Rental Car Hire Insurance – What’s Really Covered?

Planning a trip with a rental car? You’ll likely be asked if you want rental car hire insurance at the counter. But what does this insurance actually cover – and do you really need it? Rental car hire insurance (also called car rental insurance) can include several different protections: collision damage waivers, liability coverage, medical benefit coverage, and insurance for personal belongings. In many cases these add-ons duplicate coverage you already have. For example, WalletHub notes that rental insurance “covers damage to the vehicle, damage or injuries that you cause, your own injuries, theft, and loss of personal items”. Before signing up (often for $15–$30+ per day), compare it to your existing auto or travel insurance. In this guide we break down each coverage type, compare costs, and explain when you might need extra protection. By understanding “what rental car hire insurance covers” you can avoid unnecessary fees and travel more confidently.

White SUV rental car parked on a desert road, illustrating rental car hire insurance coverage. Rental agencies describe a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) as “insurance,” but technically it’s a waiver: if the rental car is damaged or stolen, you won’t have to pay to repair or replace it. (Of course, almost all waivers include a deductible that you’d pay.) As Allianz explains, this covers everything “if your rental car is damaged or stolen”. However, most personal auto insurance policies also cover rental cars for collision and theft – often with a deductible and sometimes excluding “loss-of-use” fees that rentals charge while the car is being repaired. Major credit cards typically include some level of collision protection when you book and pay for the rental with the card. Crucially, credit card coverage is usually secondary to your own insurance – meaning it only pays after your personal policy pays first. We’ll explain all these details below, including when US drivers might skip extra coverage.

What Is Rental Car Hire Insurance?

Rental car hire insurance refers to any insurance protection you can buy (or already have) for a rental vehicle. As WalletHub puts it, rental car insurance can come from three sources: “your personal insurance policy, from your credit card benefits, or from the rental car company itself”, and it may cover vehicle damage, liability to others, medical costs, theft, and loss of possessions. In other words, it’s just like auto insurance, but specifically for a car you’ve rented. These coverages are usually optional add-ons offered at the rental counter. That means they aren’t required by law, and you can decline them if you already have equivalent protection. In practice, many travelers discover they have rental coverage through other means. For instance, most personal auto policies extend to rentals, and many travel or credit card policies include rental car benefits. Insurance terms to know include:

• Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW): Covers damage to or theft of the rental vehicle (discussed below).
• Liability Insurance: Covers damage or injuries you cause to others. States usually require minimum liability on a rental.
• Personal Accident Insurance: Covers medical costs for you and your passengers.
• Personal Effects Coverage: Covers theft of your belongings from the car.

All of these may also be covered (to varying degrees) by your existing insurance or travel plans. The key is to compare before you pay.

Rental Car Hire Insurance Coverage: What’s Included?

Different policies bundle coverages in various ways, but the main types of protection offered by rental companies generally fall into these categories:

• Collision Damage Waiver (CDW/LDW): This waives your financial responsibility for damage to the rental car. In practice, it means that if you cause an accident or the car is stolen, you don’t pay for repairs or replacement. (The rental company often still charges a deductible.) CDW is akin to collision/comprehensive coverage on a personal policy. Allianz notes that with CDW, “you don’t have to pay to repair or replace” a damaged rental. Without CDW, you’d be fully on the hook (minus whatever your own insurance covers).
• Liability Insurance (Supplemental Liability Insurance): Protects you if you injure someone or damage their property while driving the rental. Your personal auto liability usually extends to rental cars in the U.S., because each state mandates minimum liability coverage in rentals. However, those state-minimum amounts can be low. Rental agencies offer Supplemental Liability Insurance (SLI) to raise your limits. For example, Budget’s SLI provides up to $500,000 in liability coverage for about $15 per day. This is important if you have a high-risk trip or live in a state like California where rentals aren’t required to include any liability.
• Personal Accident Insurance: Covers medical expenses and accidental death benefits for you and your passengers in a crash. Many U.S. customers decline this because their health insurance or auto personal injury protection already covers such costs. Consumer sources note that personal accident benefits often duplicate other policies. If you lack health coverage, or you’re in a country where U.S. health insurance isn’t accepted, then an accident policy or travel health insurance is wise.
• Personal Effects Coverage: Insures your personal items (luggage, electronics, etc.) against theft from the rental car. In reality, renters or homeowners insurance usually covers stolen belongings too. If you have such a policy, you probably don’t need this add-on. But if not, this insurance can reimburse some loss from break-ins. (Note that high-end items often have limits or exclusions.)

