Top 7 Best Credit Cards For Car Rental Insurance In Canada 2023

Hannah Collymore
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Reviewed by Kristina Knight, Journalist , BA
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Scotiabank Gold American Express Card

Scotiabank Gold American Express Card

Best Car Rental Credit Card Coverage

4.8 stars - votes

TD Aeroplan Visa Infinite Card

TD Aeroplan Visa Infinite Card

Most Affordable

4.7 stars - votes

BMO Ascend World Elite Mastercard

BMO Ascend World Elite Mastercard

Best Cash Back Rate

4.65 stars - votes
 Top 7 Best Credit Cards For Car Rental Insurance In Canada

Many card issuers offer rental insurance as additional benefits to their holders, which protects against damages and losses that may occur while using a rental. Your card can be your primary car rental coverage provider since getting exclusive rental insurance might be too expensive. However, some rentals may not accept card insurance.

Rental Car Insurance: Why & When You Need It?

  • If you are in an accident and it isn’t your fault: Your car rental insurance will cover any damage to the vehicle. The driver who caused the accident can be held liable for any damages they may have caused and their own cost of repair or replacement. Suppose you’re at fault for an accident that occurs while renting a vehicle through a car rental company. In that case, your car rental insurance will cover any vehicle damage—even if it’s not directly related to the collision. In this case, they’ll usually provide some reimbursement, though they may require additional documentation. 
  • If you damage the vehicle: The most important thing to remember is that you can be held liable for the damage caused by your rental car. You may have heard that if you damage the vehicle, you’ll be charged a fee and could even be blacklisted from renting for a long time. Suppose these things happen while using a rental car insurance coverage – where they provide coverage against such occurrences as theft/vandalism etc. In that case, there will usually be no need for additional payments because this insurance covers everything within reason.
  • If you get into a hit and run: Suppose you were in an accident and the other driver does not stop, your car rental insurance will cover you. Or if someone else hits you and they do not own a vehicle or report the incident to the authorities (meaning they could be driving illegally). In that case, your car rental insurance will help cover any damage done to the vehicle. Your renter’s policy covers drivers found guilty of driving under the influence or while intoxicated with drugs/alcohol and speeding violations.

7 Best Credit Cards For Car Rental Insurance 2023

What Is Credit Cards For Car Rental Insurance?

Credit cards for rentals offer insurance for car rentals in addition to other credit facilities. However, the coverage provided is usually not as comprehensive as what you will get from an insurance company for a personal vehicle. Therefore, using a credit card with rental insurance when renting a car is an excellent idea to protect you and reduce your liability.

Scotiabank Gold American Express Card

Scotiabank Gold American Express Card

  • Up to 45,000 bonus points in your first year
  • Zero foreign transaction fees
  • Wide array of travel insurance options
TD Aeroplan Visa Infinite Card

TD Aeroplan Visa Infinite Card

  • Up to $1400 in cashbacks in first year
  • Free checked bags
  • 10% off car rentals with Axis and Budget
BMO Ascend World Elite Mastercard

BMO Ascend World Elite Mastercard

  • Extended warranty and purchase protection
  • $65,000 rental car insurance
  • Rewards in every purchase
CIBC Dividend Platinum Visa
  • 3% cashback on eligible gas
  • Low annual fee compared to competitors
  • Low minimum requirement of $15,000
Tangerine World Mastercard

Tangerine World Mastercard

  • Unlimited money-back
  • No annual fees
  • Decent welcome bonus
The Platinum Card® from American Express

American Express Platinum Card

  • Luxury travel benefits
  • Comprehensive travel feature
  • High cash back earn rate
PC Financial World Elite Mastercard

PC Financial World Elite Mastercard

  • No annual fee
  • Emergency medical insurance
  • Travel and concierge feature

Best Credit Cards For Car Rental Insurance January 2023

Top 7 Best Credit Cards For Car Rental Insurance In Canada

Scotiabank Gold American Express Card

Scotiabank Gold American Express Card

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With a minimum credit score of 700 and a minimum income of $12,000, you qualify for the Scotiabank Gold American Express card and enjoy $65,000 personal auto insurance for 48 days. Earn rewards and bonus points when you shop from Sobeys, FreshCo, Foodland and other affiliated stores across Canada, which means more cashback when you spend money on a trip. Primary card holders are entitled to a wide range of travel insurance options such as emergency medical up to $1,000,000/25 days, travel accident, rental car collison, rental car loss/damage, trip cancellation, flight delay, and delayed or lost luggage. 

  • Earn up to 45,000 bonus point per year worth $850
  • Earn rewards on eligible gas and transportation purchases
  • Zero foreign transaction fees 
  • Multiple travel insurance options like travel accident, emergency medical, rental car collision/damage, and trip cancellation.
  • Book and redeem flights anytime 
  • Early ticket access and discounts
  • Annual fee of $120
  • Minimum income of $12,000
  • Minimum credit score of 700

Scotiabank Gold American Express is the perfect travel companion for Canadian residents who are looking for optimum protection on car rental. Using the credit card gives users the opportunity to earn rewards and bonus points on every purchase, including gas. Application process is straightforward and can be completed online provided your minimum credit score is 700 and you earn at least $12,000 yearly. With the Scotiabank Gold American Express credit card, you are entitled to a 48 day car rental insurance of up to $65,000, including other benefits like a medical emergency. 

