Credit card rental car insurance: You’re covered with these Canadian cards
Despite the peace of mind, paying for additional car rental insurance is almost always unnecessary. If you own a car and have insurance, your policy will usually cover you for car rentals. Even if you don’t own a car, there are many cash back credit cards and travel credit cards in Canada that provide you with both collision and damage coverage for rental vehicles. Here are our picks for the best credit cards for car rental insurance in Canada.
Overview
What credit card rental car insurance does cover
Most credit cards offer excellent collision and damage insurance that will cover you for the cost of the rental car in the event it’s stolen, vandalized, lost or damaged – even if an accident is your fault.
Get in a fender bender? Suddenly find your parking spot is empty because someone broke into your car? In either of those cases, you’d be insured for the rental car (up to its MSRP) by your credit card.
In general, making use of the insurance on your credit card will save you from having to buy the optional collision/damage/loss waiver insurance from the rental agency (typically a cost of $16 to $23 per day) and still provide the coverage you need for the vehicle.
What credit card rental insurance won’t cover
While credit card insurance will provide collision, damage, and loss coverage for the rental car itself, it won’t provide third party or personal injury insurance.
That means your credit card won’t cover you for any damage caused to someone else’s property or medical costs associated with an accident (like physiotherapy or other potential hospital bills). Outside of a few exceptions (like the BMO Ascend World Elite Mastercard), most credit cards also won’t provide personal effects insurance. Personal effects is just a fancy word for valuables. So, if your rental car is stolen and your expensive laptop along with it, you won’t get any money back for your laptop.
Generally, though, if you own a car and already have an auto insurance policy, you’re probably covered for all the above and won’t need to pay out of pocket. But, if you don’t and you’re just relying on your credit card, you’ll only be covered for the cost of the rental car and you’ll need to purchase liability and personal injury insurance.
How credit card rental insurance works – the fine print
Credit card rental car insurance, just like any insurance policy, has its fair share of fine print, terms, and legalese to decode. Here are some of the most important things to know:
- It might seem obvious, but start by checking if your card actually comes with rental car insurance in the first place, because not all do.
- If your card does offer coverage, get familiar with its terms (typically, credit cards will cover vehicles with an MSRP of $65,000 or less for a period of between 31 and 48 days).
- Your credit card’s rental insurance won’t apply automatically, and you’ll need to: 1. pay for the full price of the rental using your credit card, and 2. explicitly decline the collision/damage/loss waiver insurance from the rental agency for your card’s coverage to apply.
- While credit card coverage usually applies around the world, that might not always be the case; like if you’re visiting a country that has a travel warning.
- Credit card rental insurance will cover almost all cars, SUVs and minivans, but it won’t cover every vehicle type (for example, exotic cars, motorcycles, trailers, and larger vehicles with over eight seats are exempt).
- Your credit card must be in good standing, otherwise, coverage won’t apply.
- Your credit card insurance won’t cover you in instances when you’re inebriated or carrying illegal goods.
- Coverage is usually intended for rental cars that have been booked for personal use, and won’t apply if you’re using the rental for commercial purposes.
- Credit card rental insurance will typically cover the primary cardholder as well as any driver who’s been given permission to use the vehicle by the primary cardholder.
Generally, if you’re renting a sedan or minivan just to get around or for a road trip out of the city, you’ll be covered through your card. To be extra safe, consider calling up your credit card company before reserving a rental car.
Last but not least, if you’re in the unfortunate situation where you have to make a claim, time will be of the essence as you’ll usually have to report a claim within 24 to 48 hours for it to be valid.