Each of these coverages can be offered as a bundle or separately at the rental counter. The combined package can run $20–$30+ per day, so shop around before buying everything. Remember that any coverage you buy from the agency usually acts as primary coverage: it pays before your personal insurance. In contrast, if you rely on your own insurer or a credit card benefit, those may be secondary (especially the card).

Do You Need Rental Car Hire Insurance?

For many drivers, the short answer is: Maybe not. If you already have full coverage auto insurance plus a credit card with rental benefits, you might skip the extra insurance at the counter. WalletHub bluntly states that rental insurance is “rarely worth it if your personal vehicle is insured and you pay for your rental with a credit card”. Here’s why:

• Personal Auto Insurance: Almost all comprehensive/collision policies cover rentals just like your own car. For example, if you carry $1,000 deductible and $100,000 liability on your car, those coverages often extend to a rental. In most U.S. states, rental contracts automatically include state-minimum liability (except in California). So if you get in a crash and it’s your fault, your policy’s liability (and collision) will step in. The downside is your deductible and possible loss-of-use charges (the fee rentals charge for the time a damaged car sits unused).
• Credit Card Insurance: Many major credit cards include rental car insurance if you charge the full cost on the card. This typically covers collision/theft for the rental vehicle. However, card coverage usually excludes liability, injuries, personal effects, and is almost always secondary. That means you must file a claim with your personal insurer first (if you have one). Cards also often require you to decline the rental company’s CDW to qualify. Still, if you have such a benefit, it can save you from buying collision insurance. Not all cards are equal, so check your cardholder guide (Visa, Mastercard, and Amex all have programs).
• Other Insurance: Don’t forget other existing policies. Homeowners or renters insurance typically covers items stolen from a rental car (though high-end tech might have limits). Travel insurance often includes rental car damage as an optional add-on, and your health or travel insurance may cover medical costs after an accident. Employers sometimes carry insurance for work travel, but this varies.

In short, ask yourself: do I already have coverage? If yes, renting without extra insurance could save a lot of money. For drivers with personal policies and no plans to wander off-road or abroad, declining rental insurance is common. Wallethub’s analysis even calls your own policy “the best rental car insurance”, since it usually costs you nothing extra beyond your normal premium. If you do decide to accept coverage, at least shop around: Allianz’s OneTrip Rental Car Protector is one third-party option that offers collision insurance for about $13/day worldwide, often much cheaper than the agency.

However, there are cases where rental insurance is recommended: if you have no personal car insurance, if you’re renting for business, if you’re traveling internationally, or if you simply want peace of mind against any huge bills. For example, if your auto policy excludes business use (as many do), then a work trip rental might leave you uninsured. Similarly, U.S. policies often don’t apply abroad, so adding coverage can be smart for international driving. We’ll cover these scenarios next.

Rental Car Hire Insurance vs Personal Insurance

Rental car insurance is not fundamentally different from what your personal auto policy provides – it’s designed to fill the gaps. In fact, whenever you drive a rental in the U.S., your own policy typically treats it as if it were your own car. This means your liability, collision, and comprehensive coverages will usually apply. Buying insurance from the rental company is often just paying extra to reduce your deductible or cover what’s not included.

