On February 28, 2018, Discover discontinued its “Discover Card Rental Car Insurance” benefit for all credit card accounts. The deadline to file a claim for incidents that occurred on or before February 28 was May 29, 2018.
Prior to discontinuing the benefit, Discover credit card rental car insurance provided up to $25,000 in coverage for rental cars that were damaged or stolen.
To be covered by the insurance benefit, cardholders had to pay for the rental with a Discover card or Discover rewards and decline the rental agency’s insurance offer. Since February 2018, in addition to dropping rental car insurance, Discover has also cut travel accident insurance, purchase protection extended warranties and return protection.
Why did Discover discontinue its rental car insurance benefit?
The main reason cited by the company is that the benefit was used by very few cardholders. In fact, according to CNBC, “less than 0.1 percent of customers who rented a car used the benefit in 2017.”
What does this mean for Discover cardholders?
If you currently have a Discover card and rent cars frequently, you will need to find another source of rental car insurance coverage.
One option is to purchase a standalone rental car insurance policy from a rental company like Allianz or Hertz. Or you could get coverage through your personal auto insurance policy if it extends to rental cars.
Another option is to use a credit card that still offers rental car insurance coverage like Chase Sapphire Reserve or American Express Platinum Card.
Does discover card provide rental car coverage?
No, Discover Card no longer offer car rental insurance coverage as of February 28, 2018.
Will my Discover card cover rental car insurance?
Sorry to say, but it looks like your Discover card will no longer cover rental car insurance. In 2018, Discover made some changes to the benefits offered by their cards, and unfortunately, rental car coverage was one of them.
While the primary features of their cards, like redemption options and reward rates, were not affected by these changes, a few benefits got cut. Auto Rental Coverage, Extended Product Warranty, Flight Accident Insurance, Purchase Protection, and Return Guarantee are no longer part of what Discover offers.
It’s always a good idea to double-check with your credit card company before making any big purchases or arrangements, but in this case, it looks like you may want to look into alternative insurance options for your rental car.
Which credit card gives car rental insurance?
The Chase Sapphire Reserve and the Chase Sapphire Preferred credit cards both offer primary car rental insurance. This means that you don’t have to file a claim with your personal auto insurance policy if something happens to the car you’re renting.
Keep in mind that only the cardholder is covered by the car rental insurance, so if you’re traveling with someone else and they rent a car using their credit card, they won’t be covered if something happens to the car.
If you’re a Discover cardholder who frequently rents cars, you’ll need to find another source of rental car insurance coverage as of February 28, 2018. While this benefit was used by very few customers, those who did use it will need to consider their options which include purchasing a standalone policy or using a credit card that still offers this type of coverage.
Do any other credit cards offer rental car insurance? Comment below to let us know!
- As a personal finance and credit cards expert, I provide valuable insights and advice on budgeting, saving, investing, and debt management. I am also an expert on credit card rewards programs and help readers make informed decisions about which cards are right for them. My goal is to help people improve their financial literacy and make better financial choices.
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