Should You Get the Insurance When You Rent a Car?
You’ve just landed at your destination, bags in hand, and you’re ready to pick up your rental car. Then comes the inevitable question from the rental agent:
“Would you like to add the insurance?”
For many travelers, this moment causes hesitation. Do you really need it? Or is it just an extra expense you can skip? Let’s break it down so you can make a confident choice on your next trip.
1. What the Rental Car Insurance Covers
Most rental car companies offer several types of coverage:
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Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): Covers damage to or theft of the rental car. Without it, you could be responsible for the full repair or replacement cost.
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Liability Coverage: Protects you if you cause injury or property damage to others while driving.
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Personal Accident Insurance: Covers medical expenses for you and your passengers.
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Personal Effects Coverage: Protects your belongings if they’re stolen from the rental car.
2. Check Before You Buy
Before you automatically accept or decline coverage, take a minute to check what you already have:
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Your Personal Auto Insurance: Many personal auto policies extend coverage to rental cars, especially within the U.S. Be sure to check the details and deductible amounts.
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Your Credit Card: Some major credit cards offer secondary (or even primary) rental car insurance if you use the card to pay for the rental. Call your card provider before your trip to confirm what’s included and what’s not.
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Travel Insurance: If you purchased travel insurance, look to see if it includes rental car coverage—some policies do!
3. When You Should Consider Buying It
There are times when purchasing the rental company’s insurance is a smart move:
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You don’t have your own car insurance or it doesn’t cover rentals.
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You’re traveling internationally—your U.S. auto policy and credit card benefits often don’t apply outside the country.
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You want to avoid potential hassles—using the rental company’s coverage can make damage claims quick and stress-free.
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You’re renting a luxury or specialty car that might not be fully covered under your existing insurance.
4. When You Might Skip It
If you already have solid coverage through your personal insurance or credit card—and you’re renting domestically—then declining the extra insurance could save you money. Just make sure you understand your deductible and limits before you drive off the lot.
5. The Bottom Line
Rental car insurance isn’t one-size-fits-all. The best decision depends on what protection you already have, where you’re traveling, and your comfort level with risk.
If in doubt, spend a few minutes reviewing your current coverage before your trip—it could save you hundreds at the rental counter and give you peace of mind on the road.
My Delta American Express credit card provides complimentary rental car insurance, typically as a secondary benefit that covers damage or theft of the rental vehicle. To be eligible, you must pay for the entire rental with the card and decline the rental company's collision damage waiver. For a higher coverage limit or primary coverage, you may have the option to enroll in a separate, paid "Premium Car Rental Protection" plan. Check into your credit card rental car insurance policies before traveling.
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