Key differences: Personal insurance might have a high deductible that you’d rather avoid on a rental. It might also exclude certain damage (like windshield or tire damage) or fees (like loss-of-use). Meanwhile, rental agency waivers eliminate your deductible and cover their specific fees. On the liability side, most states include basic liability automatically with rentals, but only at state-minimum levels. If you worry about liability limits, buying Supplemental Liability through the agency (or carrying a broader umbrella policy) can protect you beyond your state’s floor. In California, for example, agencies aren’t required to provide any liability, so you must have a policy or buy one.

In practice, think of the agency’s insurance as convenience and extra protection, at a steep price. Your personal car insurance covers most rental scenarios, but with normal policy terms. If you’d rather not risk even a small claim on your auto policy (which could raise premiums), or if you don’t want to pay the deductible, the rental coverage can be useful. The same goes for credit card benefits – they cover collision at no additional charge, but pay only after your own insurance.

• Business Rentals: If you’re renting for work, make sure your personal policy or company policy allows it. Many personal auto plans exclude business use, so in that case you’d need to buy insurance either from the rental or via a corporate travel program. Check with your employer: some companies provide rental insurance or reimburse it.
• International Rentals: U.S. personal auto insurance usually does not cover rentals abroad. In fact, some countries legally require local rental car liability or CDW cover, which may be automatically included by law there. Always verify your coverage: if your domestic policy or credit card won’t cover foreign rentals, you should purchase insurance through the rental company or a travel insurance policy for that trip.

In summary, compare coverages side by side: your personal auto policy (note its deductible and limits) versus the rental company’s waivers (and their daily cost). WalletHub suggests reading the fine print: if personal insurance fully covers the rental value and country of travel, you may skip the add-on. Otherwise, budget some funds for third-party or at-counter insurance.

Credit Cards and Rental Car Hire Insurance

Many travelers rely on their credit cards to provide rental car hire insurance. The good news is that most major credit cards include some rental insurance as a benefit when you book and pay for the entire rental with that card. This often covers collision and theft damage for free, effectively giving you primary or secondary CDW coverage.

However, the coverage from a credit card is typically limited. It usually does not cover liability, injuries, or personal effects – only damage to the vehicle itself. It’s also generally secondary to your personal insurance, meaning your car insurance pays first and the card company covers only what’s left. Some premium cards (e.g. certain American Express or Visa Infinite cards) offer primary coverage, but these are exceptions and may have eligibility rules. Also note: credit card rental insurance usually applies only to short-term rentals (often up to 15 or 31 days) and excludes certain vehicles (like exotic cars, trucks, or vans).

Bottom line: If your credit card provides rental CDW benefits, you can decline the rental company’s collision insurance to save money. Just be sure to activate it correctly: you must pay for the rental with the card and decline the rental agency’s CDW/LDW for the card coverage to apply. If any damage occurs, you’ll file a claim with the card’s insurer (you’ll need to submit the rental agreement, damage report, etc.). For most renters, this means zero extra cost for collision coverage. But remember the gaps: you’ll still need liability coverage from another source (personal or purchase), and the card won’t cover your deductible on your own policy.

Rental Car Hire Insurance for International Travel

Renting a car abroad introduces new insurance considerations. Importantly, U.S. car insurance policies generally do not provide coverage for rentals outside the country. If you cruise Europe or drive in another country, do not assume your U.S. policy follows you. Some insurance companies offer international extensions, but many do not. On top of that, every country has its own requirements. For example, almost all countries require some minimum liability insurance on rentals, and some even mandate CDW or personal accident cover for foreign drivers.

Because of this, it’s prudent to add rental coverage when you travel internationally. Many travelers buy it through their travel insurance plan. For instance, Travel Guard’s policies allow an add-on for rental vehicle damage: this provides up to $35,000 in primary physical damage coverage (with a $250 deductible) plus 24/7 roadside assistance. (That means if your rental breaks down or you need a tow, help is just a phone call away.) Similarly, Allianz’s OneTrip Rental Car Protector explicitly covers rentals “almost anywhere in the world” for a flat daily rate.

