Rental Car Insurance (2024)
If your regular auto insurance policy does not cover rentals, then you might need to purchase rental car insurance that pays for accident costs involving your rental car. Allianz Travel rental car insurance costs only $11 a day, while Bonzah rental car insurance rates are usually less than $10 a day.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Feb 26, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Feb 26, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- You can purchase car rental insurance coverage at several companies
- Credit card companies may provide additional coverage for rental cars
- Your personal auto insurance may provide coverage for rental cars
| Titls | Link | |
|---|---|---|
| 1 | Rental cars (anchor) | Rental Car |
| 2 | Third Party (anchor) | Third Party |
| 3 | 23 Year Olds (anchor on other page) | 23 Year Olds American Family |
| 4 | Credit Cards (anchor) | Credit Card |
| 5 | BAI (off site) | BAI |
| 6 | Nationwide (anchor on other page) | Nationwide |
| 7 | ||
| 8 | Other post (same site, different post) | How to Cancel |
| 9 | Google (off site) |
Even when renting a car, you still need to be insured to drive the vehicle. If your regular insurance policy extends to rentals, then you don’t need to purchase additional coverage. However, in some cases, you may need to buy a rental company’s insurance in order to be appropriately covered.
What is rental car insurance coverage? It works the same as your personal auto insurance policy by paying for damages and injuries after an accident. You can choose what types of auto insurance coverages to purchase, but remember that skipping out on coverages means you’ll have to pay out of pocket for an accident.
Our guide to rental car insurance will go over everything you need to know about what coverages you need and the best auto insurance companies to buy insurance for rental cars.
Can I use my own insurance for a rental car?
If you want to know — does my insurance cover rental cars? — the answer is yes, your regular auto insurance policy should cover you if you drive a rental car for personal use. However, it is best to call your insurance company directly to check that your policy offers this coverage before renting a car.
Does liability insurance cover rental cars? If your insurance extends to rental cars, your liability auto insurance coverage will cover other parties’ costs if you cause an accident. However, your liability insurance won’t pay for the repairs to the rental car after an accident unless you also have collision and comprehensive insurance.
What kind of coverage do you need for a rental car? Generally, you will need the same coverages that you carry on your personal vehicles, including:
- Collision auto insurance. Pays for repairs to your car if you crash into another vehicle or an object.
- Comprehensive auto insurance. Pays for repairs to your car if you crash into an animal or the car is damaged from falling objects, weather, vandalism, or theft.
Auto Insurance Companies With Rental Car Coverage
| Insurance Company | Daily Coverage | What's Covered |
|---|---|---|
| 21st Century | $25-$90 | Temporary rental for covered auto accidents |
| AAA | $25-$50 | Temporary rental (breakdowns, repair, or serving) or short-term leisure use rental |
| Allstate | Up to $30 | Temporary rental or other transportation during repair (collision or other insured loss) |
| American Family | Direct billing with Enterprise Rent-A-Car | Rental car costs, ride share services, taxis, city busses, light rail, commuter trains |
| Amica Mutual | $20 | Rental car costs, ride share services, taxis, city busses, light rail, commuter trains |
| Auto-Owners Insurance | Direct billing | Temporary rental after a covered accident |
| Esurance | Up to 45 days or $3,000 | Temporary rental after a covered accident of car theft (CarMatch) |
| Farmers | Allows direct billing for up to 30 days | Temporary rental after a covered accident |
| Geico | Set your limit or use direct billing with Enterprise Rent-A-Car | Temporary rental after a covered accident |
| Liberty Mutual | Offers discounts with Enterprise Rent-A-Car; will pay all costs at approved auto repair shop | Temporary rental after a covered accident |
| Mercury Insurance | $30-$100 | Temporary rental after a covered accident |
| Nationwide | $30-$75 | Rental car or alternative transportation after a covered accident |
| Progressive | $40-$60 | Temporary rental after a covered accident |
| Shelter Insurance | Not specified | Temporary rental after a covered accident or theft |
| State Farm | $25-$50 | Temporary rental and limited travel expenses after a covered event |
| Travelers | Up to $100 | Temporary rental and limited travel expenses after a covered event |
| USAA | Direct billing with Enterprise Rent-A-Car | Temporary rental and limited travel expenses after a covered event |
If you are wondering if you need collision insurance on a rental car, the answer is always yes. However, if you don’t have these extra coverages, you should purchase coverage from the rental car company, so you don’t have to pay out of pocket if you wreck the rental car.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Can I buy rental car insurance company coverage for rental cars?
When you purchase rental car insurance from the rental car company, you usually will see the following types of insurance offered:
- Collision or loss damage waiver. Most rental car companies will offer this to customers, although it is not technically insurance. If you damage the rental car, the waiver will help pay for repairs and loss of revenue use.
- Liability insurance. Liability insurance through the rental car company is usually intended to extend the limits of your personal auto insurance limits and increase your protection in case you damage someone else’s property or injure them.
- Personal effects insurance. The rental car company may offer insurance to protect your personal belongings if they are stolen from the rental car, such as your laptop or phone.
- Personal accident insurance. If you or your passengers are injured after a car crash, personal accident insurance will help pay for your medical bills. This coverage may also be called personal injury protection (PIP) insurance or medical payment coverage.
