Best Rental Car Insurance

By Smiljanic Stasha
December 29, 2021

Here is a complete overview of rental car insurance — types, coverages, and best rental car insurance companies.

We are not a rental car insurance company, but we can provide helpful information on how to get your rental car insured and address the most frequently asked questions related to the topic. 

Here’s everything you need to know before you buy rental car insurance.

Product
Rating
Key Features
Website
1
OVERALL RATING
Expert Review
  • Provides protection if the car is damaged or stolen.
  • Roadside assistance: fuel, key lockout, and towing
  • Popularity: rated Excellent 4.7/5 at Trustpilot
PRICE: $
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2
OVERALL RATING
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  • Affordable options
  • Fully refundable
PRICE: $
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3
OVERALL RATING
Expert Review
  • Personal Accident Insurance and Personal Effects Coverage (PEC)
  • Supplemental Liability Protection
  • Roadside Assistance Protection
PRICE: $
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4
OVERALL RATING
Expert Review
  • Collision damage protection: up to $35,000
  • Coverage: collision damage, theft, or vandalism
  • Affordable
PRICE: $
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5
OVERALL RATING
Expert Review
  • Dollar offers 100% coverage of collision damage, theft, and vandalism
  • Affordable insurance
PRICE: $
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6
OVERALL RATING
Expert Review
  • Sure offers rental car coverage of up to $100,000 worth of damage
  • Price: starts at $10/day
  • Popularity: rated Excellent 4.5/5 at Trustpilot
PRICE: $
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7
OVERALL RATING
Expert Review
  • Coverage: collision damage, theft, or vandalism
  • National offers renters a combination of insurance policies that cover collision damage, theft, and personal injury up to $300,000
  • Affordable option
PRICE: $
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8
OVERALL RATING
Expert Review
  • Hertz completely relieves drivers of all financial responsibility for loss or damage to the rental car
  • Car rental flat tire policy: available with purchased Premium service (restrictions may apply)
PRICE: $
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9
OVERALL RATING
Expert Review
  • The combination of low prices and excellent services lists Bonza among the best car rental insurance coverage companies.
  • Highly affordable
PRICE: $
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10
OVERALL RATING
4.5
Expert Review
  • Outstanding annual plans available
  • Policies available for varying needs
  • Offers single trip plans and car rental protection
PRICE: $
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1. Rental Cover Insurance Review

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RentalCover’s rental car insurance includes protection for your rental vehicle if it’s damaged or stolen. You are also covered for up to $7,500 if an acute or life-threatening illness occurs. Plus, transportation to a hospital or your home is provided.

  • Requirements: depends on the plan provider
  • Coverage: collision damage, theft, and vandalism
  • Roadside assistance: fuel, key lockout, and towing
  • Collision damage protection: up to $35,000 with a $0 deductible
  • Car rental flat tire policy: covered by CDW
  • Price: varies
    • Loss damage waiver: usually included in the rental price. If sold separately: $10–$30/day
    • Supplemental liability coverage: $15.49 (up to $1 million)
    • Personal accident insurance: $10–$15/day
    • Total: varies
  • Popularity: rated Excellent 4.7/5 at Trustpilot
PROS:
  • Popular brand, good customer service
  • Great discounts
  • Affordable coverage
CONS:
  • Lack of information about packages

2. Expedia Car Rental Insurance Review

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Expedia collision damage protection is a $0 deductible policy you can buy for only $10 a day. It’s also fully refundable if the renter cancels it before pick-up time.

  • Requirements: a valid driver’s license, drivers under 25 years of age may need to pay an extra fee
  • Coverage: collision damage, theft, and vandalism
  • Collision damage protection: up to $35,000
  • Price: $10/day
PROS:
  • Theft, vandalism and collision coverages.
  • Fully refundable
CONS:
  • No comprehensive coverage

3. Enterprise Car Rental Insurance Review

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Enterprise offers relatively cheap car rental insurance and collision damage protection that waives or reduces the renter’s responsibility for loss of or damage to the rental vehicle. Drivers can also purchase Roadside Assistance Protection that covers flat tires, loss of key, and fuel delivery services.

