Do I Need Insurance To Rent A Car?

Matthew Lloyd
January 15, 2021
Matthew Lloyd

Do I Need Insurance To Rent A Car According to Statista, the car rental segment's revenue has reached about 40.5 billion US dollars worldwide in the year 2020. It means that a very large number of people get a rental car for vacation, business, or other purposes. Additionally, the rental car company also offers insurance for the duration of your rental but with additional cost.

While it's a little tempting to get rental car insurance by paying the additional cost, it's equally to have insurance that offers rental car coverage. It keeps people from paying a big amount of money if their rental car gets damaged. For people who are not sure whether it's worth paying the additional cash to a rental car company, here's everything they need to know. If you are asking, do I need insurance to rent a car? You have come to the right place.

Does My Car Insurance Cover Rental Cars?

The very first thing that everyone must consider is their existing car insurance coverage from the insurance company. It's important to read the existing coverage to find out what type of liability, collision, and comprehensive coverage is already there. Many insurance companies have a policy that offers some level of insurance for rental. If anyone can't figure out if their existing insurance covers rental cars, then it's advisable to check it with the insurance representative or agent.

Pros and Cons of Existing Insurance

Even if someone finds out that their existing car insurance offers rental car coverage, it's important to review all the limits and conditions. There can still be some drawbacks with that coverage. It undoubtedly saves people the money they need to spend on getting additional rental car insurance, but it might not be applied according to the current situation. Here are some of the benefits and downsides of existing insurance.

Pros of Existing Insurance for Rental Car


As mentioned above, using the current personal insurance is cheaper than the additional car rental insurance. Moreover, if it covers your rental car insurance according to your unique situation, then you can enjoy peace of mind.

Less Hassle

Everyone wants to spend as little time as possible by getting in and out at the rental car office. If anyone needs to opt for the additional rental car insurance, then they will be required to fill long forms. Not only does it take extra effort, but it also costs a lot of time. On the other hand, if anyone's existing insurance covers rental cars, they can easily bypass this long paperwork.

The Fear of Unknown

Most people know their existing insurance provider, about its reputation and how reliable its services are. On the other hand, opting for rental car insurance is entirely a new experience that can go in any direction.

Cons of Existing Insurance for Rental Car


All the insurance services have their limitations and conditions. A certain insurance service might not offer coverage in certain conditions. People who want to travel abroad might not be able to get accident coverage from their personal insurance service.


A personal insurance service might not offer coverage for rental cars in case of accidents. For example, if someone only possesses minimum liability insurance, they will need to pay for additional coverage to cover their rental car.

Claiming Might Leads to Additional Issues

People who opt for their existing insurance policy instead of going with additional rental car insurance, they'll have to file a claim in order to get the coverage. The existing insurance company can raise an issue for claiming coverage for a car that a person doesn't own. That's why everyone must check it with their existing insurance service provider to see if this can be an issue.

Does the Car Type Matter?

Opting for the type of rental car also matters. The most important thing is the similarities between a rental car and your own car. If the rental car is somewhat the same as your personal car in terms of features, type, and size, the chances are that the existing insurance service will provide coverage without any issue. Whereas, if the car that a person is renting has significantly different characteristics, they might not be able to carry over the coverage from their existing insurance. For example, if a person possesses a simple family sedan and their rental car is a luxury or supercar, then the personal insurance won't be sufficient.

The insurance services are generally included in the fee if someone rents a car via their membership-based car-sharing services. However, the rental car service provider might also be billed for a specific amount of money listed in the membership agreement if the rental car collides or gets stolen. For the additional expense, people can buy a waiver in order to keep themselves from paying the accident costs.

Is Extra Rental Car Insurance Worth it?

It depends upon the following two factors:

  • The time duration for with a person is planning to keep the rental car
  • The place where they want to take it

If a person is taking a rental car for just about a couple of hours to pick someone from the airport, getting the extra rental car insurance might not be a good idea. On the other hand, if they are going with the family outside the city or cross-country for a long trip, then it's wise to get the extra rental car insurance.


In every case, it's recommended to check all the terms and conditions that an insurance service has. Not only will it allow people to make the best decision, but it will also help them to get the most by spending the least.