January 10, 2022
Car Rental Insurance in the USA
Aleksandrs Buraks
Head of Growth at DiscoverCars.com
Car rental coverage is always confusing but even more so in North America, particularly for international visitors. Here we'll try to make it as clear as possilble.
Car Rental Insurance in the USA
By Aleksandrs Buraks | Published January 10, 2022
Car rental coverage is always confusing but even more so in North America, particularly for international visitors. Here we'll try to make it as clear as possilble.
Car Rental Insurance for US Residents
Most US residents own a car — less than 10% don't have access to one in their household. In America, car insurance typically covers rental cars.
Therefore, if you own a car and have full insurance, then your rental car will likely be covered under your policy. But be sure to check this before you go rent a car by either calling or emailing your insurance company.
In addition, credit cards (Visa, Mastercard, and American Express) typically also cover rental cars as secondary insurance. This means that any other insurance you have will be used first and the credit card will cover anything else. Credit cards only cover the rental car itself, though, and not any third-party damages.
Liability insurance is a different issue. Rental cars are required to carry the minimum insurance amount of each state, but in many states, this amount is very low. You, therefore, will likely want to purchase Supplementary Liability Insurance if you do not have your own car insurance.
Finally, if you do not own a car or have coverage through your credit card, you will have to purchase the rental company's CDW. While some of the larger companies may not check that you have insurance, you do not want to be liable for the entire value of the car. If you purchase the rental company's CDW, you won't be charged more than its deductible for any damage that it covers.
Note: If you only have liability insurance (the legal requirement in all states), then it will cover any damage you cause to other cars or injuries to others, but it will not cover the rental car itself. In this case, you will need to purchase the rental company's CDW.
Another note: Be careful if you plan to rent from smaller companies, particularly those in Florida. These companies often only accept certain insurance companies and will require you to purchase their CDW and/or Supplemental Liability Insurance if your insurance is through a different company. This can dramatically increase the price you'll have to pay.
Therefore, if you own a car and have full insurance, then your rental car will likely be covered under your policy. But be sure to check this before you go rent a car by either calling or emailing your insurance company.
In addition, credit cards (Visa, Mastercard, and American Express) typically also cover rental cars as secondary insurance. This means that any other insurance you have will be used first and the credit card will cover anything else. Credit cards only cover the rental car itself, though, and not any third-party damages.
Liability insurance is a different issue. Rental cars are required to carry the minimum insurance amount of each state, but in many states, this amount is very low. You, therefore, will likely want to purchase Supplementary Liability Insurance if you do not have your own car insurance.
Finally, if you do not own a car or have coverage through your credit card, you will have to purchase the rental company's CDW. While some of the larger companies may not check that you have insurance, you do not want to be liable for the entire value of the car. If you purchase the rental company's CDW, you won't be charged more than its deductible for any damage that it covers.
Note: If you only have liability insurance (the legal requirement in all states), then it will cover any damage you cause to other cars or injuries to others, but it will not cover the rental car itself. In this case, you will need to purchase the rental company's CDW.
Another note: Be careful if you plan to rent from smaller companies, particularly those in Florida. These companies often only accept certain insurance companies and will require you to purchase their CDW and/or Supplemental Liability Insurance if your insurance is through a different company. This can dramatically increase the price you'll have to pay.
International Visitors
International car insurance will not cover rental cars in the USA. However, international customers (those from outside North America) will generally be able to book rental cars that included a CDW and liability insurance (be sure to search using your actual country of residence).
There are cases where international customers end up purchasing a rental deal that doesn't include insurance (this happens often in Mexico). If you happen to do this, expect to be required to purchase such at the rental desk thereby increasing the total cost of your rental.
There are cases where international customers end up purchasing a rental deal that doesn't include insurance (this happens often in Mexico). If you happen to do this, expect to be required to purchase such at the rental desk thereby increasing the total cost of your rental.
Aleksandrs Buraks
Head of Growth at DiscoverCars.com
Aleksandrs has over 10 years of experience in marketing with a focus on creating stellar content that provides topical insights using data. Having taken five road trips across Europe and one in the U.S., he is passionate about traveling by car. His favorite countries to visit are Denmark and Thailand. You can find him on Linkedin, Facebook, and Twitter.