You can get car rental insurance as an additional benefit with many credit cards. Here are the best credit cards for car rental insurance in Canada.
For cars, rental insurance protects against damages and losses that may occur while you have possession. You can get this insurance as an additional benefit with many credit cards. In fact, it is better to use your credit card as your primary car rental coverage provider. Exclusive rental insurance is usually quite expensive. While some rentals may not accept card insurance, most Canadian joints will allow it. In the article, let us share information on the best credit cards for car rental insurance in Canada –
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While no one wants bad things to happen, rental car insurance can help you out in many difficult situations. For example, if you are in an accident, your car rental insurance will cover any damage to the vehicle. The person at fault can be held liable for any damages they may have caused. You don’t have to pay the cost of repair or replacement. However, if you are at fault, your car rental insurance will cover any vehicle damage. However, you might have to offer some additional documentation.
In an extreme case, the car rental company can hold you liable for any damage suffered by your rental car. You will be charged a fee. The company might even blacklist you and stop you from renting for a long time. However, good rental car insurance coverage can help you in such cases also. The insurance covers everything within reason. You will usually not need to make additional payments. This includes extreme occurrences such as theft/vandalism etc.
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Additionally, car insurance is really needed in a case of a hit-and-run. Your car rental insurance will cover you even if the other driver does not stop or reports the incident to the authorities. Any damage to the vehicle will be covered by cover by your car rental insurance. Also, the renter’s policy covers drivers in cases of driving under the influence of drugs/alcohol and speeding violations. While exclusive rental insurance is usually quite expensive, you can get this insurance as an additional benefit with many credit cards.
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In addition to usual credit benefits, credit cards also offer insurance for car rentals. This form of auto insurance covers car rental theft, personal effects insurance, additional liability insurance, etc. Essentially, they can cover the actual cash value of the stolen or damaged rental. hence, it is a great idea to protect you and reduce your liability. However, this coverage is not as comprehensive as the benefits offered by a usual insurance company for a personal vehicle.
Additionally, many rental companies offer third-party liability insurance as part of their primary coverage. Some credit card insurance even covers car rental for accidental death. Since different card providers have varying coverage, you should contact your credit card issuer to confirm the exact type of car rental coverage offered. We have looked at some of the best credit cards for car rental insurance in Canada. Let us help you choose the best option for you in 2023.
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Most Affordable – TD Aeroplan Visa Infinite Card
- 10% off car rentals with Axis and Budget car rental companies.
- 50,000 welcome bonus points in the first year
- Annual fee waived in the first year
- Free checked bags
- Nexus rebates
- $139 annual fee
- Minimum income of $60,000 for individuals and $100,000 for household
This is the most affordable option for car rental insurance. It offers a 48-day collision damage waiver worth $65,000. However, if your repair cost exceeds this amount, it won’t be covered. All you need to get the TD Aeroplan Visa Infinite Card benefit is a minimum income of $60,000 for individuals and $100,000 for households. In addition to a good/excellent credit score, you must be up to the age of maturity in your province. There is also an annual fee of $139, a 3% balance transfer fee, 2.5% on foreign transactions, and 1% on any cash advance transaction.
The TD Aeroplan Visa Infinite card is especially great for people traveling frequently with Air Canada. You will get bonus points and rewards per flight. Additional benefits include 21 days of travel medical insurance up to $1,000,000 per person under 65, $1500 trip cancellation per person, $500 for flight delays per individual, $1000 per person for delayed or lost luggage per person, $500,000 coverage on injuries and loss of life, mobile device protection, and hotel burglary insurance are all part of their extensive travel insurance.
Best for Low-Income Earners – CIBC Dividend Platinum Visa
- 3% cash back on eligible gas payments
- Low annual fee compared to competitors
- Low minimum requirement of $15,000
- Excellent credit history required
The CIBC Dividend Platinum Visa is aimed at low-income earners. It offers extra primary rental car coverage to users with income as low as $15,000. However, you need to have excellent credit from 740 and above. In case of theft or damage to rental vehicles, this credit card offers insurance coverage up to $65,000 on most cars and trucks. However, the rental agreement has to be paid in full with your CIBC Dividend Platinum Visa card.
While the coverage limit is $65,000 per claim, there are certain exclusions like damages caused by natural disasters. The CIBC Dividend Platinum Visa offers theft coverage can be up to a maximum of $3500 per occurrence. However, theft occurring outside Canada may not be covered by this policy. If there is no physical injury during an accident, it can be covered up to $4000 per occurrence. You will also get 3% cash back on eligible gas payments.
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Best Cash Back Rate – BMO World Elite Mastercard
- 60,000 signup bonus points
- Annual fee waived in the first year
- Extended warranty and purchase protection
- $65,000 rental car insurance
- Rewards for every purchase
- No deductible
- $150 annual fee
- 2.5% foreign transaction fee
- $80,000 minimum individual income fee or $150,000 household fee
The BMO World Elite Mastercard is a great option for users who need more than standard car rental insurance. Alongside theft and collision damage, it offers excess coverage of up to $1 million per accident (up to a maximum of $2 million). With the BMO World Elite Mastercard, you will get rental car coverage for up to $65,000 for 48 days. Thanks to all the bonuses and rewards, the BMO World Elite Mastercard is essentially one card for all your needs including vehicle rental insurance.
