Title: Navigating Rental Car Insurance Claims When Using Loyalty Points: A Cautionary Tale
Renting a vehicle can often come with unexpected complications, especially when insurance claims are involved. Recently, I experienced a situation that highlights the importance of understanding the nuances of credit card coverage when using loyalty points to offset rental costs.
The Scenario:
I rented a car from Enterprise through their online platform, applying my loyalty points to significantly reduce the rental price. At pickup, the total amount due was just $5.47, which I paid in full using my Chase Sapphire Reserve (CSR) credit card.
What You Need to Know:
The CSR card offers primary coverage for rental cars—provided two conditions are met: you charge the entire rental fee to the card, and you decline the rental company’s Collision Damage Waiver (CDW). I satisfied both requirements, believing I was fully protected.
The Incident:
During my rental period, I had a minor accident. I returned the car and promptly filed a claim with CSR’s insurance provider, Virginia Surety (via Assurant). Having used this benefit previously without issues, I was surprised when they began scrutinizing my claim closely.
The Challenge:
The insurance provider requested a billing statement that clearly shows the “full amount” charged for the rental. I submitted my credit card statement twice, which reveals the $5.47 charge from Enterprise on the rental date. Despite this, they continue to insist on additional documentation and seem to overlook the fact that I paid the entire amount, albeit via loyalty points.
Concerns:
My concern is whether the insurance provider is denying the claim because the rental was heavily discounted through points—potentially viewing the $5.47 as not the “full rental cost.” Is this a valid reason for denying coverage? Legally, does using points to reduce the rental fee affect the validity of the insurance claim?
Additional Context:
– The total amount charged at the counter was indeed $5.47. No additional fees or charges were made.
– I explicitly declined the optional CDW coverage supplied by the rental company.
– The CSR benefits policy states: “Cardmembers must charge the full amount of the car rental booking to their Chase Sapphire card,” with no mention of restrictions regarding discounts or points.
Lessons and Next Steps:
Had I anticipated this issue, I might have avoided using points to pay for the rental. However, in my rush to return the vehicle and catch a flight, I didn’t consider the potential impact on insurance claims.
