Many premium credit cards come with the benefit of rental car insurance. Therefore, understanding credit card rental car insurance can give you peace of mind and save you money the next time you hit the road. To begin with, let’s dive into the best credit cards in Canada with this type of coverage.
Best credit cards for rental car coverage
featured
BMO CashBack World Elite MasterCard
Annual Fee:
$120
Interest Rates:
21.99% purchase, 23.99% cash advance, 23.99% balance transfer
featured
TD Cash Back Visa Infinite Card
Annual Fee:
$139
Interest Rates:
20.99% purchase, 22.99% cash advance, 22.99% balance transfer
featured
Scotiabank Gold American Express Card
Annual Fee:
$120
Interest Rates:
20.99% purchase, 22.99% cash advance, 22.99% balance transfer
Welcome offer:
$450 value
Earn up to $$780 in value in the first 12 months, including up to 40,000 bonus Scene+ points. To qualify, apply by July 1, 2025
MoneySense is an award-winning magazine that has been helping Canadians navigate money matters since 1999. Moreover, our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we carefully compare the offerings of major institutions, including banks, credit unions, and card issuers. Finally, learn more about our advertising and trusted partners.
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.
A Table Here
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|
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
First, dive into the pros and cons of our Gold, Silver, and Bronze winners, and then find out why they are the best for auto rental insurance.
The MoneySense editorial team selects the best credit cards by carefully assessing the value they provide to Canadians across various categories. Specifically, our best credit cards for rental car insurance ranking is based on a few key criteria, such as annual fees, auto rental insurance coverage amounts, discounts on car rentals, and roadside assistance perks. Moreover, our rankings serve as an unbiased source of information for Canadians. Additionally, the inclusion of links from affiliate partners has no bearing on the results. For further details, 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; consequently, this is restrictive for a premium card. Furthermore, purchases above these monthly limits earn rewards 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. Additionally, cardholders earn 3% cash back on gas, groceries, and recurring bill payments. Moreover, this is one of the only 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, which is one of the shortest coverage periods among premium cards. Moreover, 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). Additionally, you earn 5 points on groceries at other grocery stores and on restaurants and entertainment; furthermore, you get 3 points on gas, daily transit, and streaming services; finally, you earn 1 point on all other purchases. Moreover, it’s 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. Furthermore, for an annual fee of $156, this card gives you 5 points per $1 on dining and groceries; additionally, 3 points on streaming subscriptions; 2 points on gas, transit, and ride shares; and finally, 1 point on all other purchase
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: Specifically, get insurance for cars valued up to $85,000 MSRP—whereas most other cards only cover vehicles up to $65,000 in value—and enjoy a coverage period of up to 48 days.
- Comprehensive travel insurance: Additionally, it includes coverage for emergency medical expenses, travel accidents, hotel burglaries, and flight delays.
- Flexible redemptions: You can either redeem points to cover eligible card purchases for a minimum of 1,000 points (valued at $10), or alternatively, 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?
Generally speaking, credit card insurance coverage for rental cars includes a collision damage waiver (CDW) and a loss damage waiver (LDW), both of which protect you from financial liability if your rental car is damaged or stolen. In most cases, this coverage only becomes effective when the entire rental cost is charged to your credit card. Additionally, you must typically decline the rental car agency’s CDW benefits. Furthermore, if there is no clearly marked area on the contract for declining coverage, some credit cards require that you write a statement on the agreement yourself—such as: “I decline the CDW provided by the rental agency.”
However, 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 cards 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 are typically excluded. Additionally, vehicles such as moving vans, motorcycles, and pick-up trucks are 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.
- First, gather the necessary documents, including your driver’s license. Then, collect the rental car agreement, followed by an itemized list of the required repairs. After that, be sure to include your credit card billing statement showing that the rental car charges were made to your card. Finally, double-check that you have everything ready before proceeding.
- 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.
