Title: Navigating Car Rental Insurance Claims When Using Loyalty Points: A Personal Experience
Renting a vehicle can be straightforward—until an unexpected incident complicates the situation. Recently, I encountered a challenging scenario involving the use of loyalty points, insurance coverage, and a minor car accident, which I thought would be worth sharing.
My story begins at an Enterprise location, where I rented a car through their online system. To minimize costs, I applied my loyalty points, reducing the overall expense significantly. At pickup, the total due was a mere $5.47, which I promptly paid using my Chase Sapphire Reserve credit card—a card that offers primary rental car insurance coverage.
The terms of my card are clear: as long as I charge the full rental amount and decline the rental company’s collision damage waiver (CDW), I’m protected by primary insurance. I adhered to both conditions.
However, during the rental, I was involved in a minor accident. After returning the vehicle, I initiated a claim through the insurance provider associated with my Chase card—Virginia Surety/Assurant. Historically, I’ve used this benefit without issues. But this time, I encountered a stubborn roadblock.
The insurer kept requesting a credit card billing statement that shows the full rental charge. Despite submitting the statement displaying the $5.47 charge—matching the rental date—they continued to demand this documentation, seemingly ignoring the evidence provided.
This has left me questioning whether the insurance provider might deny the claim due to the usage of points. Given that the original charge was only $5.47, I wonder: Does reducing the rental cost with points influence the insurer’s view of whether I charged the “full amount” to my card?
Here are some key details:
- The entire documented charge at the counter was $5.47.
- I declined the rental company’s CDW, complying with card terms.
- The card’s terms specify: “Cardmembers must charge the full amount of the car rental to their Chase Sapphire card,” with no language about discounts or points.
In hindsight, I might have avoided redeeming points to sidestep this complication. But under the urgency of returning the vehicle to catch a flight, I didn’t think much about it.
If you’ve faced similar situations or have insights into the legal or procedural aspects of insurance claims involving discounted rentals or points, I would greatly appreciate your perspective. Do I have a chance of a successful claim, or
