Title: Navigating Insurance Claims When Using Loyalty Points for Car Rentals
Understanding the nuances of credit card rental insurance can be a challenge, especially when loyalty points reduce the total rental cost to a minimal amount. Here’s a real-world scenario to consider and some guidance for travelers leveraging credit card benefits.
Case Study: Using Loyalty Points to Minimize Rental Costs and Facing Insurance Hurdles
Recently, a traveler rented a vehicle from Enterprise via their online platform, utilizing loyalty points to significantly cut down the rental expense. The final amount payable at the counter was just $5.47, which was paid entirely with a primary credit card—the Chase Sapphire Reserve (CSR).
The CSR benefits include primary rental car coverage, provided that the rental charge is fully billed to the card and the rental company’s own coverage (Collision Damage Waiver, CDW) is declined. In this instance, both conditions were met: the full amount was charged to the CSR, and the CDW was declined.
However, complications arose after an incidental minor accident during the rental period. The vehicle was returned, and a claim was filed with the CSR’s insurance provider, Virginia Surety/Assurant. Historically, this process has gone smoothly, but this time, the claim has been met with resistance.
The insurer insists on seeing a credit card billing statement that reflects the “full amount charged” for the rental. Despite submitting a statement that clearly shows the $5.47 charge associated with the rental, the insurer continues to request the same documentation, seemingly disregarding the submitted evidence.
This raises the question: Could the use of loyalty points to reduce the total cost influence the insurance coverage denial? Specifically, are they denying the claim because the actual charge appears minimal due to points redemption—perhaps not considered the “full rental cost” in their eyes?
Key Points to Consider:
- The entire transaction at the rental counter was a charge of just $5.47.
- The renter declined Enterprise’s CDW coverage.
- The CSR terms state that “cardmembers must charge the full amount of the car rental booking to their Chase Sapphire card.” There’s no explicit mention of restrictions related to points or discounts reducing the total billed amount.
Reflections & Advice
If you’re considering using loyalty points for car rentals and rely on credit card insurance benefits, be aware that some providers might scrutinize or question the validity of a minimal charge. While the official terms may not specify restrictions on point redemptions, practical issues
