Understanding Your Car Rental Insurance and Points Redemption: What to Know When an Accident Occurs
When using loyalty points to offset your vehicle rental costs, it’s important to understand how insurance coverage may be affected—especially if an incident happens. Recently, a traveler shared their experience of renting a vehicle through Enterprise, leveraging points to significantly reduce the out-of-pocket expense, and then facing an unexpected challenge with their credit card insurance coverage after an incident.
The Rental Scenario
The individual booked a car online, applying loyalty points to lower the rental rate, resulting in a final charge of just $5.47. This amount was fully paid with a Chase Sapphire Reserve (CSR) card, which is known for offering comprehensive rental car insurance coverage—primarily, primary protection that kicks in when the full rental cost is charged to the card, and the rental company’s collision damage waiver (CDW) is declined.
The Incident and Insurance Claim
During the rental period, a minor accident occurred. The renter returned the vehicle, filed a claim through the CSR insurance provider (Virginia Surety/Assurant), and expected coverage to handle the damages. However, the insurer has requested detailed proof of the full rental amount, specifically a billing statement showing the total charge.
Despite providing the necessary documentation—showing the $5.47 charge on the statement—they report that the claim is being scrutinized or possibly denied. The concern is whether using points to lower the rental cost affects the insurance coverage, especially if the insurer perceives the charge as not representing the “full” rental expense.
Key Considerations and Policy Insights
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Full Charge Requirement: According to CSR Terms & Conditions, the rental must be charged in full to the eligible card. In this case, the actual charged amount was $5.47, fully paid to the rental company.
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Declining CDW: The renter intentionally declined the rental company’s collision damage waiver, relying on their credit card’s insurance instead.
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Points Versus Charges: While loyalty points effectively reduce the cash outlay, the critical factor for insurance coverage often is whether the total rental fee was billed to the credit card, not whether it was paid in cash or points. However, the insurer’s policies or interpretations may vary.
Current Dilemma
The insurance provider insists on proof of the total rental cost, which, based on the documentation, appears to be straightforward. Yet, the issue may stem from whether the reward points impacted the perception
