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Rental Car Insurance
Rental car insurance coverage can come from your personal auto policy, your credit card, the rental car counter or a third-party insurer.
Sarah Schlichter is a NerdWallet authority on homeowners, renters, pet and life insurance. Prior to joining NerdWallet, she spent more than 15 years in digital media as a writer, editor and spokesperson. Sarah enjoys delving into complicated topics and helping readers understand the ins and outs of their insurance coverage. She lives in the Washington, D.C., metro area.
Drew Gula is a lead writer and content strategist at NerdWallet. He previously spent four years in technical writing and journalism, and uses that experience to break down complicated insurance topics into pieces that anyone can understand. He is also a published author and lives outside of Nashville.
Caitlin Constantine is an editor and content strategist at NerdWallet, focusing on auto, homeowners, renters and pet insurance. She has nearly 20 years of experience in online journalism, including as the deputy managing editor at The Penny Hoarder and the senior digital producer for Bay News 9, a 24/7 news station based in the Tampa Bay area. She currently lives outside Asheville, North Carolina.
Brenda J. Cude is Professor Emeritus in the Department of Financial Planning, Housing and Consumer Economics at the University of Georgia. Dr. Cude has served in various consumer-focused roles for the National Association of Insurance Commissioners since 1994. She has also been a member of the Advisory Council for the Center for Insurance Policy and Research; a Board Member of the Coalition Against Insurance Fraud; a member of the Federal Advisory Committee on Insurance; and a Board Member for the Insurance Marketplace Standards Association. Dr. Cude’s primary research interest is consumer decision-making, with an emphasis in personal financial literacy.
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Key takeaways
You don't need to buy special insurance for a rental car.
Some credit cards include rental car insurance as a bonus perk.
Your personal car insurance policy may cover damage to a rental.
In most cases, your personal car insurance policy will cover damage to your rental car — as long as your policy includes comprehensive and collision coverage. If you have those, then your rental car will likely be covered if it’s damaged, stolen or totaled.
Your car insurance deductible will still apply, meaning you'll have to pay that predetermined amount when you file the claim. But you'll be able to skip the rental insurance offered at the counter (and its hefty prices).
🤓Nerdy Tip
Rental car insurance isn't the same as rental car reimbursement coverage, a common auto policy option that covers the cost of a car rental if your vehicle is being repaired as part of a claim.
Does my insurance cover a rental car?
Yes, in most cases, your auto insurance policy will provide equivalent coverage for a rental car as long as you use it for personal purposes.
Liability insurance pays for injuries or property damage you cause to others in a crash, up to your policy limits. Your own injuries and any damage to your rental car aren't covered.
If you don’t have comprehensive or collision coverage, or you’re renting a luxury vehicle that your insurer won’t cover, you can purchase a loss-damage waiver (LDW) from the rental company. An LDW waives your financial responsibility for the rental car if it’s lost or damaged, as long as you abide by your rental agreement.
🤓Nerdy Tip
If you have only your state’s minimum required coverage, consider purchasing additional coverage at the rental car office. State minimums typically have low liability limits. Without sufficient coverage, you could be left to pay thousands after a crash.
Be sure to check with your insurer to confirm your policy covers rental cars before you head to the rental car office. Some insurance companies’ personal car insurance policies won’t cover rental cars.
No, you don’t need to have your own auto insurance policy to rent a car, but rental agencies typically have minimal coverage on their vehicles. You could end up responsible for significant expenses if you're in an accident with the rental and don't have your own car insurance.
Other options include buying additional insurance from the rental car company, using a credit card for coverage or getting a standalone policy through a third party.
Nerdy Perspective
Benjamin Din
lead Travel writer
Whenever I rent a car, I charge the full amount of the rental to a travel credit card that includes primary coverage, such as my U.S. Bank Altitude Reserve Visa Infinite Card. Although it has a hefty annual fee, this is a solid perk that makes up for it, and means I don't have to worry about car troubles that might pop up during my trip. Make sure to decline the car rental agency's insurance, though, since accepting it can void the insurance that comes with your card.
Whenever I rent a car, I charge the full amount of the rental to a travel credit card that includes primary coverage, such as my U.S. Bank Altitude Reserve Visa Infinite Card. Although it has a hefty annual fee, this is a solid perk that makes up for it, and means I don't have to worry about car troubles that might pop up during my trip. Make sure to decline the car rental agency's insurance, though, since accepting it can void the insurance that comes with your card.
