Do You Need Rental Car Insurance? What Your Policy and Card Cover
Rental counters offer several add-ons. You may already have some of that protection, and checking before you travel can save money and surprises.
Quick checklist
- A collision damage waiver (CDW or LDW) isn’t insurance; it’s the rental company agreeing not to charge you for damage or theft.
- Your personal auto policy may extend its coverage to rental cars in the U.S., including liability.
- Many credit cards offer rental car damage coverage, usually secondary, if you pay with the card and decline the CDW.
- Supplemental liability insurance adds liability protection above what your own policy provides.
- Coverage abroad can be very different, so check before renting outside the U.S.
At the rental counter, you’ll usually be offered several protection products. Before saying yes or no, it helps to know what you already have.
Rental counter products
| Product | What it does |
|---|---|
| Collision or loss damage waiver (CDW/LDW) | Waives your responsibility for damage to or theft of the rental car |
| Supplemental liability insurance (SLI) | Adds liability protection for injuries or damage to others |
| Personal accident insurance | Pays medical costs for you and passengers |
| Personal effects coverage | Covers belongings stolen from the car |
What your own policy may cover
If you have a personal auto policy, its coverage often extends to rental cars driven in the U.S. for personal use:
- Liability usually carries over.
- Collision and comprehensive may apply if you carry them, subject to your deductible.
Call your insurer or check your policy before your trip.
Credit card coverage
Many credit cards include rental car damage coverage when you pay with the card and decline the rental company’s waiver. It’s usually secondary, paying after your own insurance, though some cards offer primary coverage. Card coverage rarely includes liability.
Driver tip
Before you travel, check three things: your auto policy, your credit card’s benefits guide and the rental agreement’s terms. Knowing what each covers tells you which counter products, if any, to buy.
Renting abroad
Your U.S. auto policy may not cover you in other countries, and some countries have their own insurance requirements. Credit card coverage also varies by country. Plan coverage before an international trip.
If something happens
Follow our after-an-accident checklist, tell the rental company immediately and contact your insurer and card issuer. If you’re renting because your own car was totaled, see our guide to total losses.
Driver questions
What is ‘loss of use’?
Rental companies may charge for the time a damaged car can’t be rented. Not all personal policies or credit cards cover it, so check.
Do I need rental coverage if I don’t own a car?
Without a personal auto policy, you may need the rental company’s coverage or a non-owner policy for liability protection.
Does my policy cover moving trucks?
Often not. Many policies exclude large trucks and vans, so check before renting one.
What should I do when picking up the car?
Walk around it, photograph any existing damage and make sure it’s recorded on the rental agreement before you drive away.
Car insurance rules vary by state and by policy. This guide is general information, not legal or insurance advice; check your policy and your state insurance department for details.