Type of Insurance Needed for a Rental Car

Rental car companies will offer you an option to buy rental car insurance when picking up one of their cars. Unfortunately, they will pressure you to make a fast decision. So, you must know the type of rental car insurance you need before you start shopping.

Some people do not consider car rental insurance important. That is not until they get stuck with an enormous repair bill. You might end up buying a new vehicle for the rental company if the car is stolen. Such expenses may destroy your future.

Rental car insurance will protect you if something goes wrong or you get involved in an accident. Here are the main types of rental car insurance covers.

– Collision Damage Waiver

A collision damage waiver is a type of insurance policy that will cover the rental car if it is damaged or stolen. This is not an actual insurance policy. You will be paying the car rental company to waive its rights to pursue you for any losses.

– Liability Insurance

This insurance is vital. It caters to all third-party damages. That means it will cover the vehicle damages, medical costs, and other damages you caused. Actually, you cannot drive a car without this cover. For that reason, your car rental deal may include this policy.

It is essential for people without personal auto insurance. It might also be necessary if your personal auto cover does not work in foreign countries.

– Personal Accident Insurance

Liability insurance covers damages affecting other people. It also covers the injuries they suffer. Unfortunately, it does not cover the injuries you suffer. That makes personal accident insurance important.

Personal Accident Insurance

This policy caters to your ambulance costs and medical costs. It might also cover death benefits for you and your passengers. It is not an excellent choice to have life or health insurance. The basic rental car insurance may also come with this coverage.

– Personal Effects Cover

This insurance policy covers your personal belongings and other valuables when traveling. Unfortunately, it states a limit, and it will require you to pay a deductible before your claims are paid out.

Generally,there are limits to the number of people that can file a claim. You do not require it if you have home insurance.

The Main Car Rental Insurance Providers

Car rental companies are not the only source of rental car insurance. The market offers leading providers. For such a purpose, you should shop nearby to identify the best offers. Here are the primary providers of car rental insurance.

– Rental Car Dealerships

Buying an insurance cover when booking a rental car is possibly the best thing to do. However, the customer service representative will push their brand of insurance. The insurance brand is not the only choice. They will be pushing it so that they can earn a commission. 

– Credit Card Companies

A lot of credit card companies offer car rental insurance cover. However, you will need to use their credit card when renting the car. Again, the insurance will generally serve as secondary cover. That means it will kick in after other car rental insurance covers you might have. Some major credit card providers offer primary rental car coverage. In this case, different policies will kick in as secondary insurance. Call your credit card provider to know what they offer.

Credit Card Companies

– Auto Insurance Companies

Most auto insurance policies will extend the coverage to any car you rent. However, there are limitations. First, they will only cover the vehicles you rent for personal activities. They will not cover business activities, including business trips. Secondly, the coverage will be limited to domestic trips. If you are planning to fly out of the country, call your auto insurance company or agent. They will explain to you what your auto insurance covers.


Most rental companies will provide rental car insurance at the counter. So, you can always pick one that fits your requirements. Unfortunately, they will create pressure on you so that you can buy anything that they offer. Contacting your personal auto insurance provider and credit card company is important. They will provide you with more details of what their policies cover. You might realize that you do not need any car rental insurance coverage.

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