Benjamin Din
lead Travel writer
Lisa Green
assigning editor on Insurance
When a co-worker wrecked a rental vehicle, the biggest expense was compensating the rental company for the money it couldn’t earn while the damaged car was out of service. If your regular auto insurance policy or travel credit card doesn’t provide coverage for this, you may want to consider the rental company’s loss-damage waiver, or LDW, to avoid a surprise bill.
When a co-worker wrecked a rental vehicle, the biggest expense was compensating the rental company for the money it couldn’t earn while the damaged car was out of service. If your regular auto insurance policy or travel credit card doesn’t provide coverage for this, you may want to consider the rental company’s loss-damage waiver, or LDW, to avoid a surprise bill.
Lisa Green
assigning editor on Insurance
Drew Gula
lead writer on Insurance
I usually skip purchasing rental car insurance when I rent a car on vacation. My personal car insurance policy covers me, so I don't need to buy separate coverage from the rental agency.
I usually skip purchasing rental car insurance when I rent a car on vacation. My personal car insurance policy covers me, so I don't need to buy separate coverage from the rental agency.
Drew Gula
lead writer on Insurance
Benjamin Din
lead Travel writer
Whenever I rent a car, I charge the full amount of the rental to a travel credit card that includes primary coverage, such as my U.S. Bank Altitude Reserve Visa Infinite Card. Although it has a hefty annual fee, this is a solid perk that makes up for it, and means I don't have to worry about car troubles that might pop up during my trip. Make sure to decline the car rental agency's insurance, though, since accepting it can void the insurance that comes with your card.
Whenever I rent a car, I charge the full amount of the rental to a travel credit card that includes primary coverage, such as my U.S. Bank Altitude Reserve Visa Infinite Card. Although it has a hefty annual fee, this is a solid perk that makes up for it, and means I don't have to worry about car troubles that might pop up during my trip. Make sure to decline the car rental agency's insurance, though, since accepting it can void the insurance that comes with your card.
Benjamin Din
lead Travel writer
Lisa Green
assigning editor on Insurance
When a co-worker wrecked a rental vehicle, the biggest expense was compensating the rental company for the money it couldn’t earn while the damaged car was out of service. If your regular auto insurance policy or travel credit card doesn’t provide coverage for this, you may want to consider the rental company’s loss-damage waiver, or LDW, to avoid a surprise bill.
When a co-worker wrecked a rental vehicle, the biggest expense was compensating the rental company for the money it couldn’t earn while the damaged car was out of service. If your regular auto insurance policy or travel credit card doesn’t provide coverage for this, you may want to consider the rental company’s loss-damage waiver, or LDW, to avoid a surprise bill.
Lisa Green
assigning editor on Insurance
Drew Gula
lead writer on Insurance
I usually skip purchasing rental car insurance when I rent a car on vacation. My personal car insurance policy covers me, so I don't need to buy separate coverage from the rental agency.
I usually skip purchasing rental car insurance when I rent a car on vacation. My personal car insurance policy covers me, so I don't need to buy separate coverage from the rental agency.
Drew Gula
lead writer on Insurance
Benjamin Din
lead Travel writer
Whenever I rent a car, I charge the full amount of the rental to a travel credit card that includes primary coverage, such as my U.S. Bank Altitude Reserve Visa Infinite Card. Although it has a hefty annual fee, this is a solid perk that makes up for it, and means I don't have to worry about car troubles that might pop up during my trip. Make sure to decline the car rental agency's insurance, though, since accepting it can void the insurance that comes with your card.
Whenever I rent a car, I charge the full amount of the rental to a travel credit card that includes primary coverage, such as my U.S. Bank Altitude Reserve Visa Infinite Card. Although it has a hefty annual fee, this is a solid perk that makes up for it, and means I don't have to worry about car troubles that might pop up during my trip. Make sure to decline the car rental agency's insurance, though, since accepting it can void the insurance that comes with your card.
Benjamin Din
lead Travel writer
Lisa Green
assigning editor on Insurance
When a co-worker wrecked a rental vehicle, the biggest expense was compensating the rental company for the money it couldn’t earn while the damaged car was out of service. If your regular auto insurance policy or travel credit card doesn’t provide coverage for this, you may want to consider the rental company’s loss-damage waiver, or LDW, to avoid a surprise bill.
When a co-worker wrecked a rental vehicle, the biggest expense was compensating the rental company for the money it couldn’t earn while the damaged car was out of service. If your regular auto insurance policy or travel credit card doesn’t provide coverage for this, you may want to consider the rental company’s loss-damage waiver, or LDW, to avoid a surprise bill.
