Is it recommended to get insurance renting cars?

[AliyahFitz]

Yes, purchasing additional insurance when renting a car is highly recommended for most travelers. Relying solely on your personal auto policy or credit card benefits can leave you exposed to significant financial risk. The core decision hinges on understanding and bridging the gaps in your existing coverage against the rental company's costly options.

The primary risk is liability for the vehicle itself, known as the Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW). This is not traditional insurance but a waiver that relieves you of financial responsibility if the rental car is damaged or stolen. Rental companies charge between $15 to $45 per day for this waiver. If you decline it and the car is damaged, you could be liable for the full repair cost, loss of use fees, and diminished value charges, which can easily total thousands of dollars.

Your existing coverage has critical limitations. While your personal auto insurance may extend to rentals, it typically comes with your standard deductible (e.g., $500 or $1,000) that you must pay out-of-pocket. More importantly, it may not cover "loss of use" fees the rental company charges for revenue lost while the vehicle is being repaired. Credit card primary or secondary coverage often excludes certain vehicle categories (like luxury cars, trucks, or SUVs), has stringent reporting requirements, and may not cover key types of damage like tires, glass, or undercarriage.

A major gap is third-party liability coverage. In many jurisdictions, the minimum liability insurance included with the rental is extremely low. In the U.S., for example, state minimums can be as low as $25,000 per person for bodily injury. A serious accident could result in claims far exceeding this, making a supplemental liability insurance purchase a prudent consideration.

For frequent renters or those on extended trips, a standalone non-owner car insurance policy or an annual travel insurance policy with robust rental car benefits can be more cost-effective. Market data indicates that an annual standalone rental car policy can range from $150 to $350, potentially saving money for those who rent for more than 10-15 days per year.

Coverage Type	Typical Cost (Daily)	Key Consideration & Gap
Loss Damage Waiver (LDW)	$15 - $45	Waives your financial responsibility for damage to the rental car. The main gap is cost.
Supplemental Liability	$10 - $20	Increases third-party injury/property damage limits. The gap is low base limits from the rental company.
Personal Accident Insurance	$5 - $10	Covers medical costs for you/passengers. Often redundant if you have health insurance.
Personal Effects Coverage	$5 - $10	Covers belongings stolen from the car. Usually duplicate of homeowners/renters insurance.

The final recommendation depends on a pre-rental coverage audit. Contact your auto insurer to confirm rental coverage terms and deductibles. Call your credit card benefits line to understand their precise coverage rules, required documentation, and exclusions. For infrequent renters traveling domestically with confirmed primary coverage from a credit card, declining the rental company's insurance might be viable. For international travel, where personal policies often don't apply, or for those without personal auto insurance, purchasing the rental company's LDW and supplemental liability is strongly advised to mitigate substantial financial risk.

[MacKaden]

I travel for work about once a month, so I’ve rented a lot of cars. My company’s policy used to make us decline all insurance, assuming our corporate card covered everything. Then a colleague had a minor fender bender. The card’s coverage was a nightmare of paperwork, and our company got billed for the rental agency’s “loss of use” fees for weeks—that wasn’t covered at all. Now, I always take the CDW when it’s a business rental. It’s a straightforward business expense that prevents huge, unpredictable costs later. For personal trips, I rely on my premium credit card’s primary coverage, but I double-check the vehicle class is eligible every single time.

[BethanyFitz]

Let’s break down the real cost of saying “no” to the insurance counter. It’s not just about the dent you might cause. Imagine you scrape the side of the rental van on a parking garage pillar. The repair might be $2,500. Your own insurance covers it, but you pay your $1,000 deductible. The rental company also charges $50 per day for the 10 days the van is in the shop—that’s $500 for “loss of use.” Your insurance likely won’t pay that. Your credit card might, but only after you’ve filed with your own insurer first. Suddenly, that $1,000 deductible is actually $1,500 out of your pocket. The daily waiver fee, while annoying, caps your total cost at zero for vehicle damage. For peace of mind on a short trip, that’s often worth it.

[JuliaMarie]

My rule is simple: if I’m driving in my home country and my personal car insurance is active, I usually skip the rental company’s expensive insurance. I make sure my credit card offers primary coverage for that rental as a backup. However, the moment I land in another country, I always buy the full coverage from the rental agency. Dealing with accidents, police reports, and foreign insurance systems is complicated enough without also fighting over who pays for a damaged bumper. The extra $20-$30 a day is part of my travel budget. I consider it non-negotiable for stress-free exploration.

[StBethany]

As someone who didn’t own a car for years, I relied on rentals. Without a personal auto policy, you have no safety net. Rental agents would often tell me my credit card had “full coverage,” but that’s misleading. It usually only covers damage to the rental car itself, not the other person’s car or medical bills if you’re at fault. The liability coverage that comes automatically with the rental is shockingly low. I started buying a non-owner auto insurance policy. It cost me about $400 a year and provided the liability coverage I lacked. When I rented, I’d still take the rental company’s damage waiver to avoid any hassle with my credit card, but I knew my liability was solidly covered. It was cheaper than daily liability add-ons and far more comprehensive.