Orlando Harmon
Discover credit cards used to offer rental car insurance, but this was discontinued in 2018. Now, Discover cards have a robust rewards program and a cashback match that few cards can rival. However, some credit cards from other companies do offer rental car insurance, so it is worth shopping around if this is important to you.
| Characteristics | Values |
|---|---|
| Does Discover Card offer auto rental insurance? | No |
| When did Discover Card stop offering auto rental insurance? | 2018 |
| What type of insurance did Discover Card offer? | Secondary auto rental insurance, except for the Escape card which offered primary insurance |
| What did the insurance cover? | Damage/loss caused by collision or theft of the vehicle (CDW) |
| What was not covered by the insurance? | Personal injury, property loss, loss of use fees, towing charges (except for the Escape card) |
| Coverage limit (days) | 31 (45 if the card is for a business) |
What You'll Learn
- Discover discontinued rental car insurance in 2018
- The Discover Escape card covers loss-of-use fees and towing charges
- To use Discover rental insurance, you must decline other CDW coverages
- Discover rental insurance requires you to pay with your Discover card and rent the car under the same name
- Discover cardholders can save money by excluding CDW and using Discover card rental insurance
Discover discontinued rental car insurance in 2018
Discover discontinued its "Discover Card Rental Car Insurance" benefit for all credit card accounts on February 28, 2018. The last day to file a claim was May 29, 2018, for incidents that occurred on or before February 28.
Prior to this date, Discover card rental car insurance provided up to $25,000 in coverage for rental cars that were damaged or stolen. Cardholders had to pay for the rental with a Discover card or Discover card rewards and decline the rental agency's insurance offer to be covered.
In addition to dropping rental car insurance, Discover also cut several other benefits since February 2018, including travel accident insurance, purchase protection, extended warranties, and return protection.
Discover discontinued its rental car insurance benefit because it was used by very few cardholders. According to CNBC, "less than 0.1 percent of customers who rented a car used the benefit in 2017."
As of 2024, Discover credit cards do not offer car rental insurance. However, they have a robust rewards program and a cashback match that few cards can rival. The headliner perk is the first-year unlimited cashback match, where new cardholders get a dollar-for-dollar cashback match on all cashback earned within the card's first year. Discover cards also have no annual fees and no foreign transaction fees.
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The Discover Escape card covers loss-of-use fees and towing charges
The Discover Escape card is the only Discover card that covers loss-of-use fees and towing charges. This is in addition to the coverage provided by other Discover cards, which includes damage/loss caused by collision or theft of the rental vehicle (CDW).
Discover card rental insurance is not "all-inclusive", so personal injury and property loss coverage are not included. Loss-of-use fees and towing charges are also excluded for all Discover cards except the Escape card. This card will cover these expenses as long as a receipt and fleet utilisation log from the rental company are provided.
The Discover Escape card offers primary rental car insurance, meaning that any accidents will not have to be reported to your personal vehicle's insurance company, and therefore your premium will not be affected. All other Discover cards provide secondary auto rental insurance only.
To use Discover card car rental insurance, you must decline any other CDW coverages offered for your rental, pay for your rental in full with your valid Discover credit card, and rent the car under the same name printed on the card. Discover card rental insurance will cover additional drivers, but only if they are officially authorised by the car rental company when you pick up your vehicle.
Discover card rental insurance will cover collision damage waivers (CDW), but you will have to pay any additional fees charged by the rental company, including towing charges, administration fees, and any loss-of-use fees. The Discover Escape card includes some of these additional fees in its coverage, but only when sufficient documentation is provided.
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To use Discover rental insurance, you must decline other CDW coverages
When declining other CDW coverages, it is important to note that you must still pay any deductibles or charges from the rental company upfront and will be reimbursed later by your Discover credit card, provided that you adhere to their requirements for coverage. Additionally, you will be responsible for collecting and submitting the required paperwork for any claims to Discover in the event of an accident or theft. This paperwork may include a copy of your account statement showing the full amount paid for the rental, a copy of your rental agreement/contract, a police/accident report, and a copy of the initial claim or report sent to the rental company, among other possible documents.
