Title: Navigating Insurance Claims When Using Points to Rent a Car: A Cautionary Tale
In the world of travel, loyalty programs and points redemptions can significantly reduce costs and enhance your experience. However, there are situations where these savings can complicate crucial processes like insurance claims. Here’s a real-world scenario that highlights potential pitfalls and offers insights for travelers relying on points and premium credit cards for rental cars.
A recent experience involved renting a vehicle through Enterprise, where the rental fee was drastically reduced by applying loyalty points. At the counter, the total due was just $5.47, which was fully paid using a Chase Sapphire Reserve (CSR) credit card. This particular card is known for offering excellent primary insurance coverage for rental cars, provided certain conditions are met.
According to CSR policy, to benefit from primary coverage, the entire rental cost must be charged to the card, and the renter must decline the rental company’s Collision Damage Waiver (CDW). In this case, both conditions were fulfilled, and I felt confident about my insurance protection.
However, trouble arose after a minor accident during the rental period. After returning the vehicle, I filed a claim with CSR’s insurance provider (Virginia Surety/Assurant). While I’ve successfully used this coverage before, this time the claims process became unexpectedly challenging. The insurer requested a credit card billing statement confirming the “full amount charged” for the rental. I provided the statement showing the $5.47 charge — the exact amount paid at the counter. Yet, they persisted with this request, seemingly ignoring the documentation already submitted.
This situation raises an important question: Could the use of points to reduce the rental cost interfere with coverage? The concern is whether the insurer perceives the $5.47 as the full rental fee or if the transaction’s nature—being partially paid with points—disqualifies the claim.
Key details to consider include:
- The total charged to the credit card at the time of rental was $5.47.
- The rental agreement explicitly declined the rental company’s CDW.
- The CSR policy states that the full rental amount must be charged to the card, with no mention of restrictions related to discounts or points.
Reflecting on this experience, it would have been wise to consider the implications of using points for such a low-cost rental, especially when insurance claims are involved. If I had known this might cause issues, I might have avoided using points altogether. Unfortunately, in the rush to return the vehicle