This credit card is aimed at high-income earners with excellent credit. For primary card holders, it offers zero annual fees during their first year. You will also get 60,000 bonus points and rewards. On travel purchases, you can get 5x points for every dollar spent. There is also an extended warranty (extended for up to 1 year) and purchase protection (for up to 90 days). To enjoy the best of their bonuses and rewards, you must be renting from Hertz, Avis, or Budget.
Best No-Annual-Fee Card – Tangerine World Mastercard
- Unlimited money-back
- No annual fees
- Decent welcome bonus
- High minimum income requirement
- High-interest rates
The Tangerine World Mastercard is a zero-annual fee card. Additionally, it offers unlimited cashback. You can keep earning on all purchases. In addition to car rental insurance, the Tangerine World Mastercard offers an extended warranty for a year, purchase protection for 90 days, mobile insurance for up to $1000, and rental vehicle theft. You also get the MasterCard Travel Rewards and Dragon Pass. It gives you exclusive dining, retail, and spa experience at select airports.
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Overall, the Tangerine World Mastercard is a great option for people who spend a lot. You can even choose spending categories to earn rewards on. While this credit card is very flexible, it requires a high-income requirement. It also demands a 19.95% interest rate on purchases. However, you will earn 15% back on up to $1000 for the eligible purchases made in the first two months, 2% on up to three spending categories, and 0.5% on other purchases.
Best for Travel – The Platinum Card from American Express
- Luxury travel benefits
- Comprehensive travel feature
- High cashback earn rate
- High annual fee
- Non-travel rewards are meagre
The Platinum Card is one of the best Canadian credit cards for travel. You can get over $1500 in annual statement credits, $200 each in hotel credits, airline fee credits, $200 in Uber Cash, and many more benefits on travel purchases annually. Frequent travelers can earn up to 100,000 reward points on purchases in the first six months. While booking direct flights with eligible airlines, you get five membership points worth 0.5 cents per 1.0 cents. This credit card also offers access to airport lounges and other luxury services. However, it comes with a high annual fee that is not suitable for casual users or infrequent travelers.
Best Travel Medical Insurance – PC Financial World Elite Mastercard
- No annual fee
- Emergency medical insurance
- Travel and concierge feature
- High-income requirement
The PC Mastercard is also a no-annual-fee card. It also offers a high earning rate in select stores. Additionally, as long as your account is in good standing, the reward points don’t expire. You can earn up to 45 points per $1 on eligible purchases at an interest rate of 20.97% on purchases. Along with rental car insurance, it offers additional travel features and concierge features.
With the PC Financial World Elite Mastercard, you get emergency travel medical insurance for up to $1,000,000 for the first ten consecutive days of your trip. In case of an emergency, you can get medical assistance. The PC Mastercard also offers a rental collision damage waiver. However, to avail of this benefit, you need to refuse the rental company’s collision insurance and charge it to your card.
Best Overall – Scotiabank Gold American Express Card
- Earn up to 45,000 bonus points per year worth $850
- Earn rewards on eligible gas and transportation purchases
- Zero foreign transaction fees
- Multiple travel insurance options like travel accident, emergency medical, rental car collision/damage, and trip cancellation.
- Book and redeem flights anytime
- Early ticket access and discounts
- Annual fee of $120
- Minimum income of $12,000
- A minimum credit score of 700
The Scotiabank Gold American Express Card offers the best overall cover. It is the perfect travel companion for Canadian residents. You will get a 48-day car rental insurance of up to $65,000, including other benefits like a medical emergency. You can easily apply for this card. The process is quite straightforward and can be completed online. All you need is a minimum credit score of 700 and at least $12,000 yearly earnings. With this credit card, you can also earn rewards and bonus points on every purchase, including gas refills.
Primary cardholders are entitled to a wide range of travel insurance options. This includes emergency m edical up to $1,000,000/ 25 days, travel accidents, rental car collisions, rental car loss/damage, trip cancellation, flight delay, and delayed or lost luggage. The Scotiabank Gold American Express card also promises more cashback when you spend money on a trip to Canada. It offers rewards and bonus points when you shop from Sobeys, FreshCo, Foodland, and other affiliated stores across the country.
Note: Usually offer credit card companies provide two types of coverage – primary and secondary car rental insurance. In the case of primary coverage, you don’t need to file a claim with your personal car insurance company. On the other hand, you claim secondary coverage only after your primary auto insurance has been exhausted. Hence, to limit your liabilities, please check which type of auto rental insurance the rental company is offering before renting.
Credit cards are a great option for car rental insurance. It is a great way to limit your liabilities in case of loss or damage. When renting cars, you need insurance protection. While rental car companies have insurance, they often come with secondary insurance, meaning. So, your own insurance company will need to cover any damage or loss. It is advisable to use your card as a primary insurance source in the rental car agreements.