Title: Navigating Insurance Claims When Using Loyalty Points to Rent a Car
Understanding the nuances of credit card rental insurance can be tricky, especially when loyalty points and discounts come into play. Here’s a real-world scenario that highlights some important considerations for travelers relying on credit card benefits to cover rental car damages.
The Situation
A traveler rented a vehicle through Enterprise’s online platform, leveraging loyalty points to significantly reduce the rental cost. Due to the points application, the total amount charged at the counter was just $5.47, which the customer paid using their Chase Sapphire Reserve (CSR) credit card.
Typically, CSR’s benefits include primary coverage for rental cars—contingent on paying the full rental rate with the card and declining the rental company’s Collision Damage Waiver (CDW). The customer adhered to these conditions, charging the entire amount and declining CDW.
The complication arose after a minor accident during the rental period. The customer filed a claim with CSR’s insurance provider, Virginia Surety (via Assurant), which had previously covered them without issues. However, this time, the claim process hit a snag. The insurer repeatedly requested a billing statement confirming the full rental amount, despite the customer submitting exactly that: a statement showing a charge of $5.47 on the date of the rental.
The core issue appears to be whether the insurer is denying coverage because the rental was paid partly or entirely with points, resulting in a low or negligible cash charge. The insurer’s stance seems to be that they require proof of receiving ‘full payment’ for the rental, and there’s concern whether a reduced charge due to points satisfies this.
Key Considerations
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Full Payment Requirement: The CSR policy states that cardholders must charge the full rental amount to their card. In this case, the customer did pay $5.47, but the total rental cost was potentially higher, offset by points.
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Points and Discounts: Many insurance policies depend on whether the actual charge matches the rental’s billed amount. Utilizing points or discounts might complicate claims, especially if the insurer views the reduced cash transaction as partial payment.
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Documentation and Proof: The customer provided billing statements showing the $5.47 charge, but the insurer appears to be requesting additional confirmation or possibly disputing the legitimacy of the total cost amount due to the use of points.
Legal and Practical Implications
While specifics can vary by insurer and policy wording, generally, rental car insurance offered through credit cards is