The best credit cards for rental car insurance in Canada
BMO Ascend World Elite Mastercard
- Rental car coverage: Damage or theft of your rental car plus any valid towing charges, lost or stolen personal effects, and accidental death and dismemberment
- Coverage amount: A rental car with an MSRP of up to $65,000, and $500,000 for accidental death and dismemberment
- Covered period: Up to 48 consecutive days
- Conditions: You must use your card to pay for the full or partial cost of the rental vehicle and decline the rental agency’s damage waiver; claims must be made within 48 hours of an incident
Best for Travel perks
based on spending $2,200/mo after $150 annual fee
- Earn rewards
1pt – 5pts / dollar earn rate
- Welcome bonus
100,000 bonus points (a $667 value)
- Annual fee
$150 $0 first year waived
Perks
- Welcome offer: Get up to 100,000 points and the annual fee waived in the first year for both the primary cardholder and authorized users.*
- 5x the points for every $1 spent on eligible travel purchases,* 3x the points for every $1 spent on eligible dining and entertainment purchases and recurring bill payments,* 1 point for every $1 spent everywhere else.*
- Now get the highest rewards points for travel of any premium flexible travel card in Canada!†
- Complimentary membership in Mastercard Travel Pass provided by DragonPass,* with four annual complimentary passes.
- Access over 1 million Wi-Fi hotspots around the world – all at no added cost, and no added fees or roaming charges*
- Get valuable benefits and offers for digital everyday services from a variety of on-demand apps and subscription services
- Points you can use to cover all flight charges & taxes*
- Fly on any airline, with no blackout dates*
- Best-in-class travel and medical insurance (unlimited trips per year)*
- BMO Concierge Service*
- Unlock Mastercard Travel Rewards cashback offers when you travel and shop outside of Canada
- BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information
- *Terms and conditions apply
- †Statement based on a comparison of the redeemable value of the non-promotional travel rewards points earned on premium flexible Canadian credit cards as of May 3, 2022. “Flexible” is defined as points earned when you purchase travel anywhere and “premium” refers to cards with an annual fee of ≤ $150 or has an income requirement of ≤ $150,000 annual individual income.
Features
Ratehub’s take
The BMO Ascend World Elite Mastercard is a top choice among seasoned travellers, particularly those who prefer a Mastercard, and who like to frequently fly and dine out. This card offers a suite of perks that cater to travel enthusiasts.
Pros
- Earn points: Earn three points per $1 spent on restaurant, entertainment purchases, and recurring bills, and one point per $1 spent on everything else
- Comprehensive insurance package: Recognized for one of the best insurance packages in the market, including $5 million in out-of-country insurance, exceeding the standard $1 million in coverage offered by most other cards
- 24/7 concierge services: Enjoy around-the-clock concierge services for your travel needs
- Airport lounge access: Receive complimentary membership in Mastercard Travel Pass, including four annual complimentary passes
- Redemption flexibility: Enhanced flexibility to redeem points for flights on virtually any airline with no blackout dates (points can be used to cover taxes and fees as well)
Cons
- Income requirements: The card’s minimum personal income of $80,000 may limit accessibility for some users
- Lower point value: While BMO points are flexible, they are worth less than other travel rewards programs (usually around 1 cent per point) at 67 cents per point
Eligibility requirements
Minimum credit score: 760
Minimum income: N/A
Interest rates
Purchase interest: 20.99%
Cash advance: 23.99%
In-depth:BMO Ascend World Elite Mastercard Travel Insurance
The BMO Ascend World Elite Mastercard offers coverage for up to $65,000 in damages. The insurance also provides accidental death and dismemberment benefits of up to $500,000 while occupying a rental car for one accident. This is quite extensive coverage compared to other cards.
In order to receive coverage, you don’t need to pay the full cost of the rental using your card although you must pay a partial cost to receive coverage. Coverage extends to cars, sports utility vehicles, and vans as long as they’re for private use, seat no more than eight occupants, don’t exceed at “¾ ton” rating, and aren’t designed for recreational use.
American Express Cobalt
- Rental car coverage: Damage, loss or theft of your rental car
- Coverage amount: A rental car with an MSRP of up to $85,000
- Coverage period: Rentals of 48 consecutive days or less
- Conditions: You must use your card to pay the full cost of the rental vehicle and decline the rental agency’s damage waiver; claims must be made within 48 hours of an incident
Best for Groceries & dining
based on spending $2,200/mo after $156 annual fee
- Earn rewards
1pt – 5pts / dollar earn rate
- Welcome bonus
15,000 bonus points (a $150 value)
- Annual fee
$156
Perks
- Ratehub.ca’s 2023 Award Winner – Best Rewards Credit Card
- In your first year as a new Cobalt Cardmember, you can earn 1,250 Membership Rewards® points for each monthly billing period in which you spend $750 in net purchases on your Card. This could add up to 15,000 points in a year. That’s up to $150 towards a weekend getaway or concert tickets
- Earn 5x the points on eligible eats and drinks in Canada, including groceries and food delivery. Spend cap applies.
