Discover Auto Insurance: What You Need To Know

Discover discontinued its car rental insurance coverage in 2018. Before that 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 to be covered. Now, Discover cards have a robust rewards program and a cashback match that few cards can rival.

Discover discontinued its rental car insurance in 2018

Discover discontinued its 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 credit 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.

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."

In addition to rental car insurance, Discover also cut several other credit card benefits in 2018, including travel accident insurance, purchase protection, extended warranties, and return protection.

Discover credit cards now focus on offering robust rewards and cashback match programs instead of insurance coverage. The headliner perk on Discover credit cards 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.

While Discover no longer offers rental car insurance, there are other credit cards that do provide this benefit. Some alternative options include the Chase Sapphire Preferred® Card and the Bank of America® Premium Rewards® credit card. These cards offer rental car insurance as well as other travel protections such as trip delay reimbursement, lost luggage reimbursement, and trip cancellation/interruption insurance.

Discover cards now have a robust rewards program and a cashback match

Discover discontinued its rental car insurance coverage in early 2018. Instead, Discover cards now have a robust rewards program and a cashback match that few cards can rival.

The headliner perk on Discover cards is the first-year unlimited cashback match. New cardholders get a dollar-for-dollar cashback match on all cash back earned within the card's first year. On the card's first anniversary, Discover will give you the match as a welcome offer. This first-year match can turn $300 earned into $600 in total cashback.

Discover cards have no annual fees and no foreign transaction fees. They also offer multiple ways to redeem rewards. Besides the typical redemption options (statement credits, gift cards, cash deposits), Discover lets you apply rewards to purchases made through PayPal or Amazon. And while it no longer offers travel or shopping insurance, Discover monitors your Experian credit report to alert you of potentially fraudulent activity.

Discover's rental car insurance covered 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 to be covered.

Discover also dropped travel accident insurance, purchase protection, extended warranties, and return protection.

Discover card rental car insurance covered up to $25,000 in damages

Discover discontinued its rental car insurance coverage in 2018. Before that 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 to be covered.

Discover card rental car insurance was secondary auto rental insurance. This means that any accidents would have to be reported to your personal vehicle's insurance company, which may have affected your premium.

Discover card rental car insurance covered damage or loss caused by collision or theft of the rental vehicle. It did not include personal injury or property loss coverage. Loss of use fees and towing charges were also excluded for all Discover cards except the Escape card, which covered these expenses if a receipt and fleet utilisation log from the rental company were provided.

Discover card rental car insurance was valid for 31 days (45 days if the card was for a business). It did not cover off-road vehicles, pickup trucks, minibuses, antique/exotic vehicles, or any coverage over $25,000.

Discover cardholders had to pay for the rental with a Discover card to be covered

Discover discontinued its rental car insurance coverage in February 2018. Prior to this date, Discover cardholders could benefit from up to $25,000 in coverage for rental cars that were damaged or stolen, but only if they paid for the rental with a Discover card or Discover card rewards.

Discover cardholders were also required to decline any other CDW (collision damage waiver) coverages offered for their rental. This is because Discover's rental car insurance was secondary coverage, meaning that it would only pay out after your personal auto insurance policy had paid out.

Discover's rental car insurance covered damage/loss caused by collision or theft of the vehicle (CDW). It did not include personal injury, property loss coverage, loss of use fees, or towing charges. The only Discover card that offered primary rental car insurance was the Escape card.

Discover discontinued its rental car insurance, along with travel accident insurance, purchase protection, return protection, and extended warranty, to reinforce its rewards program. Now, Discover cards offer a robust rewards program and a cashback match that few cards can rival.

Discover card rental car insurance was secondary coverage

Discover discontinued its travel insurance coverages, including flight accident and rental insurance, in early 2018, and has not announced plans to reinstate them since. However, Discover card rental car insurance was secondary coverage. This means that the coverage kicks in after your personal auto insurance pays out. In the case of an accident, theft, or damage, you would first need to file a claim with your own car insurance company before submitting a claim through your credit card's insurance provider.

Discover card rental car insurance covered damage or loss caused by the collision or theft of the vehicle you are renting (CDW). This is not "all-inclusive" insurance, so personal injury, property loss coverage, loss of use fees, and towing charges are excluded. The only Discover card that offers primary rental car insurance is the Escape card.

If you don't have a personal auto insurance policy, secondary coverage may still kick in. However, it's important to check your policy to ensure you're covered. It's also worth noting that Discover card rental car insurance has a coverage limit of 31 days for personal cards and 45 days for business cards.

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