What Is Rental Car Insurance?
Rental car insurance is protection you can buy from the rental company—or rely on from your own policy or credit card—to cover damages, theft, or liability when driving a rented vehicle. It helps you avoid surprise bills if something goes wrong on the road.
comprehensive, or credit card benefits. Buying from the rental desk is often optional—but sometimes worth it for peace of mind.
Types of Rental Car Insurance Coverage
- Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW): Waives your responsibility if the rental is damaged or stolen. Similar to collision coverage.
- Liability Coverage: Covers injury or property damage you cause to others. If your liability insurance extends to rentals, you may not need extra.
- Personal Accident Insurance: Pays for medical expenses for you and passengers. Similar in function to Medical Payments Coverage (MedPay) or PIP.
- Personal Effects Coverage: Reimburses you if luggage or belongings are stolen from the rental.
Rental Coverage: Company vs. Auto Policy vs. Credit Card
| Coverage Source | What’s Covered | Limitations |
|---|---|---|
| Rental Company | CDW/LDW, liability, personal accident, belongings | Can be expensive; coverage ends when rental ends |
| Personal Auto Insurance | Often extends collision, comprehensive, and liability | Deductibles apply; may not cover international rentals |
| Credit Card | Secondary (sometimes primary) damage/theft protection | May exclude luxury cars, long rentals, or certain countries |
Tips Before Renting a Car
- Check if your personal auto policy already covers rentals.
- Review your credit card’s rental insurance benefits.
- Only buy coverage you truly need—avoid duplicates.
- Take photos of the car before and after rental for proof of condition.
Are You Required to Buy Rental Car Insurance?
No—rental insurance is usually optional in the U.S. However, if you don’t have a personal auto policy or a credit card that covers rentals, buying the rental company’s protection can prevent financial headaches.
Frequently Asked Questions About Rental Car Insurance
Does my personal insurance cover international rentals?
Usually not. Most U.S. policies apply only within the U.S. and Canada. You may need the rental company’s coverage abroad.
Do credit cards always provide rental coverage?
No. Some cards offer only secondary coverage, meaning your auto insurance pays first. Coverage also varies by card network.
What if I rent through Turo or another car-sharing app?
Personal auto policies and credit card rental coverage usually don’t apply. Turo and similar platforms sell their own protection plans.
What happens if I decline all coverage?
You’ll be personally responsible for any damages, loss of use fees, and liability claims not covered by your personal insurance.