If you don’t have collision and comprehensive insurance on your own auto insurance policy, purchasing the collision or loss damage waiver is vital. Otherwise, you’ll have to pay out of pocket for damages to the rental if you don’t carry full coverage insurance for a rental car.
When should I get insurance from a rental car company?
You should get rental car insurance from a company if you don’t have your own auto insurance policy. At a minimum, you’ll need to purchase liability coverage.
Even if you have your own auto insurance policy, you should consider buying extra coverage from the rental car company if you don’t have extras like comprehensive or collision coverage. Doing so will ensure you don’t have to pay out of pocket if you crash the rental car or the other driver doesn’t have enough insurance to cover repairs.
Finally, if you are traveling abroad and renting a car, your personal auto insurance policy may not cover you. If that’s the case, you should purchase coverage from the rental car company.
Third-Party Rental Car Insurance Coverage
What rental car insurance company is best? If you don’t want to purchase rental car insurance at the counter, and your own car insurance won’t cover you, then there are a few places to purchase the best rental car insurance explicitly meant for rental cars.
Allianz Travel Rental Auto Insurance
Allianz Travel insurance policies have a rental car package called OneTrip Rental Car Protector. This coverage will pay for losses up to $50,000 after an accident. The car rental insurance costs only $11 per day, and Allianz Travel also offers 24/7 emergency assistance.
If you are looking for a quick and cheap option where you don’t have to use your own insurance, you may want to look into Allianz Travel. Allianz Travel also sells coverage in other countries, so you can purchase car rental insurance wherever you travel. Check out our Allianz auto insurance review for more information.
Bonzah Rental Auto Insurance
Bonzah offers rental car coverage in all 50 states and other countries. Damage insurance at Bonzah will cover up to $35,000 of accident costs if you collide with another vehicle, and you can also purchase supplemental liability insurance. The cost is usually less than $10 a day for a Bonzah rental car plan.
Rental Cover Rental Auto Insurance
Like the other companies on our list, Rental Cover provides insurance in the U.S. and abroad. It has collision insurance as well as supplemental liability insurance.
While Rental Cover doesn’t list its prices, it claims to be 50% cheaper than the average insurance cost of rental coverage at the counter, which is $29. Therefore, Rental Cover should provide coverage for less than $20 daily.
Sure Rental Auto Insurance
Sure is underwritten by Chubb National Insurance Company and will cover up to $100,000 in physical damages to the rental car, which is more than what other rental car insurance companies provide. It also includes coverage for flat tires, lost keys, and other mishaps.
However, Sure doesn’t list prices readily on its website, so you’ll have to get quotes to determine how much it will cost. You can find more information about Sure and other subsidiaries of Chubb by reading our Chubb auto insurance review.
Credit Card Companies and Rental Car Insurance
Sometimes, your credit card company may offer additional protection if you pay for the rental car using their credit card. You can call your credit card company’s number to see if this is a perk that it offers.
Keep in mind that the insurance offered by credit card companies is usually secondary coverage meant to be added to your primary insurance. So, if the accident costs go beyond your policy limits, the extra coverage provided by the credit card company will pick up the rest of the bill.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
The Final Word on Rental Car Insurance
Is rental car insurance worth it? If you have a full coverage auto insurance policy at your personal insurance company, it is usually best to first see if your policy will cover rental cars.
If your insurance company doesn’t cover rental cars or you don’t have full coverage, you should purchase rental car insurance.
It is usually cheaper to get rental car insurance from an outside party than the rental car company. You can also check with your credit card company to see if they offer extra coverage.
To find the best insurance company rates in your area for your personal and rental car, use our free quote comparison tool below.
Frequently Asked Questions
What is insurance for rental cars?
Rental car insurance protects you when you drive a rental car. It works the same way as your personal auto insurance by paying for damages and injuries after an accident. However, you may not need to carry rental car insurance if your personal auto insurance covers you.
Is rental car reimbursement the same as rental car insurance?
No, rental car reimbursement is an optional coverage you can add to your personal auto insurance policy. If you crash your personal car, rental car reimbursement will pay for a rental car until your vehicle is repaired.
Should drivers buy rental car insurance from rental companies?
Wondering — should I get rental car insurance? It is usually best to first see if your auto insurance coverage will cover your rental car.
However, if you don’t have personal auto insurance, a full auto insurance policy, or are traveling overseas, you should purchase car insurance from a rental car company.
How much does rental car insurance cost?
The cost of rental car insurance can vary depending on factors such as the rental car company, the type and level of coverage, the duration of the rental, and your location. It’s best to compare prices from different providers to find the most affordable option for your needs.
What is a loss damage waiver (LDW)?
A loss damage waiver, often offered by rental car companies, is not technically insurance but a contractual agreement. It releases you from financial responsibility if the rental car is damaged, stolen, or involved in an accident. However, it’s important to review the terms and conditions of the waiver, as certain exclusions and limitations may apply.
Can I decline rental car insurance at the counter?
Yes, you can decline rental car insurance at the counter if you have coverage through your personal auto insurance policy or other means. However, be sure to understand the potential risks and consequences before making this decision. It’s always a good idea to review your existing coverage and consult with your insurance provider if you have any doubts.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.