5 Best Credit Cards With Car Rental Insurance Canada (Dec 2022)

October 31, 2022
Blog
credit cards visa mastercard

There are a few good credit cards that offer car rental insurance, but some stand out above the rest for their additional perks and benefits. I constantly keep up with the latest promo rates and policy changes and make my recommendations below based on years of experience.

I recommend the Scotiabank Gold American Express Card as the #1 credit card with car rental insurance in Canada. It is one of the most flexible cards, with comprehensive insurance, a very generous welcome bonus, no foreign exchange fees, high Scene+ points earn rate and access to exclusive American Express Front Of The Line benefits.

What Is A Credit Card With Car Rental Insurance?

Credit cards that offer car rental insurance are a very select group of credit cards that offer insurance coverage for your car. This service is known as Rental Car Collision or Car Loss Damage (CLD) insurance, and most of these credit cards require you to process the whole car rental transaction using your credit card. Additionally, you may be asked to decline the Collision Damage Waiver (CDW) and the Loss Damage Waiver (LDW) provided by the car rental agency.

Car Loss Damage insurance coverage benefits are usually reserved for private passenger cars, and cover you only for damage and theft of the vehicle – not for any personal belongings that may be inside it. Third-party liability and personal injury are also not included, so you may want to look into additional insurance for the worst-case scenarios.

Without further ado, here are the best credit cards with car rental insurance Canada has to offer:

The Best Credit Cards With Car Rental Insurance

  1. Scotiabank Gold American Express Card: Best for lengthy car rental periods and no foreign transaction fee
  2. President's Choice Financial World Elite Mastercard: Best for no annual fee and interest-free charge on new purchases
  3. American Express Gold Rewards Card: Best For supplementary card benefits and high MSRP rental cars
  4. Rogers World Elite Mastercard: Best For cash back rewards and no annual fees
  5. BMO World Elite Mastercard: Best for welcome bonus and reward points

Scotiabank®* Gold American Express® Card

Great for generous welcome bonus and high earn rate on Scene+ points
  • Annual Fee
    $120
  • Interest Rate
    19.99% on purchases, 22.99% on cash advances
  • Welcome Bonus
    45,000 pts
  • Rec. Credit Score
    660+
  • Features & Benefits

    • Earn 45,000 bonus Scene points as a welcome bonus in your first year
    • No foreign transaction fees
    • Shop online and abroad, only only the exchange rate applies
  • Pros & Cons

    Why we like it

    Great for generous welcome bonus and high earn rate on Scene+ points

    Pros

    • 45,000 bonus welcome points
    • No foreign exchange fees when purchasing abroad or online
    • Earn 5x Scene+ points per $1 spent at grocery stores, restaurants, and food deliveries
    • Access to presale tickets and VIP seating in select events through American Express' Front Of The Line program
    • Comprehensive travel and medical insurance
    • No annual income requirement to apply for the card

    Cons

    • Needs a good credit score (660+)
    • It isn't as widely accepted in Canada as Visa or Mastercard
  • More Details

    Bonuses and fees

    The Scotiabank Gold American Express Card has an annual fee of $120 (completely waived for the first year). If you find yourself travelling abroad often or making online purchases, this card might be for you. It doesn’t charge any kind of foreign transaction fee, and it is accepted everywhere the American Express network is supported.

    Perks and Benefits

    With this card, you can earn Scene+ points on all purchases, and It has all the benefits you can expect from an Amex card; here’s the breakdown:

    • 5 Scene+ points per $1 spent on groceries, restaurants, food delivery, entertainment, movies, and ticket agencies
    • 3 Scene+ points per $1 spent on transit, including subway, taxis, buses, and streaming services subscriptions
    • 1 Scene+ point per $1 on all other purchases
    • Access to presale tickets through Amex’s Front Of The Line program
    • Complimentary concierge service
    • Access to airport lounges and invites to exclusive events

    Redeeming Your Rewards

    Redeeming with the Scotiabank Gold Amex card is very easy – you can book flights and exchange your points at any time through the Scene+ Travel portal. You will need to create a Scene+ Travel account to start browsing through all the offers and destinations.

