided by Visa^® or Mastercard^® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

For the car rental loss and damage insurance benefit of The Platinum Card^® from American Express, car rental loss and damage insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the commercial car rental company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. geographic restrictions apply. Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.

For the car rental loss and damage insurance benefit of the American Express^® Gold Card car rental loss and damage insurance can provide coverage up to $50,000 for theft of or damage to most rental vehicles when you use your eligible card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the commercial car rental company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. geographic restrictions apply. Eligibility and benefit level varies by card. Terms, conditions and limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.