When you’re standing at the rental car counter, the agent will inevitably ask: “Would you like to add insurance?” It’s a simple question with a complicated answer. You might already be covered through your personal car policy or credit card, but you also might not be. Understanding your options before you rent can save you money and stress.
Jerry has helped 127,554 drivers buy car insurance in the last year, including those who used their car insurance for a rental car.
Here’s what you need to know about protecting yourself without paying twice for coverage you already have.
Jerry pulls up to 20 quotes from top rated carriers.
Do you need rental car insurance?
The short answer: it depends on what coverage you already have. Many drivers are already protected through their personal car insurance or credit card benefits, but not everyone.
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Don’t have car insurance.
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Only have liability insurance.
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Are renting outside the U.S. or Canada.
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Are renting for business purposes.
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Have a high deductible on your personal policy and want to avoid paying it in the event of an accident.
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Want to avoid filing a claim on your personal insurance (which could raise your rates).
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You have full coverage car insurance, which includes liability, collision and comprehensive coverage.
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Your credit card offers primary or secondary rental car coverage.
Key takeaway: Check your personal policy and credit card benefits before you rent. You may already have the coverage you need.
What types of rental car insurance are available?
Rental car companies offer several types of coverage at the counter. Here’s what each one does and whether you’re likely to need it.
Loss damage waiver (LDW) / Collision damage waiver (CDW)
What it covers: Waives your financial responsibility if the rental car is damaged, stolen or totaled.
Do you need it? Recommended unless it’s covered by your credit card, or your personal car insurance policy includes collision and comprehensive coverage.
Supplemental liability insurance
What it covers: Increases liability coverage beyond the minimum included in your rental.
Do you need it? Recommended if your personal car insurance liability limits are the state minimum only.
Personal accident insurance
What it covers: Covers medical expenses for you and your passengers after an accident.
Do you need it? May not be needed if you have health insurance, or your car insurance policy includes medical payments coverage or PIP.
Personal effects coverage
What it covers: Covers theft of personal belongings from the rental car.
Do you need it? Not needed if you have home or renters insurance.
Why it matters: LDW/CDW is the most commonly pushed coverage at the rental counter, but it’s also the one you’re most likely to already have through your personal policy or credit card. Always check before you pay extra.
Does personal car insurance cover rental cars?
In many cases, yes. If you have full coverage (liability, collision, and comprehensive) on your personal policy, that coverage typically extends to rental cars, with the same limits and deductibles.
Here’s how a full coverage policy applies to a rental:
🛡️Liability insurance applies if you cause an accident in the rental car that injures others or damages their property.
💥 Collision coverage pays to repair the rental car if you’re in an accident, regardless of fault.
🌧️ Comprehensive coverage covers the rental car if it’s stolen, vandalized or damaged by weather or hitting an animal.
If you don’t own a car, non-owner car insurance can provide liability coverage when you rent. This policy is ideal for frequent renters who want protection without relying on the rental company’s expensive coverage options.
Key takeaway: Call your insurance company before you rent to confirm exactly what’s covered. A quick call can save you from surprises after an accident.
Avoid buying rental car insurance with Jerry
The cost of rental car insurance at the counter depends on the coverage and rental company, but it can quickly add up for a long trip. If you have your own car, you can get full coverage through the Jerry app, for as low as $185 per month to avoid having to get separate insurance for your rental.
Jerry partners with over 50 insurance carriers and makes it easy to compare quotes side-by-side in the app. You can adjust your limits, add coverages and then quickly switch insurers in the app. You’ll then be ready to go when you rent a car, knowing you’re fully covered.
Does rental reimbursement coverage apply to my rental car?
Rental reimbursement is a separate coverage you can add to your personal car policy, and it’s not the same as rental car insurance. Here’s the difference:
Rental car insurance
Covers damage to a rental car you’re driving on vacation or a trip, and is purchased from the rental company.
Rental reimbursement
Pays for a rental car when your personal car is in the shop after a covered accident. It’s an optional coverage type you can add to a full coverage policy.
Key takeaway: While rental reimbursement can be valuable to have on your personal car insurance policy, it only applies to a rental car you’re driving if your personal car is being repaired after a covered accident.
It only takes 2 minutes to sign up at Jerry.
faq
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🚗 What’s the difference between CDW and LDW?
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💵 Can the rental company force me to buy insurance?
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📉 What are ‘loss of use’ charges?
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🛡️ Does my credit card cover additional drivers?
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🔧 What about rental trucks or moving vans?
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📋 I don’t own a car. What should I do?
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✈️ What if I’m renting internationally?
Methodology
Data included in this analysis comes from policies that Jerry has quoted within the last 6 months for drivers with a clean record and that have full coverage, unless stated otherwise. Data related to violations, accidents or credit scores pull from quote data from the last 18 months. Jerry services 48 states and offers a range of insurance companies to choose from.
Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.
Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.
