This article is intended to give you a general overview of insurance for car rentals, including information about the types of insurance for car rentals, information on their cost, and other related information.
Car rental insurance is a type of third-party auto insurance that provides coverage to the renter of a vehicle – it is an essential, yet often overlooked insurance policy.
Rental companies typically require all renters to have car rental insurance, and the cost is usually included in the cost of renting a vehicle.
There are many benefits to having this type of insurance.
One, it includes an unlimited number of miles, so there is no need to worry about additional fees or penalties for exceeding your personal mileage limit while renting a car.
Two, it also covers any damages done by the renter to the car while they are renting it.
Finally, if there was an accident and you were found at fault, your car rental insurance would cover you under any liability for damage or injuries that may have been caused by your negligence while driving the rented vehicle.
Mostly, the cost of car rental insurance is usually $10-$30 per day for most vehicles.
Those who want to avoid paying these costs can sign up for other types of coverage through their personal auto insurance provider.
Types of Car Rental Insurance Policies
Car rental insurance is an optional service that renters may purchase in order to protect themselves against accidents or damages incurred during their rental.
There are two main types of car rental insurance policies:
- Collision Damage Waiver (CDW)
- Loss Damage Waiver (LDW).
CDW will cover most damages to the vehicle, including theft or vandalism, but not collision damage. LDW covers all damage to the vehicle except collision damage.
LDW is more expensive than CDW, but it’s worth it if you plan on driving on your own.
The deductible for each type of policy varies depending on which company you go.
How Much Does Car Rental Insurance Cost?
Auto insurance is an insurance plan designed to protect your vehicle against any accidental damages.
The cost of car rental insurance depends on the level of protection that you want to get.
Car rental insurance is usually offered by the car rental company or by a third-party insurer, who will offer an additional charge for this service.
If you buy it through the car rental company, this will be added to your total cost when you pick up the car and check out.
When buying it from a third-party insurer, you can usually get auto insurance for about $10 to $30 per day when renting up to 48 days.
Do You Need Insurance To Rent A Car?
There are no mandatory requirements to have your own car insurance policy if you are renting a car.
However, most rental agencies only provide limited insurance coverage for their vehicles, which could leave you responsible for significant expenses if you are involved in an accident.
Buying Rental Car Insurance On Your Own
If you want to rent a car but do not want to purchase insurance at the rental counter, some companies offer standalone policy options for you to choose from.
If you want to utilize these, you should usually decline the coverage offered by the rental company.
- Allianz Global Assistance
There is a Rental Car Damage Protector offered by Allianz Global Assistance that is available for $10 per day and covers damages and losses up to $75,000.
In addition to offering basic coverage, it also offers 24-hour emergency assistance, so you won’t have to worry about it before your own auto insurance pays out.
Starting at $7.99 per day, Bonzah offers insurance that covers up to $35,000 in repairs or replacements for vehicles.
- Insure My Rental Car
Loss damage waivers are provided by Insure My Rental Car, an insurance company that covers up to $100,000 in damage to your rental vehicle.
The amount of coverage available for purchase varies from a day (starting at $9.75) to the full year.
- Rental Cover
You can get a no-deductible insurance policy from Rental Cover, which is considered primary insurance and you would not have to make a claim with your auto insurance company first.
Country-specific coverage options are available.
Although Rental Cover does not list prices on their website, they claim to offer discounts of up to 50% compared to the rental desks.