Rental Car Insurance Is Almost Always Unnecessary And Here’s Why

I’ve not had to buy rental car insurance in over 20 years, primarily because it is covered when you use your American Express card to rent a car, and also because the unnecessary insurance they’re trying to sell you is covered by your own automobile policy.

Just say no. (Tim Boyle/Getty Images)

Just say no. (Tim Boyle/Getty Images)

Here’s more about that from

If you’ve ever rented a car, you’ve probably been pressured to buy insurance. A salesperson will inevitably urge you to pay a little extra for what seems like lot of protection. He or she might keep offering you alternative plans if you decline — and as you stand there, uncertain of your coverage and fearful of calamity, it might feel like the prudent, adult move to simply say yes.

It isn’t.

What the salesperson doesn’t tell you is that most drivers won’t actually benefit much from their insurance. In some instances, buying it from the rental company will even nullify certain types of existing coverage, leaving you with no more protection than if you’d opted out in the first place.

Insurance is a very profitable add-on, and these agents sell it on commission — but in most cases, you probably don’t need to get it.

Don’t get either type of insurance if you have your own car

To figure out what to get, it’s helpful to distinguish between the two main types of insurance rental companies will try to sell you:

  • Loss damage waiver (LDW), which covers any damage you might cause to the vehicle and usually costs $10 to $20 per day
  • Liability insurance, which covers damage to other people and cars you cause with the vehicle and generally costs $5 to $15 per day

If you have your own car — and thus your own insurance plan — you probably have both of these forms of protection already. They’re built into most plans, the vast majority of which extend to cover rental cars.

Read more about unneeded auto insurance at

Did you like this? Share it:
Posted by on July 8, 2015. Filed under SCI/TECH/HOME/TRAVEL. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
Back to Main Page

One Response to Rental Car Insurance Is Almost Always Unnecessary And Here’s Why

  1. Michael John Scott Reply

    July 30, 2015 at 1:07 pm

    They sure push you to buy it though.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.