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Confused about credit card car rental insurance in Canada? In this car rental insurance guide, we’re sharing the best credit cards for car rental insurance to keep you and your vehicle protected.

Many Canadians are confused about car rental insurance and it’s no wonder: at the check-in counter, you’re often presented with a long-winded policy written in “legalese,” making it hard to decipher what’s covered. For many travellers, the knee-jerk reaction is to just buy whatever policy is recommended by the company.

Such a hasty decision leads many travellers to (a) buy a bare-bones policy that doesn’t cover everything, or (b) overpay for the Shaq Daddy of policies that probably isn’t worth it.

But what many travellers forget is that they may already have credit card car rental insurance that will cover them at home and abroad – free of charge.

In this car rental insurance guide, we’re sharing our top three picks for the best credit cards for car rental insurance in Canada, as well as tips and advice on everything you need to know about credit card car insurance in Canada.

Summary of the Best Credit Card Car Rental Insurance Canada

Credit CardAnnual FeeBest FeatureMore Info 
TD® Aeroplan® Visa Infinite* Card $139
(Annual fee rebate for first year if you apply by December 5, 2021)
Preferred rate with qualifying Avis and Budget car rentalsRead OnVisit Site
BMO World Elite®* Mastercard®*$150
(Waived for first year)
Covers any personal items stolen or damaged in an accidentRead OnVisit Site
American Express Cobalt® Card$155.88 ($12.99 monthly fee)Earn Membership Rewards® points for every $1 in card purchasesRead OnVisit Site
Desjardins Odyssey World Elite Mastercard$130
20% off with Hertz car rentalsRead OnVisit Site

What Do You Need to Be Covered for When Renting a Car?

It’s true: there are a number of Canadian credit cards that offer car rental insurance as a cardholder benefit. This means that purchasing an additional policy may be unnecessary because you may already be protected by your credit card rental insurance.

However, not all credit card car rental insurance policies are created equal: the terms and conditions are not always clear cut and different credit cards have different coverage amounts, policies, and additional benefits. For this reason, it’s important to read the fine print and really understand just what your coverage includes, in what countries it’s valid, and if there are any exceptions or limitations.

No matter how good of a driver you are, approach your car insurance with the mindset that the worst could happen and you need to be protected if it does. This means making sure that you protect yourself, but also others on the road. With that in mind, here are the types of coverage you will need.

  • Damage to your rental vehicle
  • Theft of your rental vehicle
  • Damage to another person’s vehicle
  • Injury to another person
  • Property damage
  • Loss of use of the rental vehicle while it’s under repair

When it comes to car rental insurance, most credit cards do not cover third-party liability (damage to another vehicle and/or injury to another person). Within Canada, each province has its own minimum third-party liability that is provided by the rental company. However, not every country has liability insurance laws and, in this case, you may need to purchase additional liability insurance from the car rental agency. Check your car insurance policy at home first, as you may be able to use it abroad.

Our Best Credit Cards for Car Rental Insurance

There are several Canadian credit cards on the market that offer car rental insurance. However, after an intensive study, we’ve narrowed down our top three picks based on their reasonable annual fees, generous coverage amounts, and attractive perks to cardholders.

TD® Aeroplan® Visa Infinite* Card

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Limited-time offer: New cardholders who apply by December 5, 2021 can earn up to $1,250 in value.

The TD® Aeroplan® Visa Infinite* Card is a top pick when it comes to travel cards in general, but definitely a good choice for those looking for car rental insurance. The coverage amount is valid for up to 48 consecutive days. The additional benefit of this credit card is that cardholders will receive special preferred rates on qualifying car rentals when they use their card to book a car rental with either Avis or Budget. This perk will be a definite money saver for anyone who regularly rents cars during their travels.

