Title: Navigating Rental Car Insurance Claims When Using Loyalty Points: A Cautionary Tale
Understanding the Risks of Using Loyalty Points for Car Rentals and Insurance Coverage
Renting a vehicle can be straightforward — until an unforeseen incident complicates matters. Recently, I faced a situation where using loyalty points to reduce a car rental cost led to complications with my credit card’s insurance coverage. Here’s a detailed account of what happened, and insights that might help others in similar circumstances.
The Rental and Payment Details
I booked a car rental through Enterprise’s online platform, intentionally applying loyalty points to minimize the expense. At the rental counter, the final amount due was a mere $5.47, which I paid in full using my Chase Sapphire Reserve (CSR) credit card. This card offers primary coverage for rental cars, provided certain conditions are met: the rental must be charged completely to the card, and the renter must decline the car rental company’s own collision damage waiver (CDW).
An Unexpected Incident and a Claim in Limbo
During my rental period, I was involved in a minor accident. After returning the vehicle, I filed a claim with CSR’s insurance provider, Virginia Surety/Assurant, confident in my coverage. However, I soon encountered resistance. The insurer requested a detailed billing statement showing the full rental amount charged to the credit card, specifically the $5.47. Despite submitting the requested documentation multiple times, they persistently ask for the same proof, seemingly ignoring my responses.
The Core Issue: Does Using Points Impact Coverage?
My main concern is whether the insurance provider is denying my claim because I used loyalty points to lower the rental cost. The key details are:
- The only amount charged to my CSR card was $5.47.
- I declined the rental company’s CDW.
- The terms for CSR highlight that the entire rental cost must be charged to the card, with no mention of restrictions related to discounts or points.
From my understanding, as long as the full charge is billed to the card (which it was), the insurance should cover damages. However, the insurer’s refusal to recognize the reduced amount as the full cost raises questions about the validity of my claim.
Reflections and Advice
If you plan to leverage loyalty points or discounts when renting a vehicle, be aware that certain credit card benefits might have restrictions or require specific documentation to validate coverage in case of an incident. It’s always advisable to review the terms
