Understanding Credit Card Rental Car Insurance and Potential Claim Challenges
Navigating Rental Car Insurance When Using Loyalty Points: A Case Study
Renting a car often involves complex decisions around insurance coverage and payment methods, especially when loyalty points and credit card benefits come into play. Recently, a traveler encountered challenges after renting a vehicle through Enterprise, utilizing loyalty points to significantly reduce the rental cost.
The Rental Experience
The individual reserved a car via Enterprise’s online platform, applying loyalty points to minimize out-of-pocket expenses. At the rental counter, the total due was an exceptionally low $5.47, which was fully paid using a Chase Sapphire Reserve (CSR) credit card. This card is known for offering primary rental car coverage—meaning it can serve as the primary insurance in case of an accident—provided the full rental fee is charged to the card and the rental company’s collision damage waiver (CDW) is declined. These conditions were satisfied in this scenario.
The Incident and Insurance Filing
During the rental period, a minor accident occurred. The vehicle was returned, and a claim was submitted under the CSR insurance benefits, managed by Virginia Surety/Assurant. Historically, this insurance coverage process has been smooth; however, this time, the claim was met with resistance. The insurance company requested proof of the total rental cost, specifically a billing statement showing the full amount charged to the credit card. Despite submitting documentation reflecting the $5.47 charge—matched to the rental date—they received repeated requests for the same information, raising concerns.
Potential Implications
This situation raises questions about whether using loyalty points to reduce the rental cost affects insurance claims. The key issue is whether insurance providers consider the actual amount paid or the original rental charge when assessing coverage eligibility. Since the full rental amount on the credit card statement was only $5.47, there’s uncertainty whether insurers view this as the “full rental cost,” especially if their policies specify that the entire fare must be charged to the credit card.
Critical Points to Consider
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The entire transaction charged to the credit card was $5.47.
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The renter declined the rental company’s collision damage waiver.
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The CSR card’s benefits require charging the full rental amount to qualify.
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The rental reservation was paid with loyalty points to lower costs.
Legal and Practical Considerations
While the situation is complex, understanding the terms is crucial. Insurance policies typically specify that the full rental may refer to the original amount billed by the rental company, not the
