Title: Navigating Car Rental Insurance Claims When Paying with Loyalty Points
Understanding the complexities of credit card rental insurance can be confusing, especially when loyalty points come into play. Here’s a real-world scenario that highlights some potential challenges and considerations.
The Situation
A traveler rented a vehicle via Enterprise’s online platform, using loyalty points to significantly reduce the rental cost. At the counter, the final amount due was just $5.47—paid entirely with a Chase Sapphire Reserve (CSR) credit card. This card offers primary rental car coverage, provided the full rental cost is charged to the card and the rental company’s collision damage waiver (CDW) is declined.
In this case, both criteria were met: the full charge of $5.47 was on the CSR card, and the CDW was declined.
The Issue
During the rental period, a minor incident occurred. The vehicle was returned, and a claim was filed with CSR’s insurance provider, Virginia Surety/Assurant. This insurance is generally straightforward; however, the claims process has hit a snag. The insurer is requesting documentation confirming the “full amount charged” for the rental — specifically, a billing statement showing the total charge.
Despite submitting the credit card statement that clearly reflects a $5.47 charge for the rental on the same date, the insurer persists in requesting the same information, seemingly dismissing the documentation provided. This raises questions: Is the claim being unfairly denied because the rental was paid partly or entirely with loyalty points? Does the insurer see the reduced amount as the “full rental cost,” thus invalidating the coverage?
Critical Context
- The actual charge at the rental counter was only $5.47.
- The renter declined the optional CDW offered by Enterprise.
- The CSR benefits specify that the full rental amount charged to the card must be paid, with no mention of how discounts or loyalty points affect this.
If the insurance company interprets the “full rental cost” as the original price before discounts or points, there may be grounds for dispute. Conversely, if the insurer requires the actual amount charged to the credit card, which was $5.47, the claim could still be valid.
Lessons and Considerations
- When using loyalty points to significantly reduce rental costs, always confirm whether this impacts your credit card’s insurance coverage.
- Keep thorough documentation of all charges, including billing statements showing the actual amount charged.
- Understand your credit card’s terms regarding rental coverage,
