The News
Chase recently implemented a significant change to one of its most popular credit card benefits: rental car coverage now has a $60,000 limit for Auto Rental Collision Damage Waiver claims if a car is damaged or stolen. This affects several popular Chase cards that previously offered unlimited coverage up to the actual cash value of your rental vehicle.
Key facts about this change:
- The new $60,000 limit applies to cards like the Chase Sapphire Preferred and Chase Ink Business Cash
- Previously, these cards had no reimbursement limits for rental car damage or theft
- The change was first reported by Frequent Miler and has been quietly implemented in updated terms and conditions
- Chase Sapphire Reserve and Ritz-Carlton Credit Card holders are unaffected—these cards already had a $75,000 limit
What's Changing
For Affected Cardholders
If you hold one of the impacted Chase cards, you'll now face a coverage cap where there wasn't one before. 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.
The affected cards include:
- Chase Sapphire Preferred Card
- Chase Ink Business Cash Credit Card
- Other select Chase cards (check your updated Guide to Benefits)
For Premium Cardholders
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. If you hold either of these premium cards, your coverage remains unchanged at the higher $75,000 threshold.
Background & Context
This isn't Chase's first adjustment to rental car benefits. 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.
These changes reflect broader industry trends where credit card issuers are tightening benefits to manage costs. With luxury and exotic car rentals becoming more accessible through platforms and traditional rental agencies, unlimited coverage became increasingly expensive for card companies to maintain according to industry analysis from the Insurance Information Institute.
The rental car market has also evolved significantly since the pandemic, with higher vehicle values and increased rental prices making potential claims more costly for issuers.
Expert Analysis
The $60,000 limit strikes a balance between maintaining valuable coverage while protecting Chase from extremely high-value claims. For context, most standard rental vehicles fall well below this threshold. Popular rental vehicles like the Chevy Malibu and the Nissan Altima have starting MSRPs of $25,800 and $27,000, respectively.
However, this change does impact travelers who rent premium vehicles. Luxury SUVs, high-end sedans, and specialty vehicles from companies like Enterprise and Hertz can easily exceed $60,000 in value, creating a coverage gap that didn't exist before.
The timing of this change is notable—it comes as travel demand has rebounded and rental car prices remain elevated compared to pre-pandemic levels.
What This Means for Travelers
Winners
- Standard car renters: If you typically rent economy, compact, or standard vehicles, this change likely won't affect you at all
- Sapphire Reserve holders: You maintain superior $75,000 coverage, creating even more separation from the Preferred card
- Frequent business travelers: Chase Ink Business cards still offer primary coverage for business rentals, just with the new limit
- Chase ecosystem users: Those who maximize Chase's travel portal and transfer partners can still leverage comprehensive travel benefits despite this rental car change
Losers
- Luxury vehicle renters: Those who rent high-end SUVs, exotic cars, or specialty vehicles now face potential coverage gaps
- International travelers: Many international locations have limited vehicle options, sometimes pushing renters toward higher-value vehicles
- Value-conscious Sapphire Preferred holders: The gap between Preferred and Reserve benefits has widened further
How to Adapt Your Strategy
Here are three key strategies to navigate this change:
1. Know Your Vehicle Values
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.
Before declining the rental agency's collision damage waiver, research the vehicle's value. Most rental companies can provide this information upon request.
2. Consider Premium Card Upgrades
If you frequently rent higher-value vehicles, the Chase Sapphire Reserve's $75,000 limit might justify its higher annual fee. Our detailed comparison of Sapphire Reserve vs Preferred shows how the Reserve's superior travel benefits, including this enhanced rental coverage, can offset the increased cost for frequent travelers.
3. Evaluate Alternative Coverage
For rentals that exceed your card's coverage, consider:
- Purchasing the rental agency's collision damage waiver
- Using a different card with higher limits
- Exploring comprehensive rental car loyalty programs that might include additional protections
- Checking if your personal auto insurance provides adequate coverage through your provider's website
Related Developments
This change is part of a broader trend in the credit card industry. Other issuers have similarly adjusted benefits to manage costs:
- Several airlines have devalued their rewards programs
- Hotel partnerships have introduced new restrictions
- Travel insurance benefits across the industry have seen modifications
Watch for potential adjustments to other travel-related benefits as issuers continue balancing competitive offerings with profitability.
Looking Ahead
Expect Chase to monitor how this change affects customer satisfaction and rental patterns. If significant pushback occurs, we might see adjustments—though likely not a return to unlimited coverage.
Other card issuers may follow suit with similar limitations, making comprehensive rental car coverage increasingly valuable where it exists unrestricted.
The rental car market itself continues evolving, with new vehicle types and rental models potentially affecting how these benefits work in practice.
Bottom Line
The $60,000 coverage limit affects some popular Chase cards but won't impact most travelers who rent standard vehicles. However, if you frequently rent luxury or specialty vehicles, you'll need to adjust your strategy or consider cards with higher limits. For those looking to maximize their rental car experience beyond just insurance coverage, exploring options like National Car Rental's Emerald Club can provide additional perks and peace of mind.
Featured Image: Chase
