Compare Rental Car Insurance: Rates, Discounts, & Requirements [2023]
Rental car insurance may be necessary to meet state insurance requirements. Rental car insurance providers can include your car insurance policy, your rental car credit card, or a loyalty program. Car rental insurance rates typically range between $9.00 and $35.99 per day. Don't rely on last-minute car insurance decisions. Be prepared when the car rental company offers insurance options. Start reading to learn more.
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Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
UPDATED: Sep 28, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above 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: Sep 28, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- You must carry car insurance to drive
- Your existing car insurance policy may cover you in a rental vehicle
- Your credit card may offer car insurance coverage
- You may be able to receive loyalty rewards on car rentals
Most of us feel we need to have a master’s degree in car rental insurance to figure this stuff out!
After all, it’s not in the rental company’s interest to make it simple—so we’ve done it for you. Understanding your car insurance policy can help you determine whether or not you’ll need to purchase additional coverage.Sure, rental car insurance can be confusing. But we can help you find affordable rental car insurance quotes.Still asking, “How should I insure my rental car?”Read more to learn all about how car rental insurance works, how to compare car rental insurance rates, and then be sure to enter your ZIP code in our free tool to get a free quote today.
Car Rental Insurance
You know that in order to legally drive, you’re required to meet at least the minimum liablity car insurance coverage set by the state in which you’re driving. What is liablity coverage? Watch this video for more.https://www.youtube.com/watch?v=04SZGS6DdVMSo do you need car rental insurance? Which rental car insurance providers should you consider purchasing insurance from? Does your car rental company offer insurance? Can you get rental car insurance online?Keep reading to find out the answers to these and other questions regarding insuring your rental car.
Do You Really Need Car Rental Insurance?
Make no mistake, you will be asked if you want insurance for your rental car. Yearly car insurance for rental cars is not typically available. Instead, it’s usually charged by the day or the week. Here are some daily car rental insurance rates by company:
Insurance Companies | Loss Damage Waiver Cost per Day | Supplemental Liability Insurance Cost per Day |
---|---|---|
Dollar | $8.95 - $34.99 | $8.95 - $12.99 |
Thrifty | $8.95 - $34.99 | $8.95 - $12.99 |
Hertz | $9.00 - $35.99 | $10.95 - $12.95 |
Avis | $9.00 - $35.99 | $10.95 or $12.95 |
Budget | $9.00 - $35.99 | $10.95 or $12.95 |
Enterprise | $10.00 - $15 | $10.00 - $16 |
Alamo | $10.50 - $22.99 | $11.95 - $12.95 |
National | $10.50 - $22.99 | $11.95 - $12.95 |
As you can see, rates vary by company, and even for a given company, daily rates can vary by as much as $20.
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Rental Car Insurance Definitions
Rental car insurance is slightly different from your current policy. The rental car insurance agency usually offers coverage slightly above the average state required minimum.
Otherwise, there are strong similarities. The rental agency offers coverage in different terms than what the driver is used to, such as:
- CDW – Collision damage waiver
- LDW – Loss damage waiver
- PAE – Personal accident and effects
Although different terms are used, they basically cover some of the same things with limitations in terms and conditions.
According to the Insurance Information Institute, loss damage waiver (LDW) covers you from liability if a car is damaged in any way or stolen. There are limitations, however, and if the damage is the result of poor driving (like speeding, for example), the waiver may be voided.
Supplemental liability insurance protects you from lawsuits by victims of accidents involving a rental.
When you buy rental car insurance, you need the proper amount of coverage.Multiply the daily rate for coverage by the number of days you’re going to have the car, and you can see how expensive rental car insurance can be.But don’t worry, just follow these simple steps detailed below, and you’ll know the answer to the question, “Do you want insurance with your rental today?” before you even step to the counter.And maybe even be able to negotiate cheap rental car insurance rates. Read our car insurance guide if you want even more information.
Step One: Personal or business?
If you’re renting your car on business, you may be covered under your company’s insurance policy, in which case you likely won’t need to worry about the rental car business insurance costs.Before you leave, find out from your corporate travel department if car rental insurance is covered.It’s possible that you may need to be added to the policy by providing a photocopy of your driver’s license. Your company has to have some type of insurance, so it pays to find out.If your trip is personal, read on.
Step Two: Are you covered under a current policy?
You’re already paying for car insurance because that’s the law. Find out if your car insurance policy covers rental cars.If it doesn’t already, you may be able to get a better deal by adding it to your policy, rather than getting it at the last-minute from a rental company.Here are some tips:
- Ask your agent – Find out your options from your insurance agent, or go to their website to find out more. If you’re wondering “how do I change car insurance agents?” because your current one isn’t very helpful, looking online or asking around is a good start.
- Look into non-owners car insurance – If you don’t own a car, it is possible to get non-owners insurance through your standard insurance provider
- Check your homeowner’s policy – Since it is usually cheaper to buy all of your insurance as a package with one insurer, you may save money buying rental insurance. Check into bundling policies for car and home insurance for more savings.
Make sure you check all the insurance policies that you have since you may be covered and not even know it.
Step Three: Does my credit card cover car rental insurance?
Many credit card companies offer car rental insurance as a benefit. This is most commonly found on cards that offer regular benefits as part of an annual fee—American Express is the best-known example.
To find out if your card offers car rental insurance, just call the phone number on the back of the card.
Make sure you go beyond just asking if rental insurance is offered, however. Sometimes these car rental policies are just secondary to regular insurance, such as supplemental liability.Find out for what and how much coverage you have before you hang up the phone with customer service.