If you use only U.S. personal insurance or a credit card, be aware: you likely have no coverage abroad. Check foreign regulations: some nations require liability of at least $100,000 or specific collision coverage. The rental agent may insist you buy local insurance – often a version of SLI or LDW. In practice, for international trips many people skip the U.S. credit card benefit (since most card plans don’t cover in certain countries) and simply take the rental company’s cover, or buy a global policy through a travel insurer.

Key advice: Before your trip, call your insurance agent and credit card company to clarify international coverage. If there’s a gap, purchase insurance either from the rental firm or a travel provider. Paying maybe $10–$15/day for full collision/liability abroad is usually cheaper and safer than risking a large bill. After all, as WalletHub warns, “your insurance and credit card benefits may not cover you if an accident happens overseas”.

Rental Car Hire Insurance for Business Travel

If you’re renting a car for business rather than leisure, the rules can change. Many personal auto policies exclude vehicles used for business purposes. That means if you rent a car for a work trip, your personal coverage might not apply at all. In that case, you have two choices: rely on your employer’s insurance (if they have a program) or buy rental insurance.

Some companies enroll employees in corporate rental programs where insurance is included. Others simply tell you to decline personal options and purchase all necessary coverage. If your employer does not provide coverage, it’s wise to buy Supplemental Liability and Collision coverage from a third party or at the counter. Keep documentation: if an accident happens, you’ll need proof of coverage to avoid driving uninsured.

Additionally, business trips sometimes involve extra drivers (like colleagues) or specific vehicle uses that personal plans wouldn’t cover. Read the rental agreement carefully: some agencies void coverage if you drive outside permitted areas (e.g. cross-border) or use the car for ride-sharing. Ultimately, if in doubt for business use, err on the side of extra insurance. The extra $10–$20 per day can save you from major liability if your policy won’t back you up.

Rental Car Hire Insurance Cost

How much does rental car hire insurance cost? The answer varies widely:

• At the Rental Counter: Agency-provided insurance is the most expensive. Buying CDW/LDW from Budget or Enterprise typically runs about $15–$30 per day, depending on vehicle type. For example, Budget advertises LDW starting as low as $9/day (for economy cars), while their Supplemental Liability is about $15/day. In practice, adding all coverages at the counter can quickly add $30+ to your daily rate.
• Third-Party Insurers: Buying rental insurance from a third-party broker or travel insurer is usually 50%–70% cheaper. WalletHub’s survey shows standalone plans often run $11–$23 per day. For instance, Allianz’s daily rate is about $11, Bonzah around $22, and Sure about $15. Compare this to roughly $31/day at Budget and Enterprise for equivalent Collision Damage Waivers. In other words, you can save a bundle by pre-buying insurance instead of accepting the rental’s rate.
• Credit Card Coverage: If you qualify for a credit card waiver, the “cost” is essentially $0 per day. Just keep in mind this only replaces the collision portion, not liability or other extras.
• Personal Insurance: Technically you do pay for your own policy (through premiums), but there’s no incremental per-day cost. Instead, consider the potential deductible you might pay after a claim. If your deductible is $500, it would be $0 if the rental is covered by the company LDW, so we can think of that as saving $500 “worth” of insurance.

As a benchmark, WalletHub estimates the average daily cost of purchasing rental insurance at about $61 (though this may be skewed by premium vehicles and full coverage bundles). The key takeaway: agency insurance is costly, third-party is cheaper, and credit cards/personal cover provide the lowest out-of-pocket price – assuming you qualify for them. Always calculate the math for your trip. For example, if a two-week rental has a CDW option of $25/day ($350 total), but a third-party policy is $15/day ($210 total), you’d save $140 by buying ahead.

