Rental car insurance is a travel insurance benefit included with many premium credit cards. 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 with rental car insurance coverage in Canada.
Featured credit cards
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American Express Cobalt Card
Features: Coverage for vehicles with a manufacturer’s suggested retail price (MSRP) of up to $85,000 for up to 48 consecutive days.
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Interest Rates:
21.99% purchase, 21.99% cash advance, N/A balance transfer
Welcome offer:
$150 value
Earn 1,250 points for each month you spend $750, up to a maximum of 15,000 points.
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Scotiabank Gold American Express Card
Features: Coverage for vehicles with an MSRP of up to $65,000 for up to 48 consecutive days.
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Interest Rates:
20.99% purchase, 22.99% cash advance, 22.99% balance transfer
Welcome offer:
$450 value
Earn up to $950 in value in the first 12 months, including up to 45,000 bonus Scene+ points. To qualify, apply by December 31, 2024.
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Scotiabank Passport™ Visa Infinite Card
Features: Coverage for vehicles with an MSRP of up to $65,000 for up to 48 consecutive days.
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Interest Rates:
20.99% purchase, 22.99% cash advance, 22.99% balance transfer
Welcome offer:
$250 value
Earn up to $1,100 in value in the first 12 months, including up to 35,000 bonus Scene+ points. To qualify, apply by December 31, 2024.
Best credit cards for rental car insurance in Canada
Dive into the pros and cons of our top credit card picks.
American Express Cobalt
At a glance: The American Express Cobalt offers comprehensive insurance for rental cars with a manufacturer’s suggested retail price (MSRP) of up to $85,000 for up to 48 consecutive days. For an annual fee of $160, 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.
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American Express Cobalt
Annual fee: $156
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. |
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, it earns you 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 don’t charge a foreign transaction fee on foreign currency purchases.
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Scotiabank Gold American Express
Annual fee: $120
Welcome offer: Earn up to $950 in value in the first 12 months, including up to 45,000 bonus Scene+ points. Offer ends Dec. 31, 2024.
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 on any airline or hotel (including Airbnbs). |
Scotiabank Passport Visa Infinite
At a glance: This card offers insurance for rental cars valued up to $65,000 MSRP for 48 consecutive days. While it comes with a $150 annual fee, the lack of an FX fee could save you a significant amount, if you frequently travel outside of Canada or shop in other currencies online. You can also take advantage of the card’s comprehensive travel insurance and perks, like six free airport lounge visits annually. Earn 3 Scene+ points per $1 at qualifying grocery stores; 2 points per $1 on restaurants, other grocery stores, entertainment and transit; and 1 point per $1 on other eligible purchases.
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Scotiabank Passport Visa Infinite
Annual fee: $150
Welcome offer: Earn up to $1,100 in value in the first 12 months, including up to 35,000 bonus Scene+ points. Offer ends October 31, 2025.
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 per year or household income of $100,000 per year |
| Credit score | 725 or higher |
| Point value | 1 Scene+ point = $0.01 when redeemed for travel on any airline or hotel (including Airbnbs). |
BMO Ascend World Elite Mastercard
At a glance: The BMO Ascend World Elite Mastercard provides insurance coverage for rental cars valued up to $65,000 MSRP for 48 consecutive days. Plus, save money on gas costs and rentals from select dealers. Cardholders get 5 BMO Rewards points per $1 spent on eligible travel purchases; 3 points on dining, entertainment and recurring bill payments; and 1 point on all other purchases.
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BMO Ascend World Elite Mastercard
Annual fee: $150
Welcome offer: Earn up to 100,000 bonus points ($667 value).
Card details
| Interest rates | Interest rates: 20.99% on purchases, 23.99% on balance transfers, 23.99% on cash advances |
| Income required | Personal income of $80,000 or household income of $150,000 |
| Credit score | 760 or higher |
| Point value | 1 BMO Rewards point = $0.0067 when redeemed for travel. |
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, earn 3% cash back on gas, groceries and recurring bill payments. 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.
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TD Cash Back Visa Infinite Card
Annual fee: $139 (waived first year)
Welcome offer: Earn up to $500 in value, including 10% in cash back during the first three months (up to $350 in cash back). Conditions apply. Account must be approved by January 6, 2025.
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) |
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 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