Do you need rental car insurance?
The counter upsell can nearly double the cost of a rental. Often you're already covered. Sometimes you're not. Here's how to tell before you get to the desk.
What the counter sells
| Product | Covers | Often already covered by |
|---|---|---|
| CDW / LDW (collision/loss damage waiver) | Damage to or theft of the rental car | Many travel credit cards; some personal auto policies |
| Supplemental liability (SLI) | Damage or injury you cause to others | Your personal auto policy (in the US); rarely credit cards |
| Personal accident (PAI) | Medical costs for you and passengers | Your health insurance |
| Personal effects | Belongings stolen from the car | Homeowners or renters insurance |
Three questions to answer before you rent
- Does my own auto policy extend to rentals? In the US, many personal policies do, at the same limits and deductible. Call your insurer and ask specifically about collision, liability and "loss of use" fees.
- Does my credit card cover rentals, and is it primary or secondary? Primary coverage pays first, so you don't need to claim on your own policy. Secondary pays only what your insurance doesn't. You usually must decline the counter CDW and pay for the whole rental with that card.
- Where am I renting? Card coverage often excludes some countries, exotic or large vehicles, and long rentals (often 15 to 31 days). In some countries basic liability is legally required and included in the rate.
At the counter: a checklist
- Photograph and video the car, inside and out, including fuel and mileage, before you leave.
- Decline only what you've confirmed you have. Initial the contract carefully.
- Return with the agreed fuel level and keep the final receipt.
- If there's damage, report it immediately and ask for the incident report. Card claims have strict deadlines.
Renting abroad? Pair this with a travel card with no foreign transaction fees, and check if you need an International Driving Permit for your destination.
FAQ
Should I buy CDW at the rental counter?
Not if your credit card or auto policy already covers collision damage for that rental. Confirm coverage, country and vehicle type before you decline it.
Does credit card rental insurance include liability?
Almost never. Card benefits usually cover damage to the rental car only, not injury or damage you cause to others.
What's the difference between primary and secondary rental coverage?
Primary pays first without involving your own insurer; secondary pays only what your personal policy doesn't.
Do I need rental insurance abroad?
Often yes for liability, which may be mandatory and included in the rate. Many card benefits also exclude certain countries, so check before you go.