Chase Tightens Rental Car Coverage on Top Travel Cards

Understanding the New Limits on Chase Credit Card Rental Car Coverage

Many Chase travel credit cards are known for their robust rental car coverage, which includes protection against theft and damage. This benefit has long been a key selling point for travelers who want to avoid additional fees when renting a vehicle. However, recent changes have introduced new limitations that could affect cardholders.

Chase recently added a $60,000 cap on the amount it will pay out for Auto Rental Collision Damage Waiver (CDW) claims if a car is damaged or stolen. This change was first reported by Frequent Miler, and it affects several popular cards, including the Chase Sapphire Preferred® Card and the Ink Business Cash® Credit Card. Previously, these cards did not have reimbursement limits for this benefit and covered up to the actual cash value of the rental car.

According to the terms and conditions of the Chase Sapphire Preferred card, the benefit now provides “reimbursement up to $60,000 for theft and collision damage for most rental vehicles with an MSRP of $125,000 or less.” While this change is significant, coverage remains primary for most cardmembers. The same limitation applies to other cards, such as The New United Quest℠ Card and The New United℠ Explorer Card. It’s important to check your card’s benefits page to see if you’re affected.

It’s worth noting that this change does not impact the Chase Sapphire Reserve® or The Ritz-Carlton Credit Card. These cards have long had a higher limit of $75,000 on the Auto Rental Collision Damage Waiver.

Additional Changes to Rental Car Coverage

This isn’t the only update to Chase’s rental car coverage policies. In October, the bank removed primary coverage for New York State residents. Now, coverage is secondary for renters with a personal car insurance policy. This means that your personal insurance will pay out first if your rental is lost or stolen. As a result, you could face higher insurance premiums after a claim.

Does This Change Matter?

The impact of these changes depends on the type of car you rent. If you typically rent standard vehicles, there’s a good chance their cash value is under $60,000. For example, popular rental cars like the Chevy Malibu and the Nissan Altima have starting MSRPs of $25,800 and $27,000, respectively. In such cases, the new limits shouldn’t significantly affect you.

However, if you frequently rent high-end luxury vehicles, you may encounter issues. For instance, a BMW 430i convertible from Sixt in Los Angeles starts at $58,700 but can quickly become more expensive based on its configuration. If you use an affected Chase card for rental car coverage, consider the cost of the car you're renting. If the vehicle has an MSRP above $60,000 and your Chase card has these newly imposed limits, you may be better off purchasing protection from the rental car company or using a card with higher coverage limits.

Final Thoughts

Several popular Chase credit cards have added limits to the Auto Rental Collision Damage Waiver, which protects your rental car from theft and damage. These cards now have a limit of $60,000 in coverage, which could affect high-end rentals. You may end up paying out of pocket if the car is damaged or stolen and the maximum coverage amount isn’t sufficient.

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