American Express offers two layers of rental car insurance: a complimentary benefit built into most cards and an optional paid upgrade called Premium Car Rental Protection. The complimentary benefit is secondary coverage, meaning it only kicks in after your personal auto insurance pays its share. The paid upgrade provides primary coverage, meaning it pays first without involving your personal policy. Understanding the difference between these two layers, and what neither one covers, is essential before you decline or accept the rental company’s insurance at the counter.
The Complimentary Benefit: Secondary Coverage
Most American Express cards include Car Rental Loss and Damage Insurance at no extra cost. This benefit covers damage to or theft of the rental vehicle itself. It applies automatically when you pay for the entire rental with your Amex card and decline the rental company’s collision damage waiver (often called CDW or LDW).
Because this coverage is secondary, you need to file a claim with your personal auto insurer first. Amex then covers whatever your personal policy doesn’t, such as your deductible or portions your insurer excludes. If you don’t carry personal auto insurance at all, the Amex secondary benefit may still apply, but the claims process can be slower and more complicated since there’s no primary policy to coordinate with.
The complimentary benefit typically covers the actual cash value of the vehicle up to $50,000, though this can vary by card. It does not cover liability for injuries to other people, damage to other vehicles, or your own medical expenses. It also won’t cover certain vehicle types like trucks, exotic or antique cars, large vans or SUVs with a manufacturer’s suggested retail price above a certain threshold, or vehicles rented for more than 31 consecutive days.
Premium Car Rental Protection: The Paid Upgrade
For a flat fee ranging from $12.25 to $24.95 per rental, you can enroll in Premium Car Rental Protection. The exact price depends on the coverage option you choose and your state of residence. This is primary coverage, which is the key difference. If the rental car gets damaged or stolen, Amex pays the claim directly without requiring you to involve your personal auto insurance at all. Your personal policy stays untouched, your rates won’t be affected, and you avoid the hassle of coordinating between two insurers.
Premium Car Rental Protection covers the rental vehicle for up to 42 consecutive days, giving you more flexibility than the complimentary benefit for longer trips. The fee is charged once per rental to the enrolled Amex card, not per day, making it straightforward to budget for.
To use this benefit, you need to enroll before you pick up the car. You can do this through your American Express online account or the Amex app. Once enrolled, the charge hits your card automatically when the rental begins. You still need to pay for the rental itself with the same enrolled card and decline the rental company’s CDW/LDW.
What Neither Benefit Covers
This is where many cardholders get caught off guard. Neither the complimentary secondary coverage nor the paid Premium Car Rental Protection includes liability coverage. That means if you cause an accident and injure someone, damage their property, or total another vehicle, American Express will not pay those costs. Liability is often the most expensive part of an accident, and it’s entirely on you to have it covered elsewhere.
Your personal auto insurance policy typically extends its liability coverage to rental cars, so if you carry adequate limits on your own vehicle, you’re likely protected. If you don’t own a car and don’t carry a personal auto policy, you have a significant gap. In that situation, purchasing the rental company’s liability coverage or carrying a non-owner auto insurance policy is worth serious consideration.
Neither Amex benefit covers personal belongings stolen from the car, medical payments for you or your passengers, or loss of use charges in every situation. Some rental companies will charge you for the revenue they lose while a damaged car is being repaired. Amex benefits may cover loss of use in certain cases, but the terms vary and limits apply.
How to File a Claim
If the rental car is damaged or stolen, you need to act quickly. Report the incident to the rental company and local police (if applicable) immediately. Then contact American Express Benefits, typically within 60 days of the incident. You’ll need to provide the rental agreement, the damage or theft report from the rental company, the police report if one was filed, and any repair estimates or invoices the rental company sends you.
For the complimentary secondary benefit, you’ll also need to file with your personal auto insurer first and provide documentation of what they paid or denied. For Premium Car Rental Protection, you skip that step and file directly with Amex.
Eligible Rentals and Restrictions
Both benefits require you to rent from a licensed rental company, not a private individual or peer-to-peer car sharing platform. The rental must be paid in full with your American Express card. If you split the payment across multiple cards or use a debit card for part of it, coverage may be voided.
Certain vehicle categories are excluded. Pickup trucks, cargo vans, motorcycles, off-road vehicles, and high-value luxury or exotic cars generally don’t qualify. Recreational vehicles and campers are also excluded. The specific exclusions are listed in the benefit terms for your card, which you can find in your online account under “Card Benefits.”
Coverage applies to rentals in the United States and most other countries, but some nations are excluded. Rentals in certain countries with high theft or conflict risk may not be covered, so check the excluded country list before booking an international rental.
Making It Work at the Rental Counter
When you pick up the car, the rental agent will offer you their insurance products, usually a collision damage waiver and supplemental liability coverage. To activate your Amex benefit, you need to decline the CDW/LDW. You can still purchase the rental company’s liability coverage separately if you need it, and doing so won’t void your Amex damage coverage.
Before your trip, confirm which Amex card you’re using and whether it carries the complimentary benefit (check your card’s benefit guide). If you want primary coverage, enroll in Premium Car Rental Protection ahead of time. Take photos of the car during pickup and return, noting any existing damage. This documentation can be critical if a rental company tries to charge you for pre-existing dents or scratches.
One practical tip: keep a copy of your benefit terms on your phone. Rental agents sometimes push back when you decline their coverage, and having the details handy can help you feel confident in your decision. Just remember that Amex covers the vehicle itself, not liability, so make sure that piece is handled through your personal policy or a separate purchase.