TD Aeroplan Visa Infinite Card

TD Aeroplan Visa Infinite Card

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Traveling with the TD Aeroplan Visa Infinite card is great for people that travel frequently with Air Canada because they get bonus points and rewards per flight. Users get a 48-day collision damage waiver worth $65,000. Vehicles whose repair cost exceed this amount won’t be covered. If you don’t earn up to $60,000 annually then this isn’t the credit card for you.

  • 10% off car rentals with Axis and Budget car rental companies.
  • 50,000 welcome bonus points in first year
  • Annual fee waived in first year
  • Free checked bags 
  • Nexus rebates
  • $139 annual fee
  • Minimum income of $60,000 for individuals and $100,000 for household

Canadian residents looking for the best travel bonus points and rewards on car rentals and flights will find the TD Aeroplan Visa Infinite credit card best-suited for their needs. You must be up to the age of maturity in your province, have a good/excellent credit score, and earn over $60,000 yearly to qualify for the card. Interest rates include a regular and purchase APR of 20.99% annually, and 22.99% cash advance and balance transfer APR. users will be required to pay an annual fee of $139, 3% balance transfer fee, 1% of any cash advance transaction, and 2.5% on foreign transactions.

Card holders are entitled to multiple travel insurance benefits like 21 days travel medical insurance up to $1,000,000 per person under 65. $1500 trip cancellation per person, $500 for flight delays per individual, $1000 per person for delayed or lost luggage per person, $500,000 coverage on injuries and loss of life, mobile device protection, and hotel burglary insurance are all part of their extensive travel insurance.

BMO Ascend World Elite Mastercard

BMO Ascend World Elite Mastercard

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BMO World Elite Mastercard is best suited for high-income earners with excellent credit who want one card for all their needs including vehicle rental insurance. Primary card holders enjoy zero annual fees during their first year, 60,000 bonus points and rewards. Users get 5x points for every dollar spent on travel purchases. Extended warranty and purchase protection means that all eligible items are protected for up to 90 days. All eligible items’ warranty are also extended for up to 1 year. You also enjoy rental car coverage up to $65,000 for 48 days.

  • 60,000 signup bonus points
  • Annual fee waived in first year
  • Extended warranty and purchase protection
  • $65,000 rental car insurance
  • Rewards in every purchase
  • $150 annual fee
  • 2.5% foreign transaction fee
  • $80,000 minimum individual income fee or $150,000 household fee

BMO Ascend World Elite Mastercard Car Rental Insurance offers the following coverage:

  • Theft and collision damage
  • No deductible
  • Excess coverage up to $1 million per accident (up to a maximum of $2 million)

This is an excellent option for those who want more protection than they get with standard car rental insurance policies. The most important thing to keep in mind here is that you must be renting from Hertz, Avis or Budget to enjoy the best of their bonuses and rewards.

CIBC Dividend Platinum Visa

CIBC Dividend Platinum Visa

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The CIBC Dividend Platinum Visa is perfect for low income earners who want the extra primary rental car coverage. CIBC offers car rental insurance to users with income as low as $15,000, though you must have excellent credit from 740 and above. 

  • 3% cashback on eligible gas payments
  • Low annual fee compared to competitors
  • Low minimum requirement of $15,000
  • Excellent credit history required

If you’re looking for car rental insurance coverage, CIBC Dividend Platinum Visa is a great option. This credit card offers travelers an extra layer of protection when renting vehicles with its insurance coverage on most cars and trucks up to $65,000. You are protected against theft of, or damage to, most rental vehicles when the rental agreement is paid in full with your CIBC Dividend Platinum Visa card. The coverage limit is $65,000 per claim and there are certain exclusions (e.g., damages caused by natural disasters). For example:

  • Theft coverage can be up to a maximum of $3500 per occurrence;
  • Damage from an accident that results in property damage only (does not include physical injury) can be covered up to $4000 per occurrence;
  • Theft occurring outside Canada may not be covered by this policy since it only applies when you rent out cars within Canada’s borders

Tangerine World Mastercard

Tangerine World Mastercard

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Read Tangerine World Mastercard Reviews

There is unlimited cashback on the card, which means you keep earning on all purchases, and this is great for people who spend a lot. Also, you can choose your spending categories to earn rewards on. The card is very flexible. However, it has a high-income requirement and an interest rate on purchases of 19.95%.

  • Unlimited money-back
  • No annual fees
  • Decent welcome bonus
  • Hgh minimum income requirement
  • High interest rates

The Tangerine World Mastercard is a zero annual fee card that lets you earn 15% back on up to $1000 for the eligible purchases made in the first two months, 2% on up to three spending categories and 0.5% on other purchases. In addition, it offers an extended warranty for a year, purchase protection for 90 days, mobile insurance for up to $1000 and rental vehicle theft. You also get the MasterCard Travel Rewards and Dragon Pass, which gives you exclusive dining, retail and spa experience at select airports.

