Yes, you almost always need to have some form of insurance to rent a car legally in the United States. The rental company is required by law to provide the state-mandated minimum liability coverage with the rental. However, this baseline coverage is often very limited. The critical decision you face is whether to rely on your own existing insurance policies and credit card benefits or to purchase the rental company's additional coverages, like a Loss Damage Waiver (LDW) or Liability Insurance Supplement.
The most cost-effective path is typically through your personal auto insurance policy, which often extends to rental cars. You should verify your coverage levels, specifically for comprehensive and collision,
with your agent before you travel. Many premium credit cards also offer primary or secondary rental car insurance as a cardholder benefit, but you must usually decline the rental company's coverage and pay with that card for the benefit to apply. Purchasing insurance directly from the rental company (like Enterprise, Hertz, or Avis) is the most straightforward option but adds significant daily cost. If you decline their coverage and are involved in an accident, you could be held fully responsible for all damages to the rental vehicle and other property.
| Insurance Option | Typical Cost (Per Day) | Key Consideration |
|---|
| Rental Company's Loss Damage Waiver (LDW) | $25 - $45 | This is not insurance but a waiver that relieves you of financial responsibility if the rental car is damaged or stolen. |
| Personal Auto Policy | $0 (Already Included) | Coverage mirrors your own policy. You are still responsible for your deductible in case of a claim. |
| Credit Card Coverage | $0 (Cardholder Benefit) | Must typically decline rental company coverage and pay with the card. Coverage is often secondary to your personal insurance. |
| Supplemental Liability Insurance | $10 - $15 | Provides additional third-party liability coverage beyond the state minimum, often up to $1 million. |
Before you rent, make two phone calls: one to your auto insurance agent and one to the benefits department of your credit card company. This due diligence will tell you exactly what you're covered for and can save you hundreds of dollars on a week-long rental.