- Earn 3X the points on eligible streaming subscriptions in Canada
- Earn 2X the points on eligible ride shares, transit & gas in Canada
- Earn 1 additional point on eligible hotel and car rental bookings via American Express Travel Online
- Earn 1X point for every $1 in Card purchases everywhere else
- Enjoy access to hotel bookings, and up to $100 USD hotel credit to use on amenities when charged to the room for a stay of 2 or more consecutive nights through The Hotel Collection from American Express Travel
- Transfer points 1:1 to several frequent flyer and other loyalty programs
- Cobalt Cardmembers receive regular Perks such as bonus reward offers and access to great events
- Access Front Of The Line® Presale & Reserved Tickets to some of your favourite concerts and theatre performances and special offers and events curated for Cardmembers with American Express® Experiences
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment
Features
Ratehub’s take
The American Express Cobalt is one of Canada’s best travel credit cards. If you’re looking for a versatile credit card that rewards both everyday spending and travel, the American Express Cobalt is an ideal choice. Cardholders can enjoy strong travel insurance, a generous welcome offer, and flexible point redemption options.
Pros
- Exceptional point earning: 5x the points on eligible restaurant and food delivery, 3x the points on eligible streaming services, 2x the points on travel and daily transit. The earning potential for restaurants and takeout is significantly higher than most other cards
- Flexible point redemption:Travelers can choose from three ways to use their points: points 1:1 to several valuable loyalty programs including Aeroplan, use the Fixed Points Program to simplify redemptions regardless of travel dates, or use points for statement credits at a rate of 1 point = 1 cent. Or, redeem Membership Rewards for travel, gift cards, merchandise, or purchases
- Exclusive access: Enjoy privileges such as Front of the Line Presale and Reserved tickets to concerts, theatre performances, movie screenings, culinary events, and other special offers
- Comprehensive travel insurance: Benefit from a strong travel insurance package, including up to $5,000,000 in travel emergency medical
- No additional fee for authorized users: Add authorized users for no extra cost (an average fee of $30 – 50 on other comparable cards)
Cons
- Monthly fee: A monthly fee of $12.99 (totalling an annual fee of $156, which is higher than most other rewards cards)
- Limited acceptance: American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
- Travel insurance age limitations: The travel insurance package does not cover trip cancellation or medical coverage for cardholders over the age of 65
- Lack of airport lounge access: Frequent travellers may be disappointed as this card does not offer access to airport lounges
Eligibility requirements
Minimum credit score: 725
Minimum income: N/A
Interest rates
Purchase interest: 20.99%
Cash advance: 21.99%
The American Express Cobalt made our list of the best credit cards in Canada under the overall rewards cards category, but it also has some impressive travel benefits. Car Rental Theft and Damage Insurance is included as long as you fully charge your rental to your American Express Cobalt Card. You’re covered for damage or theft of your rental car with an MSRP of up to $85,000.
Scotiabank Gold American Express
- Rental Car Coverage: Covered up to the vehicle’s actual cash value plus any valid loss of use charges, towing charges, and administrative charges resulting from damage or theft
- Coverage amount: Rental car with an MSRP of up to $65,000
- Coverage period: Up to 48 consecutive days
- Conditions: You must use your card to pay the full cost of the rental vehicle and decline the rental agency’s damage waiver
Best for Groceries & dining
based on spending $2,200/mo after $120 annual fee
- Earn rewards
1pt – 5pts / dollar earn rate
- Welcome bonus
40,000 bonus points (a $400 value)
- Annual fee
$120
Perks
- Earn up to $650* in value in the first 12 months, including up to 40,000 bonus Scene+ points.
