When i rent a car do i need the insurance

Table of Contents Show

Can I Rent a Car Without Having Insurance?
What Is Rental Car Insurance?
Do I Need Rental Car Insurance?
How To Tell If You Need Rental Car Insurance Coverage
Does My Credit Card Provide Rental Car Insurance?
What Is Covered Under A Typical Rental Car Insurance Policy?
Insurance You May Have Already
Rental Car Coverages You Might Need

No. We provide a damage waiver and it's included in the cost of your hire
The damage waiver comes with an excess
You do have the option to purchase additional protection products to lower the excess

Liability insurance is provided with your rental vehicle. You may reduce your responsibility for damages to or the theft of the rental vehicle by choosing any of our protection products available to you.

<< Go Back to Full List of FAQs

You've got everything you need for your weekend road trip: snacks, sunscreen and the perfect playlist. Now you just need to pick up the convertible you reserved from the rental company. But do you need car insurance to rent the car? You can usually rent a car without showing proof of insurance, but you'll still need to purchase insurance before you can hit the road. Here's how to make sure you're covered when you drive off the rental lot.

Can I Rent a Car Without Having Insurance?

You typically don't need to show proof of insurance when renting a car unless you use a debit card to pay for it. (Many insurers don't allow this and require a credit card instead.) If you use a credit card, you won't need proof of insurance, but you'll still need to purchase some level of insurance to rent the vehicle. There are several options for this.

Rental company's car insurance: Car rental companies provide temporary car insurance that you can buy for the term of your rental. This will be offered at the time you rent the car.
Your own car insurance: If you already have car insurance, that insurance also covers cars rented for personal use. As long as you aren't renting the car for business, you can decline the rental company's extra insurance. If you don't have car insurance but were considering purchasing it, now may be a good time to research your options.
Non-owner car insurance: If you don't own a car but frequently rent them, consider purchasing non-owner car insurance. Also called non-driver insurance, this type of policy provides liability coverage for property damages or bodily injury you cause while driving a car you don't own. It may also include personal injury protection or medical payments coverage, which pays medical and other costs if your passengers are hurt in an accident while you're driving. Non-owner insurance doesn't cover damage to or loss of the rental car, so you'll need other options for that.
Credit card coverage: Some credit cards include car rental insurance when you rent a car using the card.

To find out if your credit card offers car rental insurance and what type of coverage it includes, check your credit card agreement or call the number on the back of your card. Policies vary from one card to another, so be sure you understand your policy's coverage, requirements and exclusions. For instance, some policies exclude long-term rentals or certain types of vehicles. Coverage may require that you decline the car rental company's coverage, use the card to pay all charges for the rental car, or file a claim within a certain time frame.

Also check to see if the credit card provides primary or secondary rental car coverage. Primary coverage is rarer and means you can file a claim with the credit card benefits administrator before filing a claim with your own car insurance or homeowners insurance. If the credit card policy covers the damage, you won't have to pay your own insurance policy's deductible or worry about your premiums rising. Secondary coverage kicks in only after any benefits from your own insurance policy have been exhausted. It may cover any deductibles you have to pay your insurance company.

If you don't have a credit card that includes car rental insurance, you may want to apply for one that does. These types of cards may require good or better credit or better and offer plenty of other rewards and benefits.

A personal credit card that has rental car coverage may not cover a car rented for business. For that, you'll want to use a business credit card.

After you determine what your car insurance and your credit card cover, consider whether you need any of the rental agency's insurance products. You'll generally be offered four types of rental car coverage:

Loss damage waiver (LDW) or collision damage waiver: This covers damage to or theft of the rental car, similar to the collision and comprehensive coverage in a car insurance policy. Most LDWs also cover loss of use while the car is being repaired; some also cover towing or any administrative fees the rental company charges. Clarify what is covered and what might void the coverage; for example, accidents due to speeding, driving while intoxicated or driving on unpaved roads are typically not covered. Cost: $9 to $19 per day.
Liability coverage: This provides financial protection from lawsuits related to accidents you cause while driving the rental vehicle. Car rental agencies must provide the minimum amount of liability insurance required by state law. However, these minimums tend to be low, so you may want to buy supplemental liability insurance to protect yourself. Cost: $7 to 14 per day.
Personal accident insurance (PAI): PAI covers medical bills for you and your passengers. If you have health insurance or have medical coverage or personal injury protection through your car insurance policy, you probably don't need PAI. Cost: $1 to $5 per day.
Personal effects protection (PEP): PEP covers personal items stolen from the rental car. Homeowners or renters insurance that includes off-premises coverage generally covers this, but you'll have to pay your deductible if you file a homeowners claim. If the car rental company's PEP doesn't have a deductible, paying $1 to $4 per day for this coverage may be worthwhile.