Step Four: Be Loyal
Just like airlines, car rental companies have loyalty rewards programs. Along with the programs come special benefits like rental car insurance for good rates, or as part of an annual fee.If you’re a power traveler—or are planning to become one—find out whether these loyalty programs can benefit you. You’ll probably be surprised by the perks and not just rental insurance benefits.This is especially true if you plan on renting cars in another country.Sometimes it’s easier to work with the rental company than with your own insurer since they will be more familiar with the laws regarding insurance in that particular country.If you’re renting a car out-of-state and are wondering about rental car insurance, insurance rules should stay the same as the state where you are from.
Step Five: How to Save Money on Car Rental Insurance
At this point, if you’re not covered by the steps above, you need to accept some insurance from the rental company, or a third-party rental car insurance company, to make sure there are no out-of-pocket expenses if something happens to your car.It’s possible that your credit card or other insurance policies already offer the supplemental liability insurance benefit, so if you must have some sort of collision car insurance, go with the loss damage waiver.The car rental company is likely going to offer you various levels of coverage; just take the cheapest one that will cover you from common scratches and dings.Finally, of course, drive carefully. The best way to save money on insurance is not to get into any accidents!
Can I get cheap rental car insurance in a foreign country?
With an international driver’s license, you can rent and drive a car anywhere in the world.
This benefit comes in handy for business travelers who want to be self-sufficient while traveling abroad. Comprehensive car insurance for driving abroad may have different provisions although the basics are the same.
When an accident happens abroad, many rental agencies try to have the driver pay for damages up front with the promise to reimburse the driver later.
This can be a nightmare for some. Because laws differ from one country to another, there may be slight differences in what is offered. Most personal car insurance companies cover the rental and the driver abroad, although it is best to ask before the assumption is made.
The Bottom Line for Car Rental Insurance
When you’re looking for the best rental car insurance, there are a few things to keep in mind:
- In most cases, insurance is required in order to legally drive
- Check with your regular car insurance provider to find out if you’re already covered when you rent a car
- If your existing car insurance doesn’t cover you when you rent a car and you either can’t or don’t want to purchase coverage from the rental company, you may be able to obtain car rental coverage through your credit car company
Make sure to compare rates from potential providers to make sure you’re getting the best cheap car rental insurance in the USA for your needs.
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Enter your ZIP code below to view companies that have cheap car insurance rates.
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Frequently Asked Questions: Car Rental Insurance
Still have questions about rental car insurance? Read these frequently asked questions for more.
#1. Can I get last-minute car insurance?
You can obtain car insurance quickly by calling an insurance company or getting an online quote, but if you can give yourself a little more time to shop around, you’ll be able to get better rates than if you buy insurance from the first quote you get.
#2. Is business insurance for car rental firms required?
Typically companies like car rental firms need commercial auto insurance in addition to general liability coverage. This commerical coverage will help meet whatever state requirements are in place as well as cover the fleet of vehicles you’re renting out.Now that you’ve read through our rental car insurance guide, start comparing car insurance rates today by using your ZIP code in our free tool.
Frequently Asked Questions
How does rental car insurance differ from personal car insurance?
Rental car insurance typically offers coverage above the state-required minimums. While there are similarities, rental car insurance may have different terms and conditions, such as collision damage waivers (CDW), loss damage waivers (LDW), and personal accident insurance (PAE).
Do I really need car rental insurance?
Whether you need car rental insurance depends on your personal circumstances. If you already have a car insurance policy, it may provide coverage for rental cars. Additionally, some credit cards offer car rental insurance as a benefit. It’s important to check with your car insurance provider and credit card company to understand your existing coverage. If you’re not already covered, you may need to consider purchasing car rental insurance.
Can I get last-minute car insurance?
Yes, you can obtain car insurance quickly by calling an insurance company or getting an online quote. However, it’s advisable to give yourself a little more time to shop around so you can get better rates by comparing multiple options.
Is business insurance for car rental firms required?
Yes, typically car rental firms need commercial auto insurance in addition to general liability coverage. Commercial coverage helps meet state requirements and covers the fleet of vehicles being rented out.
How do I know if my credit card covers car rental insurance?
To find out if your credit card offers car rental insurance, you can call the phone number on the back of your card and inquire about the coverage. Be sure to ask about the specific coverage details and any limitations or exclusions.
How can I save money on car rental insurance?
To save money on car rental insurance, consider the following tips:
- Check if your existing car insurance policy covers rental cars and add it to your policy if necessary.
- Explore non-owners car insurance if you don’t own a car but need coverage.
- Check if bundling rental insurance with your homeowner’s policy can save you money.
- Take advantage of loyalty rewards programs offered by car rental companies, which may include rental car insurance benefits.
- Select the cheapest coverage option offered by the rental company that still provides necessary protection.
- Drive carefully to avoid accidents and minimize insurance costs.
What is a loss damage waiver (LDW)?
A loss damage waiver (LDW) is a type of car rental insurance that covers you from liability if a rental car is damaged or stolen. However, it may have limitations, and certain actions like poor driving (e.g., speeding) can void the waiver. LDW is often offered by car rental companies as an option to reduce your financial responsibility in case of damage or theft.
How can I obtain free rental car insurance quotes?
You can enter your ZIP code into our free quote tool to compare rental car insurance quotes from top companies. Comparing quotes allows you to find the best rates and coverage options that suit your needs.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Joel Ohman
Founder & CFP®
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...
Founder & CFP®
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.