Do I Have to Get Insurance to Rent a Car?

Before purchasing insurance for a rented car, first consider several factors such as how long you are renting the car, your own insurance policy, and your own driving record. For some people, insurance purchased from the company renting the car may not be necessary as their own insurance may cover it. Remember, if your insurance does not include collision and comprehensive coverage, you will not be covered in the event that the rental car is damaged.

My car insurance doesn’t cover rental cars, now what?

If you find that your car insurance doesn’t cover rentals, you can easily purchase car insurance from the company renting the car to you. Keep in mind that the cost of these coverages vary depending on what type of car is rented, what company it is rented from, and your own driving and credit history:

Collision Damage Waiver: This is the most expensive of rental car insurance policies, costing $14-$20 per day, though it also provides the most coverage. With this coverage, you will not be financially responsible if the car is damaged or stolen. The coverage may be void however, if it is found that you caused damaged while intoxicated or driving on unpaved roads.
Liability Insurance: Liability provides excess coverage of up to $1 million, although not all rental insurance companies may offer this much. Rental companies are required to offer the minimum level of insurance to you, in which case you may not be covered if you get into a serious accident. If you aren’t already covered, liability will typically cost between $9-$14 per day.
Personal Accident Insurance: Personal accident insurance provides you and any passengers in your car with medical coverage. It is fairly cheap, usually less than $5 a day, and may not even be needed if you have adequate health and medical insurance.
Personal Effects Coverage: This type of insurance provides coverage for personal items that may be stolen in your car, though you will need receipts or proof of ownership of the items. It ranges from $1-$4 per day, but may not be necessary if it is covered by your home or renter’s insurance.

I frequently rent cars, but don’t own one, is there a cheaper way to get insurance?

If you rent cars often, it may be cheaper for you to purchase non-owned liability insurance for about $300 a month, depending on the company. A non-owned policy will cover any damage you do to other cars or injuries you cause in an accident, as well as medical coverage for you and your passengers. However, it does not cover collision damage, or the damage you do to the car you are in. This will need to be purchased from the rental car company each time you rent a car.