Rental car insurance protects against damage or theft of rented vehicles. Although not mandatory, having it is advisable in case of any unexpected incidents while you are driving the vehicle. Rental companies usually offer insurance, but it can be costly. Therefore, to get the cheapest rental car insurance, it is recommended that you explore other options before renting a car. There are two types of it:
- Damage and theft coverage: This coverage helps pay for repairs or replacement of the rental car if it is damaged or stolen while you are driving it. It also covers liability coverage in case you are responsible for an accident while driving it.
- Reimbursement coverage: This coverage pays for a rental car while your car is repaired.
It is important to note that the best car insurance companies such as State Farm, Geico, USAA, Progressive, Nationwide, and Lemonade car insurance do not offer damage and theft coverages per day as a standalone product. They provide this insurance only to their auto insurance customers. However, some companies sell daily rental car insurance to anyone who needs it, and we have a list.
How to get the cheapest rental car insurance
If you’re on the hunt for the cheapest rental car insurance, consider these tips:
When renting a car, it’s important to shop around and compare quotes from multiple companies. You can also ask for discounts, such as bundling it with your existing policy or being a member of a certain organization. Another thing to consider is renting from a company that includes it in the rental price. Additionally, it’s important to be aware of the coverage offered by your credit card, as some credit cards offer rental coverage as a benefit. Finally, make sure to purchase it from a reputable company.
Cheapest rental car insurance List
1- Travelers Rental Insurance
Travelers was founded in 1864 by James G. Batterson, who introduced accident insurance for travelers in the United States1. In 1998, Travelers merged with AIG, one of the world’s largest insurance companies.
They cover the physical damage up to $35,000 or $50,000, depending on the plan you choose. It also includes roadside assistance and 24/7 travel assistance services. Travelers was launched in 2014 as a way to provide travelers with a cheaper and more convenient alternative to rental car companies. It is available for both domestic and international trips and can be purchased online or through travel agents. The average cost of it for Travelers is $6 to $8 per day. Overall, It is a good option for people who are looking for comprehensive car insurance coverage and competitive rates. However, it is important to be aware of the exclusions and high deductibles before you purchase a policy.
Travelers Rental Insurance Pros
- Comprehensive coverage: Travelers provides comprehensive coverage options including personal property, liability, and medical payments insurance.
- Competitive rates: In general, rates are competitive with those of other major companies.
- Good reputation: Travelers is a reputable insurance company with a lengthy history of providing exceptional customer service.
- Easy to purchase: It can be purchased online, over the phone, or through a Travelers agent.
Travelers Rental Insurance cons
- Some exclusions may apply: Policies exclude coverage for high-value items and rental cars outside of the US.
- High deductibles: Policies may have high deductibles based on the chosen coverage level.
- Limited customization options: Policies offer limited customization options compared to other companies.
2- Trip Guard from AIG Travel Guard
Trip Guard is a product of AIG Travel Guard, a company that provides travel insurance plans for various types of trips. They cover the physical damage up to $35,000 or $50,000, depending on the plan you choose. It also includes roadside assistance and 24/7 travel assistance services.
Trip Guard was launched in 2014 as a way to provide travelers with a cheaper and more convenient alternative to the insurance offered by rental car companies. Trip Guard is available for both domestic and international trips, and can be purchased online or through travel agents. The average cost of Trip Guard is $6 to $7 per day.
Trip Guard Pros
- It is cheaper than the insurance offered by rental car companies
- Does not have a deductible
- Covers additional drivers for free
Trip Guard Cons
- Does not cover medical expenses or liability for other drivers
- Does not cover theft or vandalism of personal belongings
- It may not be available in some countries or states
3- Bonzah
Bonzah is a company that provides rental car insurance in the US and abroad. It covers a range of events that could cause damage, theft, vandalism, or other losses. Additionally, Bonzah includes liability insurance for third-party claims. They started in 2010 when the founder decided to create his own affordable pre-purchase solution for rental car insurance, after renting cars frequently and finding the rental company’s rates too high. Since then, Bonzah has sold car rental damage insurance in several markets including the USA, with Pablow Inc. as the underwriter. Bonzah is licensed in all 50 states and Washington D.C. It has a rating of 4.5 out of 5 stars based on 920 reviews.
Bonzah is an affordable option, which costs less than $10 per day. It provides coverage up to $35,000 for collision or loss damage insurance, and up to $1 million for supplemental liability insurance. It provides primary coverage, which means that you don’t have to file a claim with your company or pay a deductible. All eligible drivers who are 21 years or older and added to the rental agreement are covered.
Moreover, it includes personal effect coverage for up to $500 for your baggage and belongings in case of loss, damage, or theft. Liability claims are covered with a zero deductible, and damage claims have a $500 deductible. Bonzah also offers a 10-day free look period, which allows you to cancel your plan within 10 days of purchase if you have not filed a claim or departed on your trip.
Bonzah Pros
- Provides up to $35,000 in rental car damage coverage, including protection against collision, theft, vandalism, windstorms, fire, hail, flooding, and damage beyond your control.
- Provides up to $1 million in primary and supplemental liability car insurance coverage in the U.S. and Canada, meeting state minimums.
- Liability claims have a zero deductible, but accidents with other vehicles have a maximum deductible of $500.
- Provides coverage for baggage and personal items, as well as optional roadside assistance.
- Has a 10-day free look period, which means you can cancel your policy within 10 days of purchase and get a full refund.
- Has 24-hour customer service and an online platform for quotes and claims.
- Is available in every state and most countries.
