Rental Car Insurance: Do You Need It? (2024)

FAQs

Do you need extra insurance when renting a car in the USA? ›

In most instances, rental car insurance overlaps with your personal auto insurance policy, meaning you likely won't need to pay for duplicate coverage. However, you can get an add-on to your travel insurance policy for rental car coverage.

It would be very unusual for anyone to need to buy extra insurance from a rental car company. For most people, their personal auto insurance policy will take care of anything that might happen while they're renting. It's smarter to keep your personal policy up to date and save money by skipping the extra coverage.

Verifying auto insurance ensures that renters have a financial safety net in case of an accident, damage, and wear of their vehicle from those habits, reducing the risk of potential financial disputes between the renter and the rental agency.

Opting into full-coverage insurance through the rental car company can easily cost an additional $40 per day or more. However, if you decide to skip insurance, and you're involved in an accident, theft or other issue, you might regret that choice.

Is a Loss Damage Waiver Worth It? A loss damage waiver can save you time and money if an accident happens during your rental. Without it, in most states, the renter will bear responsibility for any damage or loss. Even if it's not your fault.

What's the difference between LDW and CDW? CDW covers damage to the rental vehicle in case of an accident. LDW offers the same protection, as well as coverage if the car is stolen. Since these terms are sometimes used interchangeably, pay attention to the fine print to know what kind of coverage you're getting.

Yes, you do need rental car insurance in California. Rental car companies in California are not required to automatically provide the state's minimum liability insurance as part of their standard contract, so you must have separate liability coverage when you rent a car in California.

Liability Insurance Supplement (LIS) or Liability Protection offers $1,000,000 of protection from any third-party claims. * This coverage includes bodily injury and property damage if you hit a vehicle, road sign or structure. Liability Protection also includes uninsured and underinsured motorist coverage.

In most cases, your auto insurance policy will extend coverage to your rental car to cover it like your regular vehicle. But you may need extra coverage if your insurer restricts this extension or your policy does not have comprehensive and collision coverage and you need it for your rental car.

Rental car insurance is a type of auto insurance you can purchase from a rental car company. It's designed to protect you financially if the rental car is damaged or stolen, or you're involved in an accident while driving it.

What is collision damage waiver insurance? ›

CDW insurance typically covers any damage to a hired vehicle while in your possession, such as driving in a city and getting into a fender bender. It also covers theft of the vehicle and vandalism.

No, you do not need rental car insurance in Ohio. Rental car companies in Ohio provide the minimum state-required liability insurance coverage: $25,000 in bodily injury liability insurance per person ($50,000 per accident) and $25,000 in property damage liability coverage per accident.

In many cases, your personal auto insurance policy will provide enough protection when you're driving a rental car. If your personal policy includes liability, comprehensive, collision, and medical payments (MedPay) or personal injury protection (PIP), you may not need additional coverage.

• If you scratch or dent the rental car

1. Inform Enterprise staff of the damage caused to the vehicle when you return the car. 2. You may or may not have to pay for repairs, depending on your personal auto insurance and whether or not you selected any Enterprise Protection Products.

Which rental car company has the lowest insurance rates? Budget is the car rental company that has the best auto insurance rates, averaging $31/day. However, always compare rental car insurance cost before buying the first policy you find.

Yes – Canada and the USA have a reciprocal agreement that allows drivers from both countries to use their own auto insurance while traveling across the border.

Most auto insurance policies cover travel to the States, but may be subject to some restrictions. For example, the duration of coverage may be limited to a certain number of months.

Foreign renters are generally required to possess a valid international driver's license along with their passport and a credit card for payment and security purposes. Some rental companies may also have age restrictions and additional fees for foreign renters.