Redeeming credit card points for car rentals
Quick insights
- You can often book a rental car directly through your credit card issuer's travel platform.
- Another option is to book with the rental agency and redeem points for a statement credit.
- Some premium travel cards offer built-in auto rental coverage when you pay or redeem points with your card.
Planning a road trip or a weekend getaway often involves renting a car. While many travelers focus on redeeming travel rewards toward flights and hotels, one might overlook how to use points for car rental bookings. Rather than paying entirely with cash, let's explore how your rewards redemption options can help you keep out-of-pocket costs low while hitting the open road.
Why consider travel rewards for your rental?
Some travelers assume points are just for flights or hotel stays. Because of this, you might leave valuable options on the table when you need a vehicle for a weeklong national park tour or a quick business trip.
Using your travel rewards for a rental car can provide flexibility. Whether you need a spacious SUV for a family camping trip or a compact car for city driving, applying points can help offset the expense.
How to redeem credit card points for a car rental
When you're ready to secure your ride, you generally have a few paths to consider.
- Credit card travel portal: You can use your issuer's travel platform to pay with points upfront.
- Statement credits: You can book with the agency and apply points to your balance later.
- Partner programs: You might be able to transfer points to a participating travel loyalty program.
Book directly through your credit card issuer
Some rewards programs allow you to book travel directly through their proprietary platforms. With this method, you may be able to search for your preferred vehicle, compare prices and apply your points directly at checkout.
Redeem for a statement credit
If you prefer to book directly with a specific rental agency, you can still use your points. You may be able to charge the rental to your credit card and later redeem points for a statement credit to cover the purchase. A statement credit is a reduction in your card balance applied by your issuer.
This approach gives you the freedom to shop around for promotional rates directly with the rental company while still benefiting from your rewards.
Protecting your trip with auto rental coverage
Beyond just paying for the car rental, the credit card you use to book can offer protection benefits. When you're at the rental counter, the agent will likely offer you the company's insurance. If you hold an eligible travel card, you might already have coverage. Importantly, you're typically still covered even if you redeem points from your eligible card to book the rental.
For example, with the Chase Sapphire Preferred® or Chase Sapphire Reserve®, you may receive Auto Rental Coverage as a benefit. To be covered, you typically need to decline the rental company's collision insurance and charge the entire rental cost to your card. Coverage is primary and provides reimbursement for theft and collision damage for most rental cars in the U.S. and abroad.
In summary
Using your points for a rental car can be a practical way to get the most out of your travel rewards. Whether you book through your credit card's travel portal or opt for a statement credit, you may have several options. Better yet, depending on what cards are in your wallet, you may be covered with Auto Rental Collision Damage Waiver coverage.
