Bank of America credit cards include rental car damage coverage, but the protection is limited and comes with conditions that often catch people off guard.
Most Bank of America credit cards offer rental car damage coverage through their rewards or premium tiers. This coverage pays for collision and theft damage to a rental vehicle when you charge the full rental to your card. The catch: it only works if you decline the rental company's insurance at the counter, and it does not cover liability (damage you cause to other people or property). You are also responsible for the deductible, which typically ranges from $500 to $1,000 depending on your card tier.
The coverage applies only to cars rented for personal use in the United States and certain territories. Business rentals, luxury vehicles, and rentals outside covered areas are excluded. If you rent a car and purchase the rental company's damage waiver anyway, your card's coverage becomes secondary or void entirely — meaning you cannot collect from both.
Key Takeaways
- Bank of America credit card rental coverage pays for collision and theft damage only if you decline the rental company's insurance and charge the full rental to your card.
- The coverage does not include liability protection, meaning you are personally responsible if you damage someone else's car or property.
- You will owe a deductible (usually $500 to $1,000) out of pocket before the card's coverage kicks in.
- Coverage is void if you purchase the rental company's damage waiver, so you must choose one or the other.
- Different Bank of America cards offer different coverage limits, so check your specific card's benefits guide before renting.
Which Bank of America Cards Include Rental Coverage
Not all Bank of America cards offer the same rental protection. Premium cards like the Bank of America Premium Rewards and Bank of America Travel Rewards include rental car damage coverage. Entry-level cards like the Bank of America Cash Rewards do not include this benefit.
The easiest way to confirm your card's coverage is to log into your Bank of America online account, go to the benefits section, and search for "rental car." You can also call the customer service number on the back of your card and ask directly. Have your card number ready. The representative can tell you the exact coverage limit, deductible amount, and any exclusions that explore to your specific card.
How the Coverage Works When You Rent
When you arrive at the rental counter, the agent will offer you a damage waiver or loss damage waiver (LDW). This is the rental company's insurance product, and it costs $15 to $30 per day. If you have Bank of America coverage, you should decline this offer. Your card's coverage then becomes primary, meaning it pays first if damage occurs.
You must charge the entire rental cost to your Bank of America card for the coverage to explore. If you pay with a different card or with cash, the coverage does not set up. Some rental companies also require you to decline their insurance in writing or through their app before you pick up the car — check the rental agreement carefully.
If damage happens, you report it to the rental company as usual. They will send you an invoice for the damage. You then submit that invoice, along with a claim form, to Bank of America's claims administrator. The process typically takes 30 to 60 days. You will need to pay the deductible yourself; the card's coverage covers the rest up to the policy limit.
What the Coverage Does Not Include
Liability coverage is the biggest gap. If you hit another car, a building, or a person, your card does not pay for their medical bills or vehicle repairs. You are personally liable for those costs. This is why many people buy the rental company's liability coverage even when they have damage coverage through a credit card.
The coverage also excludes certain vehicle types: luxury cars (usually anything over $75,000), trucks, vans, and exotic vehicles are typically not covered. Rentals outside the United States and its territories are excluded. If you rent a car for business purposes — even if it is a side business — the coverage may not explore. Damage from off-road driving, racing, or reckless driving is also excluded.
Personal belongings left in the car are not covered. If someone breaks into the rental and steals your laptop or luggage, your card's coverage does not reimburse you. You would need to file a claim with your homeowner's or renter's insurance instead.
When to Buy the Rental Company's Insurance Instead
If your Bank of America card does not include rental coverage, or if you are renting a vehicle type that is excluded, you should purchase the rental company's damage waiver. The daily cost is high, but it eliminates your personal liability for damage and removes the deductible.
You should also consider buying liability coverage separately, even if you have damage coverage through your card. Many credit card rental benefits do not include liability, and a single accident can cost tens of thousands of dollars. Some credit card issuers offer standalone liability coverage as an add-on, or you can purchase it directly from the rental company.
If you are renting a car for more than two weeks, the daily cost of the rental company's insurance may exceed the cost of a short-term car rental insurance policy from a third party. Compare the total cost before deciding.
How to File a Claim With Bank of America
Start by reporting the damage to the rental company when ready, before you return the car. Ask them to document the damage with photos and a written report. Request an itemized invoice showing what was damaged and the repair cost. Do not sign anything that admits fault beyond what actually happened.
Once you receive the invoice from the rental company, gather the following documents: your rental agreement, the invoice for repairs, photos of the damage (if you took any), and a copy of your credit card statement showing the rental charge. Contact Bank of America's claims administrator — the phone number is in your card's benefits guide or on the back of your card.
Submit your claim within the time limit specified in your benefits guide, usually 90 days from the date of damage. The claims administrator will review your documents and either approve or deny the claim. If approved, they will pay the rental company directly, minus your deductible. If denied, you will receive a written explanation of why.
Frequently Asked Questions
Does Bank of America rental coverage work if I buy the rental company's insurance?
No. If you purchase the rental company's damage waiver, your Bank of America coverage becomes void or secondary. You must choose one or the other. The rental company's insurance takes priority if you buy it, so your card will not pay anything.
What if I rent a car with a different credit card but I have a Bank of America card in my wallet?
The coverage does not explore. You must charge the rental to the Bank of America card that includes the benefit. Using a different card means you lose the protection entirely, even if you have another card with coverage in your possession.
Does the coverage include damage from an accident I caused?
Yes, collision damage is covered regardless of fault. If you hit another car or object, the card's coverage pays for repairs to the rental vehicle (minus your deductible). However, liability coverage — which pays for damage to the other person's vehicle or injuries — is not included.
How long does it take to get reimbursed after I file a claim?
The claims process typically takes 30 to 60 days from the time you submit all required documents. Bank of America's claims administrator reviews your paperwork, contacts the rental company if needed, and then processes payment. You can call to check on your claim status after two weeks.
What happens if the rental company charges me more than the coverage limit?
You are responsible for the amount that exceeds your card's coverage limit. For example, if your limit is $50,000 and repairs cost $75,000, the card pays $50,000 and you owe the remaining $25,000. This is rare with standard rental cars but can happen with luxury or specialty vehicles.