Car rental perks aside, you can also take advantage of the welcome offer: Apply by December 5, 2021 to earn up to $1,250 in value (assuming you take one round-trip Air Canada flight and add an Additional Cardholder to your account in the first year) as follows:

  • As a new Cardholder, you could earn a bonus Buddy Pass that can score you a second ticket when you book an economy ticket to bring anyone along anywhere Air Canada flies in North America, Including Hawaii and Mexico. On the second ticket, you only pay the taxes and third-party charges. You’ll receive the one-time use pass when you spend $1,000 within 90 days of Account opening, and you have a whole year to use it† (a value of $350†).
  • Earn a welcome bonus of 10,000 Aeroplan points when you make your first purchase with your new card (a value of $200).
  • Earn an additional 15,000 Aeroplan points when you spend $1,000 within 90 days of Account opening (a value of $300).
  • Get an annual fee rebate for the first year (a value of $214†, assuming you add an Additional Cardholder to your account in the first year).
  • Enroll for NEXUS and once every 48 months get an application fee rebate (a value of up to $125, assumes both the Primary Cardholder and Additional Cardholder use the NEXUS Benefit).
  • Share free first checked bags (a value of $120 for 2 travellers for each round-trip flight, assuming you take one round-trip Air Canada flight in 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 December 6, 2021.

Check out our full TD® Aeroplan® Visa Infinite* Card review.

The Details

  • Annual Fee: $139 (annual fee rebate for the first year if you apply by December 5, 2021)
  • Minimum Income Eligibility: $60,000 personal or $100,000 household annual income
  • Credit Score Required: Good to Excellent
  • Welcome Offer: Earn up to $1,250 in value Must apply by December 5, 2021
  • Other Perks: Travel insurance, VIP benefits when travelling on Air Canada flights, Auto Rental Collision/Loss Damage Insurance, and no Aeroplan points expiry for cardholders
  • Purchase APR: 19.99% | Cash Advance APR: 22.99%

Learn more about the TD® Aeroplan® Visa Infinite* Card

This offer is not available for residents of Quebec. For Quebec residents, please click here.

Terms and conditions apply.


BMO World Elite®* Mastercard®*

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Coverage Amount: Up to $65,000
Number of Days Covered: 48
Annual Fee: $150 (waived for the first year)

When it comes to the best credit cards for car rental insurance, the BMO World Elite®* Mastercard®* is a favourite. The coverage amount is up to $65,000 for up to 48 consecutive days for theft or damage which is not the highest amount offered by a credit card, but still fair.

What makes this card is stand-out is that that it covers any personal items stolen or damaged in the accident (maximum $1000 per person or $2000 per vehicle). Additionally, this policy offers accidental death or dismemberment insurance of up to $300,000. Plus, upon sign up, cardholders are able to earn up to $575 between all its enticing introductory bonuses. You get a welcome offer of up to 30,000 points – 25,000 points when you spend $3,000 in the first 3 months plus 5,000 points on your first anniversary, and the $150 annual fee waived in the first year.* Additionally, Get 3 BMO Rewards points for every $1 spent on travel, dining and entertainment purchases* and get 2 points for every $1 spent everywhere else*.

These added benefits make the BMO World Elite®* Mastercard®* a stand-out choice.

The Details:

  • Annual Fee: $150 (waived for the first year)
  • Minimum Income Eligibility: $80,000 individual or $150,000 household annual income
  • Credit Score Required: Excellent
  • Welcome Offer: Get up to 30,000 points – 25,000 points when you spend $3,000 in the first 3 months plus 5,000 points on your first anniversary, and the $150 annual fee waived in the first year.*
  • Other Perks: Complimentary membership in Mastercard Airport Experiences provided by LoungeKey, with exclusive VIP access, plus four annual complimentary passes* ($140 Value/Year).
  • Purchase APR: 20.99% | Cash Advance APR: 22.99% (21.99% for Quebec residents)

Learn more about the BMO World Elite®* Mastercard®*


American Express Cobalt® Card

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The American Express Cobalt® Card is an excellent credit card for car insurance because it has a relatively high coverage rate of $85,000. That means if you rent a higher-end vehicle, it will be covered by the American Express Cobalt® Card’s car rental insurance, versus other credit cards that offer a lower dollar value of coverage. Plus, in your first year as a new Cobalt Cardmember, you can earn 2,500 Membership Rewards® points for each monthly billing period in which you spend $500 in net purchases on your Card. Plus, you can earn a Welcome Bonus of 20,000 Membership Rewards points when you spend a total of $3,000 in purchases on your Card in your first 3 months of Cardmembership. The Welcome Offer totals up to 50,000 points earned in a year!

Finally, the biggest benefit is that you can earn points for every purchase charged to this credit card, which can be redeemed for travel rewards, shopping rewards, and gift cards. Since eligible transit or travel purchases get 2X the points, your car rental will not only be insured, but you’ll also earn twice the points for every dollar you spend on your rental.