    Insurance

    The Scotiabank Gold American Express Card offers comprehensive insurance that includes both travel and medical coverage. Here are the supported categories:

    • Travel emergency medical insurance
    • Trip delay or cancellation insurance
    • Delayed or lost baggage insurance
    • Rental car insurance
    • Hotel/motel burglary insurance

President’s Choice Financial® World Elite Mastercard®

Great for earning PC points and very low credit score requirement
  • Annual Fee
    $0
  • Interest Rate
    20.97% on purchase, 22.97% on cash advances
  • Welcome Bonus
    20,000 pts
  • Rec. Credit Score
    560+
  • Features & Benefits

    • World Elite Mastercard Earn 20,000 PC Optimum points as a welcome bonus
    • Extended warranty and purchase assurance
    • Access to Mastercard Global Services
    • Complimentary Concierge Services
    • Fraud protection and Proactive monitoring to manage and protect your credit card information
  • Pros & Cons

    Why we like it

    Great for earning PC points and very low credit score requirement

    Pros

    • 20,000 bonus welcome points
    • Earn up to 45 PC points per $1 when purchasing at partner stores
    • Comprehensive travel and medical insurance
    • Complimentary Concierge service
    • No annual fee
    • Relatively low credit score requirement (560+)

    Cons

    • PC points can only be redeemed at select stores
    • Requires a minimum yearly income of $80,000
  • More Details

    Bonuses and fees

    The President's Choice Financial Mastercard is a store credit card that offers very generous rewards when you shop at any of its partner stores. It doesn’t charge annual fees, and you can earn bonus points on most everyday purchases.

    Rewards

    PC Financial is partnered with a lot of stores; here are some of the best rewards by category:

    • 45 PC points per $1 spent at Shoppers Drug Mart
    • 30 PC points per $1 spent on grocery stores (Loblaws, No Frills, and more)
    • 30 PC points per litre of gas at Esso gas stations
    • 10 PC points per $1 spent everywhere else 

    Make sure to check PC Financial site for new partner stores.

    Perks and benefits

    • 21-day interest-free grace period on purchases
    • 4 free additional authorized users
    • Extended warranty
    • Complimentary Concierge services

    Insurance

    • Medical emergency insurance
    • Car rental collision insurance
    • Identity theft assistance

American Express Gold Rewards Card

high earn rate at eligible eats & drinks, and medical & travel insurance
  • Annual Fee
    $250
  • Interest Rate
    20.99% on purchases, 21.99% on cash advanes
  • Welcome Bonus
    50,000 pts
  • Rec. Credit Score
    660+
  • Features & Benefits

    • Earn 40,000 Membership Rewards points as a welcome bonus after you spend $3,000 within 3 months
    • Earn an additional 10,000 points when you make a purchase between 14 and 17 months of Cardmembership
    • Annual $100 Travel Credit
    • Priority Pass membership and 4 complimentary visits to Plaza Premium Lounges in Canada
  • Pros & Cons

    Why we like it

    Great for high earn rate at eligible eats & drinks, and medical & travel insurance

    Pros

    • 50,000 MR points
    • Earn 2 points for every $1 in Card purchases on eligible travel
    • Transfer points 1:1 to other loyalty programs (Aeroplan, Marriot Bonvoy, and more)
    • Comprehensive travel and medical insurance
    • $100 travel credit and 4 complimentary visits to Plaza Premium Lounges
    • Complimentary Priority Pass membership

    Cons

    • High annual fee ($250)
    • $50 to request an additional Gold Rewards Card
  • More Details

    Bonuses and fees

    The American Express Gold Rewards Card is a premium travel card with an annual fee of $250. You can earn 2 MR points per $1 spent on travel-related purchases, as well as 2 MR points per $1 spent on groceries, gas, and drugstores. To apply for this card, you need a good credit score of at least 660. There is no minimum annual income requirement.

