Question

Do you need insurance to rent a car?  

Yes, you do need insurance to rent a car to protect against financial loss due to collision or damage while driving a rental car.  

To rent a car, you need good car insurance. The insurance can be your personal car insurance, insurance from a rental company, or the coverage offered by the credit card through which the car is rented.  

Why is insurance important for renting a car?  

Having insurance to drive cars is mandatory in most states, and it includes rental cars, too. It is important, as the chances of being involved in a collision or inflicting damage to the car are never zero. For personal cars, you need to worry about the out-of-pocket expense for repairs and compensation to third parties, if any.   

While this is the case with personal cars, for rental cars, you might need to pay the price for loss of use, diminished value, and administrative fees as decided by the rental company. Such indemnity could get out of hand if combined with third-party compensation, too.  

How to get insurance to rent a car?  

You can subscribe to rental car insurance in the following ways.  

• Include rental car coverage for your personal insurance.  
• Buy the insurance offered by rental shops at the time of the rental agreement.
• Use a credit card that offers rental insurance.   

Rental car insurance offered through any of the above means should be good enough to drive a rental car.

What coverage do you need to rent a car?  

Typical rental car insurance includes liability, collision, and comprehensive coverage. Since these coverages are also included in your full coverage of personal car insurance, it should be sufficient to rent a car. All the same, it is important to ensure that your full coverage insurance meets all requirements. Read and compare the policy document with the insurance conditions of the rental shop. If larger gaps are found between the coverage and requirements, it is best to purchase the insurance that your rental shop offers.