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Purchasing car rental insurance and protecting your rental car can be confusing and overwhelming. And in the midst of all the confusion, we tend to forget or overlook the boring details of car rental insurance.
Here’s a checklist of 7 things for you to check when booking for your next roadtrip!
1. Consider getting insurance from a standalone insurance provider
When you rent a car, a basic/standard insurance cover is usually included in the booking. However, this standard insurance comes with a lot of exclusions which gives you little to no protection for your road trip. And this is where it can get tricky.
Car rental companies are notorious for upselling pricey excess cover, often charging up to $80 in Australia, £55 in the United Kingdom, or €60 in Europe. You can avoid these high costs and save up to 50% by choosing a standalone provider like RentalCover instead.
Want to learn more? See our excess cover page and learn about other types of rental car insurance in the market. See how RentalCover compares with car rental companies.
| Rental company | Rental desk insurance per day* |
|
Savings per week* |
|---|---|---|---|
| Hertz | $46 £50 €45 |
$252 £301 €259 |
|
| Enterprise | $56 £50 €45 |
$322 £301 €259 |
|
| Alamo | $56 £40 €45 |
$10 £7 €8 |
$322 £231 €259 |
| Sixt | $70 £55 €45 |
$420 £336 €259 |
|
| Europcar | $80 £45 €45 |
$490 £266 €259 |
|
| Avis | $85 £45 €45 |
$525 £266 €259 |
|
| Budget | $85 £45 €45 |
$525 £266 €259 |
*This information is for illustration purposes only, exact coverage will depend on country of residence, country of travel, policy type selected, car rental company and vehicle type. Daily price for rental cars averaged across global suppliers’ prices quoted on 01/12/2025 based on full coverage policy with pick-up and drop-off from airports in capital cities.
2. Double check everything that your car rental insurance covers you for
One of the most important things to watch out for when purchasing car rental insurance is to check what you’re covered for and what’s excluded from your insurance policy.
The most common exclusions in car rental insurance are damage to the engine, tyres, wheels, roof, undercarriage, windows and mirrors.
Another thing that’s hardly ever covered in basic car rental insurance is key coverage and lockout. So if you lose your keys or get locked out of your car, your insurance policy will not cover you.
Similarly, if your car breaks down or you meet with an accident and in need of roadside assistance, chances are that your car rental insurance doesn’t cover you for that.
| Coverage |
|
Rental Companies |
|---|---|---|
| Multi vehicle accidents |  |
|
| Single vehicle accidents |
|
 Sometimes |
| Fire & theft, vandalism | |
Sometimes |
| Towing, lockout & keys | |
 Extra cost |
| Windscreen, headlights | |
Extra cost |
| Tyres, underbody | |
|
| Total Coverage Amount (i.e. maximum coverage) |
$100,000 £60,000 €70,000 |
Car Value minus exclusions |
| Standard Excess (i.e. max. excess payable) |
$0 £0 €0 |
$5,000-6,000 £1,000-1,500 €1,000-2,000 |
3. Check for Roadside Assistance in your insurance policy
Another critical detail to check is whether you’re covered for Roadside Assistance. Most rental companies include "Basic" assistance for mechanical breakdowns for free. However, if the issue is "human error"—think locking your keys in the car, a flat battery from leaving the lights on, or a flat tire—the rental company will often charge a hefty call-out fee (sometimes upwards of $/£/€250).
To avoid this, rental desks offer a separate roadside add-on. These daily fees add up quickly:
- Australia: Up to $11/day (approx. $77 for a week)
- United Kingdom: Up to £7/day (approx. £49 for a week)
- Europe: Up to €9/day (approx. €63 for a week)
Instead of paying these daily rates at the counter, consider a standalone provider like RentalCover. Our comprehensive policies often include coverage for these "non-mechanical" roadside incidents as standard. By choosing a standalone policy, you often get more protection—including coverage for the premium excess—at a fraction of the cost you'd pay at the rental desk.
4. Be prepared for a credit card deposit
The only downfall to purchasing car rental insurance from a standalone provider is that most car rental companies will require you to leave a security deposit with them, which is refunded back when you return the car.
Rental car companies need to do this to ensure that they’re paid should their customers meet with an accident or damage the rental car. Most car companies require a credit card for this.
They usually don’t deduct the money but just hold the amount in your account and releaseTherefore, make sure your credit card limit allows you to pay the deposit plus any other expenses you have planned for your trip.
5. Consider booking with free cancellation
Plans tend to change - something urgent might come up, you might fall sick or you might find a better and cheaper deal!
Whatever the reason might be, make sure you have the freedom to cancel or reschedule your trip - be it the car rental itself or the insurance you purchase for it.
Always make sure to read the terms and conditions thoroughly before making any booking as these things are usually buried in the fine print and often are missed by most people.
6. Check if the insurance provider is regulated
The world of car rental insurance is not black and white. There’s a lot of grey. A lot.
Unfortunately, car rental insurance can be very scammy and that’s something we should all be wary of. Always make sure that the insurance provider is regulated. You can do this by reading the Policy wording or the Product Disclosure Statement (PDS).
Make sure that the insurance you’re planning to purchase is valid for the type of vehicle you’re renting, your country of travel etc.
By doing so, you will also be prepared to handle the sales person at the rental desk who will try to sell their insurance policy by telling you that third party insurance is not valid or that it’s compulsory for you to purchase insurance from the car rental company etc.
There’s no definitive guide to help you figure out what you need and what you should buy, except the car rental guide put together by RentalCover.com.
It talks about all the different types of products offered in your country of travel and tells you what you need to at the rental desk or in the event of an accident.
7. Keep the company’s emergency number on hand
Lastly, make sure that you have the company’s emergency number with you. You don’t want to be stranded in the middle of a road with a broken down car and try to figure out who to reach out to and how.
Be prepared and make sure to check if the listed emergency number on your policy statement or on the website is working and updated before you leave.
It’s human tendency to make mistakes. But unfortunately, in the real world, making a tiny mistake can cost you thousands of dollars.
Rental Car Insurance Advice
- Car rental insurance mistakes
- The definitive guide to renting a car
- What is excess cover? Rental car insurance explained
Purchasing Car Rental Insurance Checklist
- Opt for third party insurance
- Check your policies inclusions and exclsuions
- Check for roadside assistance
- Consider booking with free cancellation
- Check if the insurance provider is regulated
- Keep the company's emergency number on hand