The Details

  • Annual Fee: $155.88 ($12.99 monthly fee)
  • Minimum Income Eligibility: N/A
  • Credit Score Required: Fair to Good
  • Welcome Bonus: Earn up to 50,000 Membership Rewards® points in the first year
  • Coverage Amount: Up to $85,000
  • Number of Days Covered: 48 days­
  • Additional Perks: Insurance, exclusive entertainment access, access to VIP benefits at the Hotel Collection from American Express®
  • Purchase APR: 20.99%Cash Advance APR: 21.99%

Learn more about the American Express Cobalt® Card.


Desjardins Odyssey World Elite Mastercard

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While the Desjardins Odyssey World Elite Mastercard doesn’t have the personal items coverage offered by the BMO World Elite®* Mastercard®*, this card does offer 20% off car rentals with participating Hertz car rental locations. This discount benefit can be a big money saver to individuals who frequently require car rentals for their travels. At the end of the day, the coverage up to the value of the stolen/damaged rental car of 48 consecutive days is very reasonable. Also, remember, if you are a Desjardins member, then this card has a $0 annual fee.

The Details

  • Annual Fee: $130 (unless you are a Desjardin member, then $0)
  • Minimum Income Eligibility: $80,000 individual or $150,000 household
  • Credit Score Required: Fair to Good
  • Welcome Bonus: Get up to 2% in BONUSDOLLARS®.
  • Coverage Amount: Up to the value of the rental car
  • Number of Days Covered: 48 days­
  • Additional Perks: Insurance, 8 free passes per year to the Desjardin Odyssey Lounge
  • Purchase APR: 19.99% | Cash Advance APR: n/a

Learn more about the Desjardins Odyssey World Elite Mastercard.


Using Your Credit Card Car Rental Insurance

Having car rental insurance coverage on your credit card is a huge benefit. However, to be able to use it, you do need to meet some requirements. Here’s what you need to watch out for.

  • You must be a Canadian citizen with a valid driver’s license
  • When renting a car, the full amount must be charged to your credit card. For example, if you are booking an all-inclusive trip that includes a car rental, the entirety of the trip must be charged to your card. Same goes if you’re booking a car rental by itself. Always charge the cost onto your credit card to secure the coverage.
  • Credit card car rental insurance in Canada only covers certain vehicles. Normally, pick-up trucks, luxury vehicles (often over 65k), antique cars, and commercial fans are not covered.
  • Not all countries are covered under your insurance. For example, destinations with Canadian travel advisories are often exempt. You will need to check this with your card provider.
  • Your credit card account must be in good standing (e.g. pay minimum deposits on time)
  • What you’re doing with the vehicle matters. For example, commercial purposes (such as moving your things) isn’t normally covered.
  • If you are driving while impaired, your insurance policy will be void.
  • The maximum time your card will insure you is between 31-48 days of rental. However, this varies by credit card, but those we have listed in this article max out at 48 days.
  • Accepting the rental car company’s insurance will likely void your credit card insurance policy.
  • If the car rental is a prize (lucky you!), you may still be covered through your credit card. This is especially true if you have proof of using the credit card for car rentals in the past. However, it’s not a guarantee so it’s best to check with your credit card provider ahead of time.
  • If you use credit card points to book your car rental, then you should still be covered. That is, assuming that you used the points from your credit card with the car rental insurance. Again, it’s best to call the credit card provider ahead of time to make sure.

Pro tip: it’s good practice to examine the car with a rental agent before you leave the property. Note any questionable marks, scratches, or dents on the documentation, so you don’t get slapped with a big bill when you return the car. You can also take photos of the car using a camera with a time stamp to keep as evidence. That way, there can be no discrepancies or accusations of car damage when you return the vehicle.

Is Credit Card Car Rental Insurance Worth It?

Having car rental insurance included in your credit card is a big perk, especially if you are a frequent traveller. However, it’s not as easy as just swiping your card: it’s something you need to research ahead of time, understand the terms and conditions, and use your card appropriately to accommodate impending travel plans. While the credit cards listed above are the best credit cards for car rental insurance in Canada, make sure to read the fine print to really understand what you are covered for. Bon voyage!

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