When you rent a car from a car rental agency, you have the option of purchasing renter’s insurance at the counter. However, prior to purchasing rental car insurance, contact your personal auto insurance provider to see if car rentals are covered under your personal policy.

NOTE: If you use a credit card to book the rental, the credit card company might provide rental car insurance. Contact your credit card company ahead of time to inquire about the types of coverage available to you.

Rental Insurance vs. Personal Auto Insurance

Unlike your personal auto insurance policy, you will not have to pay a deductible for the majority of rental insurance policies. Purchasing rental insurance from the car rental agency can also save you the headache of having to deal with more than one company.

The downside is that rental insurance can be expensive, often costing as much or more than the initial price of renting a car.

Rental Car Insurance Cost

While actual rates vary with every company, you will likely not have to pay more than following per day:

• $20 liability Damage Waiver (LDW) coverage.
• $15 liability coverage.
• $5 personal accident insurance (PAI).
• $5 personal effects coverage (PEC).

Liability Damage Waiver (LDW) for Car Rentals

LDW covers the cost of damages to the rental vehicle due to accident, fire, storm, and acts of vandalism. LDW coverage is nullified if you receive a citation for violating traffic laws.

Liability Auto Insurance

Liability coverage covers damages to property and injuries suffered by other people in the case of an accident. As with your personal insurance policy, you have the option of purchasing additional liability insurance than the minimum required.

Car Rentals and Personal Accident Insurance (PAI)

PAI covers the cost of injuries suffered by you – the policyholder – in the case of an accident. PAI is especially important if you do not have current health or life insurance.

Personal Effects Coverage (PEC) On a Rental Car Insurance Policy

PEC covers the cost of items stolen from the rental vehicle. PEC is not typically included in personal car insurance policies.