- You will not pay 2.5% foreign transaction fees on any foreign currency purchases, including online shopping and when travelling abroad. Only the exchange rate applies
- Earn 5X Scene+ points for every $1 CAD spent on eligible grocery stores, restaurants, fast food, and drinking establishments. Includes popular food delivery and food subscriptions
- Earn 3X Scene+ points for every $1 CAD spent on eligible gas and daily transit. Includes rideshare, buses, taxis, subway, and more
- Earn 1X Scene+ point for every $1 spent on every other purchase
Features
Ratehub’s take
Ratehub.ca’s take
The Scotiabank Gold American Express Card earns an honourable mention as one of the best overall travel credit cards for the outstanding benefits it offers to cardholders. This card stands out as a top choice, thanks to its exceptional return on spending and a variety of travel-related perks. This card is particularly useful for those who dine out often, travel, and enjoy entertainment.
Pros
- No foreign exchange fee: Save on foreign currency purchases while travelling abroad or shopping online, as this card doesn’t charge the typical 2.5% foreign transaction fee
- Extensive insurance coverage: Enjoy comprehensive travel insurance, including the $1 million travel medical insurance, which lasts for 25 days and is one of the longer coverage periods available on the market
- High return on spending: Earn five points per $1 spent on groceries, restaurants, food delivery, and entertainment – one of the best in class multipliers in the market. Earn three points per $1 spent on gas and transit expenses
Cons
- Limited acceptance: American Express isn’t as widely accepted in Canada compared to Visa and Mastercard
- Annual Fee: This card carries an annual fee of $120
- Fixed point values: Although earn rates are high, travel points are always worth one cent per point and you can’t transfer your points to other airline rewards programs like you can with other cards
- Airport lounge access is not free: Although you’ll get a discount on a Priority Pass membership for airport lounge access, lounge visits aren’t included with the card
Eligibility requirements
Minimum credit score: 725
Minimum income: $12,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
In-depth:American Express Gold Rewards Travel Insurance
What’s great about the Scotiabank Gold American Express card is that it offers coverage up to the vehicle’s actual cash value plus loss of use charges, reasonable towing charges, and administrative charges that could result from damage or theft. The coverage extends to cars, sport utility vehicles, and minivans provided they seat no more than eight occupants including the driver, and they are used for private use only.
Scotiabank Passport Visa Infinite
- Rental Car Coverage: Covered up to the vehicle’s actual cash value plus any valid loss of use charges, towing charges, and administrative charges resulting from damage or theft
- Coverage amount: Rental car with an MSRP of up to $65,000
- Coverage period: Up to 48 consecutive days
- Conditions: You must use your card to pay the full cost of the rental vehicle and decline the rental agency’s damage waiver
Best for Travel perks
based on spending $2,200/mo after $150 annual fee
- Earn rewards
1pt – 3pts / dollar earn rate
- Welcome bonus
30,000 bonus points (a $300 value)
- Annual fee
$150 $0 first year waived
Perks
- Ratehub.ca’s 2024 Credit Card Award Winner
- Earn up to $1,300* in value in the first 12 months, including up to 40,000 bonus Scene+ points and first year annual fee waived¹
- Earn 3x Scene+ points¹ on every $1 you spend at Sobeys, Safeway, IGA, Foodland and participating
Co-ops and more - Earn 2x Scene+ points¹ for every $1 you spend on other eligible grocery stores, dining, eligble entertainment puchases and eligible daily trasit options(including rideshares, buses, subways taxis and more)
- Plus earn 1 Scene+ point for every $1 spent on all other eligible everyday purchases
- No Foreign Transaction Fee
- 6 Complimentary Airport Lounge Access
- Comprehensive Travel Insurance coverage
- Visa Infinite* Concierge Services
- Visa Infinite* Hotel Collection
- Visa Infinite* Dining and Wine Country program
-
Rates, fees and other information are effective as of Jan.4, 2024. Subject to change
Features
Ratehub’s take
The Scotiabank Passport Visa Infinite card makes a great vacation companion, designed for Canadians who travel abroad and explore the world. It is one of the few cards that covers foreign transaction fees, and also includes valuable travel benefits like airport lounge access.
