Rental Car Insurance via Credit Card 2026: Guide

Few credit card benefits can save as much money in the event of a claim as the rental car collision damage waiver. And few benefits have a gap between marketing promise and reality that's as wide. I've used the CDW insurance (Collision Damage Waiver) on my Amex Platinum and later the Centurion multiple times and learned quite a few things along the way that aren't in any brochure.

Here's what you need to know before you decline the insurance at the counter for your next rental car.

What the Amex CDW Insurance Covers

The CDW insurance on the Amex Platinum and Centurion Card is a collision damage waiver for rental cars. It covers damage to the rental vehicle caused by accidents, vandalism, theft, or natural events. At its core, it replaces the collision damage waiver (CDW/LDW) that the rental company offers you at the counter.

What's specifically covered:

• Collision damage to the rental vehicle
• Theft of the vehicle
• Vandalism
• Weather damage (hail, storms)
• Glass damage (windshield, side windows)

What's not covered:

• Damage to third parties (liability). You always need this separately; it's included in most rental contracts anyway.
• Personal belongings in the vehicle
• Damage to trailers
• Tire and wheel damage (depending on insurance terms)
• Damage caused by gross negligence (driving under the influence, unauthorized driving abroad)
• Interior damage from contamination or smoking

The complete list of exclusions is in the insurance terms, and I recommend reading them at least once before relying on the coverage in a claim situation.

What Conditions Apply

The insurance doesn't automatically apply to every rental. There are requirements you need to follow.

Payment with the Amex. The rental car must be paid for in full with the Amex Platinum or Centurion. Both booking and payment. If you book online with the Amex but have to put a different card down for the deposit at the counter, it gets complicated. Ideally, everything runs through the Amex.

Declining the rental company's insurance. You must actively decline the rental company's CDW/LDW insurance. If you have both the rental company's insurance and the Amex insurance, the Amex insurance typically won't apply because it's structured as secondary coverage.

Maximum rental duration. The insurance covers rental agreements of up to 31 days. Long-term rentals beyond one month are not covered.

Vehicle category. There are restrictions on certain vehicle types. Luxury vehicles with a new price above a certain threshold, larger SUVs above a certain class, camper vans, commercial vehicles, and exotic sports cars may be partially excluded. The exact limits vary by insurance terms and should be checked in advance.

Geographic restrictions. The insurance applies in most countries but not everywhere. Some countries are excluded, typically those with elevated risk profiles. The current country list is in the insurance terms.

The Deductible

A point many overlook: the Amex CDW insurance has a deductible. For the Platinum, it's typically 150 to 300 euros per claim. For the Centurion, it may be lower or waived entirely, depending on the card terms.

That means: for a small scratch that the rental company charges 200 euros for, you might pay the entire amount yourself because it falls within the deductible. For a real claim, such as a total loss, theft, or major collision damage, the deductible is negligible relative to the total.

The insurance at the rental counter also has a deductible, usually between 800 and 2,500 euros. The Amex insurance is generally more favorable here. But some rental companies offer to reduce the deductible to zero for an extra fee. That can make sense in certain situations, more on that later.

Which Rental Companies Play Along

In theory, every rental company accepts that you decline their in-house insurance. In practice, the conversation at the counter is sometimes less smooth than it should be.

Sixt

Sixt is the easiest partner for Amex cardholders in Germany. They accept the Amex as payment, take it as a deposit, and have no issue when you decline the CDW. The staff at the counter typically know the process and don't ask further questions.

My experience: at Sixt, I've never had a discussion at the counter. I say I have insurance through my credit card, decline the CDW, and that's it. No drama, no upselling attempts, no skeptical looks.

Europcar

At Europcar, it usually works but not always smoothly. The staff are sometimes unsure whether an external insurance is accepted and occasionally try to talk you into the in-house insurance. Stay friendly but firm. You have the right to decline the insurance.

In rare cases, I've experienced Europcar staff requesting a higher deposit when I declined the CDW. That's generally permissible, and you should be prepared for the deposit amount to increase.