  • Requirements: to be 25 years old (drivers under 25 may be required to pay a younger driver’s fee), a valid driver’s license, a photo ID, credit or debit card
  • Coverage: collision damage, theft, or vandalism
  • Roadside assistance: for an additional fee
  • Price: on average $9.99–$15.50/day
    • Loss damage waiver: varies by location and vehicle type
    • Supplemental liability coverage: $8–$17/day (up to $300,000)
    • Personal accident insurance: $5.13–$30/day
    • Total cost per day: varies
  • Popularity: rated Poor 2.6/5 at Trustpilot
PROS:
  • Cheap rental insurance
  • Interesting waivers
  • Coverage: collision damage, theft, or vandalism
CONS:
  • Not so great reviews

4. Orbitz Car Rental Insurance Review

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Orbitz offers renters collision damage protection of up to $35,000 and $0 rental car insurance excess cover.

  • Requirements: a valid driver’s license, drivers under 25 years of age may need to pay an extra fee
  • Coverage: collision damage, theft, or vandalism
  • Collision damage protection: up to $35,000
  • Price: starts at $10/day
PROS:
  • One Way Car Rental
  • All you need is a valid driver’s license, drivers under 25 years of age may need to pay an extra fee
CONS:
  • Not much information online available

5. Review

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Provided the renter doesn’t violate the Rental Agreement, Dollar offers 100% coverage of collision damage, theft, and vandalism of the rented automobile.  

  • Requirements: a valid driver’s license and major credit card in the renter’s name, drivers under 25 years of age may need to pay an extra fee
  • Coverage: covers all vehicle damage
  • Collision damage protection: covered through LDW
  • Car rental flat tire policy: only available through Premium Emergency Roadside Service
  • Price: varies by state
    • Loss damage waiver: $33.99/day
    • Supplemental liability coverage: $14.24/day (up to $1 million in all US states except for California and Florida where it’s up to $2 million)
    • Personal accident insurance: $6.99/day (PAI+PEC)
    • Total cost per day: $55.22
  • Popularity: rated Bad 1.3/5 at Trustpilot
PROS:
  • Dollar offers 100% coverage of collision damage, theft, and vandalism
  • Car rental flat tire policy
CONS:
  • Bad customer reviews

6. Review

OVERALL RATING
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Sure offers rental car coverage of up to $100,000 worth of damage to a vehicle and personal belongings found inside. Sure’s insurance policy also covers flat tires, towing charges, and replacement of lost keys. It’s also one of the cheapest USA rental car insurance options.

  • Requirements: a valid driver’s license
  • Coverage: collision damage, theft, and personal effects
  • Collision damage protection: covered through LDW
  • Roadside assistance: flat tire replacement, towing, fueling
  • Car rental flat tire policy: included
  • Price: starts at $10/day
  • Popularity: rated Excellent 4.5/5 at Trustpilot
PROS:
  • Popularity: rated Excellent 4.5/5 at Trustpilot
  • It’s also one of the cheapest USA rental car insurance options.
  • Car rental flat tire policy: included
CONS:
  • Not much information regarding coverages

7. Review

OVERALL RATING
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National offers renters a combination of insurance policies that cover collision damage, theft, and personal injury up to $300,000. Also, National Car Rental flat tire policy is valid through a purchased Roadside Plus (RSP) service. However, the RSP doesn’t cover the cost of a replacement tire.

  • Requirements: must be 21 or older and possess a valid driver’s license
  • Coverage: collision damage, theft, or vandalism
  • Collision damage protection: covered through LDW
  • Roadside assistance: $5.99/day with Roadside Plus
  • Car rental flat tire policy: available with Roadside Plus
  • Price: $10.99/day
    • Loss damage waiver: $24.99
    • Supplemental liability coverage: $12.80 (up to $300,000)
    • Personal accident insurance: $6
    • Total cost per day: $43.79
  • Popularity: rated Good 3.5/5 at consumeraffairs.com
PROS:
  • Coverage: collision damage, theft, or vandalism
  • Popularity: rated Good 3.5/5 at consumeraffairs.com
CONS:
  • No much information about provider online

8. Review

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Hertz completely relieves drivers of all financial responsibility for loss or damage to the rental car with a purchased Loss Damage Waiver (LDW). 

