Title: Navigating Insurance Claims When Using Loyalty Points for Car Rentals
Understanding the complexities of rental car insurance claims can be challenging, especially when loyalty programs and points are involved. Here’s a recent scenario that illustrates some potential pitfalls and considerations for travelers relying on credit card coverage.
Case Overview: Using Points on a Budget and Facing Insurance Denial
A traveler rented a vehicle from Enterprise in Utah, leveraging their loyalty points to significantly reduce the rental cost. The final amount due at pickup was just $5.47, which was fully paid using a Chase Sapphire Reserve (CSR) credit card. This card offers primary rental car coverage, provided the entire rental fee is charged to it and the customer declines the rental company’s Collision Damage Waiver (CDW). The cardholder adhered to these conditions.
However, after a minor accident during the rental period, the individual filed a claim with CSR’s insurance provider, Virginia Surety/Assurant. Despite submitting documentation showing the full amount charged—$5.47—the insurer is requesting additional proof, specifically a credit card statement displaying the full rental charge. Attempts to clarify the details have so far been unsuccessful, and the claim remains in limbo.
Key Points to Consider
-
Are Insurance Claims Affected by Using Loyalty Points?
In this case, the entire rental cost was only $5.47, paid solely through the CSR card. The critical question is whether the insurer considers this minimal amount and the use of points as sufficient to establish the full rental charge. Some insurers may interpret the documentation based on the total amount billed rather than the amount paid out of pocket or the nature of the transaction—details that can become contentious. -
Documentation Are Insurers Asking For
Typically, primary rental car coverage through credit cards requires proof that the rental was paid in full with the card. When points are used, the challenge arises if the billing statement reflects a low or zero-dollar charge or if the rental agency’s documentation differs from what the insurer expects. Ensuring that your credit card statement clearly displays the full rental charge — including discounts or points applied—can be crucial. -
Does Declining CDW and Charging the Full Amount Matter?
The CSR terms state that to qualify for primary coverage, the cardholder must charge the entire rental amount and decline the carrier’s CDW. In this scenario, those conditions were met, which is favorable. However, the insurer’s request for “full amount” documentation suggests
