Rental Car Insurance Types

Rental car insurance policy is an insurance policy to be taken by those who rent’s a car. This is very much necessary if you are taking the car on rent for a longer period. This is because rental car insurance policy insures the expenses that are likely to occur due to an accident that took place while you are driving a rented car.

Types of Rental Car Insurance Policy

Collision Damage Waiver

This is the most common type of rental car insurance policy provided by insurance companies to customers. This is a damage waiver scheme. In this type, the customer will have to pay a nominal amount daily towards insurance premium. He will be waived of any damages incurred by an accident or any other means while he is in possession of car on rent. This is the most preferred policy for maintenance cost of the car in case of any damage can be waived off and will be paid by insurance company.

Auto Insurance Policies

This type of rental car insurance policy will provide with liability insurance to any damage or injuries caused by an accident to others. You need to make sure that the auto insurance policy is providing this type of coverage. Damage fees are offered by credit card companies in case of accident that takes place while you are driving a rental car. When offer is made by credit card companies, if the damages need to be paid off, they might require you to pay complete rental fees through your credit card itself.

Credit Card Insurance Policies

Some of the credit card companies will offer you to pay off the damages caused to third party that might occur due to an accident at the time of using a rental car. But they might also require you to pay off complete rent through credit card only in order to avail this facility. So you must be sure of the policies and terms and conditions to ensure that the credit card policy will pay off damages that might occur to a third party due to an accident while you are driving a rented car.

If credit card insurance policy or auto insurance policy is not giving protection or insurance coverage while driving a rented car you can opt for a collision damage waiver which is the best alternative available.


Here are certain benefits of rental car insurance. They are

  • If you are driving a rented car and an accident occurs you need not bear the cost of damages from your pocket. It will be paid of by insurance company for a small premium paid by you towards insurance.
  • You will get accident coverage which is secondary coverage with a single premium credit card which is a much easy method.
  • You need not pay for the repair and maintenance of car which you have rented.
  • You need not pay to third party who has suffered from the accident and payment for their treatment will be dealt with by the company.