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Best credit cards for rental car insurance in Canada
Credit cards with car rental insurance provide coverage if your rental car is damaged or stolen. These are the best cards for that. The post Best credit cards for rental car insurance in Canada appeared first on MoneySense.
Many premium credit cards come with the benefit of rental car insurance. Understanding credit card rental car insurance can give you peace of mind and save you money the next time you hit the road. Let’s dive into the best credit cards in Canada with this type of coverage.
Best credit cards for rental car coverage
BMO CashBack World Elite MasterCard
TD Cash Back Visa Infinite Card
Scotiabank Gold American Express Card
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Credit cards that provide rental car insurance
Compare several credit card options with this benefit, or keep scrolling for our editors’ top picks. Can’t see all the details on your screen? Simply slide the columns using your fingers or trackpad, or you can hover your mouse over the table to access the scroll bar at the bottom.
Annual fee Rewards earn rate Rental car theft and damage coverage Rental car accident amount Rental car coverage period Rental car discount Includes free roadside assistance Discount on gas purchases Recommended income Recommended credit score Apply now (featured cards only) BMO CashBack World Elite Mastercard 
$120 Up to 5% cash back MSRP up to $65,000 MSRP up to $65,000 48 days Up to 20% at National and Alamo locations Yes Up to 7 cents off per litre at Shell $80,000 (personal) or $150,000 (household) 760 or higher Go to site TD Cash Back Visa Infinite Card 
$139 Up to 3% cash back MSRP up to $65,000 MSRP up to $65,000 48 days Minimum of 10% off at Avis and Budget locations in Canada and the U.S. Yes n/a $60,000 (personal) or $100,000 (household) 680 or higher Go to site Scotia Gold American Express Card 
$120 Up to 6 Scene+ points per $1 spent MSRP up to $65,000 MSRP up to $65,000 48 days Up to 25% off base rates at Avis and Budget locations in Canada and the U.S. No n/a $12,000 725 or higher Go to site American Express Cobalt Card 
$156 Up to 5 Membership Rewards points per $1 spent MSRP up to $85,000 MSRP up to $85,000 48 days n/a No n/a n/a 725 or higher Go to site Scotia Platinum American Express Card 
$399 Up to 2 Scene+ points per $1 spent MSRP up to $65,000 MSRP up to $65,000 48 days n/a No n/a $12,000 760 or higher Go to site Scotiabank Passport Visa Infinite Card 
$150 Up to 3 Scene+ points per $1 spent MSRP up to $65,000 MSRP up to $65,000 48 days Complimentary car upgrades, 5% to 25% discount at Avis locations in Canada and U.S. No n/a $60,000 (personal) or $100,000 (household) 725 or higher Go to site
MoneySense award winners
Dive into the pros and cons of our Gold, Silver and Bronze winners, and find out why they are the best for auto rental insurance.
The MoneySense editorial team selects the best credit cards by assessing the value they provide to Canadians across various categories. Our best credit cards for card rental insurance ranking is based on a few key criteria, such annual fees, auto rental insurance coverage amounts, discounts on car rentals, and roadside assistance perks. Our rankings are an unbiased source of information for Canadians. The addition of links from affiliate partners has no bearing on the results. Read more about how MoneySense makes money.
Gold: BMO CashBack World Elite Mastercard
At a glance: The BMO CashBack World Elite Mastercard is the best card for rental car insurance in Canada. With this card, rentals with a manufacturer’s suggested retail price (MSRP) of up to $65,000 are covered for up to 48 days in the case of an accident, damage or theft. Plus, you get complimentary access to roadside assistance through a free Dominion Automobile Association (DAA) membership and fuel savings at Shell gas stations.
BMO CashBack World Elite Mastercard
Annual fee: $120 (waived first year)
- 5% cash back on groceries
- 4% back on transit
- 3% back on gas and electric vehicle charging
- 2% on recurring bill payments
- 1% back on everything else
Welcome offer: Earn up to 10% cash back during your first 3 months on up to $2,600 in purchases.
Card details
Interest rates 21.99% on purchases, 23.99% on cash advances, 23.99% on balance transfers (21.99% in Quebec) Income required Personal income of $80,000 or household income of $150,000 Credit score 760 or higher
Pros
- Roadside assistance: Includes four free service calls per year, including towing (up to 10 km), tire changes, winching, battery boosts, lockout assistance, emergency fuel delivery and more.