  • Requirements: must be at least 25, possess a valid driver’s license, and have a debit card
  • Coverage: collision damage, theft, or vandalism
  • Collision damage protection: covered through LDW
  • Roadside assistance: available with purchased Premium service 
  • Car rental flat tire policy: available with purchased Premium service (restrictions may apply)
  • Price: starts at $10/day
    • Loss damage waiver: $27/day 
    • Liability coverage: $19/day (covers up to $1 million)
    • Personal accident insurance: $7/day (up to $225,000)
    • Total cost per day: $53
  • Popularity: rated Average 2.9 at Trustpilot
PROS:
  • Affordable rates.
  • Coverage: collision damage, theft, or vandalism
CONS:
  • Popularity: rated Average 2.9 at Trustpilot

9. Review

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Bonzah offers a basic insurance policy starting at $7.99 that covers collision damage, theft, and vandalism of the vehicle up to $35,000. The combination of low prices and excellent services lists Bonza among the best car rental insurance coverage companies.

  • Requirements: an eligible driver must be at least 21 years old, possess a valid driver’s license, and be included in the rental car agreement.
  • Coverage: collision damage, theft, and vandalism
  • Collision damage protection: covered through LDW
  • Roadside assistance: $2.99/day (optional, when traveling more than 100 miles away from home)
  • Car rental flat tire policy: optional, included in roadside assistance
  • Price: starts at $7.99/day
    • Damage cover: $7.99/day
    • Supplemental liability coverage: $11.90/day (up to $1 million)
    • Personal accident insurance: $6.90/day (covers up to $50,000)
    • Total cost per day: $26.79
  • Popularity: rated Excellent 4.6/5 at Trustpilot
PROS:
  • Price: starts at $7.99/day
  • Popularity: rated Excellent 4.6/5 at Trustpilot
  • Coverage: collision damage, theft, and vandalism
CONS:
  • They can work on their online presence

10. Allianz Global Assistance - Best Value for Money Review

OVERALL RATING 4.5
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  • Financial Strength A+
  • Customer Service 5/5
  • Pricing 4/5
  • Network Strength and Optional Coverages 4/5
  • Overall 4.5/5
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Allianz Global Assistance travel insurance has the best annual travel plans that are ideal for frequent travelers. The company has an impressive range of policies and plans for annual travel and single trips. 

While the premiers are slightly higher, the Allianz Global Assistance claims process is straightforward and they have excellent customer service. 

  • AM Best rating (Financial strength): A+
  • BBB rating: A+ 
  • Sample quote price: $245

 

Insurance Plans

The insurance provider offers a range of travel insurance plans for both single and annual trips with various benefits and different limit:

  • Single Trip – OneTrip Prime, OneTrip Basic, OneTrip Premier, OneTrip Emergency Medical, and OneTrip Cancelation Plus

Annual Trip – AllTrips Basic, AllTrips Premier, AllTrips Exclusive, and AllTrips Prime 

PROS:
  • Outstanding annual plans available
  • Policies available for varying needs
  • Also offers single trip plans and car rental protection
CONS:
  • Doesn’t offer extended trip coverage
  • Annual plans have different limits
  • Not a high limit for emergency medical transportation coverage

Types of Rental Car Insurance

Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)

Renters who purchase a collision damage waiver pay a daily fee in addition to the original rental car fee. However, many premium credit cards offer primary CDW coverage, which may reduce the rental car insurance quotes. 

The CDW provides protection to the renter when a rental car gets damaged. In case of an accident, the renter is not liable for some or all repairs, as well as for any loss of use fees that may accrue while the rental car is out of service.

There are situations when a renter can refuse from a CDW if they can provide an alternative form of insurance coverage, but it greatly depends on the state they are renting in.

CDW covers rental car damage but doesn’t cover liability-related costs such as material damage or injury of the driver or a third party. Additionally, a CDW doesn’t cover risky behaviors, with a high likelihood of damage, such as speeding or DUI.

Liability Coverage

Car rental liability insurance provides financial protection for drivers who cause a car accident in which a third person or their property is harmed. It’s mandatory in every U.S. state, except New Hampshire. 

There are two forms of liability coverage — bodily injury liability and property damage liability — and drivers in most U.S. states must have both types.

  • Bodily injury liability helps an at-fault driver cover, among others, ongoing or emergency medical expenses, income loss, and funeral costs for third-party participants in the accident.
  • Property damage liability helps cover vehicle reparation costs for the third-party driver(s) involved in the accident. Additionally, it covers damage caused to other property by the policyholder’s car, such as fencing, buildings, or mailboxes.

