How to Get Rental Car Insurance

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Updated: June 3, 2026

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Key Takeaways
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Drivers with collision and comprehensive coverage on their personal auto policy don't need counter CDW at the rental counter, but call your insurer to confirm your policy covers the loss of use fee before you decline it.

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Most personal auto policies pay the repair bill on a damaged rental car but won't pay the loss of use fee, which can reach $40 to $100 per day.

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Credit card CDW activates only if you pay the full rental on the qualifying card and decline counter CDW at pickup; paying with a different card voids the benefit.

What Most Drivers Miss about Rental Car Coverage

If you damage a rental car, the rental company doesn't just charge you for repairs. It also charges you for every day the car sits in the shop and can't be rented to someone else. Repair times average 22 days, and the fee can reach $40 to $100 per day, so a single incident can add $1,100 or more on top of the repair bill. Most personal auto insurance policies cover the repair but won't pay the loss of use fee.  

Counter CDW, the protection plan the rental company sells when you pick up the car, covers both the repair bill and the loss of use charge. Buy it if you're unsure whether your existing coverage includes loss of use. New York and Wisconsin don't allow rental companies to charge loss of use fees at all, so if you're renting in either state, this doesn't apply to you.

How to Check Before You Rent a Car

Check what coverage you already have before you go to the counter:

  • Personal auto policy with collision and comprehensive coverage: Your policy almost certainly covers rental cars you drive for personal use in the U.S. and Canada. Your deductible applies, and your policy likely won't cover the loss of use fee. Two common exceptions: some insurers don't cover rentals used for business travel, and some limit coverage for rentals longer than 30 days. Call your insurer to confirm both before you rent.
  • Personal auto policy that only covers damage to other people's cars: Your policy doesn't cover damage to the rental vehicle itself. You need either a credit card that includes CDW as a benefit (check your card's benefits guide) or a separate policy you buy online before you get to the counter.
  • No personal auto policy: A separate policy or counter CDW is required. A credit card CDW benefit can cover you, but the type of coverage matters. Read the next section before relying on it.

How to Add Rental Reimbursement to Your Auto Policy

Rental reimbursement and CDW are not the same thing. Rental reimbursement pays for a loaner car while your own car is being repaired after an accident your insurance pays for. It doesn't cover damage you cause to a rental car on a trip. CDW is for that.

  1. 1

    Check your declarations page first.

    Your declarations page is the document your insurer sends that lists every coverage you have. Look for "rental reimbursement" or "transportation expense." If it's already listed, you don't need to add it.

  2. 2

    Call your insurer or log in to your policy portal.

    Most insurers let you make this change online or by phone. It takes effect within 24 hours, and you only pay for the months left in your current policy period, not a full year's cost upfront.

  3. 3

    Choose your daily limit.

    Insurers offer $30, $40 or $50 per day, capped at 30 days. The $40 per day option covers most standard rentals. Choose $50 if you regularly rent an SUV or truck. The price difference between options is $2 to $5 per month.

  4. 4

    Confirm rental reimbursement appears on your updated policy summary.

    Download it from your portal or ask for it by email. Don't assume the change went through until you see it in writing.

  5. 5

    Activate it only after a covered claim.

    Rental reimbursement starts only after you file a claim for an accident or damage your policy covers, like a crash or a stolen car. Contact the person handling your claim at the insurance company (called a claims adjuster, not the agent who sold you the policy) to approve the rental. Ask about the daily limit and day cap before you book.

How to Use Your Credit Card for Rental Car Insurance

Most credit cards only pay after your personal auto insurer settles the claim first. That's secondary coverage. Primary CDW, offered by cards like Chase Sapphire Reserve, pays the rental company directly and keeps your auto insurer out of it entirely. No deductible applies and no claim goes on your auto policy. If you have no personal auto policy, secondary CDW becomes your only coverage and the card issuer pays first by default. Confirm this with your card issuer before you rely on it.

  1. 1

    Confirm your card's CDW type before you rent.

    Log in to your card's benefits portal or call the number on the back. Ask: Is the CDW primary or secondary? What vehicle types are excluded? Does it cover international rentals? Most card CDW benefits exclude pickup trucks, cargo vans and luxury vehicles. Card CDW benefits also exclude tires, windshields and underside damage.

  2. 2

    Book the rental using only that card.

    The entire transaction (deposit, base rate and final charge) must go on the qualifying card. Using a different card for any part of the transaction voids the benefit.

  3. 3

    Decline the counter CDW at pickup.

    Accepting counter CDW makes your card benefit void or secondary. Saying no to counter CDW at the counter is what turns on most credit card CDW benefits.

  4. 4

    Document pre-existing damage before you drive.

    Walk around the car with the rental agent and photograph every scratch and dent before you leave the lot. Get each item noted on the rental agreement. Without photos, the rental company can blame you for damage that was already there.