- Fuel savings: Save up to 7 cents per litre at Shell locations.
- Insurance: Extensive insurance for a cash back card, including coverage for travel medical, rental cars, baggage, flight delays and more.
- High earn rates: Earn up to 5% back in four major spending categories.
Cons
- Earning caps: The bonus categories have low monthly spending limits, ranging from $300 to $500, which is restrictive for a premium card. Purchases above these monthly limits earn at the 1% base rate.
- High income requirements: This card may be less accessible.
Silver: TD Cash Back Visa Infinite
At a glance: This card offers rental car insurance for vehicles valued up to $65,000 MSRP for 48 consecutive days. Plus, cardholders earn 3% cash back on gas, groceries and recurring bill payments. This is one of the only other cards in Canada to offer free deluxe roadside assistance, covering things like towing, battery assistance, fuel delivery and more.
TD Cash Back Visa Infinite Card
Annual fee: $139 (rebated first year)
- 3% cash back on gas, grocery and recurring bill payments
- 1% on all other purchases
Welcome offer: Earn up to $600 in value, including 10% cash back on eligible purchases during the first three months (on up to $3,500 in purchases). Conditions apply.
Card details
Interest rates 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers Income required Personal income of $60,000 or household income of $100,000 Credit score 680 or higher (recommended)
Pros
- Rental car discounts: Get up to 10% off at Avis and Budget locations in Canada and the U.S. and up to 5% off internationally.
- Roadside assistance: Get a complimentary Deluxe TD Auto Club Membership with 24/7 emergency roadside services.
Cons
- Limited travel medical coverage: This card only offers coverage for 10 consecutive days, one of the shortest coverage periods among premium cards. Those 65 and older are covered for only four days.
Bronze: Scotiabank Gold American Express
At a glance: The Scotiabank Gold American Express provides rental car insurance for vehicles valued up to $65,000 MSRP for 48 consecutive days. With a $120 annual fee, you earn 6 Scene+ points per $1 spent at Sobeys-owned grocery stores (including Safeway, FreshCo and Foodland); 5 points on groceries at other grocery stores and on restaurants and entertainment; 3 points on gas, daily transit and streaming services; and 1 point on all other purchases. It’s also one of the rare Canadian credit cards that doesn’t charge a foreign transaction fee on foreign currency purchases.
Scotiabank Gold American Express
Annual fee: $120
- 6 points per $1 at Sobeys-affiliated stores
- 5 points per $1 on dining, entertainment and groceries
- 3 points per $1 on gas, transit and streaming
- 1 point per $1 on everything else
- Pay no FX fees on foreign purchases
Welcome offer: Earn up to $780 in value in the first 12 months, including up to 40,000 bonus Scene+ points. Offer ends July 1, 2025.
Card details
Interest rates 20.99% on purchases, 22.99% on cash advances, 22.99% on balance transfers Income required $12,000 per year Credit score 725 or higher Point value 1 Scene+ point = $0.01 when redeemed for travel, store purchases and food and drink at Cineplex and Scene partners
Pros
- Rental discounts: Save up to 25% on base rates when renting a car at participating Avis and Budget locations in Canada and the U.S.
- Comprehensive travel insurance: Includes coverage for emergency medical, travel accidents, hotel/motel burglaries, trip cancellations/interruptions, flight delays and baggage.
- No FX fee: Save the 2.5% foreign transaction fee charged by most other cards.
Cons
- Limited travel medical for seniors: Those 65 and older are only covered for three days.
- Limited acceptance: American Express cards are not as widely accepted as Mastercard and Visa.
Runner up: American Express Cobalt
At a glance: The American Express Cobalt offers comprehensive insurance for rental cars with an MSRP of up to $85,000 for up to 48 consecutive days. For an annual fee of $156, this card gives you 5 points per $1 on dining and groceries; 3 points on streaming subscriptions; 2 points on gas, transit and ride shares; and 1 point on all other purchases.
American Express Cobalt
Annual fee: $156
- 5 points per $1 on dining and groceries
- 3 points per $1 on streaming services
- 2 points per $1 on transit and gas
- 1 point per $1 on all other purchases
Welcome offer: Earn 1,250 points for each month you spend $750, up to a maximum of 15,000 points.
