How much is rental car insurance?
Rental car insurance can be confusing. Once you understand the different cover options and providers, you're left with one simple question: how much does it actually cost?
That's what this guide answers. Here's what you'll pay, depending on the cover you choose.
Key takeaways
- The price of rental car insurance depends on your insurer, the type of cover you buy, the vehicle you rent, and more.
- More comprehensive policies, like Super Collision Damage Waivers (SCDWs), cost more than basic alternatives.
- RentalCover costs $15 a day on average, compared to $25 to $35 from rental companies.
- Don't just accept what's sold at the rental counter. Do your research to get the cover you need without overpaying.
How much does rental car insurance cost with RentalCover?
RentalCover protection is straightforward. Our protection includes:
- Single vehicle accidents
- Multiple vehicle accidents
- Full fire, theft, and vandalism cover
- Towing
- Lockouts
- Car key cover
- Windscreens
- Headlights
- Tyres
- Underbody damage
Our cover costs $15 a day on average, compared to $25 to $35 a day from rental companies. There's nothing extra to pay if you claim.
So you can turn down whatever your rental company tries to hard-sell you at the counter. Our cover is more comprehensive too. No optional add-ons, no sifting through policies to find what you need. Just one package that covers you properly.
Your price depends on:
- Your trip length
- The vehicle you're renting
- How far ahead you book
- Your country of residence and destination
How much does rental car insurance from car rental companies cost?
Prices vary a lot between rental companies. Here's what's on offer:
- Collision Damage Waiver (CDW): Transfers liability for vehicle damage from you to the rental company. The foundation of most rental cover.
- Loss Damage Waiver (LDW): Similar to a CDW, but also covers theft. (Sometimes labelled a CDW even when it includes theft cover.)
- Super Collision Damage Waiver (SCDW): Also called a Super Loss Damage Waiver. Higher cover than a standard CDW, usually with a zero deductible and fewer exclusions.
- Personal Accident Insurance (PAI): Covers drivers and passengers for accidental medical costs, emergency care, and accidental death during the rental.
- Supplemental Liability Insurance (SLI): In Canada and the US, some third-party liability may be built into your rental price. SLI adds further cover on top.
- Personal Effects Insurance (PEI): Covers personal belongings like clothes, electronics, and jewellery if damaged or stolen. Not always included by your rental company.
Prices also depend on:
- The rental company
- Trip length
- Vehicle value
- How far ahead you book
- Your country of residence and destination
On average, rental companies charge $25 to $35 a day.†
Rental companies often hard sell insurance at the check-in desk, when you're not in a position to compare it against other options. Weigh up your cover before you reach the pick-up counter.
How much does rental car insurance from credit cards cost?
Some credit cards offer rental car cover, but it usually only kicks in after you've claimed with your primary insurer.
If something goes wrong, your credit card cover can add cover for:
- Your deductible
- Charges over your policy limit
- Fees your personal auto insurer won't pay
It's usually free with your card, but you'll need to pay for the rental with that card and keep up with your card fees to use it.
Want to see how RentalCover, rental companies, and credit cards compare? Read our our car hire excess insurance comparison guide.
What impacts the price of rental car insurance?
- Coverage type: Basic CDW costs less than a comprehensive SCDW.
- Insurance provider: RentalCover is 50% cheaper than rental companies, on average.†
- Trip duration: Coverage is priced daily, so longer trips cost more overall.
- Vehicle type: Luxury, large, or specialised vehicles cost more to repair, so they cost more to insure.
- Lead time: Booking closer to your pick-up date can push the price up.
- Country of residence and destination: CDW cover is included in the base rental price in some countries, and sold separately in others.
- Driver details: Cover for multiple drivers, or certain demographic factors, can raise your premium.
Cover your rental vehicle with RentalCover
RentalCover is 50% cheaper than rental companies, with more comprehensive cover.† We work directly with rental companies to settle claims, so there's less hassle for you. 98% of claims are paid within three days, in any currency.
Get your quote in minutes and head off on your trip properly covered.