Lisa Green
assigning editor on Insurance
Drew Gula
lead writer on Insurance
I usually skip purchasing rental car insurance when I rent a car on vacation. My personal car insurance policy covers me, so I don't need to buy separate coverage from the rental agency.
I usually skip purchasing rental car insurance when I rent a car on vacation. My personal car insurance policy covers me, so I don't need to buy separate coverage from the rental agency.
Drew Gula
lead writer on Insurance
Rental car insurance coverage vs. your own auto insurance
Here are the typical insurance options from rental car companies, along with how to determine if you already have coverage within your own auto insurance policy.
🤓Nerdy Tip
Coverage from your own policy applies when you are using a rental car for personal, nonbusiness purposes. The rules may be different for business use of a rental car. Check with your insurer or employer for details about coverage when using a rental car for business.
Crashes and car theft
Rental car insurance coverage at the counter:
A loss-damage waiver or LDW, also called a collision damage waiver or CDW, gets you off the hook for damage to the rental vehicle or theft of the car. It’s technically not insurance but rather a waiver that says the rental car company won’t come after you.
Your policy:
If you have collision and comprehensive coverage on your own policy, it generally will extend to a rental car as long as you’re renting within the U.S. or Canada. However, you will still be responsible for your deductible, and filing a claim on your auto insurance policy could raise your premium.
If you don’t have comprehensive and collision on your regular policy, or you’re renting in a location where this coverage isn’t in effect, you’d have to pay for the damage unless you buy the LDW.
Damage you do to others
Rental car insurance coverage at the counter:
Supplemental liability protection will pay for damage you do to others’ vehicles or property. Typical limits range from $300,000 to $1 million. If you don't have auto insurance (for example, if you don’t own a car), or if you’re traveling in a country where your own policy doesn’t offer coverage, you should buy this.
Your policy:
Your own liability insurance will typically cover you when you’re driving rental cars within the U.S. and Canada. If you have minimal liability coverage on your auto policy, you could buy the supplemental protection to boost your coverage.
Injuries to you
Rental car insurance coverage at the counter:
Personal accident insurance covers medical costs for you and your passengers if you’re involved in an accident. This includes ambulance, medical care and death benefits.
Your policy:
If you have personal injury protection or medical payments coverage through your auto policy, you likely won’t need personal accident insurance as long as you’re renting in the U.S. or Canada. Your own health insurance may also cover you if you’re staying within the U.S. Overseas, you probably don’t need personal accident insurance if you have travel medical insurance.
For death benefits, consider buying a life insurance policy. You can get life insurance quotes online.
Your stolen stuff
Rental car insurance coverage at the counter:
Personal effects coverage pays for your belongings if they’re stolen from the rental car, up to a set dollar amount.
Your policy:
A homeowners or renters insurance policy will generally cover your possessions if they are stolen, even when traveling out of the country. To make a theft claim, you’ll typically need to file a police report, and your deductible amount will apply. As with auto insurance claims, filing a property claim could cause your rates to go up.
Credit cards often provide rental car insurance coverage, assuming you used the card to pay for the rental and the rental is in your name. They can be a particularly useful option overseas in places where your personal auto insurance won’t cover you.
You’ll automatically have this coverage if it’s included with your credit card — no need to call or sign forms. But it’s usually secondary coverage, meaning your own auto insurance policy will pay out first if it’s available. NerdWallet assessed credit cards that offer good rental car insurance.
If you’re planning on credit card coverage, call your credit card issuer to confirm the details.
Some companies sell standalone policies for rental cars if you don’t want to buy insurance at the counter. Generally, you need to decline the rental company’s coverage to use these.
Allianz Global Assistance
Allianz Global Assistance sells a OneTrip Rental Car Protector for $13 a day that pays out up to $75,000 for damage and loss. It’s primary coverage, so it pays out before your own auto insurance and includes 24-hour emergency assistance.
Bonzah
Bonzah sells insurance starting at $26.95 per day that pays out for up to $35,000 in repairs or replacement of the vehicle. It's primary insurance, so it pays out before your regular insurer. Policies generally cover travel abroad, but check the fine print.
Rental Cover
Rental Cover offers no-deductible policies that count as primary coverage so you wouldn’t need to make a claim to your auto insurer first. Coverage options vary by country. Rental Cover doesn’t list prices on its website but claims to be up to 50% cheaper than the rental desk.
Sure
Sure offers rental car insurance that covers up to $100,000 worth of damage to a vehicle, plus any of your belongings inside of it. The coverage also includes flat tires and lost keys, and you can get an online quote from its website.
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