Last Updated on January 31, 2021 by Elizabeth
It’s a nasty trend that started two years ago, as more credit cards drop car rental insurance as a benefit.
Bank of America Cash Rewards cardholders will no longer get the secondary car rental Collision Damage Waiver benefit. The change affects new claims starting February 1, 2021.
Last year, Citibank dropped car rental insurance as a travel benefit was an isolated incident. Then other credit card issuers followed suit and chopped travel benefits from the roster of perks offered to cardholders.
In addition, American Express has put new limits on Centurion Lounge access and stopped offering Priority Pass restaurant credit. The most coveted credit card for travelers, the Chase Sapphire Reserve Card, hasn’t changed its raft of benefits. But it recently hiked its annual fee by a whopping $100, to $550.
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Why should you care? Because travel benefits translate to savings. If you pay for your car rental with a credit card that offers insurance as a benefit, you can decline the pricey collision insurance offered at the rental car counter. This can save you more than a hundred dollars on a week-long rental.
Does Your Credit Card Provide Car Rental Insurance?
If your credit card does not offer car rental insurance, then you are in a bit of a pickle. If you own a car and have auto insurance, then your policy will likely extend to rental cars. The problem is that there is likely a hefty deductible and limitations on what is covered, which can leave you with gaps in protection. Furthermore, relying on your auto insurance policy is fraught with another kind of risk. A 2017 study by InsuranceQuotes.com and Quadrant Information Services found that filing a single auto insurance claim of at least $2,000 will spike your premium by 44.1%, on average.
Before renting a car, it’s always smart to double check to see what, if any, car rental insurance is included as a benefit by your credit card issuer.
And, of course, you can never compare credit cards based on just one benefit, such as car rental insurance. You should take into consideration all costs, including a card’s interest rate and annual fee. Card benefits might seem lucrative on the surface, but those savings can easily be outweighed by hefty interest charges or other fees.
Bank of America Cash Rewards Cards Drop Car Rental Insurance
As of February 2021, Bank of America Cash Rewards cardholders will no longer receive the secondary Auto Rental Collision Damage Waiver benefit for new claims. The rental car benefit will remain on Travel Rewards, Premium Rewards and some affinity cards such as the co-branded Bank of America Alaska Airlines card.
Citi Credit Cards Dropped Car Rental Insurance
Do you have a credit card issued by Citibank? Last year, Citi drastically cut back the travel benefits offered to credit card holders for the vast majority of Citi-issued cards. Among the perks that were dropped was car rental insurance.
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Notably, Citi has not eliminated key travel benefits for their co-branded Costco cards, which offer the following perks: worldwide car rental insurance, worldwide travel accident insurance, roadside assistance dispatch service, damage and theft protection and more.
Discover Dropped Car Rental Insurance
Also, all of the Discover credit cards dropped car rental insurance as a benefit in 2018.
Kroger Mastercard Dropped Car Rental Insurance
In addition, the US Bank-issued Kroger 1-2-3 Rewards Mastercard has discontinued offering car rental insurance and other travel protections.
Related:
- The Best Credit Cards with Travel Rewards
- Should You Buy Car Rental Insurance?
Signing up for credit cards through partner links earns us a commission. Terms apply to the offers listed on this page. Here’s our full advertising policy: How we make money. When you sign-up for the Bank of America® Cash Rewards credit card, you’ll earn a $200 cash
bonus after meeting the minimum spending requirements.
Cash back bonus aside, does this card have the benefits and perks to stay in your wallet? If you’re looking for a no annual fee cash back card and not a big spender, then yes. The Bank of America Cash Rewards card benefits, perks and earning potential make it worth keeping.
I’ll show you why the Bank of America Cash Rewards Card benefits and perks make the no annual fee card even more attractive.
Bank of America Cash Rewards card benefits and perks
With the Bank of America Cash Rewards card, you’ll earn a $200 cash bonus after you spend $1,000 in purchases in the first 90 days of account opening.
Plus, the card has no annual fee, so it’s free to keep indefinitely. While that’s a nice benefit on its own, you’ll also get a few other perks that can come in handy should you need them.