Discover rental insurance has specific requirements that must be met to be utilized. These include declining other CDW coverages, paying for the rental in full with your valid Discover credit card, and renting the car under the same name printed on the card. It is also important to note that Discover rental insurance has coverage limits, which are typically 31 days for personal cards and 45 days for business cards.
By following these guidelines and understanding the limitations of Discover rental insurance, you can effectively utilize their coverage and decline other CDW coverages offered by rental companies.
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Discover rental insurance requires you to pay with your Discover card and rent the car under the same name
Discover discontinued its rental car insurance coverage in early 2018. As such, Discover credit cards do not currently offer rental car insurance. However, Discover cards have a robust rewards program and a cashback match that few cards can rival.
If you are looking for a credit card with rental car insurance, there are several options available. For example, the Chase Sapphire Preferred Card, the Chase Sapphire Reserve, and the Capital One Venture X Rewards Credit Card offer rental car coverage. These cards typically require you to pay for the rental car with the credit card and decline the rental company's collision coverage. It is important to carefully review the terms and conditions of any credit card before signing up.
When considering rental car insurance, it is important to understand the different types of coverage. Primary coverage pays out first, allowing you to bypass your personal auto insurance. Secondary coverage, on the other hand, means that your auto insurer pays the claim, and the credit card company reimburses your deductible and potentially other costs not covered by your personal policy.
In addition to credit card coverage, you may also want to consider a non-owner liability policy if you rent cars frequently. This can provide additional protection in the event of an accident.
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Discover cardholders can save money by excluding CDW and using Discover card rental insurance
Discover card rental insurance can save cardholders money when renting a car. By declining the Collision Damage Waiver (CDW) offered by the rental company, cardholders can avoid paying extra for duplicate coverage. Discover card rental insurance provides protection against damage or loss caused by collision or theft of the rental vehicle. This can save cardholders a significant amount on their overall rental cost.
To utilise their Discover card rental insurance, cardholders must decline any other CDW coverage offered by the rental company and pay for the rental in full with their valid Discover credit card. It is important to note that the rental must be made under the same name printed on the card, and any additional drivers must be authorised by the rental company. Discover will provide official documentation confirming coverage, which allows cardholders to decline the rental company's CDW.
While Discover card rental insurance provides valuable protection, it is not all-inclusive. It does not include personal injury or property loss coverage. Additionally, loss of use fees and towing charges are excluded for all Discover cards except the Escape card, which offers more comprehensive coverage. It is also important to note that Discover card rental insurance is secondary coverage, meaning any accidents will need to be reported to the cardholder's personal auto insurance company, which may affect their premium.
Discover card rental insurance has certain restrictions and limitations. For example, it may not cover certain types of vehicles, such as off-road vehicles, pickup trucks, or antique/exotic cars. Additionally, the coverage period is limited to 31 days for most cards and 45 days for business cards. It is important for cardholders to carefully review the terms and conditions of their Discover card rental insurance to understand the specific coverage provided.
In summary, Discover cardholders can save money by excluding CDW and utilising their Discover card rental insurance. By understanding the coverage provided and following the necessary steps to activate their Discover card rental insurance, cardholders can benefit from protection against collision or theft of their rental vehicle while avoiding the additional cost of the rental company's CDW.
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Frequently asked questions
No, Discover credit cards do not offer auto rental insurance. Discover discontinued this coverage in 2018 to reinforce its rewards program.
Discover credit cards have a robust rewards program and a cashback match that few cards can rival. The headliner perk is the first-year unlimited cashback match. New cardholders get an unlimited dollar-for-dollar cashback match on all cashback earned within the card's first year. Discover cards also have no annual fees and no foreign transaction fees.
Many of the best travel credit cards offer rental car insurance. For example, the Chase Sapphire Preferred card covers a number of incidents, including theft, damage, loss-of-use charges, administrative fees, and tow charges.