Sample Costs by Provider: WalletHub collected rate data for mid-sized cars:
Budget CDW – $30.99/day; Supplemental Liability – $16.50/day.
Enterprise CDW – $29.99/day; SLI – $13.31/day.
Hertz CDW – $34.99/day; SLI – $15.88/day.
Allianz (third-party) CDW – $11/day (no liability offered).
Bonzah CDW – $21.95/day; SLI – $11.90/day (supplemental) or $14.88 (primary).
Sure (third-party) – $15/day CDW; $15.75/day PAE.

These figures illustrate why many renters turn to third-party insurance or rely on existing policies. Even paying $9–$15 a day (as Budget offers) can be more than doubling your rental cost, whereas an insurer like Allianz or Bonzah may cover you for less than $20/day total. Be mindful: the actual price you pay may be lower due to promos, club memberships, or negotiated rates, but always read the fine print about what each dollar covers.

Top Rental Car Hire Insurance Companies

There are several companies you can get rental insurance from:

• Rental Agencies (e.g. Budget, Enterprise, Hertz, Avis): These are the companies you rent the car from. Each offers its own insurance packages: LDW (often called “Loss Damage Waiver”), Personal Accident, SLI, etc. These can be bought at the counter. As noted, their rates are highest (Budget’s LDW ~$9/day on small cars, or up to $30+ for larger vehicles). The advantage is convenience and immediate coverage with no claim hassles.
• Third-Party Insurers: Companies like Allianz Travel, Bonzah, Sure, and RentalCover.com specialize in rental car insurance. WalletHub lists Allianz and Bonzah among the top providers. These insurers let you buy insurance online before your trip, usually at a fraction of the rental desk price. For example, Allianz’s OneTrip Rental Car Protector offers collision/loss coverage worldwide for about $11/day. Bonzah uniquely offers supplemental liability in the U.S. and Canada. Sure offers family plans covering both car damage and personal effects. When choosing, compare not just price but policy terms (deductibles, coverage limits, claim process) across companies.
• Credit Card Companies: If you have a rewards or premium card, you may have rental collision insurance built in. No extra company name is involved — it’s a card benefit. Cards are widely available through Visa, Mastercard, and American Express, some with better coverage limits. If relying on a card, make sure it covers rentals in your destination and under your conditions. (Some brands exclude certain countries.)
• Insurance Brokers: Some insurers (like Geico, Progressive, or specialty companies) sell non-owner car insurance or rental-specific policies that include rental coverage. These can make sense if you rent very frequently. It’s essentially an individual auto policy that covers rentals, and in some states it can be cheaper than stand-alone rental plans.

When comparing companies, look at what they cover and how claims are handled. A low price matters less if the insurer is slow with claims or leaves big gaps. Read reviews and make sure the provider is reputable. In the USA, Allianz and Bonzah have earned positive mentions. RentalCover.com is well-known for quick online quotes in many countries. And of course, the rental companies themselves underwrite their own waivers (Budget/Enterprise/Hertz/Etc). Whatever you do, get written proof of insurance (policy number or certificate) before you hit the road.

Benefits of Rental Car Hire Insurance

Although often viewed skeptically, rental car insurance does offer real benefits when you need it:

