when renting a car do you need insurance

[LeIan]

Yes, you typically need insurance when renting a car. The most critical coverage is Liability Insurance, which is legally required in almost every state to cover damage you might cause to other people's property or injuries. While your personal auto insurance may extend to rental cars, it’s often not enough. Credit cards sometimes provide secondary coverage, but it usually only covers damage to the rental vehicle itself, not third-party liability.

The rental company will offer you several types of insurance at the counter:

• Loss Damage Waiver (LDW) / Collision Damage Waiver (CDW): This isn't traditional insurance but a waiver that relieves you of financial responsibility if the rental car is damaged or stolen. It often includes coverage for "loss of use" fees the company charges while the car is being repaired.
• Liability Insurance Supplement (LIS): This provides additional liability coverage beyond your personal policy or the state's minimum requirements, which are often quite low.
• Personal Accident Insurance (PAI): Covers medical costs for you and your passengers.
• Personal Effects Coverage (PEC): Covers theft of personal belongings from the rental car.

Before your trip, call your auto insurance agent and your credit card company to understand exactly what coverage you already have. This allows you to make an informed decision at the counter and avoid paying for redundant coverage.

Insurance Type	What It Covers	Typical Cost (Per Day)	Key Consideration
Loss Damage Waiver (LDW)	Damage to or theft of the rental car.	$25 - $45	Often voids your responsibility for the vehicle, but check for exclusions.
Liability Insurance	Damage/injuries you cause to others (legal requirement).	$10 - $20	State minimums are often insufficient for a serious accident.
Personal Accident Insurance	Medical bills for you and passengers.	$5 - $10	May duplicate your personal health or auto insurance.
Personal Effects Coverage	Theft of luggage, electronics, etc. from the car.	$5 - $10	Usually covered by your homeowner's or renter's insurance.
Credit Card Coverage	Often secondary coverage for car damage.	$0 (if primary)	Crucial: Call your card issuer to confirm level of coverage; it rarely covers liability.

[Roman]

It's a tricky spot. The rental agent makes it sound like you're crazy to say no. But you might already be covered. Your own car insurance probably transfers to the rental. Also, check your credit card benefits—many top-tier cards include primary rental car insurance if you use that card to pay. My rule is to always decline the rental company's insurance if I know I'm covered elsewhere. It saves a ton of money, sometimes $30 a day or more.

[McHector]

The only thing you absolutely need is liability coverage, which is the law. The big question is whether you need the extra stuff like the damage waiver. The pressure at the counter is real. Do your homework before you go. A quick call to your insurance agent can clarify what your policy includes for rentals. Knowing this beforehand gives you the confidence to politely decline the expensive add-ons you don't need, turning a high-pressure sales pitch into a simple transaction.

[TimothyFitz]

I never buy the insurance from the rental counter. It's incredibly overpriced. Instead, I rely on the primary rental car insurance benefit that comes with my premium credit card. I make sure to charge the entire rental to that card and always decline the company's collision damage waiver. However, I double-check that my personal auto policy has adequate liability limits, as the credit card doesn't cover that. This two-step check has saved me hundreds over the years.

[EmersonAnn]

Focus on the risk. If you cause an accident, you could be responsible for the full value of the rental car and any other vehicles involved. The rental company's insurance is the simplest path to peace of mind because it's all-in-one. For infrequent renters or those without personal auto insurance, it’s often the safest bet, despite the cost. The key is to understand the gap between what you already have and what you could potentially owe. Weigh the cost of the insurance against your personal financial risk tolerance.