Discover Card rental car insurance
Discover’s rental car insurance benefit has been discontinued as of 2018. Here are some alternatives to consider.
Written by Jaya Anandjit
Reviewed by Kathleen Flear
As of 2018, the Discover card rental car insurance benefit was discontinued alongside numerous other travel and product insurance extensions. Thankfully, other credit card companies still offer rental car coverage. Here’s what they do and don’t cover.
Running errands while your regular car is in the shop or taking a road trip between national parks is a great reason to grab a rental car. But when it comes to protecting your wallet and your rental vehicle, you’ll want to have rental car insurance to save you from the burden of accidental damages or theft.
Some credit card companies offer rental car insurance as a complimentary bonus. If you have a Discover card and you’re a frequent car renter or traveler, you’re probably curious if you have access to this benefit.
Here’s a guide including details about Discover’s old rental insurance coverage, other credit card companies with rental car insurance today, and what is and isn’t covered by credit card rental car insurance.
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4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ driversIs there Discover Card rental car insurance?
No—Discover does not offer rental car insurance to their credit holders. As of February 28, 2018, Discover discontinued their rental car insurance benefit and named May 29, 2018 the last day for rental car insurance claims under their credit cards.
Before 2018, Discover offered up to $25,000 in rental car insurance coverage for damages or theft to a rental vehicle purchased with a Discover card. Cardholders would need to decline the rental agency’s insurance benefits to claim Discover’s rental coverage, which is the typical procedure for acquiring rental car insurance from a credit company.
Alongside the termination of auto rental coverage, Discover discontinued extended product warranty coverage, flight accident insurance coverage, return guarantee perks, and purchase protection.
What other credit card companies offer rental car coverage?
If you’re looking for a credit card that covers rental car insurance, don’t worry—there are more than enough to choose from. American Express, Mastercard, Visa, Chase, United, and Capital One all offer rental insurance coverage.
If you secure a card from any of the providers listed above, you’ll be protected by one of two types of rental car insurance coverage depending on your card type. The first type of rental car insurance is primary coverage, which is typically offered on premium or luxury credit cards. The second type is—you guessed it—secondary coverage, which is the most popular coverage type for standard credit cards.
Primary coverage will pay for your claims without any intervention from your personal auto insurance. It allows you to avoid paying a
deductible
, and since you aren’t filing a claim with your insurance company, you won’t face any negative repercussions (like a rate increase upon renewal
). Secondary coverage requires a claim to your insurance company for coverage under your personal insurance policy. Once your personal insurance is exhausted, your credit card provider will reimburse your deductible and cover any outstanding costs that weren’t handled by your insurance policy.
Let’s take a closer look at what is and isn’t covered by credit card rental car insurance.
What credit card rental car insurance covers
Credit card companies typically offer one type of coverage: Collision Damage Waiver (CDW) coverage, also known as loss damage waiver coverage.
As a secondary coverage type, CDW offers an added blanket of insurance for theft or damages to a rental vehicle. Secondary CDW coverage ensures all outstanding expenses for your claim are covered, beyond your insurance provider’s coverage limits.
With primary coverage, CDW covers the entire incident, so you won’t have to worry about filing a claim with your personal insurance provider or paying for a deductible.
Credit card rental car insurance may also cover towing expenses,
roadside assistance
, and administrative fees. Contact your credit card provider via the number on the back of your card for more information on your rental car insurance coverage.What credit card rental car insurance doesn’t cover
Regardless if your credit card comes with primary or secondary rental car insurance, you will not have coverage for the following types of insurance:
- Liability insurance: Bodily injury liability and property damage coverage are not offered by credit card rental car insurance.
- Expensive vehicles: Most credit card providers do not offer coverage for luxury cars, antique vehicles, limos, motorcycles, mopeds, or large vehicles.
- Extensive rental periods: Typically, credit card companies have a 15-30 day max on rental car insurance coverage.
- Personal injury protection(PIP): Credit holders will not receive medical bill reimbursements through their credit card rental car insurance.
- Personal property insurance: If personal items are stolen from your credit card-covered rental vehicle, you will not receive any financial compensation or support from your credit card company.
- Country limitations: Some credit card rental insurance will not cover car rentals in certain countries. For example, Italy, New Zealand, and Australia are exempt from American Express’ rental car insurance coverage.
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FAQs
How can you tell if your credit card offers rental car insurance?
You can find out more about your credit card benefits by logging into your online credit card account. Most accounts have a “Benefits” option on the account menu, which will highlight any advantageous offers. You can also call your credit card company and ask about rental car insurance coverage.
What are the benefits of the Discover Card?
The Discover card offers contactless payments with tap, digital wallet integration with Apple Pay, Samsung Pay, and Google Pay, and a reward system that allows you to gain a cashback bonus or Miles when you purchase from Amazon or PayPal with your Discover card.
