Key Takeaways
- Rental Car Damage protection often comes as an optional upgrade on comprehensive travel insurance policies.
- This protection can reimburse you for damage to the rental vehicle, but typically will not cover damage to other vehicles or people.
- It’s also important to note that this coverage is not liability protection and only covers damages.
- You may not need to purchase rental car coverage if you’re already covered by your credit card or personal auto insurance. However, a policy with primary car rental coverage can help you avoid filing a claim on your personal auto insurance for rentals in the U.S.
- Since Rental Car Damage protection is typically only available on certain premium travel insurance policies, we recommend you filter for policies with rental car coverage using our quote tool.
What is Rental Car Damage Insurance?
Rental Car Damage is a travel insurance benefit that provides reimbursement for damage to, or theft of, a rental vehicle during a covered trip. While this coverage is not typically included in standard travel insurance policies, some providers may offer it as an optional add-on.
Rental car coverage is typically limited to expenses related to the vehicle you are operating. Any damage to other vehicles, property, or drivers will likely not be covered by your travel insurance policy. Typically, that type of coverage is offered by the rental car company.
How Does Rental Car Insurance Work?
Travel insurance typically covers damage and theft coverage for rental cars, similar to the Collision Damage Waiver (CDW) that rental car companies offer as an add-on at the counter. This coverage can reimburse you for reasonable and customary cost of repairs and rental charges imposed by the rental company, including loss-of-use fees. It may also reimburse the actual value of a car if it is stolen or damaged beyond repair.
Car rental insurance generally falls into two categories:
- Primary rental car insurance covers you ahead of any other car insurance policies, which means you can file a claim with your travel insurance without having to file through another insurance policy, such as your personal auto insurance.
- Secondary rental car insurance is a supplement to other auto insurance policies. You first have to first file a claim through your main insurance policy, and then file with your travel insurance policy for costs that your main insurance doesn’t cover. The majority of our travel insurance plans offer secondary coverage.
Since U.S auto insurance usually doesn’t apply abroad, you generally won’t have to file a claim with your personal auto insurance before filing a travel insurance claim for an international trip. However, for rental cars in the U.S., you may need to file through your personal insurance before filing with a secondary car rental insurance policy, which could affect your premiums. For this reason, primary rental car insurance is preferable for renting a car within the U.S.
Should You Get Rental Car Insurance?
Purchasing car rental insurance may not be necessary if you are often covered by other auto insurance policies, including your personal car insurance or your credit card’s car rental protection.
Car rental insurance may be worth considering if:
- You don’t own a car and therefore don’t have auto insurance
- You’re renting a car internationally where your personal auto insurance probably won’t cover you
- You’re renting in the U.S. and want to avoid filing with your personal auto insurance
Tip: Many credit cards only offer secondary coverage in the U.S. You should check the coverage type in your cardholder agreement. It may make sense to purchase travel insurance with primary coverage for a U.S. car rental if your credit card’s policy is secondary.
What Does Rental Car Insurance Cover?
Rental car insurance on our site generally provides $35,000 to $50,000 worth of theft and damage protection to a car that you rent during a covered trip, with specific coverages and limits varying by policy.
Rental car insurance may cover:
- Damage to your rental car due to a collision
- Damage due to theft or vandalism
- Damage due to windstorms, fire, hail, floods, and other natural disasters
- Damage due to any other reason outside your control
- Rental cars that are stolen and not recovered, on some policies
What is Not Covered by Rental Car Damage Insurance?
Car rental insurance usually doesn’t cover liability for injuries or damage you cause to other people, vehicles, or property. Policies also generally exclude negligence and violating your rental car agreement. These exclusions can be found in a policy’s Certificate of Insurance.
Policies frequently exclude:
- Damage to other cars or property due to a collision
- Injury to you, your passengers, or other people from a collision (Emergency Medical insurance may cover medical expenses for you and other travelers on your policy)
- Items stolen from your car (though baggage insurance may cover this)
- Mechanical breakdown of a rental vehicle
- Loss due to violation of your rental car agreement
- Certain kinds of vehicles (e.g., pickup trucks, vans, jeeps, campers, motorcycles)
- Driving under the influence of drugs or alcohol
Tip: Your personal auto insurance may cover liability for car rentals in the U.S. Also, most states in the U.S. and many foreign countries require car rental agencies to carry a minimum amount of liability insurance. Rental car companies may also offer supplemental liability coverage at the counter.
