Do you REALLY need car rental insurance? (2024)

FAQs

Do you need extra insurance when renting a car in the USA? ›

Rental car insurance can be expensive — it can easily double your rental costs if you purchase a full coverage package. You also technically don't need to purchase insurance since rental cars are automatically covered for the minimum requirements in their state. However, it can still be worth it in some situations.

You could end up responsible for significant expenses if you're in an accident with the rental and don't have your own car insurance. Other options include buying additional insurance from the rental car company, using a credit card for coverage or getting a standalone policy through a third party.

A CDW may also be worth considering if you: Simply want to be sure you're not responsible for any extra charges due to vehicle damage. Don't want the hassle of identifying coverage gaps in your auto insurance and credit card coverage.

Yes, you do need rental car insurance in California. Rental car companies in California are not required to automatically provide the state's minimum liability insurance as part of their standard contract, so you must have separate liability coverage when you rent a car in California.

When you hire a vehicle in the USA and Canada, you have the option of taking a rental that is either inclusive, or exclusive of insurance. The insurance required is Collision Damage Waiver/Loss Damage Waiver (covering damage, theft and loss of use of the rental vehicle).

What's the difference between LDW and CDW? CDW covers damage to the rental vehicle in case of an accident. LDW offers the same protection, as well as coverage if the car is stolen. Since these terms are sometimes used interchangeably, pay attention to the fine print to know what kind of coverage you're getting.

Car rental insurance is a protection plan that safeguards you and the vehicle in the event of a collision, theft, and more. Enterprise also offers roadside assistance to help with incidents such as lockouts or lost keys.

Collision damage waiver (CDW), also called car rental insurance, removes a car renter's liability for all or some damage to a rental vehicle in an accident, similarly to collision insurance. CDW also may cover instances of theft or vandalism. The renter will normally only have to pay for a deductible in an accident.

Loss damage waiver is an agreement with an auto rental company in which the renter is released from liability for physical damage to the vehicle in exchange for a fee, subject to the terms of the rental agreement or a state statute if one exists.

Is a loss damage waiver worth it? Yes, a loss damage waiver has the potential to save you both time and money if an accident were to occur during your rental. Without a loss damage waiver, in most states, the renter will be responsible for any loss or damage to the car, even if the damage is not your fault.

What does damage waiver insurance cover? ›

Damage Waiver protects you in the event of damage to or theft of the vehicle and lowers the amount you are liable for. It may be included in the cost of your hire and have an excess dependent on the vehicle category. It means your financial responsibility is limited should something go wrong.

By signing a liability waiver, customers acknowledge the risks involved by their participation in the service or activity. They're agreeing to remove legal liability from the business owner or company. This is why it's best practice to have people sign a release of liability form before working with them.

The Visa car rental coverage provides reimbursem*nt of up to the full cost of a repair or replacement of a rental vehicle in the event of: damage due to collision or theft of the vehicle; • Malicious vandalism against auto; documented valid loss-of-use charges imposed by your company to the renter of the car.

No coverage: Citi, Synchrony and Discover do not offer any car rental coverage on any of their credit cards.

Do I need car insurance to drive in the USA? Yes. In order to legally drive in most states, you'll need to meet the state's minimum car insurance requirements. Your specific situation as an international visitor will affect the type of policy you'll need.

Car insurance is valid for travel in Canada and the U.S.

For instance, if you are hurt in a collision in the U.S., your auto policy's accident benefits coverage will cover some medical costs. However, the policy alone may not be enough to protect you in the U.S, where medical costs are much higher.

Fortunately, the answer is yes! The US is a popular destination for international visitors, and many car rental companies are happy to accommodate foreign tourists. Renting a car can offer you the freedom and convenience to explore the country at your own pace.