Many Canadian credit cards include built-in car rental collision coverage — saving you $15–$30 per day in collision damage waiver (CDW) fees at the rental counter. Choosing the right card for car rentals can save hundreds of dollars on a single trip while also earning points or cash back on the rental cost.
Best Credit Cards for Car Rentals — Quick Comparison
| Card | Annual Fee | Rental CDW Coverage | No FX Fee | Earn on Rentals |
|---|---|---|---|---|
| Scotiabank Passport Visa Infinite | $150 | Yes (Visa Infinite) | Yes | 2 Scene+/$1 travel |
| Scotiabank Gold American Express | $120 | Yes (Amex) | Yes | 3 Scene+/$1 travel |
| American Express Platinum Card | $799 | Yes — premium coverage | Yes | 2 MR/$1 travel |
| TD First Class Travel Visa Infinite | $139 | Yes (Visa Infinite) | No | 3 TD Rewards/$1 |
| RBC Avion Visa Infinite | $120 | Yes (Visa Infinite) | No | Avion pts |
| CIBC Aeroplan Visa Infinite | $139 | Yes (Visa Infinite) | No | 1.5 Aeroplan/$1 travel |
Coverage limits and eligibility vary. Always read your Certificate of Insurance before relying on coverage. Verify current terms with each issuer.
How Credit Card Car Rental Coverage Works in Canada
What Is Covered
Credit card collision damage waiver (CDW) or loss damage waiver (LDW) covers:
- Collision damage — repair costs if you damage the rental vehicle in an accident
- Theft — if the rental vehicle is stolen
- Vandalism — in most policies
What Is NOT Covered
- Third-party liability — damage to other vehicles, property, or injury to other people. You still need the rental agency’s liability coverage or your own personal auto insurance.
- Luxury and exotic vehicles — most cards exclude vehicles with a manufacturer’s suggested retail price above a threshold (commonly $65,000–$85,000 CAD)
- Trucks, vans, and specialty vehicles — some cards exclude these
- Coverage outside covered regions — check which countries your card’s coverage applies to
How to Activate Coverage
- Charge the full rental cost to the credit card with CDW coverage
- Decline the rental agency’s CDW/LDW at the counter — tell the agent you are using your credit card coverage
- Keep your rental agreement and all documentation
- If you have an accident: contact the card’s insurance number immediately (on the back of your card)
Important: You must decline the rental agency’s CDW to activate your card’s coverage. If you purchase the agency’s CDW, your card coverage becomes secondary at best.
Visa Infinite Car Rental Coverage
Most Visa Infinite cards in Canada include a Collision/Loss Damage Waiver that covers:
- Rental vehicles valued up to $65,000 MSRP (varies by card)
- Rentals of up to 48 consecutive days
- Applies when you charge the full rental to the card and decline the agency CDW
Visa Infinite cards with rental CDW include:
- Scotiabank Passport Visa Infinite
- TD First Class Travel Visa Infinite
- RBC Avion Visa Infinite
- CIBC Aeroplan Visa Infinite
- BMO eclipse Visa Infinite
Visa Infinite Privilege cards typically offer higher vehicle value limits.
Scotiabank Passport Visa Infinite — Best Overall for Car Rentals
The Scotiabank Passport Visa Infinite is the best all-around card for car rentals in Canada because it combines:
- Visa Infinite CDW coverage on rentals
- No foreign transaction fee — critical when renting abroad or in the US (USD-priced rentals)
- Earn 2 Scene+ per $1 on travel purchases (including car rentals)
- Comprehensive travel insurance package — trip cancellation, emergency medical, flight delay
For Canadian travellers renting cars in the US or internationally, the combination of no FX fee and built-in CDW is difficult to beat at this price point.
American Express Platinum — Best for Premium Rental Coverage
The Amex Platinum Card offers enhanced rental coverage through Amex’s Premium Car Rental Protection, which can be added for a flat fee per rental and provides primary CDW coverage on most vehicles including some luxury models. The Amex Platinum also includes built-in travel insurance, no FX fee, and access to premium car rental programmes (Hertz Five Star, Avis Preferred).
For executives renting luxury vehicles or premium models, the Amex Platinum’s coverage is the most comprehensive available on a Canadian credit card.
Maximising Rental Rewards
Beyond coverage, you can earn additional rewards on car rentals:
Portal booking bonuses:
- Booking through Expedia for TD with a TD travel card earns up to 8 TD Rewards per dollar
- Booking through Avion Rewards portal may earn bonus points
- Amex Travel portal bookings earn at elevated rates on Amex cards
Rental loyalty programme stacking:
- Join free loyalty programmes (Hertz Gold, National Emerald Club, Enterprise Plus, Avis Preferred)
- Earn rental programme credits alongside credit card rewards on the same rental
- Status members often receive free upgrades and skip-the-counter pickup
Frequently Asked Questions
Does my credit card cover car rentals in Canada? Most Visa Infinite, Mastercard World Elite, and American Express cards issued in Canada include some form of car rental collision coverage. The key conditions are: charge the full rental to the card and decline the rental agency’s CDW. Coverage limits and exclusions vary — always read your Certificate of Insurance. Verify current coverage with your card issuer.
Do I still need the rental agency’s liability insurance if I use my credit card CDW? Yes. Credit card CDW covers damage to the rental vehicle itself. It does not cover third-party liability — meaning damage to other vehicles, property, or injuries to other people. You still need liability coverage, which is often included in your personal auto insurance policy (confirm with your insurer) or can be purchased from the rental agency.
Is there a maximum rental vehicle value for credit card CDW coverage? Most Canadian credit cards with CDW coverage exclude luxury and exotic vehicles above a specified MSRP threshold (commonly $65,000–$85,000 CAD). Standard economy, compact, mid-size, and SUV rentals typically fall within the covered range. Check your Certificate of Insurance for the exact limit.