Rental car insurance is a travel insurance benefit included with many premium credit cards. Understanding credit card rental car insurance can give you peace of mind and save you money the next time you hit the road. Let’s dive into the best credit cards with rental car insurance coverage in Canada.
Featured credit cards
American Express Cobalt Card
Scotiabank Gold American Express Card
Scotiabank Passport™ Visa Infinite Card
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Best credit cards for rental car insurance in Canada
Dive into the pros and cons of our top credit card picks.
American Express Cobalt
At a glance: The American Express Cobalt offers comprehensive insurance for rental cars with a manufacturer’s suggested retail price (MSRP) of up to $85,000 for up to 48 consecutive days. For an annual fee of $160, this card gives you 5 points per $1 on dining and groceries; 3 points on streaming subscriptions; 2 points on gas, transit and ride shares; and 1 point on all other purchases.
American Express Cobalt
Annual fee: $156
- 5 points per $1 on dining and groceries
- 3 points per $1 on streaming services
- 2 points per $1 on transit and gas
- 1 point per $1 on all other purchases
Welcome offer: Earn 1,250 points for each month you spend $750, up to a maximum of 15,000 points.
Card details
| Interest rates | 21.99% on purchases, 21.99% on cash advances |
| Income required | None specified |
| Credit score | 725 or higher |
| Point value | 1 Amex Membership Rewards point = $0.01 when redeemed with the Flexible Points Travel Program, $0.015 on average with the Fixed Points Travel Program, and up to $0.02 with airline points transfers. |
Pros
- High rental coverage limit: Get insurance for cars valued up to $85,000 MSRP (most other cards only cover vehicles up to $65,000 in value) with a coverage period of up to 48 days.
- Comprehensive travel insurance: Includes coverage for emergency medical expenses, travel accidents, hotel burglaries, flight delays and baggage.
- Flexible redemptions: Redeem points to cover eligible card purchases for a minimum of 1,000 points (value of $10), or transfer points to an eligible airline or hotel loyalty program at a 1:1 ratio.
- High earning: Get one of the best earn rates for restaurants and groceries in Canada, as well as accelerated rates for many other categories.
Cons
- High annual fee: The fee is slightly higher than those of other cards in this category.
- Travel insurance limits: There is no trip cancellation or interruption coverage, nor is there medical coverage for those aged 65 or older.
- Limited acceptance: American Express is not as widely accepted as Visa or Mastercard at home and abroad.
Scotiabank Gold American Express
At a glance: The Scotiabank Gold American Express provides rental car insurance for vehicles valued up to $65,000 MSRP for 48 consecutive days. With a $120 annual fee, it earns you 6 Scene+ points per $1 spent at Sobeys-owned grocery stores (including Safeway, FreshCo and Foodland); 5 points on groceries at other grocery stores and on restaurants and entertainment; 3 points on gas, daily transit and streaming services; and 1 point on all other purchases. It’s also one of the rare Canadian credit cards that don’t charge a foreign transaction fee on foreign currency purchases.
Scotiabank Gold American Express
Annual fee: $120
- 6 points per $1 at Sobeys-affiliated stores
- 5 points per $1 on dining, entertainment and groceries
- 3 points per $1 on gas, transit and streaming
- 1 point per $1 on everything else
- Pay no FX fees on foreign purchases
Welcome offer: Earn up to $950 in value in the first 12 months, including up to 45,000 bonus Scene+ points. Offer ends Dec. 31, 2024.
Card details
| Interest rates | 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers |
| Income required | $12,000 per year |
| Credit score | 725 or higher |
| Point value | 1 Scene+ point = $0.01 when redeemed for travel on any airline or hotel (including Airbnbs). |
Pros
- Rental discounts: Save up to 25% on base rates when renting a car at participating Avis and Budget locations in Canada and the U.S.
- Comprehensive travel insurance: Includes coverage for emergency medical, travel accidents, hotel/motel burglaries, trip cancellations/interruptions, flight delays and baggage.
- No FX fee: Save the 2.5% foreign transaction fee charged by most other cards.
Cons
- Limited travel medical for seniors: Those 65 and older are only covered for three days.
- Limited acceptance: American Express cards are not as widely accepted as Mastercard and Visa.
Scotiabank Passport Visa Infinite
At a glance: This card offers insurance for rental cars valued up to $65,000 MSRP for 48 consecutive days. While it comes with a $150 annual fee, the lack of an FX fee could save you a significant amount, if you frequently travel outside of Canada or shop in other currencies online. You can also take advantage of the card’s comprehensive travel insurance and perks, like six free airport lounge visits annually. Earn 3 Scene+ points per $1 at qualifying grocery stores; 2 points per $1 on restaurants, other grocery stores, entertainment and transit; and 1 point per $1 on other eligible purchases.
Scotiabank Passport Visa Infinite
Annual fee: $150
- 3 Scene+ points per $1 spent at Sobeys stores
- 2 points per $1 on groceries, dining, entertainment and transit
- 1 point per $1 on all other eligible purchases
Welcome offer: Earn up to $1,100 in value in the first 12 months, including up to 35,000 bonus Scene+ points. Offer ends October 31, 2025.
Card details
| Interest rates | 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers |
| Income required | Personal income of $60,000 per year or household income of $100,000 per year |
| Credit score | 725 or higher |
| Point value | 1 Scene+ point = $0.01 when redeemed for travel on any airline or hotel (including Airbnbs). |
Pros
- Rental car discounts: With a free Avis Preferred Plus membership, get discounts of up to 25% at eligible Avis locations.
