Understanding Rental Car Insurance Claims When Using Loyalty Points
A recent experience with car rental insurance highlights some important considerations for travelers relying on credit card benefits and loyalty points. Here’s a breakdown of what happened and key insights to keep in mind.
The Scenario:
A traveler rented a vehicle from Enterprise via their online platform, opting to use loyalty points to significantly reduce the rental cost. The final billed amount at the counter was just $5.47, which was paid in full using a Chase Sapphire Reserve (CSR) credit card. This card provides primary coverage for rental cars, provided the full amount is charged and the rental company’s collision damage waiver (CDW) is declined. In this case, both conditions were met.
The Incident:
During the rental period, the driver experienced a minor collision. After returning the vehicle, they submitted a claim to the CSR insurance provider, Virginia Surety/Assurant. Historically, claims have proceeded smoothly, but this time, the insurer appears to be questioning the claim due to the low rental charge.
The Core Issue:
The insurer’s current demand is for a credit card billing statement that displays the full amount charged for the rental. Despite providing documentation showing the $5.47 charge—matching the rental date and amount—they are persistently requesting additional proof. There’s concern that the insurance may be denying the claim because the total charged was so low, potentially due to the use of points, and thus not reflecting the “full rental cost” as expected.
Key Points and Considerations:
- Documentation: The entire rental cost was charged to the CSR card, fulfilling the card’s requirement for coverage.
- Declined CDW: The driver explicitly declined the rental company’s collision damage waiver.
- Terms Clarity: The CSR terms specify that the full rental amount must be charged to the card, but do not specify that the amount cannot be discounted or paid via points.
- Use of Points: Applying loyalty points effectively reduced the out-of-pocket expense, but the total charged remained the same on the credit card statement.
Lessons Learned:
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Insurance Qualification: Credit card insurance benefits generally consider the total amount billed to the card as the “full rental cost,” regardless of discounts or points used, as long as the full amount is charged to the card.
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Documentation Is Crucial: Always retain detailed billing statements showing the charged amount, rental dates, and the charge method.
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Dispute Resolution: If faced