Hertz

Hertz accepts the CDW decline without major issues. Similar to Sixt, the process is well-established. The deposit gets blocked on the Amex, and the rental contract is issued without insurance.

Enterprise and Alamo

Here I've had mixed experiences. In Germany, it usually works without issues. Abroad, especially in the US, the staff can push hard for the in-house insurance. That's not malicious intent but part of the employees' training, since they receive a commission for every insurance policy sold. Don't be swayed.

Smaller Operators and Local Rental Companies

With smaller rental companies abroad, for example on Greek islands, in Portugal, or in Southeast Asia, the situation is more unpredictable. Some don't accept any credit card as a deposit, others insist on a local insurance policy. In these cases, the Amex CDW doesn't help much because you can't negotiate at the counter.

What to Say at the Counter

After many car rentals, I've found a sentence that works in most cases:

"I have collision damage coverage through my credit card and would like to decline the CDW."

Short, clear, no justification needed. Most counter staff accept that. If follow-up questions come, you can add that it's the Amex Platinum or Centurion, which includes CDW coverage.

What you shouldn't do: get drawn into a discussion about the quality of your insurance. The person at the counter is not an insurance expert, and the question of whether your credit card insurance is "good enough" is irrelevant. You have the right to decline the in-house insurance. Period.

If the staff member insists that you have to take the insurance, ask for a supervisor. In almost all cases, that resolves the situation. I've had to do that exactly twice over many years.

My Claim: How It Went

In the summer of 2024, I had a claim that put my Amex CDW insurance to the test. A rental car from Sixt in southern France, a parking lot scrape that left a noticeable dent and paint scratches on the passenger door. No personal injury, no third-party damage, just damage to the rental vehicle.

The Timeline

Day 1: Documenting the damage. Took photos, reported the damage to Sixt, and had it documented upon return. Sixt noted the damage in the return report and listed estimated repair costs of around 1,800 euros.

Day 2: Filed the claim with Amex. Reported the insurance claim through the Amex hotline. You get transferred to the insurance partner (for the German Amex, typically Zurich Insurance or another partner). There I described the damage and was told which documents were needed.

Required documents:

• Rental contract (copy)
• Return report with damage notation
• Photos of the damage
• Credit card statement showing the rental payment via Amex
• Repair invoice from the rental company
• Police report (not required in this case but may be needed for larger claims)

Week 2: Documents submitted. Sent everything by email and mail to the insurance partner. Assembling the documents took some time because the repair invoice from Sixt didn't arrive for about a week.

Week 4: Follow-up questions. The insurance partner asked about the rental contract, specifically whether the rental company's CDW had been declined. Yes, it was. Proof: the rental contract showing no CDW insurance listed.

Week 6: Reimbursement. The repair costs minus the deductible were transferred to my account. Of the 1,800 euros in repair costs, I received approximately 1,550 euros back.

What I Learned

The process works, but it's not instant. Six weeks from filing the claim to reimbursement is acceptable, but you have to front the money. Sixt charged the 1,800 euros to my credit card, and I didn't get it (partially) back until six weeks later.

Documentation is everything. Photos, photos, photos. From every angle, of the entire vehicle and of the damage details. And always keep the rental contract, not just digitally but also as a printout.

Communication with the insurance partner was factual and professional. No attempt to deny the claim, no unnecessary hurdles. But no proactive help either. You need to know what to submit yourself, and you need to follow up when things take time.

When You Still Need Additional Insurance

There are situations where the Amex CDW alone isn't enough. I'm speaking from experience.

Tires and Wheels

Many credit card CDW policies exclude or limit coverage for tire and wheel damage. If you're driving in countries with poor road conditions (Greece, Iceland, parts of Southern Europe), tire damage is a real risk. In these cases, the rental company's add-on insurance for tires and wheels can make sense.

