Travel News

All You Need To Know About Travel Insurance For Rental Cars

Driving through Death Valley National Park in a rental car (photo: Jamie Street)

Nowadays, it can be too expensive to own a car. Maintenance, service repairs, and the cost of spare parts can keep on increasing as the vehicle gets older.

Rental cars are a potential solution for those worried about the long-term expenses of owning a car. 

Driving through Death Valley National Park in a rental car (photo: Jamie Street)
Driving through Death Valley (photo: Jamie Street)

It would be best to keep some things in mind while getting travel insurance to cover a car rental.

First, the country or countries you visit should be included in that policy, as sometimes policies only cover specific countries. You’ll want to read the fine print before agreeing to a rental.

Have you ever wondered how insurance works with rental cars? This article will cover critical aspects of rental car insurance and address some of the most common questions related to car rental insurance.

How Does Rental Car Insurance Work?

Insurance for rental cars is different than personal car insurance.

The benefits and coverage of regular car insurance are more straightforward than rental car coverage, as the latter varies based on the rental company and geographic location. 

Standard types of coverage offered in rental car insurance are listed below.

1. Collision Damage Waiver (CDW)

As per the name, Collision Damage Waiver will cover you against any damage to the car.

Typically, damage to windshields, tires, batteries, the interior, and engine/gearbox are not included under CDW; it covers only bodywork damage.

Damages to the car due to aggressive driving or driving under the influence of alcohol are also not covered.

2. Theft Protection

A benefit of car rental insurance is that it usually includes theft protection, so if the car you rented is stolen, then the theft protection cover will save you money.

Also, it covers damages to the car, which takes place if anyone attempts to steal it.  

3. Third-Party Liability

The third-party liability coverage you get with rental car insurance covers damages to property and life by third parties.

However, if you’ve been observed breaking the law in such situations, then this coverage won’t apply.

Additional Car Rental Insurance Coverage

Car hire insurance coverage is an essential aspect of renting a vehicle, as when you lease a car, you’re responsible for damages caused to the vehicle. 

Damage, theft, and harm to third-party property are typically included (or available for an extra fee) with rental car insurance policies. 


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