Do You Really Need Rental Car Insurance? Here’s What Travelers Should Know

If you're gearing up for a road trip or planning to rent a car at your next destination, you might be wondering: Do I need to buy insurance at the rental counter? The short answer is — it depends.

Car rental insurance can be a confusing topic, especially with the variety of coverages offered and the fine print involved. But don’t worry — TripSava’s got you covered. Let’s break down what’s essential, what you might already have, and how to save money while staying protected on the road.

The Core Rental Car Insurance Options

When you rent a car, the rental company will likely offer you the following types of coverage:

1. Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW)

This isn’t technically insurance, but it’s one of the most important add-ons. It waives your responsibility if the rental car is stolen or damaged. Note: there’s often a deductible.

🛑 Tip: If you already have collision coverage on your personal car, you may not need this.

2. Supplemental Liability Insurance (SLI or ALI)

Covers you if you’re at fault in an accident and cause injury or property damage to others. If your personal policy has low liability limits, this can be a smart add-on.

3. Personal Accident Insurance (PAI)

This covers medical expenses for you and your passengers in the event of a crash. Check your health or travel insurance — you might already have this protection.

4. Personal Effects Coverage

Covers theft of personal items from the rental vehicle. Your homeowners or renters insurance might already include this, so double-check your policy before buying.

Renting Internationally? Pause Before You Sign

If you’re renting a car abroad, make sure your insurance covers international travel. Many U.S.-based policies don’t extend overseas, and some countries require specific types of coverage.

Alternatives to Rental Agency Insurance (And How to Save Money)

Want to avoid paying for coverage at the counter? You may already have what you need — here’s how:

Your Personal Auto Insurance

Many personal auto policies extend coverage to rental cars. This often includes liability, collision, and comprehensive. But be aware — if you file a claim, it could affect your premium.

Credit Card Benefits

Some major credit cards offer rental car coverage if you use the card to book and pay for the rental. Be sure to check your card’s policy — some only provide secondary coverage.

Travel Insurance Add-ons

If you’ve purchased travel insurance, check if rental car protection is included or available as an add-on. Policies vary widely.

Membership Perks (AAA, AARP, etc.)

Members of organizations like AAA may have access to rental car insurance or discounts. It’s worth asking about.

Self-Insurance (Advanced Travelers Only)

If you have robust personal coverage and are willing to take the risk, you might skip extra coverage entirely. This could save money — but it’s not for everyone.

Online Booking & Travel Bundles

Booking your rental car online or bundling it with a flight or hotel package might come with discounted insurance rates — sometimes even free coverage.

Don’t Forget: Roadside Assistance

Most rental companies offer roadside assistance as an add-on, but you may already have it through your personal car insurance, credit card, or an organization like AAA. No need to double up!

Final Tips from Team TripSava

Before you sign anything at the rental counter:

• Review what coverage you already have (auto, credit card, travel insurance).

• Read the rental agreement carefully.

• Decide what coverage gives you peace of mind for your specific trip.

You don’t need to overpay — just make sure you’re protected in the ways that matter most to you. And with that peace of mind? You’re free to hit the road and explore.

Safe travels, and happy trip planning from all of us at TripSava!