do you need auto insurance to rent a car

[OBrielle]

Yes, you typically need auto insurance to rent a car, but you often already have sufficient coverage through your personal auto insurance policy or your credit card. The rental company will offer you their own insurance, but purchasing it is usually optional and can be an unnecessary expense if you're already covered.

The key is understanding the four main types of coverage offered at the rental counter:

• Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW): This isn't technically insurance; it's a waiver that relieves you of financial responsibility if the rental car is damaged or stolen. Your personal auto policy's comprehensive and collision coverage often serves the same function.
• Liability Insurance: This covers damage you cause to other people's property or injuries to others. Most U.S. states require a minimum amount of liability coverage, which your personal auto policy likely already meets.
• Personal Accident Insurance (PAI): Covers medical expenses for you and your passengers. This is often redundant if you have good health insurance or Personal Injury Protection (PIP) on your personal policy.
• Personal Effects Coverage: Protects your belongings from theft from the rental car. This is usually covered by your homeowner's or renter's insurance.

Before your trip, contact your auto insurance agent to confirm your coverage extends to rental cars. Also, call the benefits number on the back of your credit card to understand their rental car insurance terms, as they often provide primary coverage if you use that card to pay for the entire rental.

Coverage Type	Rental Company Cost (Approx. Daily Rate)	Common Alternative Source	Key Consideration
Loss Damage Waiver (LDW)	$15 - $35	Personal Auto Policy (Comprehensive/Collision)	May have a deductible; credit card coverage often primary.
Liability Insurance	$10 - $20	Personal Auto Policy	Must meet state minimums; consider if your limits are low.
Personal Accident Insurance (PAI)	$5 - $10	Health Insurance / PIP	Redundant for most with existing health coverage.
Personal Effects Coverage	$5 - $10	Homeowner's / Renter's Insurance	Subject to your policy's deductible.
Supplemental Liability	$10 - $15	Personal Umbrella Policy	Important for those seeking higher liability limits.

[OOmar]

Check your own car insurance first—it probably covers rentals. Then, call your credit card company. Many premium cards like Chase Sapphire or AmEx Platinum offer primary rental insurance for free, meaning you can confidently decline the expensive CDW at the counter. It’s the easiest way to save $20-$30 a day. Just remember to pay for the entire rental with that card.

[SanJoseph]

I never buy the rental company's insurance. My State Farm policy transfers directly to any rental car in the U.S. The only thing I double-check is my liability limits. If I'm renting a more expensive vehicle than I normally drive, I might consider the supplemental liability from the rental company for extra peace of mind. For my regular compact car rentals, my existing policy is perfectly adequate.

[JaylaDella]

It's a tricky upsell. You're not legally required to buy their insurance, but you are required to have coverage. The pressure at the counter is real. My advice? Do your homework before you travel. A quick call to your insurance agent gives you the facts you need to make a calm, informed decision instead of a panicked one while a line forms behind you.