  5. 5

    Keep the rental agreement and all receipts.

    If you need to file a claim, the card issuer requires the rental agreement, the damage report and the repair invoice, along with proof of payment on the qualifying card.

How to Buy Rental Car Insurance Online Before Your Rental

Buy a separate policy online if your car insurance only covers damage to other people's cars, if you have no car insurance at all, or if you're renting internationally where your personal policy doesn't apply. If your car insurance already includes collision and comprehensive coverage and your credit card CDW pays first, you don't need one.

  1. 1
    Compare Standalone Rental Insurance Providers

    Independent providers include Allianz and Bonzah. Prices are $7 to $17 per day, compared to $15 to $30 per day at the counter. Loss of use coverage is the most important thing to confirm before buying, since most policies exclude it. Check whether coverage is primary or secondary and whether it applies to the vehicle type you're renting.

  2. 2
    Buy before the rental contract is signed.

    Most separate policies can't be purchased after you sign the rental contract. If you're at the counter with an unsigned contract, buy the policy on your phone before you sign. If you've already signed, counter CDW is your only option.

  3. 3
    Decline counter CDW at pickup.

    Show the rental agent your policy confirmation if they ask. You don't need counter CDW if your separate policy covers the vehicle type and value.

  4. 4
    Keep the policy confirmation and claims number on your phone.

    If damage occurs, contact the insurer you bought the policy from before you return the car. Don't report to the rental company first.

Common Mistakes When Getting Rental Car Insurance

There are five common mistakes drivers make when renting a car: duplicate coverage, assuming full protection, splitting payments across credit cards, confusing rental reimbursement with CDW, and skipping pre-rental documentation.

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    Buying Counter CDW When You Are Already Covered

    Industry surveys find that about 62% of drivers mistakenly believe their personal auto insurance doesn't cover rental cars. Personal auto insurance almost always does, if you have collision and comprehensive coverage. Counter CDW at $15 to $30 per day duplicates that protection at a high cost, with profit margins that rental industry analysts have estimated at 60% to 80%.

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    Assuming Collision and Comprehensive Coverage Means You're Fully Protected

    Your insurer pays the repair bill, but it won't pay the loss of use fee. If the rental car sits in a shop for three weeks, the rental company bills you for every day. Check whether your separate policy or credit card CDW covers loss of use before saying no to counter CDW.

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    Splitting the Rental Payment Across Cards

    The full rental transaction must go on the qualifying card. Paying a deposit with one card and the balance with another voids the benefit.

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    Confusing Rental Reimbursement With CDW

    Rental reimbursement covers a loaner while your car is being repaired. CDW covers damage to the rental you're currently driving. They're different products that cover different exposures.

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    Skipping the Pre-rental Photo Walkthrough

    Without photos taken before you drive, you have no evidence to dispute a damage claim when you return the car. The walkthrough takes two minutes and protects you from being billed for scratches that were already there.

Frequently Asked Questions About Rental Car Insurance

How long does it take to get rental car insurance?

Can I get a rental car through my insurance company after an accident?

Will getting rental car insurance through my existing policy raise my premium?

What if I forgot to decline the counter CDW but my credit card covers it?

Are there states where rental companies are required to offer rental insurance at a capped rate?

Is it cheaper to buy rental car insurance in advance or at the counter?

Cost figures for counter CDW ($15 to $30 per day), standalone policies ($7 to $17 per day) and rental reimbursement endorsements ($3 to $10 per month) are industry ranges sourced from insurer product pages and rental company published rates. The 22-day average repair time is from J.D. Power's 2024 U.S. Auto Claims Satisfaction Study. The statistic that 62% of drivers mistakenly believe personal auto insurance doesn't cover rental cars is from an insurance industry consumer survey. The 60% to 80% profit margin figure for counter CDW is from the CarInsuRent Rental Car Insurance Market Report (Winter 2025-2026); readers should note this source is a rental insurance provider. The loss of use fee range of $40 to $100 per day reflects published rates from major rental companies. State regulatory claims, including New York's CDW cap under General Business Law Section 396-z and disclosure requirements in California, Illinois and Indiana, are based on publicly available statutory references. Statutory rates and disclosure requirements are subject to legislative change; verify current rules with the applicable state authority or rental company at the time of booking. Read our full car insurance methodology.

About Mark Fitzpatrick

Mark Fitzpatrick, Licensed P&C Insurance Expert, MoneyGeek

Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he has produced original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.

He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.

Like all MoneyGeek analysts, he draws on independent cost and consumer experience data, and no insurance company partnership influences his recommendations.

Fitzpatrick earned his degrees from Johns Hopkins University (M.A. Economics and International Relations) and Boston College (B.A.). He began his career in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.

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