Renting a Car With Insurance

Written by  Aaron Besson

Edited by  Bryan Ochalla

+ 1 More

Published Oct 29, 2025 Content was accurate at the time of publication.

Do you need insurance to rent a car?

You must show proof of car insurance before you can drive a rental car. You can get rental car insurance from:

Does my insurance cover rental cars?

Your car insurance usually covers a rental car for personal trips. But some car insurance companies don’t cover rentals if you’re driving for business.

What does my car insurance cover on a rental car?

Your car insurance usually covers the same things for rental vehicles as it does for your own, including:

Liability

Liability car insurance pays for injuries and damage you cause to others in a rental car. It can also cover your legal fees after an accident.

Personal injury protection (PIP)

This coverage helps pay your medical bills and those of your passengers after an accident, no matter who caused it. It can also cover lost wages, physical therapy and funeral costs.

Medical payments coverage

This is a more limited version of PIP. It only pays medical bills, and the limits are lower than PIP.

Collision

If you have full coverage car insurance, this coverage can help fix or replace the rental car after a crash. You’ll still have to pay your deductible Your deductible is your share of repair costs for a collision or comp claim. Your insurance company pays the rest. .

Comprehensive

Also part of full coverage. If the rental car is stolen or damaged by something other than a crash, this helps pay for repairs minus your deductible.

Rental reimbursement coverage

If you add this to your policy, it pays for a rental car while your own car is in the shop after an accident.

This only helps if your car is in the shop after an accident. It doesn’t cover a rental if your car breaks down or goes in for routine maintenance.

What are the types of rental car insurance coverage?

The rental car insurance you get from a rental car agency or other company usually includes liability, collision damage and other valuable coverages.

Liability

Like the liability coverage that’s part of your own car insurance, this pays for injuries or damage you cause to others while driving a rental car.

Loss damage waiver (aka “collision damage waiver”)

Also called a collision damage waiver, this protects you from paying for anything out of your own pocket if the rental car is stolen or damaged.

Supplemental liability insurance (SLI)

This gives you higher coverage limits for injuries or property damage you cause when driving a rental vehicle. You must already have liability coverage to buy it.

Personal accident insurance (PAI)

PAI can help cover medical bills if you or your passengers get hurt in a rental car. It may also cover ambulance costs as well as accidental death and dismemberment.

Personal effects coverage (PEC)

PEC covers your belongings if someone steals them from your rental car. Your home or renters insurance may already cover this.

How much does rental car insurance cost?

The price of rental car insurance depends on the type of coverage you buy. On average, rental car insurance costs $32 to $75 per day. Here’s the breakdown:

These factors can also impact what you pay for rental car insurance:

How to get the best, cheap rental car insurance

To find the best mix of cost and coverage when getting a rental car insurance policy, bundle with travel insurance, use membership perks and don’t ignore third-party companies.

Buy third-party rental car insurance

Their quotes are often cheaper than what you’ll pay at the rental counter. If you have time, compare prices. Popular rental car insurance companies include:

Bundle with travel insurance

Many travel insurance plans include rental car coverage. If it’s not included, you can usually add it.

The price depends on whether the rental car coverage is primary or secondary. Primary coverage costs more because it pays first if there’s an accident. Secondary coverage is cheaper, but it only pays after your own car insurance has reached its limit.

Use membership perks 

Groups like AAA, AARP and even stores like Costco partner with rental car insurance companies to offer lower rates. Check your membership benefits to see if you can save money.

Is rental car insurance worth it?

Rental car insurance is worth it if you need a rental car for business travel or if you’ll be driving outside the U.S.

Standard car insurance usually doesn’t cover business use. If you rent cars for work trips, rental car insurance is a smart option.

Your regular car insurance also usually won’t cover you abroad, but rental car insurance is available in most countries.

Another reason rental car insurance can be worth it is that you usually don’t have to pay a deductible for it if you’re in an accident. Plus, accidents covered by it usually don’t show up on your personal insurance record, so your rates won’t go up.