Here are the standout benefits of the card.
Pick your own 3% category
My favorite benefit of the Bank of America Cash Rewards card is the ability to pick where you earn your 3% cash back each month. Though the card earns a minimum 1% cash back, you can earn 2% cash back at grocery stores and wholesale clubs.
The 3% and 2% cash back categories are capped at a combined $2,500 in purchases each quarter. Capping how much cash back you earn isn’t great, but the 3% and 2% category spending cap resets every quarter as opposed to every year like with many other cash back cards.
The flexibility of choosing where you earn 3% cash back each month is a big plus. For example, during the summer months, you set your category as travel but during the winter, you set it as entertainment. You’re not ever locked into a single category.
Here’s what you can select as your 3% cash back category:
- Gas stations
- Online shopping
- Dining
- Travel
- Drug stores
- Home improvement and furnishings
Again, you’ll be limited to cash back on the first $2,500 purchases each quarter. That’s for both the 2% and 3% cash back category. So plan your purchases accordingly!
Extended warranty
When you pay for an eligible item with the Bank of America Cash Rewards card, it’s possible to extend the manufacturer’s warranty by an additional 12 months. This is a fantastic benefit if you’re a fan of retail therapy like myself.
There are several excluded purchases. Unfortunately, Bank of America only provides the full terms and conditions of any benefits associated with a credit card once you receive your card in the mail. So be sure to read through the terms and conditions before assuming you’re covered.
BankAmeriDeals
BankAmeriDeals is linked to your Cash Rewards card and allows you to earn up to 15% cash back.
The way BankAmeriDeals works is simple. It’s a separate program offered by Bank of America that works with most Bank of America credit cards. When you enroll in BankAmeriDeals, you’ll be able to see a list of ongoing promotions offered at certain retailers, restaurants, gas stations, etc. Simply add deals that appeal to your shopping habits and use your card.
As noted, you might even be able to earn up to 15% cash back with certain partners.
Travel coverage
When you pay for travel with your Bank of America Cash Rewards Card, you’re covered if the unthinkable happens. To qualify for these benefits, you’ll need to pay for the full amount of your common carrier fare (planes, trains, cruises, ferries) with your Cash Rewards card.
These benefits are only supplementary, so if the common carrier or other primary insurance reimburses you for anything, this benefit will only kick in for the things they don’t cover.
Travel accident insurance
You may be eligible for travel accident coverage through the Bank of America Cash Rewards Card. However, this is not one of those benefits that you’ll ever want to use.
Like most travel insurance policies, the Cash Rewards card covers things like dismemberment or death. When primary insurance or a common carrier does not cover damages, the coverage offered by the Cash Rewards card will kick in for eligible damages.
As always, be sure to read through the full terms and conditions upon receiving your card to determine what is and isn’t covered with the Cash Rewards card.
Car rental insurance
Cruising down the Pacific Coast Highway in Southern California is fun until you’re rear-ended by a distracted driver. Don’t stress out over a damaged rental car. The Bank of America Cash Rewards Card offers rental car coverage.
The coverage offered by the Cash Rewards Card is considered secondary or supplementary. This benefit will only kick in when your primary insurance won’t cover damages or loss.
You can also check out our guide to credit cards that offer rental car insurance for more information about coverage and other cards that offer it.
Bottom line
The Bank of America Cash Rewards card offers benefits without a hefty annual fee. These perks, and the ability to earn a lot of cash back, make it a card you’ll want to keep long-term.
Two of my favorite benefits are directly tied to earning cash back. The first is the ability to chose your 3% cash back category every month. The second benefit is BankAmeriDeals which even allows you to earn up to 15% cash back at certain merchants.
You can apply for the Bank of America Cash Rewards credit card here.
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Chase Sapphire Preferred® Card
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
Get complimentary access to DashPass which unlocks $0 delivery fees and lower service fees for a minimum of one year when you activate by December 31, 2024.
Intro APR on purchases
N/A
Regular APR
18.24% – 25.24% Variable
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Rates & Fees
Annual Fee $95
Other
Credit Needed Excellent / Good
Issuer Chase
Card Type Visa
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