Rental car liability insurance applies to injuries or damages to third parties and their property. It doesn’t cover the physical and financial damage suffered by the policyholder. It may be separately covered by other types of their insurance policy.

Liability car rental coverage includes liability limits for property damage, bodily injury per person, and bodily injury per accident.

Personal Accident Insurance

In car rental, personal accident insurance (PAI) is an additional type of coverage you can buy on top of your existing health insurance. 

PAI provides financial support paid directly to a policyholder in case they suffer an accident covered by their policy.

Some accident insurance policies include Accidental Death and Dismemberment (AD&D) coverage or you can purchase it separately.

Personal accident insurance is not mandatory. Depending on what other insurance coverages you have, you may not need it at all.

Personal Effects Coverage


Personal Effects Coverage (PEC) is a supplemental policy that, generally, covers the loss or theft of personal belongings of the principal and additional drivers, and, potentially, the members of the principal driver’s immediate family. 

The PEC has a fixed daily rental car insurance fee. In most cases, the final cost of PEC depends on the duration of the car rental and is added to the original rental fee. Typically, the PEC provides coverage to only a certain amount of cost-related loss or theft of personal belongings. The exact amount varies between different car rental suppliers.

Note that CDW/LDW or liability insurance won’t cover the loss or theft of your belongings if you don’t have PEC.

 

Below, you will find a list of 10 insurance companies and services where you can get the best rental car insurance in the USA. 

How to Get Rental Car Insurance

Before renting a car, you’d want to check and see if your rental car is already covered by your insurance or a credit card.  

Major credit card providers offer special car rental benefits to their customers, assuming they use the card to pay for car rental and insurance fees. 

This type of insurance policy can be a particularly useful option when traveling overseas to places where personal auto insurance doesn’t cover the renter.

Rental Car Insurance vs. Your Own Auto Insurance

Car renters who lack personal auto insurance and don’t enjoy credit card benefits are advised to purchase extra rental car coverage. 

These are the best options to choose from: 

Buying Auto Insurance From Rental Car Companies

CDW, Liability, PEC, and other common types of insurance can always be bought at the counter of car rental companies. It’s customer convenience and a way for rental companies to provide ancillary services and products.

Buying Auto Insurance From Rental Car Insurance Companies

Car renters have the right to decline insurance policies at the counter and buy a standalone coverage at an insurance company of their choice. Keep in mind that different companies offer different prices for the expenses they cover. 

The best rental car insurance coverage will depend on your situation and requirements. When checking out rental car insurance options, always consider the following features of a policy:

    • Coverage — Ideally, rental car insurance should cover both liability and damage to the rental car itself. Consider the coverage limits when renting a luxury vehicle. 
    • Price — “How much does a rental car insurance cost?” comes to mind when determining insurance value. Study your options to avoid overpaying for coverage.  
  • Optional Extras —  If you need some extra equipment from the rental company, be prepared to pay additional fees.

Ease of Use —  Online availability has made insurance easy to access. However, most companies require giving in a good chunk of personal data before showing you a price.

FAQs

How can I get cheap rental car insurance?

Big insurance companies offer decent policies at reasonable prices. Getting fair standalone coverage from an insurer should be cheaper than a rental company counter.

Should I buy car rental insurance or can I use my regular insurance?

If you don’t have full coverage insurance yet and want peace of mind, it’s best to purchase an insurance policy and keep yourself, the rental car, and any third party safe and protected. Keep in mind that regular auto policies rarely cover you overseas.

Does GEICO cover rental car insurance?

As part of the driver’s personal car insurance policy, GEICO offers rental car insurance as long as they drive in the U.S. and carry liability, comprehensive, or collision coverage.

Does AAA cover rental cars?

AAA auto insurance is only available to AAA members. Your AAA auto insurance will typically cover rental cars up to your same coverage limits in the U.S. If you rent a pricey vehicle but privately drive an old car, chances are your AAA cover won’t suffice.

What are the best rental car insurance credit cards?

According to rental car insurance reviews, some of the best credit cards that provide great insurance benefits are:

  • United Explorer Card
  • United Quest Card
  • United Club Infinite Card
  • United Business Card
  • Capital One Spark Cash for Business
  • Capital One Spark Miles for Business
  • Any American Express card enrolled in the American Express Premium Car Rental Protection program