Pros
- No foreign transaction fee: Save 2.5% on all non-Canadian currency purchases
- Scene+ points: Earn three Scene+ points per $1 spent at participating grocery stores (e.g., Sobey’s, IGA, and FreshCo) and two Scene+ points per $1 spent on eligible grocery, dining, entertainment, and daily transit purchases
- Flexible redemption: Enjoy flexible point redemption options including for travel, groceries, statement credits, gift cards, and movie tickets
- Airport lounge access: Access airport lounges with six free visits per year to over 1,200 lounges worldwide
- Visa Infinite benefits: Benefit from the Visa Infinite Luxury Hotel Collection, Visa Infinite Dining series, and complimentary Avis Preferred Plus membership
- Comprehensive travel insurance: Enjoy coverage for emergency medical, trip cancellation/interruption, flight delays, and more
Cons
- Annual fee: The annual fee of $150 is higher than some comparable cards
- Low point return: The earn rate for certain spending categories like dining and entertainment is lower compared to other cards
- Consistent point values: Travel points are always worth one cent per point and you can’t transfer your points to other airline rewards programs like you can with some Amex cards
Eligibility requirements
Minimum credit score: 725
Minimum income: $60,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
The Scotiabank Passport Visa Infinite offers the same rental car insurance policy and coverage terms as the aforementioned Scotiabank Gold American Express Card for vehicles with an MSRP of $65,000. This card’s rental insurance policy extends to almost all car types – from four seater sedans to minivans – and covers up to the vehicle’s actual cash value plus loss of use charges, reasonable towing charges, and administrative charges that could result from damage or theft. It’s also worth highlighting that the Scotiabank Passport Visa Infinite offers 25% off the base rate on rental car bookings at eligible AVIS locations and charges no foreign transaction fees (which can help you save further if you’re embarking on a road trip outside of Canada).
American Express Gold Rewards Card
- Rental Car Insurance: Covers up to the vehicle’s actual cash value plus any valid loss of use charges resulting from damage or theft
- Coverage amount: A rental car with an MSRP of up to $85,000
- Coverage period: Up to 48 consecutive days
- Conditions: You must use your card to pay the full cost of the rental vehicle and decline the rental agency’s damage waiver
Best for Groceries & gas
based on spending $2,200/mo after $250 annual fee
- Earn rewards
1pt – 2pts / dollar earn rate
- Welcome bonus
60,000 bonus points (a $600 value)
- Annual fee
$250
Perks
- Earn up to 60,000 Membership Rewards® points:
- New American Express® Gold Rewards Cardmembers, earn 5,000 Membership Rewards® points for each monthly billing period in which you spend $1,000 in net purchases on your Card
- This could add up to 60,000 points in a year. That’s up to $600 towards your next vacation
- Earn 2 points for every $1 in Card purchases for eligible travel purchases, including flights, hotels, car rentals, cruises, and more
- Earn 2 points for every $1 in Card purchases at eligible gas stations, grocery stores and drugstores in Canada, and 1 point for every $1 in Card purchases everywhere else
- The Card is now available in your choice of Gold or Rose Gold metal options
- Receive a $50 CAD statement credit when a NEXUS application or renewal fee is charged to your American Express Gold Rewards Card
- You have access to an annual $100 CAD Travel Credit, compliments of your American Express Gold Rewards Card. Use the credit once annually towards any single travel booking of $100 or more charged to your Gold Rewards Card through American Express Travel Online
- As a Gold Rewards Cardmember, you can receive complimentary membership in Priority PassTM – one of the world’s largest independent airport lounge programs. Escape the chaos of airports and relax in an oasis of calm and simply enjoy the fact that the travel experience has begun before your plane has even left the ground. Enrollment is required and entry fees apply
- Enjoy four (4) complimentary visits per Calendar year to Plaza Premium Lounges across Canada. Entry fees apply once complimentary visits have been used
- Charge any eligible purchase to your credit Card then log in to redeem your earned points for a statement credit
- Transfer points 1:1 to several frequent flyer and other loyalty programs
- 1 Free Additional Gold Rewards Card (a $50 value) to help you earn points faster
- Subject to approval. The preferred rate for purchases is 20.99% and funds advances is 21.99%. If you have Missed Payments, the applicable rates for your account will be 25.99% and/or 28.99%. See the information box included with the application for the definition of Missed Payment and which rates apply to charges on your account and other details
- American Express is not responsible for maintaining of monitoring the accuracy of information on this website. For full details and current product information click the Apply now link. Conditions apply.