Bonzah Cons
- The policy does not cover damages or liabilities resulting from driving under the influence of alcohol or drugs, racing, off-road driving, or using the vehicle for commercial purposes. See the Commercial insurance buying guide.
- Does not cover any loss or damage to the rental car keys, tires, rims, or accessories.
- Does not cover any medical expenses or bodily injury for you or your passengers.
- Loss or damage from war, terrorism, nuclear radiation, or natural disasters is not covered.
- Requires you to purchase the policy ahead of time, before you pick up the rental car.
- Some customers have complained about the claims process, customer service, and coverage limitations.
4- Sure Rental
Sure is a company that provides various types of insurance products, including through its mobile app and website. It was founded in 2014 by Wayne Slavin and Sten Saar, who wanted to create a more convenient and personalized way for consumers to buy insurance. Sure partners with leading companies, such as Chubb and Nationwide, to offer coverage for different needs and risks. the average cost of Sure is $9 per day.
It is one of the products offered by Sure that covers physical damages up to $100,000. It also includes roadside assistance and 24/7 customer service. Sure was launched in 2017 as a way to provide travelers with a cheaper and more flexible alternative to the rental car insurance offered by rental car companies. It is available for both domestic and international trips and can be purchased online or through the app.
Sure Rental Insurance Pros
- Sure offers rates as low as $8/month for $10,000 property damage coverage.
- Customize your policy with flexible coverage options, including coverage amount, deductible, and add-ons to fit your budget and needs.
- You can easily file a claim online or through the app and track its status. Plus, you’ll receive your payment promptly.
Sure Rental Insurance Cons
- When you opt for Sure Deposit, you will need to pay a one-time non-refundable fee ranging from $90 to $175, depending on the amount of the security deposit. This fee applies even if you leave the rental in good condition.
- Limited availability: Sure is only offered in 46 states and Washington, D.C. It is not available in Alaska, Hawaii, New York, or Rhode Island.
- Sure has a 4.5-star rating on Trustpilot. However, some customers have reported issues with customer service, delayed payments, and hidden fees.
5- OneTrip Rental Car Protector from Allianz
When you book a rental car through Expedia, you can purchase the OneTrip Rental Car Protector plan. This coverage plan is offered by Allianz Global Assistance and it protects you against theft or damages. With a coverage amount of up to $100,000, you can travel worry-free. The cost is only $11 per calendar day and it provides coverage worldwide.
OneTrip provides coverage for rental cars and also includes liability coverage. This protects you financially in case you are responsible for an accident while driving it. The liability coverage limits are $1 million per accident for bodily injury and $300,000 per accident for property damage.
OneTrip Rental Car Protector is now available for all vehicles, including cars, SUVs, vans, and trucks, for domestic or international travel.
OneTrip Pros
- It costs only $11 per calendar day, which is cheaper than most companies’ rates.
- Covers you anywhere in the world, with few exceptions.
- Provides primary coverage, which means you don’t have to file a claim with your personal car insurance company or pay a deductible.
- Covers loss of use fees, which are the money that rental car companies charge for the time their car is in the shop.
OneTrip Cons
- Has a limit of $50,000 for collision/loss damage insurance, which may not be enough for some expensive or luxury cars.
- Does not cover liability, personal injury, or medical expenses, which are important in case you cause an accident or get injured while driving.
- Does not cover theft or vandalism of personal belongings inside the rental car, which may require additional coverage or protection.
6- RentalCover.com
RentalCover.com was established in 2014 after its founder recognized the need for cost-effective and comprehensive rental car insurance. Since then, the company has collaborated with top insurers and providers across the globe, offering coverage in more than 150 countries. It is authorized to operate in all 50 states and Washington D.C., ensuring that customers have access to its services nationwide.
They offer online rental car insurance covering damage, theft, liability, and personal items. It claims to be cheaper and more convenient than insurance sold at desks. According to RentalCover.com, the average cost in the USA is around $20 to $40 per day. However, the actual cost may be higher or lower depending on the factors mentioned above.
RentalCover.com has been highly rated by customers on Trustpilot, receiving an average score of 4.7 out of 5 stars based on 13,669 reviews. Customers have commended It for its affordable pricing, easy purchasing process, and excellent customer service. Many customers have also reported a hassle-free and prompt claims process with it.
RentalCover Pros
- Covers the costs of repairing or replacing your rental car up to $50,000
- Includes roadside assistance and other extended coverage
- Does not charge you any deductible
- Covers additional drivers for free
RentalCover Cons
- Does not cover medical expenses for you or other drivers
- Does not cover vehicle damage for other drivers
Rental car insurance types
There are four main types of rental car insurance that you may encounter when renting a car:
- Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): This covers the cost of repairing or replacing the rental car if it gets damaged or stolen. It may also cover loss of use fees charged by the rental company. This is not technically insurance, but a waiver that transfers the risk from you to the rental company.
- Supplemental Liability Insurance (SLI) or Liability Insurance Supplement (LIS): This covers the damages you cause to other people’s property or injuries in an accident that you are legally responsible for. It may also cover legal fees and medical expenses for you and your passengers. This is usually required by law, but the minimum amount varies by state or country.
- Personal Accident Insurance (PAI): This covers the medical expenses for you and your passengers in case of an injury or death in a rental car accident. It may also cover ambulance fees and accidental death benefits.
- Personal Effects Coverage (PEC): This covers the loss or theft of personal belongings in the car, such as luggage, electronics, or jewelry.
Depending on your existing policies, credit card benefits, and travel destination, you may not need all these types of insurance. You should check your coverage before renting a car and compare different options online.
