Planning a trip and looking for the best car rental insurance in 2026? Renting a car should make your journey easy, convenient, and completely stress-free, but dealing with separate insurance coverage can sometimes feel confusing and overwhelming.
Fortunately, many rental companies now include insurance right in their rates, so you do not have to worry about extra costs or complicated paperwork. Choosing a rental with insurance included not only saves you time and money but also gives you peace of mind while traveling.
In this guide, we will walk you through how to find the right car rental with insurance already included, explain the benefits of having coverage built into your rental, and share tips to help you make the smartest choice for your trip.
Why do You Need Car Rental With Insurance?
Renting a car can make your trip smooth and flexible, but having the car rental insurance is essential to protect yourself, your passengers, and your finances. Many travelers underestimate how important coverage is until an unexpected situation arises.
Choosing a rental that includes insurance in the rate ensures you can drive worry-free, focus on your journey, and avoid hidden costs.
Here are some key reasons why you need car rental with insurance:
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Rental car Insurance covers damages to the vehicle and third-party liability, saving you from large unexpected expenses.
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The insurance often includes protection against theft, break-ins, or vandalism, giving peace of mind wherever you go.
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Without insurance, you may face high fees for repairs, towing, or roadside assistance.
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In some states or countries, insurance is mandatory. Renting with coverage ensures you meet local laws without stress.
Choosing car rentals with insurance included is not just a smart financial move; it is a practical choice that makes traveling safer, easier, and truly stress-free.
Types of Rental Car Insurance
Collision Damage Waiver (CDW)
Collision Damage Waiver (CDW) insurance covers damage to a car’s body but not other parts like the windshield, tires, battery, interior, engine, or gearbox.
Also, this insurance type will not cover damage caused by careless driving or driving with alcohol consumed.
CDW helps repair costs if the car’s body gets damaged, but it does not cover everything, so driving carefully and following the rules is important.
Third-Party Liability Insurance
Third-party coverage or liability insurance pays for damages you cause to others with your rental car, including property damage and medical expenses.
Remember, it will not apply if you break the driving or traffic rules. In many countries, liability insurance is mandatory, so many rental companies usually include basic liability coverage.
Personal Accident Insurance
Personal accident insurance covers medical expenses for you and your passengers. It helps to recover hospital bills, ambulance fees, and other costs. This insurance type is optional to take but can be useful in case of an accident, so you can consider it once.
Theft Protection
Theft protection covers the loss of the rental car if it is stolen. It means you will not have to pay the rental company for the car if someone steals it.
This protection takes care of the cost, so you are not responsible for paying for the lost vehicle. It also covers damages that may happen during the attempted theft of the car.
Benefits of Renting a Car with Insurance Included
When you rent a car, you have to pay for every damage that your car gets. That is why having car rental insurance is important. It protects you from high costs if the car is damaged.
It helps pay for repair bills if the car is damaged or stolen. The insurance also covers costs if you harm someone else’s property or hurt someone while driving.
Having rental car insurance means you do not have to worry about paying for everything if something goes wrong with the car during your journey.
Full Protection: Full Protection is a summary of all the mentioned covers and provides complete insurance for rental cars. It includes coverage for damage, theft, repair costs, RSA charges, and other expenses related to claims.
Full Protection gives you complete coverage for your rental car, protecting you from unexpected events during your rental period.
Easy Process: Rental cars with insurance make the full process simple and short. You do not need to worry about adding coverage separately. This saves time and reduces confusion.
Cost Savings: Insurance included in the rental rate can be cheaper. Buying insurance separately can be costly. Affordable rates often provide better value for your money.
Relaxed Mind: If you know that you have coverage, it offers peace of mind. You can drive without worrying about possible costs from accidents or theft. This makes your travel experience more enjoyable.
Clear Terms: Rental cars with insurance included usually come with clear terms. You know exactly what is covered and what is not. This transparency helps avoid unexpected expenses.
Protection Related Benefits
Super Collision Damage Waiver (SCDW):
Opposite to regular Collision Damage Waiver (CDW) which covers only bodywork damage, Super Collision Damage Waiver (SCDW) also covers other parts of the rental vehicle, providing more complete protection.
It reduces your financial liability in case of big damage, confirming you are not loaded with high repair costs.
Personal Accident Insurance (PAI):
PAI covers medical expenses if you or anyone in the rented car is injured during an accident. It offers financial protection by paying for hospital bills and other medical costs due to the accident.
Uninsured Motorist Protection (UMP):
Uninsured Motorist Protection (UMP) protects you if you are in an accident with a driver who does not have insurance. This coverage helps pay for damages and injuries, making you free from financial responsibility if the other driver cannot cover the costs.
Supplemental Liability Insurance (SLI):
Supplemental Liability Insurance (SLI) offers extra financial protection apart from the basic coverage limits. If you cause damage to someone else’s property or injure someone in an accident, SLI helps cover the higher costs, ensuring you do not have to pay such a claim amount.
Roadside Assistance Cover (RSA):
RSA is useful if your rental car breaks down. It provides help if you run out of fuel, experience a flat tire, or face other mechanical issues. This service ensures you can quickly restart your journey or adventure on the road without additional expenses.
Major Car Rental Companies Offering Insurance Included
Hertz
When you rent a car from Hertz, they provide Collision Damage Waiver and Theft Protection coverage. However, you are still responsible for paying a deductible (called excess) if the car is damaged or stolen. This excess amount varies by country, ranging from EUR 900 to 4,000.
