Rental Car Insurance: Do You Need It?
At the rental counter you are often offered extra insurance. Whether you need it depends on your own coverage. This guide explains the common options and what to check before you travel. Policies and rules vary, so confirm with your insurer.
Common coverages offered
- Damage waiver: the rental company may waive its right to charge you for damage to the car
- Liability coverage: may help pay for injury or damage you cause to others
- Personal accident coverage: may help with medical costs for you and passengers
- Personal effects coverage: may help with belongings stolen from the car
What your own policy may already cover
Some personal auto policies extend liability, collision or comprehensive coverage to a rental car, often with the same deductible. Others limit it or exclude certain uses. Call your insurer or agent and ask directly.
Credit cards and other sources
Some credit cards offer rental car coverage if you pay with that card and decline the rental company's waiver. Terms differ by card, and the coverage may be secondary. Ask your card issuer for the written benefit terms.
Gaps to watch for
- Loss-of-use or administrative fees the rental company may charge
- Rentals outside the country
- Large vehicles, luxury cars or long rentals
- Business use of the vehicle
Questions to ask before you rent
- Does my policy cover rental cars, and which coverages carry over?
- What is my deductible?
- Does my card cover damage, and is it primary or secondary?
- What are the rental company's fees if the car is damaged?
Next step
A licensed agent can review your auto policy and explain any gaps. HavenLine is a referral service, not an insurance company.
Questions
Do I have to buy the rental counter's insurance?
Usually not, but you are generally responsible for damage to the car. Check what you already have first.
Does my auto insurance cover a rental abroad?
Often not. Confirm with your insurer before an international trip.
General information only, not financial, legal or insurance advice. Rules, prices and benefits vary by state and by policy. A licensed professional can explain what applies to you.