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Whether you buy coverage from a rental agency or use your own car insurance, you should always have enough insurance to pay for costly repairs in case you get into an accident in a rental car. While it isn’t required by law, forgoing rental insurance can cost you thousands of dollars if the car is damaged while you’re renting it.
If you already have car insurance, call your insurance company and find out if you will have coverage under your existing policy. You could also call your credit card company—many offer coverage when you charge the rental on the card. Both of these options are cheaper than purchasing insurance at the rental counter.
However, if you don’t have rental coverage through either of those options, you’ll want to purchase an individual renters car insurance policy to ensure you’re adequately protected if you’re in an accident.
How to get free rental car insurance
Before you buy rental car insurance from the rental company, check whether you already have coverage through your credit card or car insurance policy. Many drivers unknowingly have rental car protection without needing to pay extra.
Credit card coverage
Many credit cards offer rental car insurance as a card benefit, typically providing collision damage waiver (CDW) coverage, which helps pay for damage or theft of the rental car. However, this coverage is usually secondary, meaning it only applies after your personal auto insurance. Some premium credit cards offer primary coverage, eliminating the need to file a claim with your insurer.
To qualify for credit card rental coverage, you must:
- Pay for the entire rental using the credit card you intend to get coverage from.
- Decline the rental company’s CDW coverage (unless your card requires otherwise).
- Meet the card’s terms, such as renting from an eligible location and within time limits.
It’s important to check with your credit card issuer to confirm if you need to enroll in coverage beforehand and what’s covered, as policies vary.
Car insurance coverage
If you have a personal auto insurance policy, your existing liability, collision, and comprehensive coverage may extend to a rental car within the U.S. (and sometimes Canada). This means:
- Liability coverage covers damage you cause in an accident.
- Collision coverage pays for damage from an accident to the rental car.
- Comprehensive coverage covers damage not caused by an accident, such as theft or vandalism.
However, if the vehicle is out of service for repairs, you may still be responsible for rental car company fees, such as loss-of-use charges. Some insurers offer rental car loss damage waivers to cover these gaps, so check with your provider before renting.
When to consider purchasing additional rental car coverage
In some situations, relying on your credit card or personal auto insurance may not be enough, making additional rental car coverage a smart choice. Consider purchasing extra insurance if:
- You’re renting in a foreign country. Most U.S. auto insurance policies don’t cover rentals abroad, except in Canada. If you’re traveling internationally, you may need to buy coverage from the rental company or a third-party provider.
- You’re engaging in high-risk activities. Standard rental car coverage often excludes off-road driving, racing, or using the vehicle for commercial purposes. If your plans involve any of these activities, additional insurance can help avoid costly out-of-pocket expenses.
- You don’t have comprehensive and collision coverage. If your personal auto policy lacks these coverages, you may be fully responsible for damage to a rental car. In this case, purchasing a collision damage waiver (CDW) from the rental company can provide essential protection.
Review your existing coverage and contact your credit card company before renting to determine whether supplemental insurance is necessary.
Tips for renting a car
A little prep work can save you from rental car headaches and surprise fees. Keep these tips in mind before you drive off the lot:
- Give the car a thorough once-over. Check for any dents, scratches, or interior wear, and make sure the rental company notes them.
- Snap some photos or take a video. Document any existing damage before leaving the lot—this can help if you’re later blamed for something you didn’t cause.
- Read the fine print. Understand the rental agreement, including mileage limits, fuel policies, and any potential extra fees.
- Don’t fall for the upsell. Agents may push extra insurance or unnecessary add-ons. Politely decline if you’re already covered through your car insurance or credit card.
Frequently Asked Questions
Does my car insurance cover rental cars?
If you have a personal auto insurance policy with liability, collision, and comprehensive coverage, it likely extends to rental cars within the U.S. However, you may still be responsible for specific fees, like loss-of-use charges, so check with your insurer before renting.
Should I buy rental car insurance if my credit card offers coverage?
If your credit card provides rental car insurance, it may cover damage to the vehicle, but it usually doesn’t include liability coverage. Be sure to review your card’s terms to see if the coverage is primary or secondary and if any exclusions apply.
What happens if I damage a rental car without insurance?
You’ll be responsible for all repair costs if you don’t have coverage through your personal auto policy, credit card, or rental company. The rental company may also charge additional fees, such as loss-of-use and administrative costs.