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How often have you been faced with the decision of whether or not you should purchase car rental insurance while at the car rental company?
It always catches me by surprise when the customer rep at the car rental agency asks if I want auto rental insurance and emphasizes why I need it so badly. I just never really think about insurance before venturing to rent a car.
Car rental insurance sold as Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) does not come cheap. At up to $30 per day, you could easily be on the hook for approximately $1,000 for a 30-day rental.
So, should you pay for the car rental insurance offered by the car rental agency? It depends.
There are several no-fee credit cards (and most premium cards) offering free rental car insurance coverage that protects your rental car against collision damage and loss, subject to specific conditions. They also cover the costs of towing and loss of use fees charged by the rental company.
If your credit card offers free rental car insurance benefits, you can save lots of money every time you rent a car!
Read on to learn about the best credit cards for free car rental insurance in Canada.
Table of Contents ShowThese cards come with an annual fee and premium benefits in addition to car rental insurance.
Rewards: Earn 5x Scene+ points/$1 on restaurants, food delivery, and grocery (up to 6x at some stores); 3x points/$1 in gas & travel; 1x points/$1 everything else.
Welcome offer: Get up to 45,000 points ($450 value).
Interest rates: 20.99% on purchases; 22.99% on cash advances.
Annual fee: $120
The Scotiabank Gold AMEX card has one of the best rental car coverages and comes with an annual $120 fee tag.
This card offers car rental insurance covering up to 48 consecutive days per rental period and up to $65,000 in value.
Other benefits of the card are:
Rewards: Earn 2x Scene+ points/$1 on groceries, dining, entertainment, and daily transit; 1x points/$1 everything else; 6 free airport lounge passes/year; no FX fees.
Welcome offer: Get up to 35,000 points ($350 value).
Interest rates: 20.99% on purchases; 22.99% on cash advances.
Annual fee: $150 (waived in the first year)
This premium travel rewards card from Scotiabank comes with a $150 annual fee. It is one of the best no foreign transaction fee cards in Canada and also offers car rental insurance.
The Scotiabank Passport Visa Infinite protects you against rental car damage and theft for up to 48 consecutive days and a maximum of $65,000.
Other benefits of the card include:
Learn more about the card in this review.
The BMO World Elite Mastercard has a $150 annual fee (waived in the first year).
BMO World Elite Mastercard Car Rental Coverage
This card offers car rental insurance for up to 48 days and up to a maximum of $65,000. In addition to the basic coverage for loss and damage to a rental car, it also provides car rental accidental death and dismemberment benefits of up to $200,000 for the primary cardholder.
Also, your personal effects are protected against theft or damage up to $2,000 per account during each rental period.
Other benefits of the card:
These credit cards do not charge an annual fee and provide free rental car insurance, often referred to as Rental Car Collision/Loss Damage insurance.
Rewards: Earn up to 2% unlimited cash back in up to 3 spending categories and 0.50% on all other purchases; VIP perks.
Welcome offer: Get an extra 10% cash back on up to $1,000 in spending in the first 2 months ($100 value).
Interest rates: 19.95% for purchases, balance transfers, and cash advances.
Annual fee: $0
The brand-new Tangerine World Mastercard® is the second no-fee credit card offered by Tangerine Bank. It offers some of the best cash back rewards available in Canada and also has an impressive 1.95% balance transfer rate for 6 months.
Note that a minimum personal income of $60,000 is required to apply for this card.
This card offers car rental insurance when you charge the full rental cost to your card. The coverage protects you for up to 31 consecutive days.
Other Benefits of this Card
Get more details in this review.
The Rogers World Elite Mastercard is provided by Rogers Bank and is on my list of the best no foreign transaction fee cards in Canada.
Rogers World Elite Mastercard Rental Car Insurance
This card offers rental car collision/damage insurance that is underwritten by CUMIS General Insurance Company and provides coverage for a maximum of 31 consecutive days. You must be a Canadian resident, rent the car in your name, and pay the full rental costs with your card. You must also decline the rental car agency’s waiver.
This car rental insurance covers up to $65,000 in damage or loss. A minimum personal income of $80,000 is required.
Other Benefits of this Card
The popular PC Financial World Elite card is one of the best credit cards for earning cash back if you shop at Superstore and Shoppers Drug Mart.
PC Financial World Elite Mastercard Car Rental Insurance
It offers car rental insurance that covers damage and theft for up to a period of 31 consecutive days. As expected, you must decline the car rental’s CDW/LDW, rent the car in your name, and pay the entire cost of the rental using the card.
The maximum car value covered is up to $65,000, and you must report a claim to the insurer, American Bankers Insurance Company of Florida, within 48 hours of a loss or damage.
A minimum personal income of $80,000 per year is required to apply for this card.
Other Benefits of this Card
The PC Financial Mastercard is great for earning PC Optimum points and free groceries.
The Triangle World Elite Mastercard is managed by Canadian Tire Corporation and is included on my list of the best no-fee credit cards in Canada.
Triangle World Elite Mastercard Rental Car Insurance
This card offers car rental collision and loss damage waiver insurance when you rent most passenger vehicles for a period not exceeding 31 consecutive days. You must rent out the car in your name, pay for it using your card, and decline the rental agency’s CDW.
The maximum MSRP value of the vehicle covered is $65,000, and you must report a claim within 48 hours. A minimum personal income of $80,000 is required to apply for this card.
Other Benefits of this Card
Credit cards that offer Rental Car Collision and Loss Damage Insurance often provide coverage for:
In general, you need to decline the rental company’s collision damage (CDW) and/or loss damage (LDW) waiver coverage for your credit card’s rental car company insurance to kick in.
Credit card companies also require that you pay for the entire cost of the car rental using your card and rent it out in your name.
Most credit cards do not offer any third-party liability coverage or protection for personal injury and damage. For example, if the other party’s vehicle is damaged or they are injured, this is not usually covered by your credit card car rental insurance.
If you own an insured personal car, your third-party liability coverage may already cover you in a rental car.
A minimum level of third-party liability also comes with all rental cars in Canada by law. The minimum amount starts at $200,000 and maybe up to $1,000,000, depending on the province and/or car rental company.
This minimum coverage is already factored into your car rental and does not require an additional fee.
If you are driving a rental car outside of Canada, the minimum liability insurance coverage at your location may vary wildly and be so minimal that it potentially exposes you to significant out-of-pocket costs.
In this case, it becomes especially important to ensure that you have personal third-party liability coverage in place.
Credit card auto insurance provides coverage for a limited number of days, usually between 31-48 days. If your rental exceeds the maximum length of time (e.g. 48 days), no coverage will be provided.
Other exclusions or limitations that may apply include:
Read your credit card agreement in detail to know what is covered and what is excluded.
These credit cards can help you save money when you rent a car.
Remember to check your coverage details before arriving at the rental car company so you can make the right decisions when asked whether you want to pay for Collision Damage/Loss Damage waivers.
If you choose to go with the coverage provided by your credit card, you should rent the car in your name and pay all the rental costs using the appropriate card.
If you need to report or make a claim, do so immediately, if possible, to avoid any problems.
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