What You Need to Know About Rental Car Insurance

Renting a car can be a convenient way to travel, but understanding rental car insurance is essential to avoid unexpected costs and risks. Many renters are unsure if they need extra insurance or if they are already covered by their personal auto policy or credit card. In this guide, we’ll break down the different types of rental car insurance, when you need it, and how to save money.

When deciding whether to purchase rental car insurance, it’s also important to consider the specific terms and exclusions of each coverage type. For example, a Collision Damage Waiver (CDW) often excludes certain damages, such as those caused by reckless driving, off-road use, or driving under the influence. Liability coverage limits may also vary by location, and in some countries, it is mandatory to purchase additional liability insurance even if you have personal auto coverage.

When deciding whether to purchase rental car insurance, it’s also important to consider the specific terms and exclusions of each coverage type. For example, a Collision Damage Waiver (CDW) often excludes certain damages, such as those caused by reckless driving, off-road use, or driving under the influence. Liability coverage limits may also vary by location, and in some countries, it is mandatory to purchase additional liability insurance even if you have personal auto coverage.

Tips for Saving Money on Rental Car Insurance

Review your existing coverage, use credit cards, compare third-party options, avoid unnecessary add-ons, and book in advance for savings.

Check Existing Coverage: Review personal auto or travel insurance to avoid extra costs.

Use a Credit Card with Coverage: Many credit cards offer rental insurance, saving on added fees.

Compare Third-Party Insurance: Third-party providers often offer better rates than rental companies.

Book with Companies Offering Insurance: Rent from companies that include basic coverage in their rates.

Choose a Standard Car: Economy Cars typically have lower insurance costs than luxury models.