- Free airport lounge visits: Enjoy six complimentary lounge visits annually.
- No FX fee: Save the typical 2.5% fee on all purchases in foreign currencies.
- Comprehensive travel insurance: Includes coverage for emergency medical, travel accidents, hotel/motel burglaries, trip cancellations/interruptions, flight delays and baggage.
Cons
- Limited travel medical for seniors: Insurance only covers those 65 and over for three days.
- No mobile device insurance: Annual-fee cards usually include this coverage.
- Less earning: Lower accelerated earn rates compared to some other travel cards.
BMO Ascend World Elite Mastercard
At a glance: The BMO Ascend World Elite Mastercard provides insurance coverage for rental cars valued up to $65,000 MSRP for 48 consecutive days. Plus, save money on gas costs and rentals from select dealers. Cardholders get 5 BMO Rewards points per $1 spent on eligible travel purchases; 3 points on dining, entertainment and recurring bill payments; and 1 point on all other purchases.
BMO Ascend World Elite Mastercard
Annual fee: $150
- 5 points per $1 spent on eligible travel purchases
- 3 points per $1 on dining, entertainment, and recurring bill payments
- 1 point per $1 on everything else
Welcome offer: Earn up to 100,000 bonus points ($667 value).
Card details
| Interest rates | Interest rates: 20.99% on purchases, 23.99% on balance transfers, 23.99% on cash advances |
| Income required | Personal income of $80,000 or household income of $150,000 |
| Credit score | 760 or higher |
| Point value | 1 BMO Rewards point = $0.0067 when redeemed for travel. |
Pros
- Rental car discounts: Save up to 20% at National Car Rental and Alamo Rent A Car, as well as up to 5% at Enterprise Rent-A-Car locations worldwide.
- Gas discounts: Get up to seven cents off per litre at Shell stations.
- Free airport lounge visits: Get a complimentary Mastercard Travel Pass membership provided by DragonPass, with four free airport lounge passes annually.
Cons
- High income requirement: This card may be less accessible than some others.
TD Cash Back Visa Infinite
At a glance: This card offers rental car insurance for vehicles valued up to $65,000 MSRP for 48 consecutive days. Plus, earn 3% cash back on gas, groceries and recurring bill payments. This is one of the only cards in Canada to offer free deluxe roadside assistance, covering things like towing, battery assistance, fuel delivery and more.
TD Cash Back Visa Infinite Card
Annual fee: $139 (waived first year)
- 3% cash back on gas, grocery and recurring bill payments
- 1% on all other purchases
Welcome offer: Earn up to $500 in value, including 10% in cash back during the first three months (up to $350 in cash back). Conditions apply. Account must be approved by January 6, 2025.
Card details
| Interest rates | 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers |
| Income required | Personal income of $60,000 or household income of $100,000 |
| Credit score | 680 or higher (recommended) |
Pros
- Rental car discounts: Get up to 10% off at Avis and Budget locations in Canada and the U.S. and up to 5% off internationally.
- Roadside assistance: Get a complimentary Deluxe TD Auto Club Membership with 24/7 emergency roadside services.
Cons
- Limited travel medical coverage: This card only offers coverage for 10 consecutive days, one of the shortest coverage periods among premium cards. Those 65 and older are covered for only four days.
What is credit card car rental insurance?
Credit card insurance coverage for rental cars typically includes a collision damage waiver (CDW) and a loss damage waiver (LDW), which protects you from financial liability if your rental car is damaged or stolen. It typically only comes into effect when a rental is fully charged to your credit card, and you must generally decline the rental car agency’s collision damage waiver (CDW) benefits. If there is no clearly marked area on the contract asking you to decline coverage, some credit cards insist that you write on the agreement yourself: “I decline the CDW provided by the rental agency.”
Some forms of damage may not be covered, so it’s wise to read the fine details of the credit card’s insurance contract before you apply.
What does credit card rental car insurance cover?
Credit card rental car insurance typically covers:
- Damage to the rental vehicle due to a collision or an accident
- Theft of the rental vehicle
- Loss-of-use charges, meaning the cost of alternate transportation while your vehicle undergoes repairs
- Towing charges related to a covered loss
The following are common exclusions. Credit card issuers may have different exclusions, so always read your insurance agreement carefully.
- Liability for damage to other vehicles or property
- Personal injury or death
- Personal belongings stolen from the rental car
- Exotic or luxury cars exceeding the coverage limit. (Note that vehicles like moving vans, motorcycles and pick-up trucks are types of transportation often excluded from coverage.)
- Rentals in some countries
- Rentals exceeding the maximum coverage period
Frequently asked questions
Rental car insurance is included with many premium credit cards. However, for your rental car insurance to come into effect, usually you must charge the whole cost of the rental to your credit card and decline the rental car agency’s collision damage waiver (CDW) benefits.
The specific steps and time it takes to process a claim will vary depending on your credit card provider, but generally you’ll need to complete the following steps:
- Take photos of any damage and get a copy of the police report.
- Notify your insurance provider about the incident as soon as possible (usually you are expected to reach out within 48 hours).
- Fill out the forms your insurer will send you.
- Gather needed documents, including things like your driver’s license, the rental car agreement, an itemized list of the repairs needed, and your credit card billing statement showing you charged the rental car to your card.
- Wait for your claim to be processed and paid out. Many card issuers don’t provide a timeline. However, TD says its claims are generally paid out within 15 days.
- Card issuers may put a time limit on claims. For example, TD specifies that cases remain open for a maximum of six months from the date of the damage or theft. So, always make your claim as soon as possible.