To reduce or eliminate this excess, you can purchase SuperCover insurance. The cost and coverage of SuperCover are different in various countries and according to car type.
In some countries like Denmark, Norway, and Portugal, SuperCover insurance can lower the amount you have to pay if the rental car is damaged but does not completely remove your financial responsibility.
You will still have to pay a smaller amount, known as the excess, in case of any damage. Age restrictions may also apply. Like, in Denmark, you must be at least 23 years old to buy SuperCover.
The good thing is Insurance in Denmark also covers excess, roadside assistance, fuel issues, lost keys, tire damage, glass damage, and personal injury up to specified amounts.
Enterprise Rent-A-Car
Renting a car from Enterprise gives you the option to enhance your coverage with additional protection products. These products offer extra security but add cost to your rental.
- Damage Waiver (DW) reduces or removes you from paying for most damage to the rental car. Note it does not cover incidents that happen in Mexico. DW is optional, and its availability and cost depend on where you rent the car and the type of vehicle you choose.
- Personal Effects Coverage (PEC) protects your items against loss or damage for an extra daily fee. Remember PEC could provide the same coverage you already have through your insurance, so you might be paying for protection you do not need. Supplemental Liability
- Protection (SLP) provides up to $300,000 for third-party liability claims, also optional and can be different in cost by location.
- Roadside Assistance Protection (RAP) allows you to waive charges for roadside incidents like lost keys or lockouts, which can be added anytime during your rental
Avis
Avis provides various insurance options that you can choose when booking your rental car, picking it up, or anytime in between. Each location may have different policies, so it is important to check in advance.
Avis includes liability coverage for all vehicles as required by local laws. In some states, this coverage only applies after your personal insurance is used up.
It is necessary to clarify coverage details with both your insurance company and the Avis rental office to understand what is covered in case of an accident or not.
Avis rental car insurance options are:
- Loss Damage Waiver (LDW) covers damage to the rental vehicle.
- Personal Effects Protection (PEP) ensures personal belongings in the car.
- Additional Liability Insurance (ALI) protects against claims from others, like passengers in other vehicles. Depending on where you rent, ALI can cover claims up to $1 million or $2 million, providing coverage for bodily injury, property damage, and death.
Budget
Are you looking to protect yourself with rental car insurance? Budget is a wise choice to cover unexpected situations while driving.
It offers a variety of insurance options for rental cars, whether you are traveling for work, enjoyment, alone, or with family.
With the right insurance, you can drive with a relaxed mind knowing you are covered for accidents, injuries, damage, or theft. To keep you protected on the road, Budget’s insurance plans include:
- Loss Damage Waiver Protection
- Personal Accident and Effects coverage
- Supplemental Liability Insurance
- Emergency Sickness Plan
Alamo
Alamo offers different ways to protect yourself when renting a car. These options give you peace of mind while driving a rental car, depending on your needs and where you rent.
- You can choose Collision Damage Waiver (CDW) to avoid paying for damage or theft of the rental car, though it is optional.
- Supplemental Liability Protection (SLP) provides extra coverage for third-party claims.
- Personal Effects Coverage (PEC) protects your belongings against loss or damage during the rental.
- Roadside Plus (RSP) is available for help if you need roadside assistance, like replacing lost keys or fixing flat tires.
SIXT
SIXT provides various optional products to help in different situations when you rent a car from them.
- Personal Accident Coverage covers medical expenses if you or your passengers are injured.
- Third-party liability protection protects you from claims if you damage someone else’s property.
- Roadside assistance ensures help if your rental car breaks down.
- Loss Damage Waiver covers costs for damage or theft of the car.
- Premium Protection bundles these coverages to reduce your financial responsibility for any accidental damage.
Conclusion
Renting a car with insurance included features the process and provides peace of mind. It can save you money and reduce stress. Major rental companies offer packages with complete coverage. You can find the best deals by booking directly, comparing rates, and understanding terms. Enjoy your travels without worrying about unexpected costs by choosing car rentals with insurance included.
FAQs
Is rental car coverage included in travel insurance?
Usually not automatically. Many basic travel insurance plans exclude rental car damage unless you add it as an optional upgrade. Always confirm your policy specifically lists “Rental Car Damage Coverage.”
What does rental car coverage in travel insurance include?
It typically covers collision damage, theft, vandalism, and sometimes loss-of-use or administrative fees billed by the rental company after an accident or theft.
How is travel insurance rental car coverage different from CDW or LDW?
CDW/LDW from rental companies waives their right to charge you, while travel insurance reimburses you after you pay the rental company. CDW is immediate; insurance requires filing a claim.
What’s the difference between primary and secondary rental car coverage?
Primary coverage pays first and avoids affecting your personal auto policy. Secondary coverage only kicks in after your personal or credit-card coverage is used.
How much rental car coverage should I have?
Experts recommend at least $35,000–$50,000 per incident. Choose higher limits if renting luxury cars or driving in countries where repair costs are expensive.
Does travel insurance cover rental car loss-of-use and admin fees?
Some comprehensive policies cover both, but budget plans often exclude them. Check for explicit wording that says “loss-of-use” or “administrative fees” under covered expenses.
Does travel insurance cover liability for injuries or property damage?
Only select policies include liability protection. Most rental car coverages focus on damage to the rental vehicle itself, so verify if third-party liability is offered or optional.
Will buying the rental company’s CDW void my travel insurance coverage?
Sometimes yes. Some insurers require you to decline CDW to stay eligible for reimbursement. Read your policy carefully before accepting any coverage at the rental counter.
