Many Chase travel credit cards are known for their extensive primary rental car coverage, which covers rental cars from theft and damage. Unfortunately, some of Chase’s most popular credit cards — including the Chase Sapphire Preferred® Card — have added new limits to this benefit.
Here’s what this change means for you the next time you rent a car.
Chase Adds Limits to Rental Car Coverage Benefit on Select Cards
Chase recently added a $60,000 limit to the amount it will pay out for Auto Rental Collision Damage Waiver claims if a car is damaged or stolen. As first reported by Frequent Miler, cards like the Chase Sapphire Preferred card and the Ink Business Cash® Credit Card previously did not have reimbursement limits for this benefit, and they covered up to the actual cash value of your rental car.
That’s no longer the case. 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.” Thankfully, coverage is still primary for most cardmembers.
This change is also reflected on other cards, including The New United Quest℠ Card and The New United℠ Explorer Card. Check your card’s benefits page to see if it’s affected.
It’s worth noting that this does not affect the Chase Sapphire Reserve® or The Ritz-Carlton Credit Card. These cards have long had a limit of $75,000 on the Auto Rental Collision Damage Waiver.
This isn’t Chase’s only rental car coverage change. Last October, the bank removed the primary coverage for New York State residents. Coverage is now secondary for renters with a personal car insurance policy, which means your personal insurance policy 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 Matter?
It depends on the cars you rent. If you rent standard cars, there’s a good chance that their cash value is under $60,000. For example, popular rental vehicles like the Chevy Malibu and the Nissan Altima have starting MSRPs of $25,800 and $27,000, respectively. In this case, the new limits shouldn’t affect you.
However, if you rent high-end luxury vehicles, you might run into issues. For example, last month, I rented a BMW 430i convertible from Sixt in Los Angeles. This car starts at $58,700 but quickly gets 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 charging your rental to 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 have to pay out of pocket if the car is damaged or stolen and the maximum coverage amount isn’t sufficient.
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