Title: Navigating Insurance Claims When Using Reward Points for Car Rentals: A Real-Life Case Study
Understanding How Reward Points Impact Insurance Coverage When Renting a Vehicle
In the realm of travel and car rentals, it’s common to leverage reward points to offset costs significantly. However, some travelers encounter unexpected hurdles when filing insurance claims if their rental expenses are heavily discounted or covered through points. Here’s an illustrative situation that sheds light on this nuanced issue.
Case Overview
A recent case involves a renter who utilized their loyalty points to rent a vehicle from Enterprise via their online platform. The final amount due at the counter was only $5.47, owing entirely to the use of points. The renter paid this amount with their Chase Sapphire Reserve (CSR) credit card, which offers primary coverage for rental cars when the full rental cost is charged to the card and the CDW (Collision Damage Waiver) is declined.
The Incident
During the rental period, the driver was involved in a minor accident. After returning the vehicle, they submitted a claim with the CSR insurance provider, Virginia Surety/Assurant, expecting coverage. However, the claim was met with resistance. The insurer requested documentation—specifically, a billing statement showing the full rental amount charged to the credit card.
Despite providing the requested documentation twice, evidencing the $5.47 charge from Enterprise on the same date as the rental, the insurer continued to deny the claim. The consistent response was a generic request for proof of the full rental cost, which raises questions about whether using points to reduce the rental fee might influence the insurer’s assessment of “full cost” and thus invalidate the coverage.
Key Details to Consider
- The entire amount charged at the rental counter was $5.47.
- The renter declined any additional insurance or CDW offered by the rental company.
- The CSR card’s policy states that the cardholder must charge the full rental cost to the card for coverage to apply; there’s no explicit mention of excluding rentals paid partially or entirely through points.
Implications and Questions
This scenario highlights an important legal and practical consideration: Does reducing a rental cost with points impact the ability to claim insurance coverage? While the credit card policy emphasizes charging the full rental amount, it does not specify that discounts or point redemptions negate this requirement.
For travelers, this raises a crucial question: If your rental is heavily discounted or paid entirely via points, will your insurance or protection benefits still be valid in
