Should You Buy Rental Car Insurance? (2025 Guide)

Should You Buy Rental Car Insurance? (2025 Guide)


Renting a car for your trip? You’re not alone — but before you check the “Add Insurance” box, here’s what you need to know to avoid overpaying or under-covering yourself.

🚗 What Does Rental Car Insurance Typically Cover?

  • Collision Damage Waiver (CDW): Covers repair costs if the rental is damaged
  • Theft Protection: Covers car theft or vandalism
  • Liability Insurance: Covers damage you cause to others
  • Personal Accident Insurance: Covers medical bills for you and passengers

But here’s the catch: you might already be covered.

🧾 When You Might Not Need to Buy Extra Insurance

  • Your personal car insurance covers rentals (check your policy)
  • Your credit card offers rental car insurance if you use it to pay
  • Travel insurance includes rental car coverage
  • You’re renting within your home country with existing coverage

👉 Don’t pay twice — check what you already have!

💳 Credit Cards That Often Cover Rental Cars

  • Chase Sapphire Preferred / Reserve
  • Amex Platinum
  • Capital One Venture X
  • Wise Travel Card (check latest updates)

🛡 Always read the fine print and decline the rental company’s insurance to activate card coverage.

✈️ Best Rental Car Insurance for International Trips

  • RentalCover.com – Global policies, cheaper than counter rates
  • Expedia / Booking.com – Often offer add-ons with cancellation
  • DiscoverCars – Easy interface and third-party coverage options

💡 Bonus: Some international locations legally require proof of local insurance.

🚨 What Rental Insurance Doesn’t Cover

  • Driving off-road or outside allowed countries
  • Damage due to intoxication
  • Unauthorized drivers
  • Lost keys or tires

📌 Pro tip: Always take photos of the car before and after rental.

🧠 Final Thoughts

Rental car insurance isn’t one-size-fits-all. Depending on your credit cards, travel insurance, and destination — you may not need to buy extra coverage. But if you're heading abroad or don’t have backup, smart protection can save you big time.

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