Before purchasing any type of coverage from the rental car company, make sure you understand its dollar limits, exclusions and requirements—and whether you may already be covered by your insurance policy or your credit card's policy.

Paying for a rental car accident or theft out of pocket could cost you tens of thousands of dollars. Before you hop into the driver's seat, make sure you're adequately insured by your own car insurance, the rental company's coverage or your credit card's policy.

Good credit can make it easier to qualify for credit cards that include rental car coverage. Before applying for such a card, review your credit report for accuracy and check your credit score. Taking a few simple steps, such as paying down debt and bringing late accounts current, can help improve your credit score so you can get the credit card you want.

You’re standing at the rental car counter with a long line behind you. You got a great rate on a car for the week, and you’re ready to go on vacation with the family. Then, you’re handed a clipboard with an intimidating rental car contract filled with confusing insurance options. Suddenly, you wish you’d spent less time packing and more time researching rental car insurance.

Since rental car insurance isn’t something most of us will deal with on a daily basis, it’s easy to get confused or overwhelmed when presented with a choice for this type of coverage. Continue reading on to learn some basic facts about rental car insurance and whether or not you need extra coverage beyond your personal auto insurance policy.

What Is Rental Car Insurance?

Not to be confused with rental reimbursement coverage, which is an add-on to your auto insurance policy that provides reimbursement for a rental car in the event your car is being repaired due to a covered loss or accident, rental car insurance is insurance that covers you when you rent a vehicle directly from a rental car company, such as Enterprise Rent-A-Car. When you’re renting a car at the airport or at another rental car location, you will be asked whether you want to add insurance to your rental, or whether you want to waive the insurance.

Do I Need Rental Car Insurance?

The most common question when it comes to renting a car for domestic travel is “do I need rental car insurance coverage?” The answer is: it depends. You want to make sure you and your rental vehicle are covered, but you also don’t want to pay for unnecessary duplicate insurance coverages that could double the price of your rental.

How To Tell If You Need Rental Car Insurance Coverage

The first step is to check your auto insurance policy, or contact your provider to see what type of coverage for rental cars may already be included in your personal auto insurance policy. If you carry comprehensive and liability coverage on your personal car, coverage typically will extend to your rental car within the United States.

If you’re renting a car in the U.S. of similar value to your personal car, in all likelihood your auto insurance coverage will be adequate for the rental. But if you’re off to a blowout beach weekend in a slick set of wheels like a Corvette Stingray and you’re leaving your 2008 Subaru Forester at home, purchasing the extra auto insurance coverage offered by the rental company may be a good idea.

Does My Credit Card Provide Rental Car Insurance?

You should also check with your credit card company—the credit card that you’ll be using for your car rental. If there are any gaps in coverage with your personal auto policy, the credit card company could provide secondary coverage.

What Is Covered Under A Typical Rental Car Insurance Policy?

Most rental companies typically have a short, predictable suite of rental vehicle insurance offerings. Know the policy of your rental company before you arrive at the counter. Check your personal auto insurance policy to determine if you’re already properly covered and are able to decline the offered coverage from the rental company.

Rental car insurance is usually broken out into the following coverages:

Liability coverage
Personal accident insurance
Collision Damage Waiver (CDW)/Loss Damage Waiver
Personal Effects Coverage

Insurance You May Have Already

Liability Coverage

This is a basic component of most car insurance policies. If you have adequate liability coverage on your own vehicle (check with your insurance provider), you may choose to skip this one.

Personal Accident Insurance

This covers your medical bills in the event of a crash in the rental car. As long as you have personal injury protection or medical payments coverage on your auto policy and reliable health insurance, you may not need this coverage.

Rental Car Coverages You Might Need

Collision Damage Waiver (CDW)/Loss Damage Waiver

This is not an insurance product, but rather a waiver that transfers financial responsibility from you to the rental car company in case of damage or theft. In most cases, collision damage waivers also provide coverage for “loss of use” if the rental car company charges for the time a damaged car can not be used because it is being repaired.

Personal Effects Coverage

If you have a homeowners, renters or condo policy, your personal items will generally be covered even if they are stolen from a rental car. Review your policy documents to be sure before you elect or decline this coverage.

Next steps: To learn more about your policy and rental car insurance, call us at 1-800-841-0728 or review your policy documents on geico.com. Or, if you’re looking for a new auto policy, compare car insurance and see why GEICO is the right choice.