Title: Navigating Insurance Claims When Using Loyalty Points for Car Rentals
Understanding the complexities of credit card rental insurance can be challenging, especially when discounts or loyalty points are involved. Recently, a traveler encountered a tricky situation after using points to rent a vehicle at an extremely reduced rate.
Here’s the scenario:
The individual rented a car through Enterprise’s online platform, applying loyalty points to significantly reduce the rental cost. The final bill at the counter was just $5.47, which was paid in full using a Chase Sapphire Reserve (CSR) credit card. As many know, the CSR offers primary coverage for rental cars, provided the entire rental amount is charged to the card and the customer declines the rental company’s collision damage waiver (CDW). The customer adhered to these conditions—charging the full amount and declining CDW.
However, during the rental period, a minor accident occurred. After returning the vehicle, the customer filed a claim with CSR’s insurance provider, Virginia Surety/Assurant. Usually, this process runs smoothly, but this time, complications arose. The insurer requested a billing statement showing the full amount charged for the rental, but the bill reflected only the $5.47 paid, thanks to points redemption. Despite resubmitting the same statement, the insurer persisted with the request, raising concerns about whether the reduced amount qualifies as the “full” charge.
This situation raises an important question: Could using loyalty points to lower the rental price impact the insurance coverage? Specifically, is the insurance denying coverage because the billed amount—$5.47—does not match what they expect as the total rental cost?
Key details:
- The entire charge at the rental counter was $5.47.
- The customer declined the rental company’s collision damage waiver.
- The credit card used is eligible for primary rental coverage, which requires charging the full cost of the rental.
What does this mean?
Officially, many credit card insurance policies state that to qualify for coverage, you must charge the entire rental amount to the card. This requirement often assumes the billed amount matches the rental’s standard or listed price, not discounted rates obtained through points or other discounts. If the insurer interprets the billed amount as the “full” cost, then any reduction—such as through loyalty points—could complicate claims.
Implications and Advice:
While loyalty points are a fantastic way to save, they might inadvertently affect insurance claims