Features
Eligibility requirements
Minimum credit score: 725
Minimum income: N/A
Interest rates
Purchase interest: 20.99%
Cash advance: 21.99%
In-depth:American Express Gold Rewards Travel Insurance
The American Express Gold Rewards card offers similar coverage as the Scotiabank Gold American Express card in that they both offer full coverage up to the vehicle’s actual cash value plus any valid loss of use charges resulting from damage or theft. This card covers vehicles with a manufacturer’s suggested retail price of under $85,000 in its model year. This includes cars, sport utility vehicles, and minivans, provided they have a maximum gross vehicle weight of 2,680 kg (5,966 lbs.), seat no more than eight occupants, and are for private use only.
TD Cash Back Visa Infinite
- Rental Car Coverage: Covers up to the vehicle’s actual cash value plus any valid loss of use charges resulting from damage or theft
- Coverage amount: Rental car with an MSRP of up to $65,000
- Coverage period: Up to 48 consecutive days
- Conditions: You must use your card to pay the full cost of the rental vehicle and decline the rental agency’s damage waiver
Best for Household spending
based on spending $2,200/mo after $139 annual fee
- Earn rewards
1% – 3% earn rate
- Welcome bonus
$500
- Annual fee
$139 $0 first year waived
Perks
- Earn up to $500 in value†, including 10% in Cash Back Dollars in the first 3 months on Bonus Eligible Purchases up to a total spend of $3,500†. Conditions apply. Account must be approved by June 3, 2024.
- Bonus Eligible Purchases are Gas Purchases, Grocery Purchases & Pre-authorized payments, until a total collective spend of $3,500 of such purchases have been made†.
- Get an Annual Fee Rebate for the first year†.
- To receive the first-year annual fee rebate, you must activate your Card and make your first Purchase on the Account within the first 3 months after Account opening and you must add your Additional Cardholders by June 4, 2024.
- Earn Cash Back Dollars on every eligible purchase.
- Emergency Road Services with Deluxe TD Auto Club Membership†
- Complimentary Visa Infinite* Concierge service† available 24/7
- Mobile Device Insurance†
- Earn 3% in Cash Back Dollars on eligible grocery Purchases and gas Purchases†, and on regularly recurring bill payments† set up on your account
- Earn 1% Cash Back Dollars on all other Purchases made with your Card†
- Redeem your Cash Back Dollars to help pay down your Account balance whenever you please – the choice is yours!†
- Your Cash Back Dollars never expire as long as your account is open and in good standing
- †Terms and conditions apply.
- Financial institutions pay us for connecting them with customers, including by paying for advertisements, clicks, or when someone applies for/is approved for a product. Terms and conditions apply between you and the provider of the product – please be sure to review them. Product information and details vary for Quebec. The content provided on our site is for information only; it is not meant to be relied on or used in lieu of advice from a professional. Partners/Advertisers are not responsible for the accuracy of information on our site. However, not all products we list are tied to compensation for us. Our industry-leading education centres and calculators are available 24/7, free of charge, and with no obligation to purchase. To learn more, visit our About us page.
Features
Ratehub’s take
The TD Cash Back Visa Infinite offers a strong earn rate on rewards and the option to redeem your cash back at any time (minimum $25). Plus, the card packs a punch with added benefits like travel insurance coverage – which is rare for a cash back card.
Pros
- High earn rate: Strong earn rate of 3% cash back on gas, groceries and recurring bills and 1% on all other purchases
- Additional perks: Complimentary roadside assistance through Deluxe TD Auto Club membership, discounts at Avis and Budget Rent-A-Car locations
- Travel insurance: This card includes travel medical and delayed/lost baggage insurance, which is quite uncommon for non-travel cards. Additional insurance includes purchase security and extended warranty protection.
