What the Costco Citi Card Rental Car Insurance Covers
The Costco Anywhere Visa® Business Card, issued by Citi, includes a primary collision damage waiver (CDW) for rental cars when the reservation is paid with the card. This waiver covers damage to or theft of the rental vehicle up to the contract's maximum value, typically $75,000, and includes loss of use fees. It also covers reasonable towing and loss‑of‑use charges, but it does not replace liability coverage for injuries to third parties.
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Eligibility and Activation Requirements
To activate the coverage, you must:
- Rent the vehicle in the United States, Canada, or most European countries where the card is accepted.
- Pay the entire rental charge—excluding optional extras such as GPS or additional insurance—using the Costco Citi card.
- Decline the rental agency's CDW or loss‑of‑use waiver, unless local law forces you to keep it.
Coverage starts at the time you pick up the car and ends when you return it, provided the card remains active.
Key Exclusions and Limitations
The primary CDW does not cover:
- Damage to tires, windshields, or undercarriage components.
- Rental of luxury, exotic, or oversized vehicles, including trucks over a certain weight.
- Losses resulting from reckless driving, driving under the influence, or unauthorized drivers not listed on the rental agreement.
Some countries, such as Australia and New Zealand, are excluded from the primary coverage, requiring you to purchase the rental agency's insurance.
How to File a Claim
If damage occurs, follow these steps promptly:
- Notify the rental agency and obtain a damage report.
- Contact Citi's rental car insurance hotline (the number is on the back of your card) within 24 hours.
- Submit the required documentation, including the rental agreement, damage photos, police report (if applicable), and a copy of the credit‑card statement showing the rental charge.
Citi will review the claim and, if approved, reimburse you directly for eligible costs, up to the policy limits.
Comparing Costco Citi Rental Coverage to Other Options
| Feature | Costco Citi Card | Standard Rental Agency CDW | Personal Auto Policy |
|---|---|---|---|
| Primary vs. Secondary | Primary | Secondary (often) | Secondary |
| Maximum Coverage | $75,000 | Varies, often $30,000‑$50,000 | Depends on policy limits |
| Geographic Scope | US, Canada, most of Europe | Worldwide (subject to local law) | Limited to personal use |
| Exclusions | Luxury cars, tires, reckless driving | Similar, plus agency‑specific limits | Often excludes rentals entirely |
When to Purchase Additional Coverage
If your rental falls into an excluded category—such as a high‑end sports car, a vehicle over the weight limit, or a location not covered by the card—you'll need supplemental insurance from the rental agency. Also consider buying coverage if you want extra peace of mind for roadside assistance, personal injury protection, or loss of personal belongings, which the Costco Citi CDW does not address.