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Best Credit Cards for Free Car Rental Insurance in Canada 2024

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How often have you been faced with the decision of whether or not you should purchase car rental insurance while at the car rental company?

It always catches me by surprise when the customer rep at the car rental agency asks if I want auto rental insurance and emphasizes why I need it so badly. I just never really think about insurance before venturing to rent a car.

Car rental insurance sold as Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) does not come cheap. At up to $30 per day, you could easily be on the hook for approximately $1,000 for a 30-day rental.

So, should you pay for the car rental insurance offered by the car rental agency? It depends.

There are several no-fee credit cards (and most premium cards) offering free rental car insurance coverage that protects your rental car against collision damage and loss, subject to specific conditions. They also cover the costs of towing and loss of use fees charged by the rental company.

If your credit card offers free rental car insurance benefits, you can save lots of money every time you rent a car!

Read on to learn about the best credit cards for free car rental insurance in Canada.

Best Premium Credit Cards With Rental Car Insurance Benefits in Canada

These cards come with an annual fee and premium benefits in addition to car rental insurance.

1. Scotiabank Gold American Express Card

Scotiabank Gold American Express

Rewards: Earn 5x Scene+ points/$1 on restaurants, food delivery, and grocery (up to 6x at some stores); 3x points/$1 in gas & travel; 1x points/$1 everything else.

Welcome offer: Get up to 40,000 points ($400 value).

Interest rates: 20.99% on purchases; 22.99% on cash advances.

Annual fee: $120

The Scotiabank Gold AMEX card has one of the best rental car coverages and comes with an annual $120 fee tag.

Scotiabank Gold American Express Card Car Rental Insurance

This card offers car rental insurance covering up to 48 consecutive days per rental period and up to $65,000 in value.

Other benefits of the card are:

  • $200 bonus (20,000 Scene+ points) when you spend $1,000 in the first 3 months
  • Additional 20,000 bonus points ($200 value) when you spend $7,500 in the first year
  • 5 points per $1 spent on groceries, dining, and entertainment (6 points per $1 spent at select grocery stores)
  • 3 points per $1 spent on gas and daily transit
  • 1 point per $1 spent on all other purchases
  • Travel emergency medical insurance up to $1 million
  • No foreign transaction fee (savings of 2.5%)
  • Trip cancellation, trip interruption, flight delay, delayed and lost baggage, and travel accident insurance
  • Hotel/motel burglary insurance
  • Purchase protection and extended warranty
  • Discounted Priority Pass membership (35% off)

2. Scotiabank Passport Visa Infinite Card

Scotiabank Passport Visa Infinite Card

Rewards: Earn 2x Scene+ points/$1 on groceries, dining, entertainment, and daily transit; 1x points/$1 everything else; 6 free airport lounge passes/year; no FX fees.

Welcome offer: Get up to 40,000 points ($400 value).

Interest rates: 20.99% on purchases; 22.99% on cash advances.

Annual fee: $150 (waived in the first year)

This premium travel rewards card from Scotiabank comes with a $150 annual fee. It is one of the best no foreign transaction fee cards in Canada and also offers car rental insurance.

Scotiabank Passport Visa Infinite Car Rental Insurance

The Scotiabank Passport Visa Infinite protects you against rental car damage and theft for up to 48 consecutive days and a maximum of $65,000.

Other benefits of the card include:

  • 25,000 bonus points ($250 value) when you spend $1,000 or more in the first 3 months
  • 2 Scene+ points per $1 spent on groceries, dining, entertainment, and transit (3 points per $1 spent at select grocery stores)
  • No FX transaction fee
  • 1 Scotia Rewards point per $1 spent on all other purchases
  • Complimentary Priority Pass membership plus six free VIP airport lounge visits per year ($261 value)
  • Travel emergency medical insurance
  • Trip cancellation/trip interruption and flight delay insurance
  • Delayed and lost baggage insurance
  • Travel accident insurance against loss of life or dismemberment
  • Purchase protection and extended warranty

Learn more about the card in this review.

3. BMO World Elite Mastercard

The BMO World Elite Mastercard has a $150 annual fee (waived in the first year).

BMO World Elite Mastercard Car Rental Coverage

This card offers car rental insurance for up to 48 days and up to a maximum of $65,000. In addition to the basic coverage for loss and damage to a rental car, it also provides car rental accidental death and dismemberment benefits of up to $200,000 for the primary cardholder.

Also, your personal effects are protected against theft or damage up to $2,000 per account during each rental period.

Other benefits of the card:

  • 3 BMO Rewards points for every $1 spent on travel, dining, and entertainment
  • 2 BMO points per $1 spent on all other purchases
  • Trip cancellation, trip interruption, trip delay, and flight delay benefits
  • Baggage and personal effects benefits
  • Out-of-Country/Out-of-Province emergency medical benefits of up to $2 million
  • Purchase protection and extended warranty
  • Complimentary membership in Mastercard Airport Experiences provided by LoungeKey plus four annual complimentary passes

Here’s a detailed review of the BMO World Elite Mastercard.

