Car Insurance for Rental Cars Made Simple
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Rental car insurance protects you against having to pay for damage, theft, or medical costs while driving a rental vehicle. Before you buy it at the counter, check two things: whether your personal auto policy already covers rentals (it usually does if you carry comprehensive and collision), and whether your credit card includes rental coverage as a cardholder benefit. According to Insurify’s 2026 data, rental-counter coverage typically costs $35 to $40 per day if you do need to purchase it separately.
Not to be confused with rental reimbursement insurance—which is provided by your personal auto insurance policy and provides you with the funds to rent another vehicle while yours is being repaired or replaced (due to it be damaged or stolen) — rental car insurance protects you against having to replace or repair a car from a rental company.
Rental car insurance can also cover you against having to pay out-of-pocket medical expenses.
There are many reasons you may find yourself needing to rent a car and looking into rental car insurance. Maybe you’re on vacation or visiting friends or family. Maybe your car has been in an accident and is awaiting repairs or a payout from your insurance company. Maybe you’ve bought your first car but have a time gap between when your new ride arrives and when you need it.
Regardless of why you need a rental car, rental car insurance is absolutely necessary. We’ll repeat that: you NEED to make sure you have insurance for your rental vehicle.
This said, you may not need to get separate car rental insurance.
Your existing car insurance policy might already cover your rental, so you may not need to get separate rental car insurance. Likewise, your credit card might provide rental car insurance coverage, if you use your card to pay for the rental.
It’s a good idea to check before you make costly assumptions.
If you do have rental car insurance coverages on your existing personal auto insurance policy, here’s what they may include:
Many travel and premium credit cards include rental car coverage as a cardholder benefit, typically as secondary coverage that kicks in after your personal auto insurance, or occasionally as primary coverage. Cards known for including this benefit often fall into the travel rewards and premium categories, for example, cards like the Chase Sapphire Preferred and Capital One Venture X are frequently cited for offering this coverage. Always confirm current benefits directly with your card issuer before relying on it, since coverage terms can change.
Car-sharing platforms work differently than traditional rental companies, and insurance rules differ accordingly. Zipcar typically includes insurance as part of membership. Turo is different: vehicles are owned by individual hosts rather than a rental company, so coverage usually comes through Turo’s own protection plans rather than a traditional rental agency’s counter coverage. Your personal auto policy and credit card benefits may or may not extend to car-sharing rentals many credit cards specifically exclude them, so it’s worth checking before you book.
| Coverage Source | Typical Cost | What It Covers | Watch Out For |
|---|---|---|---|
| Personal auto insurance | Already included, if you have comp/collision | Usually mirrors your existing policy's coverage and limits | Uses your deductible; a claim may affect future rates |
| Credit card benefit | Often free with card use | Typically collision/theft (LDW/CDW); varies by card | Often secondary coverage; excludes certain vehicles and countries |
| Rental-counter coverage | $35 – $40/day | Comprehensive protection bundled by the rental company | Most expensive option; some coverage may be redundant |
Your personal car insurance has a high deductible. If so, it’s worth your while to consider rental car insurance since you could pay little to nothing out of pocket on that policy.
You want to avoid claims against your personal auto insurance. Making a claim on your personal car insurance could lead to a long-term increase in premiums. However, if you have rental car insurance, the claim will be made against that policy, leaving your personal auto insurance policy unchanged.
Your personal car insurance policy has spotty coverage. If you’ve elected for the bare minimum or spotty coverage on your personal auto insurance policy, consider separate rental car coverage that adds a loss-damage waiver to protect you more fully.
You have low coverage limits. If your coverage limits are on the low side, rental car insurance can beef up your coverage so you can rest assured that you’re protected if you’re in an accident—at-fault or otherwise.
Your credit card does not provide adequate coverage. Again, you’re going to want to call your credit card company to see what kind of protection they offer on car insurance rentals. If it’s skimpy or non-existent, then getting separate car rental insurance is a good call.
You don’t have personal insurance or coverage from your credit card. You may have a driver’s license but no car, and therefore, no personal car insurance. You may also not have a credit card that provides rental car insurance—there are some that don’t, though most of the major ones do. If this is you, then you should definitely buy car rental insurance.
A loss-damage waiver (LDW), sometimes called a collision damage waiver (CDW) or excess damage waiver (EDW) depending on the rental company, isn’t technically insurance — it’s a contractual agreement where the rental company waives your financial responsibility for damage to the vehicle. The practical effect is similar to having comprehensive and collision coverage, but the legal structure is different, which is why it’s billed separately from liability and personal accident coverage at the counter.
Not if you have all the coverage you need from your personal auto insurance company or the credit card company with which you will be renting the car. However, if there are gaps in the coverage provided by these carriers, or not enough coverage or you don’t have coverage, period, then you will need to get rental car insurance.
In fact, if you don’t have any insurance, you will need to buy rental car insurance from the rental company or have insurance from another provider in place before you can take possession of the rental vehicle.
It could cost nothing if you have enough coverage from your credit card company and/or personal auto insurance provider. Separate rental car insurance will typically cost between $35 or $40/day.
Again, contact us if you want a quote on a rental car insurance policy. We’ll pair you with the best policy for your needs.
Absolutely. If you damage or wreck your rental car—or the people in it or in another vehicle if you’re in a multi-car accident—you could be on the hook for a whole lot of money: enough to bankrupt you. Rental car insurance is an easy and relatively affordable way to protect yourself, others, and your peace of mind.
Typically, car rental insurance covers personal accident insurance, liability, personal effects coverage, and loss or damage.
Lauren Lewthwaite Lauren Lewthwaite has been freelance writing for almost five years writing content that ranges from health to insurance and everything in between. Lauren is also a trained translator in French and English and is a dog-mom to an adorable Australian Shepherd.
