Title: Navigating Rental Car Insurance Claims When Using Loyalty Points to Cover the Cost
Understanding the nuances of credit card rental car coverage can be challenging, especially when loyalty points and discounts come into play. Recently, a traveler encountered an unexpected hurdle while using points to rent a vehicle, leading to questions about insurance coverage after an incident.
The Scenario
The individual rented a car from Enterprise via their online platform, applying loyalty points to significantly reduce the rental cost. At the pickup counter, the final amount due was just $5.47, which was fully paid with a Chase Sapphire Reserve (CSR) credit card. Since CSR provides primary rental car insurance when the rental charge is made directly to the card and the optional Collision Damage Waiver (CDW) is declined, the user expected coverage to be in effect.
What Happened Next
During the rental period, a minor accident occurred. The car was returned, and a claim was filed with Virginian Surety/Assurant, CSR’s insurance provider. Having used this insurance previously without issue, the individual anticipated straightforward processing. However, the insurer began requesting additional documentation—specifically, a billing statement demonstrating the “full amount” charged for the rental.
Despite submitting the statement that clearly shows a $5.47 charge on the exact rental date, the insurer continues to refuse the claim, seemingly ignoring the evidence. This has raised concerns: Could the insurance provider be denying coverage because the total paid was so low and tied to points redemption? Is there a legal or contractual basis for this denial?
Key Details to Consider
– The entire amount charged at the rental counter was only $5.47.
– No CDW was accepted or added.
– The credit card terms specify that the entire rental cost must be charged to the CSR for coverage to apply, with no mention of restrictions related to discounts or points.
– The charge was directly made to the CSR card, which qualifies for primary coverage under the policy.
Reflections and Advice
While loyalty points reduce the apparent out-of-pocket expense, the critical question is whether the insurance provider considers the “full amount” to be zero or some nominal figure after redemption. If the insurer’s policy or practice is to verify the total rental cost explicitly, then presenting the billing statement showing the actual charge is essential, which the individual has done.
If denied, potential next steps include:
– Contacting CSR customer service for clarification on coverage when points are used.
