Can you rent a car with a debit card?

You can rent a car with a debit card, but that doesn’t mean you should. While most major rental car companies — including Avis, Budget, Enterprise and Hertz — permit rentals with debit instead of credit, a range of complications and restrictions can apply. 

However, travel credit cards can make the car rental process more convenient and affordable by offering travel rewards and insurance benefits — and some cards are particularly useful for rental car insurance. Let’s take a look at what the process to rent a car with a debit or credit card looks like.

Why renting a car with a debit card is a bad idea

When customers rent a car with a debit card, the rental company assumes added risk. Remember, debit cards require the cardholder to be present to enter their PIN number to make charges, meaning that the card can’t usually be billed after the car renter has paid. A credit card, on the other hand, can be billed without the holder being present.

A renter could return a car with small dings that the insurance policy won’t cover, or the customer could incur parking fines, toll fees or other expenses. If the rental car company has no customer credit card to bill, it might have to swallow those costs. What’s more, if you don’t have a credit card, it signals to rental companies that you could be a credit risk.

You’ll have to take additional steps to rent a car with a debit card

Rules about renting a car with a debit card vary not only by company, but by location. For instance, Budget says some of its offices allow debit cards, while others accept them only to settle a bill at return time, not at pick-up. It’s a good idea to call the specific rental office where you plan to pick up your car to ask about its policy.

No matter where you rent with a debit card, expect to comply with one or more of the following requirements:

• Provide a bank-issued debit card with a Visa, Mastercard or Discover logo. Rental car companies are unlikely to accept prepaid cards.
• Pony up a deposit. If you pay with a debit card, you’ll be charged an additional deposit on top of the rental fee when you pick up your car. Typically, this involves placing a hold of $200 or more on the account tied to your card.
• Provide extra identification. You may have to present multiple forms of I.D. in addition to your driver’s license — such as a passport or a utility bill.
• Offer proof of insurance. While credit cards typically provide some insurance coverage for a rental car, debit cards do not. That means you may have to show that you have sufficient coverage or purchase more from the rental company.
• Undergo a credit check. Some rental car companies will run a credit check before allowing you to rent with a debit card. If your score is low, the company may refuse to rent to you. Keep in mind, too, that a credit check may lower your credit score temporarily by five points or so.
• Show a return ticket. Some rental companies at airport locations require proof of your return travel plans.

You’ll have to deal with more restrictions

Even after jumping through all the hoops to rent with a debit card, you may face other restrictions as well. For instance, you may have to be 25 or older to rent with a debit card. If you use a credit card, most car companies will rent to you if you are 21 to 24, as long as you pay an additional “young driver” fee.

There may be restrictions about where you can take the car, too — such as not traveling out of state. Finally, certain cars may be off-limits. That Mercedes or Porsche you were hoping to drive? Sorry, you’ll likely need a credit card to roll off the lot with high-end wheels.

Why renting a car with a credit card is better

Renting a car with a debit card is possible, but there are downsides to consider. The following reasons make renting a card with a credit card considerably better:

You’ll have no hold on your checking account funds

When you rent a car with a debit card, the rental company places a hold on the funds in your actual checking account. This means whatever their hold amount is (usually a few hundred dollars) will be unavailable for you to use, even though you didn’t technically spend it. This could lead to you accidentally overdrawing your account in situations where funds are tight, or if you don’t keep much extra money in the checking account connected to your debit card.

But, that’s not how it works with credit cards. When you pay with plastic, a hold is placed against your line of credit instead of your own money — and that hold can last several days before you get your funds back. That’s not exactly ideal, especially if you were planning on using that money for traveling. 

You can get better rental car insurance

If you turn down the collision damage waiver provided by the rental car company, certain credit cards can provide more rental car insurance with fewer exclusions. Additionally, there are more covered circumstances than the rental car company will provide, including theft, damage, injury and potential loss of life. Credit cards often feature higher coverage amounts than the rental company, as well.

The only thing left to emphasize here is the difference between primary and secondary coverage. Most credit cards offer secondary insurance for rental cars, which means if you find yourself in a fender bender, you will have to file a claim with your own car insurance first. American Express cards, for example, tend to come with secondary insurance.

The secondary coverage offered through your credit card will pay only the amount not covered by the policy you already have. Primary coverage, on the other hand, means it applies first. Certain Chase cards, like the Chase Sapphire Preferred® Card, offer primary rental coverage. If you get into an accident, you can start the process of filing a claim by calling your credit card issuer immediately.

You’ll qualify for a higher rental car rewards program status

When you have a certain credit card in your pocket, you may be able to jump tiers in certain car rental company reward programs. This gives you more perks and discounts than other customers without having to spend the money or rent the requisite number of times to earn them.

For example, The Platinum Card® from American Express offers exclusive benefits like class upgrades to cardholders who rent from Avis and a four-hour grace period on rental returns with Hertz. It also gives you automatic Emerald Club Executive status at National.

You can earn more reward points or miles for travel purchases

Many credit card loyalty programs award their highest points or miles per dollar rate to travel purchases, which include car rental purchases. Standouts include the Chase Sapphire Reserve® and the Capital One Venture X Rewards Credit Card, which both allow cardholders to earn 10X points on car rentals and hotels when booked through the issuer’s portal — although you should note that the Chase Sapphire Reserve offers those 10X points only after you earn your an annual $300 travel credit.

Best credit cards for car rentals

If you’re looking for the best credit cards for car rentals, you’ll need to think about the benefits you want the most. This could include automatic elite status with car rental companies, more points on eligible car rentals purchased with the card or both. There are also travel credit cards that automatically come with primary auto rental coverage.

Here’s an overview of some of the most rewarding credit cards when it comes to car rentals.

Rental car companies at a glance

The chart below includes some of the rental car policies from the major car rental networks, plus whether or not they accept debit cards as payment. An overview of each company’s rewards program is also included, plus a listing of travel credit cards that offer special privileges (like automatic elite status) with each provider. 

The bottom line

While you can technically rent a car with a debit card, it’s typically a bad idea. Due to the benefits, rewards and flexibility you get by renting cars with a credit card instead, they’re always the better option.

But, some credit cards are much better for car rentals than others, either due to their exceptional rewards rates, included auto rental insurance, rental benefits with select providers or all of the above. If you’re looking for a credit card specifically to rent a car, you’ll want to compare the best travel cards and offers to find the right fit.