How to Get Free (or Cheap) Rental Cars Using Credit Card Points and Miles
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Editorial Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included within the post..
Rental cars can quickly become one of the priciest parts of a family trip. But with the right credit card strategy, you can reduce — or completely eliminate — this expense.
Saving money on your rental is only part of the strategy. The other piece is making the entire experience easier. Many travel credit cards also let you skip the rental car counter, choose your own car, and get upgrades without paying more. I wrote a separate guide on exactly how that works here: [How to Skip Rental Car Lines and Get Better Cars with Credit Card Perks]
And if you are still figuring out which cards to carry for travel, the foundation of this whole strategy starts with earning the right transferable points.
👉 [See current best card offers → Best Offers]
1. Book Through Your Credit Card’s Travel Portal
One of the easiest ways to use points for a rental car is through your credit card’s travel portal. You are applying points you already earned from everyday spending — groceries, gas, bills, school expenses — toward a rental car the same way you would pay with cash.
How the math works:
Some travel credit card portals let you redeem transferable points at 1.25 to 1.5 cents per point for rental cars. That means 30,000 points can cover a rental worth $375 to $450 depending on your card. For families renting for a week at $50 to $70 per day, this can mean a completely free rental.
Capital One miles typically redeem at approximately 1 cent per mile for car rentals. Slightly lower than some other programs, but still a strong option — especially if you prefer to pay first and apply miles as a statement credit after the charge posts.
Step by step:
- Log into your credit card account and navigate to the travel portal
- Click on Rental Cars and enter your pickup location, dates, car type, and number of drivers
- Browse available options and select your car
- At checkout choose to pay with points or miles
- Confirm — your rental cost is covered
Real example: 30,000 transferable points redeemed at 1.25 cents per point covers a rental car worth $375. A week-long family road trip rental paid entirely with points earned buying groceries.
This strategy works especially well when paired with a fly-in road trip — fly into one city on points, rent a car, drive a loop, and fly home from a different city. We used this exact approach on our Canadian Rockies family trip and our Arizona and Utah national parks trip — points covered both the flights in and the rental car.
If you are using both Chase and another program together, this guide on how to use Bilt and Chase together breaks down how stacking two programs can give you even more flexibility for travel expenses including rental cars.
2. Decline Rental Car Insurance — If You Have Primary Coverage
This is the single most underused benefit in travel credit cards for families — and it is available right now on cards many people already carry.
Rental car agencies push their own collision damage waiver at the counter. It typically costs $20 to $40 per day. On a week-long family rental that is $140 to $280 added to your total. Most travelers pay it because they do not realize their credit card already covers them for free.
Primary vs. secondary coverage — what is the difference?
Primary coverage means your credit card handles any damage claim directly with the rental agency. You do not file with your personal auto insurance, which means no deductible and no risk of your personal premiums increasing.
Secondary coverage only kicks in after your personal insurance pays first. You still deal with your own insurer and may owe a deductible. Less useful for most families.
Real example: A minor parking lot scrape causes $1,300 in damage to your rental car. Without primary coverage you file with your personal insurance and pay your deductible — potentially raising your rates. With primary coverage from your travel card your credit card handles the claim directly. You pay nothing out of pocket and your personal insurance is never involved.
What to say at the counter: When the agent offers the collision damage waiver simply say: “I am declining — I have primary coverage through my credit card.” That is it. You do not need to show documentation at the counter. Save your card’s benefit guide in your email in case you ever need to file a claim.
3. Use Discount Sites and Memberships to Lower the Base Price
If you are not using points for a rental, or want to find the lowest cash price before applying points, these resources consistently beat booking directly with the agency:
AutoSlash — automatically searches and applies every available discount code to your rental. Free to use and often finds rates significantly lower than booking direct. Worth checking on every trip before booking anywhere else.
Costco Travel — Costco members regularly find 10 to 20 percent off rental car rates. No membership upgrade needed — a standard Costco membership qualifies.
AAA and AARP — Both offer rental car discounts at major agencies including Hertz, Avis, and Enterprise. If you or anyone in your household has a membership, use it.
NEA (National Education Association) — Teachers specifically: your NEA membership includes rental car discounts of up to 25 percent at major agencies. Check this before every trip — most teacher travelers do not know this exists.
4. Stack All Three for Maximum Savings
The real power is in combining strategies. Here is what the full approach looks like:
Step 1 — Use AutoSlash or Costco to find the lowest base cash rate Step 2 — Compare that rate against redeeming points through your travel portal — use whichever gives you more value Step 3 — Pay with a card that includes primary rental car coverage regardless of which payment method you use Step 4 — Decline the agency’s collision damage waiver at the counter Step 5 — If your card includes an annual travel credit, apply it to offset the rental charge after it posts
Following all five steps on a week-long family rental can easily save $300 to $500 compared to booking at default rates and accepting the agency’s insurance.
Road Trip Planning Tip
Rental car savings matter most on trips where driving is the primary way you explore. Some of our best family trips have combined flights booked on points with rental cars covered by points — and the result is a trip where the two biggest logistical costs are almost entirely free.
If you have ever wanted to take your family to a national park or drive a scenic route but felt like the flights alone made it too expensive, this is the strategy that changes that math. We have done it at national parks, in Mexico, and across the American Southwest — and points covered the flights, the rental car, and the hotel stays on every trip.
Frequently Asked Questions
Do I have to pay with the card to get primary coverage? Yes. You must pay for the rental with the card that includes primary coverage. If you redeem points through a portal make sure the card itself is still listed as the payment method — not a third-party booking service.
Does primary coverage work internationally? It varies by card. Most exclude certain countries — check your specific card’s benefit guide before relying on it abroad.
Can I use points to cover part of a rental if I do not have enough for the full cost? Yes. Most portals allow a split payment — partial points and the remainder charged to your card.
What do I do if I need to file a damage claim? Contact your credit card’s benefit administrator — not the rental agency and not your personal insurance. The phone number is usually on the back of your card or in your digital benefits guide. Document everything with photos before and after your rental.
Are there car types that are excluded from coverage? Yes. Most cards exclude exotic cars, trucks, oversized vans, and some international rental companies. Check your card’s benefit guide for the full exclusion list before you rent.
Should I still buy insurance if I only have secondary coverage? If your card only offers secondary coverage, consider whether the agency’s waiver is worth it based on your personal insurance deductible. For most families with a high deductible, the agency waiver is worth the cost in that case.
Final Thoughts
Rental cars do not have to be a significant line item in your travel budget. Between booking through a travel portal with points, skipping the insurance counter with primary coverage, and stacking discount memberships for a lower base rate — most families can dramatically reduce or eliminate this cost on every trip.
The foundation of this whole strategy is carrying the right cards and understanding how to use the benefits you already have. If you are thinking through which cards make sense for how your family travels — including whether your current card is still worth keeping — this guide on whether to keep, downgrade, or cancel a card walks through that decision step by step.
Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
I found out about points and miles accidentally.
I was researching index funds and happened upon the points and miles community through creators who also post about budgets, financial independence, and investing.
Points and miles allowed those people to travel and work toward financial independence simultaneously.
Thank goodness I got started when I did. The past almost two years of travel have been something we will never forget.
Earning points and miles through credit cards is only a good choice if you have the financial discipline to use them, like cash/debit cards.
Since we started traveling with points and miles, we have had more money going into our investment and savings accounts than ever.
Now I'm excited to teach you!
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