• Financial Protection: The clearest benefit is avoiding large bills after a wreck. With CDW/LDW in place, you pay nothing (or only a small deductible) if the rental is damaged. Without it, you could owe thousands out-of-pocket, even if your own insurer pays. Insurance also handles loss-of-use charges (fees for time the rental sits in the shop), which your personal policy might not cover.
• Higher Coverage Limits: The liability included in a rental is often just the state minimum. Supplemental Liability Insurance greatly raises these limits (e.g. up to $500K in many plans). This protects your assets if you severely injure someone or cause big property damage. Some personal policies or renters insurance might not kick in if you’re sued beyond a low amount, so having extra liability is a strong benefit.
• Passenger and Personal Item Coverage: If you or your passengers get hurt, or your luggage is stolen, rental insurance can cover medical expenses or lost items. For example, Personal Accident Insurance reimburses medical bills in a crash, and Personal Effects Insurance covers stolen baggage. These are often redundant with health and home policies, but they do add layers of certainty. (If you lack travel health coverage, a rental policy could be a quick fix.)
• Roadside Assistance and Convenience: Some policies bundle emergency services. For example, Travel Guard’s rental coverage includes 24/7 roadside assistance. That means flat tires, towing, or lockouts are handled without calling your insurance company. At the counter, having insurance also saves time after an accident – you simply call the rental’s insurer and file a claim instead of your auto insurer.
• Peace of Mind: There is a psychological benefit. Knowing you won’t be on the hook for repair bills can reduce stress while driving an unfamiliar car. As Budget’s site says, having the right rental insurance plan “will give you peace of mind”. If the headache of dealing with minor scrapes or dents is not worth the savings, insurance delivers value by keeping that risk off your plate.
• Low Deductibles: Your personal deductible might be $500 or more. Rental agency waivers often eliminate your deductible entirely or reduce it substantially. If you want no out-of-pocket at all, paying for the waiver could save your deductible. (Alternatively, some credit cards waive your deductible on top of covering collision.)
• Wider Coverage: Certain miscellaneous fees – administrative fees, towing, impoundment, loss-of-use – can catch renters off guard. A good rental insurance policy may pick up those charges. For example, many credit cards will cover a loss-of-use fee that a rental agency charges; without such coverage, you would owe it.

In summary, rental car hire insurance protects against worst-case scenarios. If you have any doubts (old car, unfamiliar roads, extra drivers, high travel stakes), the benefits can outweigh the cost. Just be sure you understand exactly what’s covered. Don’t assume that insurance means everything is covered; most policies still have exclusions (driving off-road, unauthorized drivers, DUI, etc.).

Rental Car Hire Insurance Comparison

When choosing among options, follow a comparison process:

1. Inventory Your Existing Coverage: Before you rent, list what you already have. As WalletHub advises, check your personal auto liability, collision, health insurance, homeowners/renters policy, and any card benefits. If all desired coverages (damage, liability, medical, theft) are in place, additional insurance may be unnecessary.
2. Get Quotes from Third-Party Insurers: If you lack some coverage, request quotes from companies like Allianz, Bonzah, or a travel insurance plan. Compare their daily rates (which often are much lower than the rental’s) and ensure they cover rentals in your destination.
3. Compare with Rental Agency Prices: When you reserve the car or check in, the agency will show insurance prices on your confirmation. Compare these to what you’d pay third-party. WalletHub found that agency insurance “can easily cost twice as much” as third-party. If the difference is significant and your timeline allows, opt for the cheaper coverage and bring proof.
4. Check Policy Details: Look at coverage limits, deductibles, and exclusions. For example, a cheap insurer might cover CDW but not include liability or personal effects. A more expensive package might bundle everything. Decide which risks are worth paying to insure.
5. Make Your Decision: If your personal insurance and credit card cover everything you care about, decline all extras. If not, buy the needed policies before or when you rent. If using the agency’s insurance, you’ll pay up front at the counter. If using a third-party, book it online and bring documentation.

Remember, if you choose not to buy insurance, double-check your rental agreement. In some states (or countries), failing to buy required coverages can leave you driving illegally uninsured. For example, in California if you have no personal insurance and decline liability, you would be driving without coverage. Also, some rental contracts void coverage for certain abuses (drunk driving, off-roading, transporting goods for fee, unauthorized drivers, etc.); keep yourself in compliance.

Ultimately, the “best” choice depends on your situation: your tolerance for risk, cost sensitivity, and the specific trip context. A good rule of thumb from experts: if you have comprehensive auto insurance, a credit card with rental benefits, and are traveling within the U.S., you probably don’t need the rental’s insurance. Otherwise, picking up coverage (at least collision and liability) is a smart safeguard.

