Understanding Rental Car Insurance Claims When Using Loyalty Points
A Cautionary Tale for Travel Enthusiasts and Credit Card Users
Recently, I experienced a situation that highlights important considerations for anyone relying on credit card benefits for rental car coverage, especially when loyalty points come into play. Here’s my story, and some insights for those in similar scenarios.
The Incident
I rented a vehicle from Enterprise using their online reservation system. To maximize savings, I applied my loyalty points, which significantly reduced the rental cost. At the rental counter, the total due was just $5.47—paid in full with my Chase Sapphire Reserve (CSR) credit card.
Key Details:
– The entire charge was minimal: only $5.47.
– I declined Enterprise’s Collision Damage Waiver (CDW) coverage.
– The CSR credit card offers primary rental car insurance, provided the full rental amount is charged to the card and CDW is declined. I complied with both conditions.
The Issue
After returning the vehicle, I filed a claim with CSR’s insurance provider, Virginia Surety/Assurant. I’ve successfully made claims before without issues, but this time, I encountered resistance. The insurer requested a credit card billing statement explicitly showing the full rental amount. I submitted my statement twice, clearly indicating a charge of $5.47 on the rental date, but they persistently ask for the same documentation, seemingly disregarding my submissions.
My Concern
Could the insurance provider be denying my claim because I used loyalty points to reduce the visible charge? They might be interpreting the “full rental cost” as the initial sticker price rather than the amount I paid out of pocket. Given that the insurance terms specify that the full amount must be charged to the card—without mention of restrictions related to discounts or points—this presents a tricky situation.
Points to Consider
– The total amount charged to my CSR card was indeed $5.47.
– No additional fees or charges were involved.
– I declined external coverage, relying solely on the credit card’s primary insurance benefit.
– The terms specify charging the full rental amount, but do not explicitly address scenarios involving loyalty points or discounts.
Reflections and Advice
Had I been aware that using points might complicate insurance claims, I might have opted to pay the full price upfront without discounts. Nonetheless, under the current circumstances, the key question is whether the insurance company can deny coverage based on the method of payment or the
