Car insurance for rental cars provides the necessary coverage when you drive a rental vehicle. It offers protection in case of injuries or damage to the car. This ensures that you do not have to bear a financial burden.

If your policy does not cover rental cars, you will need to purchase a separate insurance policy. Read on as we explore why you need insurance for rental cars, how it works, and when you may not need one.

Do You Need Car Insurance to Rent a Car?

When renting a car, you'll need some form of insurance coverage. But a personal insurance policy isn't necessary.

It is necessary to have car insurance or proof of financial responsibility to drive a car legally in every state in the U.S. 

Here are the ways you can get insurance on rental cars:

• Use your own car insurance policy
• Get temporary insurance from the rental company
• Use a credit card that offers rental car coverage to rent a car
• Obtain short-term or non-owner car insurance

When Do You Need Rental Car Insurance?

There are multiple reasons to rent a car. Some of them are:

• You are on vacation and visiting your friends or family
• Your car is awaiting repairs or payout from the insurance company
• You have bought a new car and it has not arrived yet, but you need to ride in one

Signs You Should Opt for Rental Car Insurance

Here's why you will need to obtain car rental insurance:

• If your personal car insurance has a high deductible
• You don't want to claim your own policy, as it can increase premium costs
• When your personal car insurance policy has spotty coverage
• If your personal car insurance has low coverage limits
• Your credit card does not offer enough coverage
• When your personal car rental insurance or credit card does not offer coverage

Types of Rental Car Insurance

Your auto insurance and credit card may provide full coverage, but if not, you may need to purchase car insurance to obtain comprehensive coverage.

Here are the types of coverage to choose from:

• Collision Damage Waiver: Also known as loss damage waiver, it covers the financial liability if your vehicle is stolen or damaged.
• Liability Insurance: If you cause an accident, it covers the legal costs. As per the law, insurance companies must provide a minimum level of liability coverage when you rent a car.
• Personal Accident Insurance (PAI): Personal Accident Insurance covers the medical expenses for you and the passengers.
• Personal Effects Protection (PEP): Pays to replace personal property stolen from the rental car. 

Where Can You Buy Car Insurance for Rental Cars

You can buy car insurance from the car rental company when renting or picking up the car. Plus, you can also buy rental car insurance online from a third-party insurance company.

Here are some things you need to consider when buying insurance for your car:

• Check if your personal auto policy includes coverage for car rentals.
• Rental company insurance can be more expensive than third-party providers. So, weigh different options.
• Review credit card benefits to check secondary or primary rental car coverage when you use them to book and pay.
• Check exclusions, as not all policies cover international rentals, luxury vehicles, or more.
• Verify the type of coverage to ensure it covers liability, collision, and theft protection.

Final Words

Insurance for rental cars covers injuries or damage to the vehicle. It saves you from the financial burden. Review personal car insurance and credit coverage before selecting a plan. Check the limits, terms, and conditions to assess the type of coverage you need. 

Consider the nature of your trip, destination, and rental duration to determine if extra protection is worth the cost. With ConsumerCoverage, you can easily compare rental insurance options, saving you stress and unexpected expenses later.