    Rewards

    You can earn MR points at a rate of:
    • 2 MR points per $1 spent on travel-related purchases
    • 2 MR points per $1 spent on groceries, gas, and drugstores
    • 1 MR point per $1 on all other purchases
    • 1 MR bonus point on Amex Travel Online bookings

    Perks and benefits

    • 1 free additional card 
    • Access to American Express’ Front Of The Line program and American Express Experiences
    • Worldwide Airport Lounge Access
    • Complimentary $100 Annual Travel Credit

    Insurance

    The American Express Gold Rewards Card’s got you covered in most insurance categories:
    • Emergency medical insurance
    • Flight delay and cancellation insurance
    • Lost or stolen baggage insurance
    • Travel emergency assistance
    • $500,000 travel accident insurance

How To Choose A Credit Card With Car Rental Insurance?

Important things to consider when choosing a credit card with car rental insurance include the following:

Earn $347 From Our First Email

  • Annual fees
  • Incidents covered
  • The stipulated car rental period covered
  • Manufacturer's suggested retail price (MSRP) limit
  • Card eligbility requirements
  • Other perks offered by the card

Commuting And Travel

If you drive to work every day and have a particularly long commute or travel a lot, you are more likely to have an emergency. In that case, it’s reasonable to spend a little more on a complete car rental insurance program that will protect you in case of an emergency abroad – or go for a premium travel credit card with insurance benefits.

Price

Depending on your priorities, you can use a credit card that offers car rental insurance and doesn’t charge annual fees. If you’re looking for more generous rewards like higher cash back rates, medical insurance, and travel perks, a premium credit card with an annual fee will be more beneficial for you in the long run.

Pros & Cons Of Credit Cards With Car Rental Insurance

Pros

  • Earn cash back rewards or travel points on all your purchases
  • Cheaper than regular insurance (especially for the no-fee cards that offer car rental insurance)
  • Travel insurance coverage

Cons

  • Some credit cards charge high annual fees ranging from $120-$250
  • They do not cover third-party liability or personal injury

Why Get Credit Cards With Car Rental Insurance?

Getting separate car rental insurance could be pretty expensive. Obtaining a credit card that provides other benefits besides car rental insurance could be an economical alternative to save on car insurance costs, especially when the credit card comes with little to no annual fees. Alternatively, you can check our list of the best credit cards with free roadside assistance.

How Do You Apply For A Credit Card With Car Rental Insurance In Canada?

The requirements to obtain a credit card with car rental insurance differ by the card provider. However, typical requirements include the following: 

  • Minimum annual personal income or household income requirement
  • The yearly minimum spending requirement
  • Must be a Canadian resident with a Canadian credit file
  • Must be the age of majority in the province or territory where you live
  • Must not have declared bankruptcy in the past seven years

Credit Cards With Car Rental Insurance FAQs

What Car Rental Incidents Do Credit Cards With Car Rental Insurance Cover?

Credit cards with car rental insurance cover the loss, damage, or theft of a rental car

What Car Rental Incidents Do Credit Cards With Car Rental Insurance Not Cover?

Most credit cards with car rental insurance do not cover the following:

  • Loss/theft of personal effects in the vehicle
  • Third-party liability 
  • Personal injury
  • Expenses assumed, paid, or payable by the rental agency or its insurers
  • Damage/loss arising from the operation of the car by any driver other than an Insured person

Are Credit Cards With Car Rental Insurance Worth It?

Yes, credit cards with card rental insurance are often more cost-effective than dedicated insurance companies – especially if the credit card doesn't charge an annual fee. Some additional perks of credit cards with card rental insurance may include:

  • Generous welcome bonuses
  • Cash back rewards or point rewards on your purchases
  • Travel insurance coverage
  • Mobile device insurance

What Is The Best Free Credit Card With Car Rental Insurance In Canada?

The best free credit card with card rental insurance in Canada is the President's Choice Financial World Elite Mastercard. It comes with a very generous welcome bonus, complimentary concierge services, and access to Mastercard Global Services.

Earn $347 From Our First Email