BMO World Elite Mastercard

Best No-Fee Credit Cards With Rental Car Insurance in Canada

These credit cards do not charge an annual fee and provide free rental car insurance, often referred to as Rental Car Collision/Loss Damage insurance.

4. Tangerine World Mastercard®

Tangerine World Mastercard

Rewards: Earn up to 2% unlimited cash back in up to 3 spending categories and 0.50% on all other purchases; VIP perks.

Welcome offer: Get an extra 10% cash back on up to $1,000 in spending in the first 2 months ($100 value).

Interest rates: 19.95% for purchases, balance transfers, and cash advances.

Annual fee: $0

The brand-new Tangerine World Mastercard® is the second no-fee credit card offered by Tangerine Bank. It offers some of the best cash back rewards available in Canada and also has an impressive 1.95% balance transfer rate for 6 months.

Note that a minimum personal income of $60,000 is required to apply for this card.

Tangerine World Mastercard Rental Car Insurance

This card offers car rental insurance when you charge the full rental cost to your card. The coverage protects you for up to 31 consecutive days.

Other Benefits of this Card

  • No annual fee
  • Unlimited 2% cash back on spending in up to 3 major categories and 0.50% cash back on all other purchases (10% bonus cash back in the first 2 months – $100 value)
  • 1.95% promotional balance transfer rate for 6 months
  • Mobile device insurance (up to $1,000)
  • Extended warranty and purchase protection
  • Mastercard Airport Experiences provided by Loungekey with access to exclusive offers at more than 400 airports worldwide

Get more details in this review.

5. Rogers World Elite Mastercard

The Rogers World Elite Mastercard is provided by Rogers Bank and is on my list of the best no foreign transaction fee cards in Canada.

Rogers World Elite Mastercard Rental Car Insurance

This card offers rental car collision/damage insurance that is underwritten by CUMIS General Insurance Company and provides coverage for a maximum of 31 consecutive days. You must be a Canadian resident, rent the car in your name, and pay the full rental costs with your card. You must also decline the rental car agency’s waiver.

This car rental insurance covers up to $65,000 in damage or loss. A minimum personal income of $80,000 is required.

Other Benefits of this Card

  • No annual fee
  • 3% cash back on USD purchases
  • 1.50% cash back on all other purchases
  • Extended warranty and purchase protection
  • Out-of-Province and Out-of-Country medical, trip cancellation/trip interruption protection

Read our review of the Rogers World Elite Mastercard.

Rogers World Elite Mastercard

6. PC Financial World Elite Mastercard

The popular PC Financial World Elite card is one of the best credit cards for earning cash back if you shop at Superstore and Shoppers Drug Mart.

PC Financial World Elite Mastercard Car Rental Insurance

It offers car rental insurance that covers damage and theft for up to a period of 31 consecutive days. As expected, you must decline the car rental’s CDW/LDW, rent the car in your name, and pay the entire cost of the rental using the card.

The maximum car value covered is up to $65,000, and you must report a claim to the insurer, American Bankers Insurance Company of Florida, within 48 hours of a loss or damage.

A minimum personal income of $80,000 per year is required to apply for this card.

Other Benefits of this Card

  • No annual fee
  • Earn 45 PC Optimum points per $1 spent at Shoppers Drug Mart
  • Earn 30 PC Optimum points per $1 spent at Superstore (3% rewards rate)
  • Earn 30 points per $1 spent at PC Travel
  • 10 points per $1 spent on all other purchases
  • 3 cents per litre when you buy gas at Mobil or Esso stations
  • Travel emergency medical insurance (up to 10 days)

The PC Financial Mastercard is great for earning PC Optimum points and free groceries.

PC financial world elite mastercard

7. Triangle World Elite Mastercard

The Triangle World Elite Mastercard is managed by Canadian Tire Corporation and is included on my list of the best no-fee credit cards in Canada.

Triangle World Elite Mastercard Rental Car Insurance

This card offers car rental collision and loss damage waiver insurance when you rent most passenger vehicles for a period not exceeding 31 consecutive days. You must rent out the car in your name, pay for it using your card, and decline the rental agency’s CDW.

The maximum MSRP value of the vehicle covered is $65,000, and you must report a claim within 48 hours. A minimum personal income of $80,000 is required to apply for this card.

Other Benefits of this Card

  • No annual fee
  • 4% in CT Money when you shop at Canadian Tire and their partner stores
  • 3% in CT Money on your grocery purchases (excluding Costco and Walmart)
  • 5-7 cents per litre when you buy gas at Gas+/Essence+ locations
  • Free Gold Plan Roadside Assistance worth $99 per year (within Canada and the U.S.)
  • Extended warranty and purchase protection

Get more details in this Triangle World Elite Card review.

What Credit Card Rental Car Insurance Covers

Credit cards that offer Rental Car Collision and Loss Damage Insurance often provide coverage for:

  • Damage to the rental vehicle
  • Loss/theft of the rental vehicle
  • Towing charges, and
  • Loss of rental car use fees

In general, you need to decline the rental company’s collision damage (CDW) and/or loss damage (LDW) waiver coverage for your credit card’s rental car company insurance to kick in.

