Understanding Insurance Coverage When Using Points to Rent a Vehicle: A Cautionary Tale
Renting a car can be a straightforward experience—until an unexpected incident complicates things. Recently, a traveler shared their story about using loyalty points to rent a vehicle and the subsequent insurance claim issues that arose. Here’s an overview of the situation, along with insights to help you navigate similar circumstances.
Case Summary:
The renter utilized their Chase Sapphire Reserve (CSR) credit card to book a vehicle through Enterprise’s online platform, applying loyalty points to substantially reduce the rental cost. At pick-up, the total due was only $5.47—a minimal amount paid in full via the CSR card, which includes primary rental insurance coverage.
However, during the rental period, a minor accident occurred. After returning the vehicle, the individual submitted a claim with the CSR insurance provider, Virginia Surety/Assurant, expecting coverage based on their credit card benefits. Despite previous successful claims, this time the insurer appeared reluctant, repeatedly requesting a billing statement that displays the full rental charge.
The core concern is whether the use of points to lower the rental cost impacts the insurance’s obligation to cover damages. Specifically, does the insurer require proof of the total cost charged to the card, and is it valid to deny coverage because the amount was discounted via loyalty points?
Key Considerations:
- The actual amount billed to the credit card was $5.47, corresponding to the rental charge at the counter.
- The renter declined all additional coverage options, including Enterprise’s Collision Damage Waiver (CDW).
- The CSR card’s terms specify that the full rental amount must be charged to the card to qualify for primary coverage, without explicitly excluding discounted rates or point redemptions.
Implications and Advice:
This scenario highlights a gray area in rental insurance claims involving loyalty points and discounts. While the card benefits are designed to cover the full value of the rental when charged correctly, insurers may interpret “full amount” differently—potentially considering only the original pre-discounted rate.
For travelers relying on credit card benefits:
- Always review the specific terms related to rental insurance, especially regarding discounts, points, or promotional rates.
- Maintain thorough documentation, including billing statements that clearly show the total charged amount.
- Be aware that using points to significantly reduce the rental cost could introduce complications if a claim arises.
If you encounter a similar situation, consider consulting with a legal professional or your credit card issuer for guidance. Clear communication and comprehensive documentation are
