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How Much is Rental Car Insurance?

Wrapping your head around rental car insurance can be complicated. Once you've understood all the different options for cover and providers, you'll be left with a simple question: How much does rental car insurance actually cost?

That's exactly what we'll answer in this comprehensive guide. Find out how much you could pay for rental vehicle insurance depending on the cover you choose.

Key takeaways

  • The price of rental car insurance depends heavily on factors like the type of insurer you buy cover from, the type of coverage you buy, the vehicle you rent and much more.

  • More comprehensive policies like Super Collision Damage Waivers (SCDWs) are naturally more expensive than more basic alternatives.

  • RentalCover offers an excellent alternative to options like rental companies. On average, our cover costs $20 per day, compared to an average price of $70 to $90 if you buy from car rental companies†.

  • Don't just go with what's sold at the rental counter. Doing your research is essential to getting adequate insurance coverage without breaking the bank.

How much does rental car insurance cost with RentalCover?

The cost of cover with RentalCover is straightforward. We offer a single policy with the following cover:

  • Single vehicle accidents.

  • Multiple vehicle accidents.

  • Full fire, theft and vandalism cover.

  • Towing.

  • Lockouts.

  • Car key cover.

  • Windscreens.

  • Headlights.

  • Tyres.

  • Underbody damage.

We cover your excess, so there’s nothing for you to pay in the event of an incident.

The cost of our cover, on average, comes to $20 a day. That compares to an average cost of $70 to $90 per day from car rental companies†.

Our policy functions alongside cover that's usually "built in" to your car rental price. This basic cover from your rental vehicle company is known as a Collision Damage Waiver (CDW).

We go beyond the usual cover to provide more peace of mind on your travels. We also cover the excess of your CDW policy. This means you can turn down policies that might be "hard sold" to you at the rental desk.

No optional add-ons, no sifting through different policies finding what you really need. Get our best cover in a single, affordable package.

The price of your policy may be impacted by the following factors:

  • The duration of your trip.

  • The type of vehicle you are renting.

  • How far in advance you buy your policy.

  • Your country of residence and your destination.

How much does rental car insurance from car rental companies cost?

Rental car insurance purchased from car rental companies can vary massively in price. To understand these variations, you first need to understand the different types of insurance you can purchase from rental vehicle companies:

  • Collision Damage Waiver (CDW): This is a document that transfers the liability for damage to a rental vehicle from you to your rental company. It's one of the most important pieces of insurance you can purchase, forming the foundation for rental company cover. This cover is usually built into the price of your vehicle.

  • Loss Damage Waiver (LDW): An LDW is similar to a CDW. However, it covers you for theft as well as vehicle damage. (Note that some policies may be called "Collision Damage Waivers" while also offering cover for damage and theft, like LDWs.)

  • Super Collision Damage Waivers (SCDW): These policies, also known as Super Loss Damage Waivers, offer higher levels of cover than regular CDWs. They usually reduce your excess to zero and cover you for most exclusions of your CDW policy.

  • Personal Accident Insurance (PAI): Rental car companies may also offer PAI. These policies provide cover for the drivers of a rental car and their passengers for accidental medical costs, emergency care and accidental death during your rental trip. However, you should keep in mind that this cover often overlaps with other insurance you might have, like travel insurance.

  • Third Party Insurance: In most of Europe, Asia and Oceania, Third Party Insurance must be provided by car rental companies as a legal requirement. This covers damages to other vehicles and injuries to other drivers. As such, this cover is generally "built in" to the base price of your vehicle, just like a CDW.

  • Personal Effects Insurance (PEI): This is additional cover for personal belongings like clothes, electronics and jewellery if they are damaged or stolen in your rental vehicle. Your rental company may or may not offer this policy to you.

All of these different kinds of rental vehicle insurance come with significantly variable costs. The price of your insurance also depends greatly on factors like:

  • The specific car hire company you are renting from.

  • Trip duration.

  • Vehicle value.

  • Booking lead time.

  • Country of residence and destination.

Based on our research, the cost of rental company car insurance comes to around $70 to $90 per day, on average†.

However much you're charged by your rental car company, there's a good chance you aren't getting the best possible deal on your insurance. Vehicle hire companies tend to "hard sell" insurance when you're at the check-in desk.

They often rely on the fact that customers aren't in a position to truly consider the policies in front of them and weigh them against alternatives. That's why it's crucial to carefully consider your rental vehicle cover well before you get to the pick-up counter.

How much does rental car insurance from credit cards cost?

Another significant rental car insurance option comes from some credit cards. Credit cards generally offer secondary coverage that kicks in after you file a claim with your primary insurer. In this case, primary cover often comes from your personal auto insurance policy.

In the event of an incident, your credit card cover kicks in after your personal auto policy covers certain costs you incur from your rental company. You can get additional cover for your excess, charges that exceed your policy limit or specific fees that your personal auto insurer won't cover.

Credit card rental car insurance is usually complimentary with your credit card. Accessing the benefit of credit card rental car insurance generally requires you to use your credit card to pay for your vehicle. You must also ensure you have paid all of your relevant credit card fees.

Want to learn more about how RentalCover, rental companies and credit cards stack up? Check out our car hire excess insurance comparison guide.

What impacts the price of rental car insurance?

In general, the price of rental car insurance coverage is influenced by the following factors:

  • Coverage type: There is a wide range of different types of hire car insurance available from rental companies, from basic CDW cover to comprehensive SCDWs. This has a major impact on how much you'll pay for your cover.

  • Insurance provider: Your insurance provider plays a major role in how much you pay for cover. For example, RentalCover offers policies that are 50% cheaper than the rental companies†.

  • Trip duration: Insurance is often calculated on a daily rate. Trip duration is therefore a defining component in the cost of rental vehicle insurance.

  • Vehicle type: More expensive, luxury, or large specialised vehicles (like full-size vans or high-end SUVs) cost more to repair or replace. They will generally incur a higher insurance premium compared to more standard vehicles.

  • Lead time: How far in advance you purchase the insurance can sometimes influence its price. Like rental car rates, purchasing insurance closer to the pick-up date may result in higher pricing.

  • Country of residence and destination: Rental vehicle insurance differs in many ways around the world. For example, in many countries, CDW cover is included in the base price of rental vehicles, rather than being an additional purchase.

  • Driver details: If you want cover for multiple drivers, your premiums may be more expensive. Demographic details can also play a role in influencing the price of rental car insurance.

Cover your rental vehicle with RentalCover

If you're interested in car rental insurance that offers great value, RentalCover is well worth your consideration. Our cover is 50% cheaper than the car rental companies†, while also offering more comprehensive cover.

We work directly with car rental companies to settle claims, minimising stress for you. 98% of claims are paid out within 3 days, in any currency.

Get your instant quote today and prepare for a car rental journey with more peace of mind.

Hear from our rental car insurance expert

"The price of rental vehicle insurance is influenced by a wide range of factors, including the type of coverage and rental insurance provider. When looking to get a good deal on hire car insurance, do your research and don't just accept what's sold at the rental vehicle counter.

For example, by choosing RentalCover over the policies offered by rental car companies, you can save as much as 50% on the price of insurance†. This can make a big difference to your bottom line as you enjoy your travels with robust insurance coverage."