Rental Car Hire Insurance in the USA

Insurance rules differ by country, but here are a few U.S.-specific notes:

• State-Mandated Liability: In almost every state, the rental car company must include the minimum required liability insurance in the rental price. This means that by law you have at least the state’s minimum bodily injury/property damage coverage when you rent. The exception is California (and a couple of other states), where firms may rent cars without any liability cover. Californians must either use their own policy or buy SLI.
• Personal Insurance Coverage: U.S. auto insurance policies typically cover rentals across all states, subject to your policy’s terms. If you have a standard full-coverage policy at home, it usually applies in any U.S. state. Still, always verify limits and deductible.
• Driver Age: Young or inexperienced drivers face higher fees. Many U.S. rental companies charge extra fees for renters under 25. Some insurance plans exclude younger drivers from coverage, so check age restrictions.
• Payment Method: In the U.S., using a debit card (rather than a credit card) can complicate insurance. Many credit card rental insurance benefits require using a credit card. If you use a debit card or cash, expect the rental to insist on buying their insurance for collision.

Finally, local laws can influence choices. For example, some states require unbundled liability insurance options or limit the maximum deductible. When renting in the U.S., our advice is: check with your insurance agent if you’re unsure what your policy covers, and only buy the extra coverage you truly need.

Frequently Asked Questions

Q: What does rental car hire insurance typically cover?
A: It depends on the policy, but generally it covers damage to the rental vehicle (CDW/LDW), liability to others, medical benefits for occupants, and theft of personal items. For example, collision damage waiver means the renter isn’t responsible for repair/replacement costs. Liability coverage protects third parties in a crash you cause. Many plans also offer optional personal accident insurance (medical costs) and baggage insurance. Always read your specific policy’s terms to see covered events and exclusions.

Q: Does my personal auto insurance cover a rental car?
A: Most of the time, yes. If you have collision and liability coverage on your personal car, those same limits will typically cover a rental in the U.S.. In practice, your own insurance acts as if the rental were your vehicle. However, you must pay your deductible if you make a claim, and your premiums could go up after an accident. Also, if you rent for business use or outside the U.S., your personal policy may not apply. It’s best to confirm with your insurer before you leave.

Q: Will my credit card cover rental car damage?
A: Many credit cards do offer rental car insurance benefits, but usually only for vehicle damage/theft, not for liability. Cards like Visa, MasterCard, and American Express often provide secondary collision coverage if you pay for the rental with the card. That means they cover damage that exceeds what your personal insurance pays. Some premium cards may offer primary coverage (no personal insurance claim needed). Credit card cover typically doesn’t protect against injuries, uninsured motorist claims, or damage to other people’s property – those are up to your personal insurance or the rental’s liability policy. Always check your card’s terms (call the issuer or review the benefits guide).

Q: How much does rental car hire insurance cost per day?
A: Rates vary by provider and location. Rental counters often charge $15–$30+ per day for a full insurance package. Budget’s standalone LDW is about $9/day for economy cars. Third-party insurers charge less – for example, Allianz is about $11/day for CDW, Bonzah about $22/day. WalletHub cites an average of roughly $61/day for rental insurance purchases, but your cost depends on vehicle type and coverages. Always shop around: an online quote from Allianz or Bonzah is often much cheaper than paying for the same at the counter.

Q: Is rental car hire insurance worth it?
A: Only if you lack existing coverage or want to minimize your risk. If you have full auto insurance and a credit card with rental benefits, it usually isn’t worth paying extra. In that case, your costs are already covered and you’d just be duplicating insurance. On the other hand, if you don’t have full coverage (or are traveling abroad or for business), rental insurance can prevent large out-of-pocket losses. It’s “worth it” if a single accident could leave you with big bills that you’re not insured for. Consider your situation carefully: for many people, passing on the rental’s insurance is fine. But for others (especially high-risk trips), the peace of mind and savings on deductibles may justify the price.

If you have more questions about the details, be sure to check with your auto insurer and credit card company before you travel. And don’t hesitate to comment or share this guide on social media – it might help a friend avoid an insurance surprise! Safe travels.