What Are My Options for Car Rental Insurance?

“All rental car coverage is not created equally.” When renting a car, it’s crucial to understand your insurance options to protect yourself and avoid unexpected costs. Let’s break down the four main options for insuring your rental car.

Option 1: Use Your Existing Auto Insurance

If your personal auto insurance includes collision coverage, it may extend to rental cars. However, relying solely on your own insurance can have downsides:

• Deductibles: You’ll still be responsible for paying your deductible in the event of damage.
• Claims Impact: Filing a claim on your own insurance could raise your premiums in the future.
• Upfront Costs: You may need to cover the cost of repairs upfront and then seek reimbursement through your insurance claim.

It’s essential to review your policy ahead of time to understand what’s covered for rental cars.

Option 2: Credit Card Rental Coverage

Many credit cards offer free collision damage coverage when you use them to pay for a rental car. However, keep in mind:

• Secondary Coverage: This coverage typically kicks in only after your primary insurance has been used.
• Upfront Payment: You’ll still need to pay the rental company upfront for any damage and then seek reimbursement from your credit card provider.
• Loss-of-Use Issues: Some credit cards will only cover “loss of use” fees (what the rental company charges for the vehicle being out of service) if the rental company provides detailed logs, which they may not do promptly.

Always check with your credit card issuer to confirm the specifics of their rental car insurance benefits.

Option 3: Third-Party Car Rental Insurance

Third-party insurance is often offered when you book a rental car through travel sites like Expedia or Priceline. This coverage is typically more affordable than the rental company’s coverage and offers decent protection. However:

• Upfront Costs: Like other options, you’ll need to pay for damages upfront and file a claim for rental car reimbursement.
• Convenience: While it can be cheaper, third-party claims processes can sometimes be more cumbersome compared to other options.

Option 4: Collision Damage Waiver (CDW) from the Rental Company

The most comprehensive option is purchasing a Collision Damage Waiver (CDW) directly from the rental car company. While it’s commonly referred to as “rental car insurance,” it’s technically a waiver, meaning the rental company gives up its right to charge you for most damages.

• Convenience: With a CDW, you typically won’t have to pay anything out of pocket if the car is damaged (with some exceptions).
• Cost: The downside? CDW can be expensive—sometimes even more than the cost of the rental itself. Since rental companies make significant profits from selling CDW, they may heavily promote it at the counter.

How Much Is Rental Car Insurance Per Day?

The cost of rental car insurance per day in the U.S. varies based on the type of coverage you choose and the rental company. On average, rental car insurance can cost between $30 and $60 per day. This range includes options like collision damage waivers (CDW), liability coverage, and personal accident insurance.

For example, your personal auto insurance or credit card might offer rental coverage, but typically only up to a certain daily amount, such as $30 per day, with a maximum limit of $900 over 30 days. However, if the rental company’s daily rates are higher—say, $42 per day—you could end up paying out-of-pocket for the difference.

To avoid unexpected costs, it’s important to review your policy beforehand and understand any limitations. If the rental company’s insurance is more expensive, like $50 to $60 per day for full coverage, you might want to explore alternatives such as third-party insurance, which is often more affordable.

If you’re dealing with rental car damage or need collision repairs, CRS is here to help. We offer expert repair services, working with most major insurance companies to provide accurate estimates and assist with filing claims.

Our commitment to quality repairs, backed by guaranteed workmanship, ensures your vehicle gets back on the road quickly.Contact CRS today for top-notch service and a stress-free repair process tailored to your needs.