Rental Car Insurance

Your personal auto insurance may cover rental cars, particularly if you have full coverage. Liability, collision and comprehensive coverage often extend to rental vehicles used for personal reasons. 

However, your coverage might not include rental company-specific fees, such as loss of use, administrative charges or diminished value. Also, your personal auto policy typically won’t apply if you’re renting for business or driving outside the U.S. or Canada.

Before declining rental car insurance, check with your insurer to understand your policy's coverage and whether any gaps could lead to out-of-pocket expenses.

Rental car insurance isn't legally mandated in New Hampshire or Virginia, so you can decline it if you rent a vehicle. However, ensure adequate coverage in all other U.S. states and Canada before driving off in your rental.

Rental car insurance costs vary by provider, coverage type and where you're renting the vehicle. Most rental companies offer protection plans, including collision damage waivers and liability coverage. However, their prices can differ widely.

Here’s a quick overview of rental car companies, their offerings and average costs:

Various coverage types offer protection against accidents, theft, personal injuries and loss of personal items. They also cover rental costs and deductibles. Knowing what each type covers ensures comprehensive protection during your rental period, providing peace of mind while driving.

Explore this comparison of insurance options to protect your rental car:

If your full coverage policy includes rental car coverage, you might be covered when driving a rental vehicle. This means your liability, collision and comprehensive coverage applies to the rental, automatically adjusting to meet the minimum insurance requirements of the state you're driving in.

If you frequently rent cars but don't own one, consider non-owner insurance. It's a liability-only policy, meaning it won't cover damage to the rental car itself. However, it can offer better financial protection than the rental company's insurance if you're liable for injuries or damages to another person or their property. You can also increase your policy limits for greater coverage.

Rental car insurance covers vehicle damage or theft, but your auto policy or credit card benefits might already provide enough coverage. This guide explains rental car coverage options, costs and when buying additional insurance makes sense. Comparing quotes can help you find the best protection without overspending.

We address the most common questions about rental car insurance to help you decide if you need it.

Study Overview

MoneyGeek gathered and evaluated rates using a sample driver profile to determine the average auto insurance cost for specific age groups, which factors affect price changes and how premiums vary by insurance provider.

Data Sources and Depth

We used data from state insurance departments and Quadrant Information Services. We reviewed 22,848 quotes from six providers across 100 ZIP codes.

Driver Profile

We used an average driver profile to determine annual auto insurance costs:

• 40-year-old male
• Toyota Camry LE
• Clean driving record
• 12,000 miles driven annually

We adjusted this profile by region and coverage type to calculate average costs for drivers with various coverage requirements.

Coverage Levels and Deductibles

A deductible is the amount you must pay before insurance begins to pay. Comprehensive and collision coverage (often called full coverage) offers the best financial protection.

100/300/100 means:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage liability

We used 100/300/100 comprehensive and collision coverage for national averages with a $1,000 deductible.

50/100/50 means:

• $50,000 in bodily injury liability per person
• $100,000 in bodily injury liability per accident
• $50,000 in property damage liability

We used 50/100/50 comprehensive and collision coverage for state-specific data with a $1,000 deductible.