Glass and Underbody

Similar to tires: glass damage (stone chips on the windshield) and underbody damage may be restricted or excluded depending on the insurance terms. In Scandinavia, where gravel roads are common, stone chips on the windshield are not unusual.

Exotic Vehicles

If you're renting a Porsche, a Mercedes AMG, or a similar vehicle with a high retail price, check in advance whether the vehicle falls under the Amex CDW coverage. Vehicles above a certain value are often excluded. The repair costs for a scratch on a Porsche 911 are in a completely different league from a VW Golf.

Countries with Elevated Risk

In some countries, the Amex CDW is limited or excluded. These typically include countries with special risk profiles. Check the country list in the insurance terms before traveling abroad and relying on your credit card insurance.

When You're Using the Rental Car for Business

The insurance terms for private and business use can differ. For purely business use, additional coverage may be advisable, especially if the rental car is being driven by employees who aren't the cardholder.

Declining CDW at the Counter: Step by Step

For anyone doing this for the first time, here's my proven process.

Before the rental:

1. Check whether the desired vehicle falls under your Amex CDW coverage (vehicle category, retail value).
2. Check whether the country is covered.
3. Book the rental car online and pay with the Amex. Don't select any additional insurance during booking.

At the counter:

1. Tell the staff member you'd like to decline the CDW/LDW and are covered through your credit card.
2. Accept the potentially higher deposit that may be requested. It will be blocked on your Amex and released after return.
3. Review the rental contract before signing. Make sure no CDW/LDW is listed and charged.
4. Have the staff member confirm that payment and deposit are on the Amex.

At vehicle pickup:

1. Document the vehicle's condition with photos. All around, every side, roof, wheels, windshield. Do this in daylight.
2. Note existing damage in the handover report. Every scratch, every dent that's already there.
3. Keep the handover report.

At return:

1. Be present when the staff member inspects the vehicle at return.
2. Get the return report and review it.
3. If damage is disputed that was already present at pickup, show your photos.

In the event of a claim:

1. Document the damage immediately with photos.
2. Report the damage to both the rental company and the Amex insurance.
3. Collect all documents (rental contract, return report, repair invoice, credit card statement).
4. File the claim with the Amex insurance partner.
5. Be patient. The process takes four to eight weeks.

The Financial Comparison

To put it all in perspective: the CDW insurance at the counter costs between 15 and 35 euros per day depending on the rental company and country. For a one-week rental, that's 105 to 245 euros. For a two-week vacation, 210 to 490 euros.

The Amex CDW is included in the card fee. No additional costs. Even if you pay the deductible in a claim, you save significantly over a year with multiple rentals.

Do the math for your travel pattern. If you rent a car three to four times a year, the Amex CDW easily saves you 500 to 1,000 euros annually in insurance fees at the counter. That benefit alone justifies a significant portion of the Amex Platinum annual fee.

What I Do Today

After several years of experience with the Amex CDW, my approach is standardized.

At the major rental companies (Sixt, Hertz, Europcar, Avis) in Europe and the US, I decline the CDW at the counter as a matter of principle. The Amex CDW is sufficient for standard vehicles on standard routes.

For rentals in countries with poor road quality, I take the rental company's tire and wheel insurance on top. It usually costs only 3 to 5 euros per day and is worth the protection.

For luxury vehicles, I check in advance whether they fall under the Amex CDW and book the rental company's add-on insurance when in doubt. I'd rather pay 20 euros more per day than be stuck with 15,000 euros in repair costs in the event of a claim.

And I photograph every rental vehicle at pickup and return. Without exception. It takes two minutes and can be worth thousands of euros in a dispute.

My Verdict

The CDW insurance on the Amex Platinum and Centurion is one of the most underrated card benefits and part of the comprehensive insurance package. It saves real money, it works when you file a claim, and it gives you the confidence to decline the overpriced insurance at the rental counter.

But it's not a cure-all. Know the limits, know the exclusions, and be prepared to add coverage in certain situations. And above all: document everything. Photos at pickup and return are your best insurance, regardless of which card you have in your wallet.