Cons
- Cap on key spending categories: $15,000 yearly spending cap for gas, groceries and recurring bills – after which the rate drops to 1%. Big spenders in these categories may want to consider partnering this card with one that offers non-capped rates
- Income requirements: $60,000 minimum personal income requirement may pose a hurdle for some users
Eligibility requirements
Minimum credit score: 725
Minimum income: $60,000/yr
Interest rates
Purchase interest: 20.99%
Cash advance: 22.99%
Along with offering 48 days of collision damage and loss insurance, the TD Cash Back Visa Infinite stands out for its strong earn rate of 3% cash back on gas. So, not only will you save on rental car insurance but at the pump too. Plus, you can knock an additional 5% to 10% off the base price when reserving a car from eligible Avis and Budget agency locations.
Honourable Mentions
While all our top choices highlighted above provide credit card rental coverage for up to 48 consecutive days, our list of honourable mentions below didn’t quite make the list because they offer coverage for 31 days. But, we thought they deserved a shoutout nonetheless because they’re great no fee credit cards that offer coverage despite the fact they’re free to carry.
Tangerine World Mastercard
- Rental Car Coverage: Covered up to the vehicle’s actual cash value plus any valid loss of use charges, towing charges, and administrative charges resulting from damage or theft
- Coverage amount: Rental car with an MSRP of up to $65,000
- Coverage period: Up to 31 consecutive days
- Conditions: You must use your card to pay the full cost of the rental vehicle and decline the rental agency’s damage waiver
Best for Flexible spending
based on spending $2,200/mo after $0 annual fee
- Earn rewards
2% – 10% earn rate
- Annual fee
$0
Perks
- Take on the world, get an extra 10% back* on everyday purchases.
- Apply for a Tangerine World Mastercard® by April 30, 2024 and earn an extra 10% back* (up to $100) when you spend up to $1,000 in everyday purchases within your first 2 months.
- Earn 2% Money-Back Rewards on purchases in two 2% Money-Back Categories of your choice, and 0.50% Money-Back Rewards on all other purchases.
- Have your Money-Back Rewards deposited into a Tangerine Savings Account, and get a 3rd 2% Money-Back Category.
- No limit on the amount of Money-Back Rewards you can earn.
Change your 2% Money-Back Categories to suit your spending.
Features
Ratehub’s take
The Tangerine World Mastercard is a well-rounded credit card offering robust insurance coverage, including mobile device coverage, exclusive World Mastercard benefits, and airport lounge access through the Mastercard Travel Pass. This card would make for a great travel companion while providing great cash back value.
Pros
- Customizable bonus categories: Flexibility to pick up to three bonus categories to earn 2% cash back on (out of a total of 10 options), which is in sharp contrast to most other cards where you have fixed bonus categories that you have no control over. Users are also given the freedom to change the bonus categories at any time (changes will take up to 90 days to come into effect)
- Balance Transfer Option: Take advantage of a 1.95% balance transfer promotion for the first 6 months, providing potential savings on interest charges to help you pay off your credit card debt. (Balance transfer fee of 3%)
- Comprehensive Insurance Coverage: Surprisingly robust insurance coverage, particularly mobile device insurance, which is uncommon for a no-fee card.
- Exclusive World Mastercard Benefits: Access Mastercard Priceless Cities and Mastercard World Experiences for unique global experiences and valuable offers.
- Airport Lounge Access: Enjoy access to over 1,000 airport lounges worldwide through Mastercard Travel Pass, enhancing your travel experience (at a cost of $32 USD per visit)
Cons:
- High Income Requirements: The card comes with a high annual income requirement of $60,000. However, if these are not met, the Tangerine Money-Back Credit Card is a viable alternative with few sacrifices.
- Low Base Earn Rate: You only earn 0.5% on all purchases outside of bonus categories.
Eligibility requirements
Minimum credit score: 725
Minimum income: $60,000/yr
Interest rates
Purchase interest: 19.95%
Cash advance: 19.95%
PC Financial World Elite
- Rental Car Coverage: Covered up to the vehicle’s actual cash value plus any valid loss of use charges, towing charges, and administrative charges resulting from damage or theft
- Coverage amount: Rental car with an MSRP of up to $65,000
- Coverage period: Up to 31 consecutive days
- Conditions: You must use your card to pay the full cost of the rental vehicle and decline the rental agency’s damage waiver
based on spending $2,200/mo after $0 annual fee
- Earn rewards
10% – 45% earn rate
- Welcome bonus
$20
- Annual fee
$0
Perks
- Ratehub.ca’s 2023 Award Winner – Best Store Credit Card
- Get 20,000 PC Optimum™ points with a new PC® Mastercard®
- Get 30 PC Optimum™ points per $1 on all the stuff you need: groceries, beauty, household products and more at participating stores.
