Best rental car insurance providers in the U.S with details on insurance coverage options (coverage limits , per day cost option)
1. Rental Car Companies (In-House Insurance)
Rental car companies provide several insurance options when you rent a vehicle. Here are the typical coverage options and their associated limits and estimated per-day costs
- Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): Covers damage or theft of the rental vehicle.
- Coverage Limit: Full cost of the rental vehicle, though some exclusions may apply (e.g., tires, windshields).
- Per Day Cost: $10-$30/day, depending on the rental company and car type.
- Liability Coverage: Protects against damages to other vehicles or property in case of an accident.
- Coverage Limit: Varies by state typically up to $1 million.
- Per Day Cost: $8-$18/day.
- Personal Accident Insurance (PAI): Covers medical expenses for you and your passengers if you’re injured in an accident.
- Coverage Limit: $10,000-$100,000, depending on the policy.
- Per Day Cost: $3-$7/day.
- Personal Effects Coverage (PEC): Protects personal belongings inside the rental car.
- Coverage Limit: Typically up to $500-$2,500.
- Per Day Cost: $2-$5/day.
Popular rental car companies providing these insurance options:
2. Major Credit Card Companies
Credit card companies often provide rental car insurance as a perk. Here’s the typical coverage and limits offered by major issuers, along with the cost (if any):
- Visa: Secondary coverage for damage and theft of the rental car.
- Coverage Limit: Up to the actual cash value of the vehicle.
- Per Day Cost: Free as a cardholder benefit.
- Mastercard: Coverage for collision damage, theft, and loss-of-use charges.
- Coverage Limit: Varies by card but typically covers the rental car’s value.
- Per Day Cost: Free with certain premium cards.
- American Express: Offers premium rental car protection with primary coverage for damage, theft, and even medical expenses.
- Coverage Limit: Up to $100,000 for damages.
- Per Day Cost: $12.25-$24.95/day, depending on the plan.
- Discover: Secondary coverage for rental car damage or theft, but only certain cards offer this.
- Coverage Limit: Varies by card.
- Per Day Cost: Free as a cardholder benefit (where applicable).
Tip: Always verify the coverage and limits with your card issuer, as they may vary depending on the card type.
3. Third-Party Rental Car Insurance Providers
Third-party insurance providers generally offer cheaper rental car coverage with customizable plans for liability, collision, and personal injury. Here’s an overview of the options, limits, and per-day costs:
- Allianz Global Assistance: Comprehensive coverage for rental car damage and theft.
- Coverage Limit: Up to $40,000 for damage/theft.
- Per Day Cost: Around $9/day.
- Insure My Rental Car: Low-cost rental car insurance provider specializing in damage and theft protection.
- Coverage Limit: Up to $100,000 for damage or theft.
- Per Day Cost: Around $6-$8/day.
- Bonzah: Provides affordable rental car insurance for damage, theft, and liability.
- Coverage Limit: Up to $35,000 for damage and $1 million for liability.
- Per Day Cost: Around $7-$12/day.
- Sure: Mobile app offering rental car insurance with flexible options for damage, theft, and liability.
- Coverage Limit: Up to $50,000 for damage and $1 million for liability.
- Per Day Cost: Around $9-$13/day.
4. Personal Car Insurance Providers
Many personal car insurance policies extend coverage to rental cars, often with no additional daily cost. However, if you choose additional coverage through your insurer, there may be per-day fees. Here’s what to expect:
- State Farm: Typically extends your personal auto coverage to rental vehicles.
- Coverage Limit: Matches your policy limits, ranging from $50,000 to $500,000.
- Per Day Cost: Often included in your existing policy; no extra cost.
- GEICO: Rental car coverage is usually included in personal policies.
- Coverage Limit: $100,000-$300,000 for liability and up to the actual cash value of the rental vehicle.
- Per Day Cost: No extra charge with existing coverage.
- Progressive: Extends your personal auto insurance to cover rental vehicles.
- Coverage Limit: Mirrors your policy’s liability and damage limits.
- Per Day Cost: Included in your policy, no extra charge.
- Allstate: Offers rental car coverage through your personal auto policy.
- Coverage Limit: Matches your personal policy’s liability and damage limits.
- Per Day Cost: Included with your policy, no additional cost.
- USAA: Provides rental car insurance to military members and their families.
- Coverage Limit: Matches your policy limits, often up to $300,000 for liability.
- Per Day Cost: Typically included in your existing policy.
Considerations When Choosing Rental Car Insurance
- Primary vs. Secondary Coverage: Check if the insurance provided is primary (pays first) or secondary (after personal insurance).
- Existing Coverage: Personal auto or homeowners/renters insurance may already provide protection for rental cars, especially for liability.
- International Rentals: Coverage often differs for rentals outside the U.S., so confirm your coverage when traveling abroad.
Conclusion
When renting a car in the U.S., it’s essential to evaluate insurance options based on coverage limits, per-day costs, and your specific needs. You can choose from rental car companies, credit card providers, third-party insurers, or personal auto insurance policies. Always review the coverage carefully to ensure you’re adequately protected during your rental