The Platinum Card®

The Platinum Card® from American Express

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The Platinum Card is designed for frequent travellers. However, the high annual fee is unsuitable for casual users or infrequent travellers. You can earn up to 100,000 reward points on purchases in the first six months.

  • Luxury travel benefits
  • Comprehensive travel feature
  • High cash back earn rate
  • High annual fee
  • Non-travel rewards are meagre

The Platinum Card from American Express is one of the best Canadian credit cards for travel and has the most comprehensive features for frequent travellers. For every dollar spent booking direct flights with eligible airlines, you get five membership points worth 0.5 cents per 1.0 cents. In addition, you can get over $1500 in annual statement credits. Furthermore, the card features access to airport lounges and other luxury services. You can also get $200 each in hotel credit, airline fee credit, $200 in Uber Cash, and many more benefits on travel purchases annually.

PC Financial World Elite Mastercard

PC Financial World Elite Mastercard

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Read PC Financial World Elite Mastercard Reviews

The PC Mastercard is an excellent no-annual-fee card with a high earning rate in select stores. Reward points don’t expire as long your account is in good standing. It has additional travel features and concierge features, and it comes with rental car insurance provided.

  • No annual fee
  • Emergency medical insurance
  • Travel and concierge feature
  • High income requirement

The PC Mastercard is a no-annual-fee card that offers concierge services and medical assistance, including in cases of emergency. You also get emergency travel medical insurance for up to $1,000,000 for the first ten consecutive days of your trip. The card also offers a rental collision damage waiver; to benefit from this coverage, you must refuse the rental company’s collision insurance and charge it to your card. In addition, you can earn up to 45 points per $1 on eligible purchases at an interest rate of 20.97% on purchases.

What Does Credit Card Rental Car Insurance Cover?

Credit card companies usually offer credit card rental insurance to benefit their customers. They usually provide two types of coverage; primary and secondary car rental insurance. The primary coverage covers damages without needing you to file a claim with your personal car insurance company. Secondary coverage covers you after your primary auto insurance has been exhausted. This means you must be sure about the type of auto rental insurance the rental company offers before renting a car to limit your liabilities. 

Final Thoughts

Credit cards for rental insurance are a great way to protect you and limit your liabilities in case of loss or damage when renting cars. Most rental car agreements require insurance protection before you can rent cars, and your card is a primary insurance source. A rental car company will have insurance in case of damage. However, rental cars often come with secondary insurance, meaning your own insurance company has to cover any damage or loss.

Frequently Asked Questions (FAQs)

What is credit card car insurance?

This form of auto insurance offered by a credit card company provides various coverage, such as car rental theft, personal effects insurance, additional liability insurance, etc. You should contact your credit card issuer for the type of car rental coverage offered.

How much will my credit card cover in case of damage to my rental?

Some card companies offer primary car rental insurance; they can cover the actual cash value of the stolen or damaged rental.

Do rental car companies provide third-party liability?

Many rental companies offer third-party liability insurance as part of their primary coverage.

Does my credit card insurance cover car rental accidental death?

Different card providers have varying coverage. Therefore, you should check with them to confirm the coverage offered.

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ABOUT THE AUTHOR

Hannah Collymore
Hannah Collymore, MBA
Business Advisor
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Hannah is a seasoned writer based out of Pennsylvania. With years of experience in various writing niches, she provides SEO and on-demand content for Businesses in all industries

ABOUT THE REVIEWER

Kristina Knight-1
Kristina Knight, Journalist , BA
Content Writer & Editor
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Kristina Knight is a freelance writer with more than 15 years of experience writing on varied topics. Kristina’s focus for the past 10 years has been the small business, online marketing, and banking sectors, however, she keeps things interesting by writing about her experiences as an adoptive mom, parenting, and education issues. Kristina’s work has appeared with BizReport.com, NBC News, Soaps.com, DisasterNewsNetwork, and many more publications.

+ 6 sources

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  2. TD Aeroplan Visa Business Credit Card | TD Canada Trust. www.td.com. Accessed January 18, 2023. https://www.td.com/ca/en/business-banking/small-business/credit-cards/aeroplan-visa-business-card/
  3. BMO Ascend World Elite Mastercard: Experience Extra Rewards – BMO. www.bmo.com. Accessed January 18, 2023. https://www.bmo.com/main/personal/credit-cards/bmo-ascend-world-elite-mastercard/
  4. Apply for the Dividend Platinum Visa Credit Card | CIBC. www.cibc.com. Accessed January 18, 2023. https://www.cibc.com/en/personal-banking/credit-cards/all-credit-cards/dividend-visa-platinum-card.html
  5. Tangerine World Mastercard® | Tangerine. www.tangerine.ca. Accessed January 18, 2023. https://www.tangerine.ca/en/products/spending/creditcard/world/
  6. Ontario FSC of. Brochure: Protecting yourself when renting an automobile. www.fsco.gov.on.ca. Accessed January 18, 2023. http://www.fsco.gov.on.ca/en/auto/brochures/pages/brochure_renting.aspx