- Earn at least 30 PC Optimum™ points per litre of fuel at Esso™ and Mobil™ stations in Canada.
- Earn 10 PC Optimum™ points per $1 everywhere else.
- Unlock great benefits, like free extended warranty and purchase assurance.
- Mastercard Global ServiceTM: Replaces your card or offers a cash advance in case of emergency. Conditions apply.
- Free Purchase Assurance: In the event of theft, loss or damage in the first 90 days when you pay in full with your PC® Mastercard® credit card.
- Free Extended Warranty: Doubles the manufacturer’s regular warranty for up to an additional year on items purchased with your PC® Mastercard® credit card.
- Concierge Services 24/7 concierge service to make dinner reservations, reserve event tickets, deliver gifts and more.
- Travel Emergency Medical Insurance: For trips up to 10 days from date of departure, for those under age 65.
- Car Rental Collision/Loss Damage Waiver Insurance: Collision damage and theft protection for your car rental needs.
- Identity Theft Assistance Service: To help you avoid identity theft or restore your identity.
- Fraud Detection: PC® Mastercard® uses best-in-class fraud detection tools right from the start of your application. Provide fraud monitoring to customers on their transactions and have a dedicated team of fraud specialists to support customers.
- Proactive monitoring PC® Mastercard® also offers optional products that can help you proactively monitor, manage and protect your valuable credit and personal information.PC Financial® Mastercard® is provided by President’s Choice Bank. President’s Choice Bank is not responsible for maintaining or monitoring the accuracy of the content on this website. To the extent of any inconsistency with information at the provider’s site, the terms at the provider’s site shall prevail. For full details and current product information click on the “Apply now” button.Please note: Credit approval and eligibility is subject to a number of factors in addition to credit score.Terms and conditions apply; visit card provider’s site for more information including additional interest rates and fees. All information is subject to change.The PC Optimum™ program is provided by President’s Choice Services Inc.
Features
Ratehub’s take
If you are looking for a credit card that will help you save money on groceries, the PC Financial World Elite Mastercard is a great choice, especially for those who frequently shop at Loblaws-owned stores and Shoppers Drug Mart.
Pros
- Accessible to all: No annual fee and no income requirements, making it accessible to a wider range of customers
- Abundant earning opportunities: Loblaw is one of Canada’s largest retailers, so there’s no shortage of opportunities to earn and redeem points
- Points stacking: Stack your points by showing your PC Optimum card at Loblaw-affiliated stores and paying with your PC Financial World Elite Mastercard
- Competitive earn rates: Earn rates are high compared to other no-fee credit cards
- Added travel insurance: Offers travel insurance benefits adding value to cardholders
Cons
- Limited rewards outside of Loblaws: While PC Financial Mastercards offer excellent rewards at Loblaw stores, they do not provide great benefits when shopping anywhere else
- Restrictive redemption rules: Points can only be redeemed in increments of 10,000 (10,000 = $10). Points cannot be used to pay for purchases at non-Loblaws retailers or redeemed against a statement balance. Plenty of other rewards cards on the market offering more flexibility
Eligibility requirements
Minimum credit score: 560
Minimum income: $80,000/yr
Interest rates
Purchase interest: 21.99%
Cash advance: 22.97%
The bottom line:
Regardless of which credit card you have, you can maximize your benefit from the car rental insurance provided. Before renting a vehicle, make sure that the rental agency will allow you to decline the collision damage waiver without making a deposit. Also check the rental car thoroughly for any scratches, dents, or damages before taking possession of the car. This will ensure you aren’t blamed for any damages prior to you taking possession of the vehicle.
Also read:
- The Best Credit Cards for Travel Insurance
- Rental Car Insurance: The Ultimate Guide
- Best No Fee Credit Cards in Canada
*This blog is for educational purposes only and isn’t legal advice. Check your credit card policy and rental car agency terms for details.