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
- Scotiabank Gold American Express Card: Best for lengthy car rental periods and no foreign transaction fee
- President's Choice Financial World Elite Mastercard: Best for no annual fee and interest-free charge on new purchases
- American Express Gold Rewards Card: Best For supplementary card benefits and high MSRP rental cars
- Rogers World Elite Mastercard: Best For cash back rewards and no annual fees
- BMO World Elite Mastercard: Best for welcome bonus and reward points
How To Choose A Credit Card With Car Rental Insurance?
Most good travel rewards credit cards include car rental insurance. The important things to consider when choosing a credit card with car rental insurance include the following:
- 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.
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
- 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
- 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.