Card details
Interest rates 21.99% on purchases, 21.99% on cash advances Income required None specified Credit score 725 or higher Point value 1 Amex Membership Rewards point = $0.01 when redeemed with the Flexible Points Travel Program, $0.015 on average with the Fixed Points Travel Program, and up to $0.02 with airline points transfers
Pros
- High rental coverage limit: Get insurance for cars valued up to $85,000 MSRP (most other cards only cover vehicles up to $65,000 in value) with a coverage period of up to 48 days.
- Comprehensive travel insurance: Includes coverage for emergency medical expenses, travel accidents, hotel burglaries, flight delays and baggage.
- Flexible redemptions: Redeem points to cover eligible card purchases for a minimum of 1,000 points (value of $10), or transfer points to an eligible airline or hotel loyalty program at a 1:1 ratio.
- High earning: Get one of the best earn rates for restaurants and groceries in Canada, as well as accelerated rates for many other categories.
Cons
- High annual fee: The fee is slightly higher than those of other cards in this category.
- Travel insurance limits: There is no trip cancellation or interruption coverage, nor is there medical coverage for those aged 65 or older.
- Limited acceptance: American Express is not as widely accepted as Visa or Mastercard at home and abroad.
What is credit card car rental insurance?
Credit card insurance coverage for rental cars typically includes a collision damage waiver (CDW) and a loss damage waiver (LDW), which protects you from financial liability if your rental car is damaged or stolen. It typically only comes into effect when a rental is fully charged to your credit card, and you must generally decline the rental car agency’s collision damage waiver (CDW) benefits. If there is no clearly marked area on the contract asking you to decline coverage, some credit cards insist that you write on the agreement yourself: “I decline the CDW provided by the rental agency.”
Some forms of damage may not be covered, so it’s wise to read the fine details of the credit card’s insurance contract before you apply.
What does credit card rental car insurance cover?
Credit card rental car insurance typically covers:
- Damage to the rental vehicle due to a collision or an accident
- Theft of the rental vehicle
- Loss-of-use charges, meaning the cost of alternate transportation while your vehicle undergoes repairs
- Towing charges related to a covered loss
The following are common exclusions. Credit card issuers may have different exclusions, so always read your insurance agreement carefully.
- Liability for damage to other vehicles or property
- Personal injury or death
- Personal belongings stolen from the rental car
- Exotic or luxury cars exceeding the coverage limit. (Note that vehicles like moving vans, motorcycles and pick-up trucks are types of transportation often excluded from coverage.)
- Rentals in some countries
- Rentals exceeding the maximum coverage period
Does roadside assistance apply to rental cars?
Some roadside assistance programs offer coverage extending to rental cars, since the coverage is linked to the cardholder rather than a specific vehicle. As long as the rental you’re driving is plated and registered, you may be covered under some programs. However, it’s essential to dive into the fine print of your card’s program or call customer service for more information, since coverage can differ. This ensures you understand any limitations or conditions and confirms you’re fully protected when you need help on the road.
Frequently asked questions
Rental car insurance is included with many premium credit cards. However, for your rental car insurance to come into effect, usually you must charge the whole cost of the rental to your credit card and decline the rental car agency’s collision damage waiver (CDW) benefits.
The specific steps and time it takes to process a claim will vary depending on your credit card provider, but generally you’ll need to complete the following steps:
- Take photos of any damage and get a copy of the police report.
- Notify your insurance provider about the incident as soon as possible (usually you are expected to reach out within 48 hours).
- Fill out the forms your insurer will send you.
- Gather needed documents, including things like your driver’s license, the rental car agreement, an itemized list of the repairs needed, and your credit card billing statement showing you charged the rental car to your card.
- Wait for your claim to be processed and paid out. Many card issuers don’t provide a timeline. However, TD says its claims are generally paid out within 15 days.
- Card issuers may put a time limit on claims. For example, TD specifies that cases remain open for a maximum of six months from the date of the damage or theft. So, always make your claim as soon as possible.
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More of Canada’s best credit cards:
- Best credit cards with mobile device insurance
- Best travel insurance credit cards
- Best credit cards with roadside assistance
- Best no foreign transaction fee credit cards
The post Best credit cards for rental car insurance in Canada appeared first on MoneySense.