How Much Is Rental Car Insurance?
The cost of car rental insurance varies by policy and depends on factors like your destination and trip length. While some policies automatically include it at no extra charge, most offer it as an add on.
The cost of an upgrade for car rental damage on our site ranges between just $7 to $18 per day.
Other Ways to Get Rental Car Insurance
Travel insurance is not the only way to protect your rental car while traveling. There are a few types of coverage available for purchase that can provide comparable protection for drivers.
If you’re planning a trip that involves renting a vehicle, we recommend also considering the following rental car coverage options:
- Credit cards: Many travel credit cards offer trip protection benefits, including rental car coverage, to policyholders to protect them financially while they travel.
- Personal auto insurance policy: Your personal car insurance plan may include collision coverage that extends to rental cars
- Policy through your car rental company: Many rental car agencies offer collision insurance and liability coverage that can be purchased at the rental counter
Please be aware that coverage and eligibility requirements for this benefit differ by policy.
Is Rental Car Insurance Worth It?
A car rental upgrade for your travel insurance policy is worth it and strongly recommended if you don’t have insurance from any other source. It can protect you against the costs of repairing or completely replacing a rental car in case of an accident. Purchasing car rental insurance through your travel insurance policy is also often much less expensive than the insurance offered by the car rental agency. A car rental damage upgrade on our site costs around $7 to $18 per day, versus the $30-per-day fee that many car rental agencies charge for a CDW.
Even if you’re covered under personal auto insurance, a policy with primary coverage can be worth it for car rentals in the U.S., because it can help you avoid filing a claim through your personal auto insurance, which could potentially lead to higher premiums.
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FAQs: Rental Car Insurance
Most major car rental agencies do not require you to be insured to rent a car. That said, you could be liable for damages, injuries, and even the cost of fully replacing the car if you’re involved in an accident. Before renting a car, make sure you have coverage from some source, like your personal auto insurance, a travel insurance policy, your credit card, or your rental car agency.
Personal auto insurance typically covers car rentals in the U.S. if your policy includes liability and comprehensive collision coverage. However, your policy may have gaps for expenses like loss-of-use fees, or it may have a high deductible or low limits, so it is a good idea to check before you depend on this coverage. Furthermore, your personal policy likely won’t cover rentals outside the U.S., so you may need additional coverage for an international car rental.
Yes, many credit cards, including American Express, Chase, Capital One, and Bank of America cards, offer coverage for theft and damage of rental cars. Some cards like the Capital One Venture X and Chase Sapphire cards offer primary rental car insurance with high limits.
However, others, including all Amex cards, only offer secondary coverage. You should check your card agreement to confirm that your card carries insurance and that it’s primary coverage.
Your travel insurance policy will cover rental car damage for the duration of your trip, up to the policy’s maximum trip length. Plans typically cap coverage at 30-45 days, depending on the plan. Your plan may also allow you to extend your coverage by 7-10 days due to a medical emergency on your trip.
You may be legally required to have liability insurance for your car rental, which may already be covered through the car rental agency or your personal auto insurance. It’s also a good idea to have coverage for theft and damage of your car rental. You can get coverage for this through the rental agency, a travel insurance policy, or a credit card that offers rental car coverage.
If you crash a rental car without insurance, you may be responsible for the costs of injuries and damages to your rental car and to other cars and property. You may have to pay out of pocket for medical bills, damages, and loss-of-use charges for the rental vehicle.
A Collision Damage Waiver (CDW), is a type of car rental protection offered by credit cards and many car rental agencies. It covers theft or damage to your rental car, and may reimburse the cost of things like loss-of-use charges, administrative fees, and towing charges.
To claim rental car insurance, you should first report the incident to your rental agency and to the police, if required. You should gather documentation for your claim, including police reports, photos of the damage and the accident, and receipts. If your travel insurance has primary coverage for rental car damage, you can directly file a claim for reimbursement with your documentation.
However, if coverage is secondary, you must first submit a claim to any primary car rental insurance in your name, including your personal auto insurance and credit card insurance. You can then submit a claim to your travel insurance for any costs not covered by your primary insurance.
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Last updated: October 12, 2026