Credit card companies also require that you pay for the entire cost of the car rental using your card and rent it out in your name.

What Is Not Covered by Credit Card Car Rental Insurance?

Most credit cards do not offer any third-party liability coverage or protection for personal injury and damage. For example, if the other party’s vehicle is damaged or they are injured, this is not usually covered by your credit card car rental insurance.

If you own a personal car that is insured, your third-party liability coverage may already cover you in a rental car.

A minimum level of third-party liability also comes with all rental cars in Canada by law. The minimum amount starts at $200,000 and maybe up to $1,000,000, depending on the province and/or car rental company.

This minimum coverage is already factored into your car rental and does not require an additional fee.

If you are driving a rental car outside of Canada, the minimum liability insurance coverage at your location may vary wildly and be so minimal that it potentially exposes you to significant out-of-pocket costs.

In this case, it becomes especially important to ensure that you have personal third-party liability coverage in place.

Credit card auto insurance provides coverage for a limited number of days, usually between 31-48 days. If your rental exceeds the maximum length of time (e.g. 48 days), no coverage will be provided.

Other exclusions or limitations that may apply include:

  • Some countries may be excluded from coverage, e.g. may be limited to North America.
  • Not all vehicles are covered, e.g. trucks, pick-up trucks, off-road vehicles, trailers, motorcycles, recreational vehicles, mini-buses, antique cars or exotic cars, and very expensive vehicles exceeding a defined manufacturer’s suggested retail price (MRSP) at the time of loss or damage.

Read your credit card agreement in detail to know what is covered and what is excluded.

Save on Car Rental Insurance

These credit cards can help you save money when you rent a car.

Remember to check your coverage details before arriving at the rental car company so you can make the right decisions when asked whether you want to pay for Collision Damage/Loss Damage waivers.

If you choose to go with the coverage provided by your credit card, you should rent the car in your name and pay all the rental costs using the appropriate card.

If you need to report or make a claim, do so immediately, if possible, to avoid any problems.

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Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

Savvy New Canadians is one of Canada's top personal finance platforms. Millions of Canadians use our site each year to learn how to save for retirement, invest smartly, maximize rewards, and earn extra cash. We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Learn more about Savvy New Canadians.

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11 thoughts on “Best Credit Cards for Free Car Rental Insurance in Canada 2024”

  1. Gravatar for cOSTA

    Hi Enoch, thanks for this informative article. I have a question about collision damage waiver (CDW). My wife and I travel and rent cars for extended periods. So far we have stayed within the 48 day CDW coverage of our card. In order to go beyond this, what strategy would you recommend? I am thinking of getting a separate card for myself and my wife and each of us renting a car consecutively using different cards. I know of some couples who, after having reached the 31 day limit, return the car for one day then rent a vehicle again with the same card thinking that they will renew the 31 day coverage. I know that this is expressly forbidden in the fine print of the card issuing agreement and so could be disastrous.

    Do you know of any problem that would prevent us from using 2 separate cards for consecutive rentals so that we could double our CDW period? Thank-you.

    • Gravatar for Enoch Omololu

      @Costa: Great question! Unfortunately, I’m not sure what the right answer is. I want to assume that if you and your wife have credit cards with rental insurance from different card issuers, your proposed plan above should work. The best way to find out is to give the issuers a call and ask them to confirm. We all know that it’s in their interest to avoid paying up if they can find an escape.

      • Gravatar for costa

        Thanks! But I’m afraid to call lol.

  2. Gravatar for Jeenuy

    This is great info, though please add their restrictions.
    I just wasted time trying to sign up for the first one, but don’t meet their ‘qualifications’. I know for the PC one mentioned, your income must be $6000. So there’s no point in trying if you don’t have that high an income.

    Thank you.

    • Gravatar for Enoch Omololu

      @Jeenuy: Good point. I will add to my to-do list. Cheers!

  3. Gravatar for Shenen

    Home Trust Preferred Visa no longer offer Rental car insurance as of May, 2021. You might need to update that information.

  4. Gravatar for Lorraine

    HOME TRUST has cancelled their car rental insurance as of May 2021

  5. Gravatar for Enoch Omololu

    @Lorraine: Thanks for the heads up!

  6. Gravatar for Jeff

    Scotiabank AMEX is cancelling their rental insurance as of July 1, 2022.

  7. Gravatar for Chris

    Thanks ! Yours was the best article I found online to get a no fee travel advantage credit card. Scotia looked good but is no longer offered so I took Tangerine which offered the best advatages in my opinion. I took Triangle Canadian Tire as a second option because it gives free car assistance as well. Have a nice day ! A refresh of your article would surely be helpful to many people 🙂

    • Gravatar for Enoch Omololu

      @Chris: Thanks for your feedback. You are right that the Scotiabank American Express Card will no longer offer car rental insurance as of July 1, 2022. We will replace this card with another option asap. Cheers.

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