Do I Need Car Insurance to Rent a Car?: A Definitive Guide



Even though ridesharing services have become very popular, there are still millions of Americans who rent cars every year. The rental car industry has more than 2 million vehicles out on the road right now, and it uses them to rake in more than $31 billion in total revenue.

This should provide you with plenty of options the next time you want to rent a car. But before you pull the trigger on a rental, you should ask yourself, “Do I need car insurance to rent a car?”

There has traditionally been some confusion over whether or not people need car insurance for renting a car. So by asking, “Do I need insurance to rent a car?”, prior to renting, you can clear this confusion up and make sure you’re covered while you’re behind the wheel of a rental.

Learn more about rental car insurance below.

Do I Need Car Insurance to Rent a Car?

The short answer to the question, “Do I need car insurance to rent a car?”, is “Yes.” You will need to have a rental car insured in one way or another to drive it off a lot.

But with that being said, you don’t necessarily need to buy insurance from a rental car company to insure a car. If you own a car, you should be able to use your new car insurance to insure a rental car when you start driving it around.

If you’re planning on using a credit card to pay for a rental, you might also be able to use it to insure a car. Many credit card companies extend rental car insurance to their customers automatically when they use their cards to pay for rentals.

It would be worth looking into these two options further to see if you can have a rental car insured. It could help you insure a rental without paying a penny extra for it.

Should I Purchase Insurance From a Rental Car Company?

If you don’t already have car insurance and you don’t have a credit card that helps people pay for insurance on rentals, then you might want to consider purchasing insurance from a rental car company. Most rental car companies will offer people the chance to purchase insurance add-ons like:

  • Personal accident insurance
  • Supplemental liability protection
  • Collision damage waiver

But again, you might not need to purchase any of these add-ons if you already have car insurance or if you have a certain type of credit card in your wallet.

Why Is Insuring a Rental Car So Important?

Insuring a rental car through one of the many methods that we’ve talked about here is important because it’ll prevent you from having to pay for auto repair bills and medical bills out of pocket if you get into an accident in a rental car.

The last thing you want to do is crash a rental car and end up paying the price for it. It could put you into a very difficult spot and make you wish you had asked, “Do I need to buy rental car insurance?”, earlier.

Figure Out Your Insurance Situation Prior to Renting a Car

Some people don’t ever get around to asking themselves, “Do I need car insurance to rent a car?” They make a big mistake by not doing it.

You should ask this question before you walk up to the rental car counter to rent a car. It’ll make sure you’re protected each and every time that you drive around in a rental.

Read the rest of the articles on our blog for more information on rental cars.