Car Rental Insurance: Do I Really Need It?

While it may be enticing to opt-out of the car rental insurance you were offered at the rental counter, it’s crucial that you ensure you have some level of car rental insurance coverage first. If you’re ever in the position where you have to file an insurance claim on a rental vehicle, the coverage you get can be the make or break when it comes to engaging with your insurance company or being liable for costly repairs.

What you may not realize is that it’s not mandatory to take out car rental insurance from a car rental company. In many situations, if you already have a vehicle, your personal car insurance policy can be stretched to rental cars. To help make things easier, here are a few different aspects of car rental insurance you might not be aware of, as well as how you can save money. Once you have what you need to know, you will be able to decide whether car rental insurance is right for you.

Do I Need Car Rental Insurance?

Car rental companies tend to provide insurance via collision damage waiver (CDW) or a loss damage waiver (LDW). Having this level of insurance in place is crucial because it keeps you covered in the event that your rental vehicle is damaged, vandalized, or stolen. Having this waiver behind you will stop your car rental insurance provider from chasing you for damages and repairs.

When to purchase coverage

Check Your Insurance Policy

You may find that you’re already covered under your everyday driver’s policy. Check with your existing auto insurance cover collision damage of your own car. If the rental in your name, your credit card which you used to pay for rental can also have coverage. It is secondary coverage which mean the first payout from your insurance company.

It’s important that you examine your personal car insurance policy limits, as well as the types of coverage available. The purpose is to verify whether it contains any collision damage waiver or loss damage waiver for rental vehicles. You need to establish whether you have adequate liability insurance, comprehensive and collision coverage, as well as personal injury protection.

Types of Car Rental Coverage

Beside CDW and LDW, there are various types of car rental coverage. They can provide you with protection should you find yourself in an accident. One of these is personal accident insurance. It covers your medical costs for you and any passengers should you get injured in a rental car crash. If you have been involved in a car accident, it’s important that you also seek a car accident attorney who can act on your behalf and get you the compensation you deserve.

Car Rental Insurance Cost

When factoring in the cost of car rental insurance, each company and the amount of coverage you get will vary, however, one thing is for sure, it isn’t cheap. Many drivers have to pay out between $10 – $30 per day for a loss damage waiver. If you decide to choose supplemental liability, you will need to add on an extra $10 per day.

When to Purchase Car Rental Insurance

It’s not advised to take out car rental insurance if you are already covered. But there are some situations where it can be beneficial. For example, if you don’t have car insurance already, you are traveling for business purposes, you’re driving abroad, or you want to have peace of mind, having car rental insurance can add an extra layer of protection.

Because car rental insurance is voluntary, this means that car hire companies cannot insist on you taking out coverage. However, if you’re traveling overseas or out on business, you may want to purchase it to bring you peace of mind.


Hi there! I’m Jordan, chief editor of Crush the Road and I’m a self-confessed automative fanatic. Cars or vehicles has always been a passion of mine and will always be my favorite pastime. Now that I am married and has one adorable son, I have the time to write and share my personal experiences with other automative enthusiasts like me. Welcome to my fantastic blog!

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