Rental Car Insurance: Key Things to Know in 2022

what is rental car insurance?

rental car insurance is coverage that protects people when they drive a rental car. You can get rental car insurance through your personal insurance policy, your credit card benefits, or the rental car company itself. Depending on the policy, rental car insurance may cover damage to the vehicle, damage or injury you cause, your own injuries, theft, and loss of personal items.

key points to know about car rental insurance

  • The most common types of rental car insurance are liability, collision damage waiver, personal accident, and personal effects.
  • rental car insurance costs $61 a day, on average, but it depends on how much coverage you buy and where you rent the car.
  • Your personal auto insurance, health insurance, and credit card benefits will generally cover you when you rent a car.
  • other alternatives to rental car insurance are non-owner car insurance, temporary car insurance and travel insurance.
  • Is rental car insurance worth it?

    Rental car insurance is rarely worth it if your personal vehicle is insured and you pay for your rental car with a credit card. You may also not need to purchase rental car insurance if you’re traveling on business.

    Reading: What car rental insurance should i get

    why you may not need to purchase additional rental car insurance:

    • In most cases, your personal auto insurance will cover you as if you were driving your own car.
      • major credit cards usually include some level of collision insurance when you book and pay the entire rental with that card.
        • If you’re traveling for business, you’ll likely be covered by a company insurance policy. check with your employer to make sure you know what coverage they provide.
        • Learn more about whether you need rental car insurance.

          types of rental car insurance

          The most common types of insurance offered by car rental companies are the following:

          collision damage waiver

          A collision damage waiver, often known as a loss damage waiver, will cover repairs if you cause any damage to your rental car. coverage may exclude certain parts of the car, such as the tires or windshield, as well as certain causes of damage, such as weather or damage while on private property.

          • average cost: $10-30 per day
          • comparable to: collision and comprehensive insurance
          • Learn more about collision damage waivers.

            civil liability insurance for rental cars

            The civil liability insurance covers damage to other vehicles, property and people as a result of accidents that you cause while driving your rental car. Please note that this does not cover you, your passengers or the rental vehicle itself.

            State minimum levels of liability insurance are included as part of the base rental rate in almost all states. in these cases, any additional insurance you purchase will at most give you higher coverage limits. There are some exceptions, most notably in California, where rental companies are not required by law to carry liability insurance.

            • average cost: $10-16 per day
            • comparable to: bodily injury liability and property damage liability insurance
            • personal accident insurance

              See also: How to get health insurance after the deadline

              personal accident insurance covers medical costs for injuries to anyone in your rental vehicle during an accident. Many rental companies in the United States include “personal effects” coverage within their personal accident insurance.

              • average cost: $3-9 per day
              • comparable to: personal injury protection and medical payments insurance
              • personal effects coverage

                Personal items, such as clothing and luggage, stolen from the rental vehicle or lost when a rental vehicle is stolen, are covered under this option. expensive electronic devices (especially cameras) may be subject to limits and exclusions.

                • average cost: $1-6 per day
                • comparable to: homeowners and renters insurance
                • cost of rental car insurance coverage by company

                  note: quotes averaged across major cities for an economy size vehicle.

                  Learn more about rental car insurance costs.

                  rental car insurance you may already have

                  Before you buy additional insurance, start with an inventory of coverage you may already be paying for.

                  personal auto insurance

                  Most personal auto insurance policies will cover you when you drive a rental car. If you’re not sure what your policy covers, check with your insurer or agent.

                  Please note that getting the same coverage does not mean you will get additional coverage when driving a rental vehicle. For example, if you don’t have collision insurance on your personal policy, you won’t have any coverage for damage you cause to the rental car. If you have collision and comprehensive coverage on your insurance policy, don’t forget that you’ll probably also be responsible for a deductible.

                  Also keep in mind that car insurance generally only covers personal (non-business) use of cars. however, while traveling on business, you may be covered by your employer’s insurance.

                  personal health insurance

                  See also: How to pick a good health insurance plan

                  When making decisions at the rental counter, don’t overlook your health insurance policy, if you have one. Most health insurance plans will cover any medical care you need while traveling in the US. uu. – and sometimes in many other countries. Make sure you understand the terms of your policy, especially when traveling outside of the US. uu.

                  Just like with your auto policy, remember that if you rely on your health insurance and need medical treatment after an accident, you will be responsible for any health policy deductibles and copays.

                  credit card benefits

                  When you reserve and pay for your rental car with a major credit card, you’ll usually get coverage for theft or damage to that vehicle, among other benefits.

                  This is how this protection works:


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