Short answer
You must be covered for liability — damage or injury you cause to others — but you don't always have to buy it from the rental company. Many US drivers are already covered by their own auto policy, and many credit cards cover damage to the rental car itself. If you have no auto policy, or you're visiting from abroad, the rental company's damage waiver and supplemental liability are worth considering.
The counter is the worst place to decide on coverage — you're tired, there's a line, and the agent is trained to sell it. Decide before you go. Here's how.
Two separate questions
Rental coverage answers two different questions, and different sources cover each:
- Damage to the rental car itself: the rental company's collision or loss damage waiver (CDW/LDW), your credit card's rental car benefit, or your own auto policy's collision coverage.
- Liability to other people: the liability coverage required by state law, the rental company's supplemental liability (SLI), or your own auto policy's liability coverage.
If you have your own US auto policy
Many personal auto policies extend the same coverage you have on your own car to a rental car in the US — so if you carry collision and liability at home, you may already be covered. Call your insurer and ask specifically about rental cars, and about fees your policy may not cover, such as loss of use and administrative charges.
If you're relying on a credit card
Many credit cards include a rental car damage benefit when you pay with that card and decline the rental company's waiver. Check:
- Whether it's primary or secondary to your auto policy.
- Which vehicles are excluded — expensive, exotic and large vehicles often are.
- How long a rental it covers.
- That it covers damage to the car, not liability to others. Most don't include liability.
If you have no auto policy
Without your own auto insurance, you have no personal liability coverage to fall back on. The rental may include only the minimum liability required in that state, which can be low. Consider the rental company's LDW and SLI, or a non-owner auto policy if you rent often.
If you're visiting from abroad
Foreign auto policies generally don't cover US rentals. Many rates booked from outside the US bundle damage waivers and liability — check what yours includes before adding more at the counter.
Our recommendation
Check your own policy and card before you book, write down what's covered, and only buy what fills a gap. For an explanation of each type of coverage, see car rental insurance explained, and for the waiver in detail, what a collision damage waiver is. Then compare cheap car rentals or browse by city.
FAQ
Frequently asked questions
Everything you need to know about renting a car