Navigating Car Rental Insurance Claims When Using Rewards Points: A Cautionary Tale
Understanding the Fine Print of Credit Card Rental Coverage
Renting a car often comes with the convenience of included insurance coverage through your credit card, provided certain conditions are met. For cardholders of premium rewards cards like the Chase Sapphire Reserve (CSR), this typically means charging the entire rental cost to the card and declining the rental company’s collision damage waiver (CDW). But what happens when discounts or points significantly reduce the rental fee? Let’s explore a real-world scenario.
A Recent Experience with Reward Points and Insurance Denial
Imagine reserving a vehicle through an online system at Enterprise, applying loyalty points to substantially reduce the rental fee. At the counter, the total due? Just $5.47, which is paid in full with a Chase Sapphire Reserve credit card. The key point here is that the renter charged the entire amount—$5.47— to their CSR card and declined additional coverage, ostensibly fulfilling the card’s policy requirements.
However, after a minor mishap during the rental period and subsequent claims with the insurance provider—Virginia Surety/Assurant—the situation took an unexpected turn. The insurance company requested documentation showing the “full amount charged” to the card, repeatedly asking for a billing statement reflecting the total rental fee.
The Issue at Hand
The claimant provided credit card statements indicating a $5.47 charge on the rental date, matching the amount paid at the counter. Yet, the insurance provider persisted in demanding proof that the entire rental value was billed to the card, raising concerns about whether the use of points might exclude coverage.
Key Observations:
- The rental cost captured in the billing statement was solely $5.47.
- No additional charges or fees were incurred.
- The renter declined the rental company’s CDW.
- Terms for CSR coverage specify that the full rental amount must be charged to the card, with no explicit mention of discounts, points, or promotions affecting this requirement.
Potential Implications and Advice
This scenario highlights an important consideration for travelers: when using loyalty points or discounts that significantly lower the rental fee, credit card insurers may interpret “full payment” differently. They might view a minimal charge—like $5.47—as not representative of the total rental value, especially if the original booking was for a much higher amount.
If you find yourself in a similar situation, consider the following:
- Ensure your billing statement clearly shows the total rental amount pre-dis
