10 Best Companies for Cheap Rental Car Insurance in 2025 (Only $32/mo!)

USAA, Erie, and Geico are the best companies for cheap rental car insurance. USAA is our top pick because of its competitive rates. Compare Geico vs. USAA auto insurance to see which is better for you.

Our Top 10 Picks: Best Companies for Cheap Rental Car Insurance

Keep scrolling to find the best car insurance companies for rental cars, the various types of rental car insurance coverage, and the providers with the cheapest car rental insurance rates.

Enter your ZIP code into our free car insurance comparison tool to compare personalized quotes to the rates you are currently getting.

Cost of Auto Insurance for Rental Cars

If you have a personal auto insurance policy from the best rental car insurance companies, your coverage extends to rental vehicles. See a list of the best car rental insurance companies and the coverages offered:

Rental Car Insurance Monthly Rates by Coverage Level

Geico and USAA have the best rates, but USAA is only available to military members and their families.

So, always compare rates and coverage options to find cheap auto insurance for rental cars.

Types of Car Rental Insurance Coverage

Although auto rental insurance policies vary among insurance providers and according to individual auto insurance state laws, certain types of coverage are required by the majority of states. These mandatory areas of coverage include:

Collision Damage Waiver 

Collision damage waivers (CDW), or loss damage waiver, will protect you by covering the costs of any damage to your auto in a collision. A CDW transfers liability for collision damages from the vehicle renter to the auto rental company itself. It will also cover any harm caused to your car in case of theft or vandalism.

A CDW is actually relatively inexpensive, costing approximately $9 to $30 per day. This type of protection also covers any vehicle downtime — that is, the actual time a damaged vehicle cannot be rented out while it’s in the repair shop.

Read more: Does auto insurance cover theft?

Supplemental Liability Auto Insurance

Supplemental liability auto insurance (SLI), offering coverage for as much as $1 million, can cost from $13 to $19 per day for a rental car if the renter does not have a car owner policy to cover rental car liability. In essence, a supplemental liability auto insurance is an umbrella policy.

Another option is to obtain non-owner rental car insurance through an agent or broker. This non-owner auto insurance coverage comes at a very reasonable rate, often as little as $200 to $525 per year.

Personal Effects Insurance

Personal effects insurance reimburses for theft of items from your rental car, such as laptop computers, cellular phones, or sports equipment. This type of coverage will cost approximately $6 to $13 per day.

Together, liability and personal injury insurance will cover any damage or injury you may cause to another driver, car, or property while you are behind the wheel of your moving vehicle.

Read more: Does auto insurance cover private property?

Personal Accident Protection

This will cover ambulance and medical costs for both the rental car driver and passengers when they are involved in a road accident. The charge for this feature is around $6 to $13 a day.

However, your health insurance and the personal injury protection (PIP) auto insurance under your car owner’s insurance policy already covers this area.

Other Ways to Buy Rental Car Auto Insurance

You can get various types of auto insurance for your rental car, whether it’s from the rental car company, a third party, or your credit card company.

Car Rental Company Auto Insurance

Generally, you can always buy rental car insurance from the same company you get your rental vehicle from. Some of the best car rental companies with auto insurance include:

Rental Car Insurance Rates per Day

All of these top car rental companies offer rental auto insurance coverages such as a collision damage waiver, liability insurance, personal effects coverage, and personal accident insurance.

However, it’s often more expensive. Rental car companies are charging around $230 to $575 for a weekly rental of an economy-size car. Supplemental insurance costs can easily add extra fees ranging from $6 to $60 per day.

Learn More: Best Rental Car Insurance That Covers Additional Drivers

Third-Party Rental Car Insurance

You can also get a policy from the best third-party car rental insurance companies to cover medical expenses and property damage for others. Some of the best third-party car rental insurance companies include:

• Sure
• Allianz
• Bonzah
• Rental Cover

Always compare costs and coverages from various companies to find the best third-party rental car insurance for you. Learn how to get multiple auto insurance quotes in our guide to get started.

Rental Car Insurance From Credit Card Companies

In addition, check with the credit card company that you used to rent the vehicle. Many credit card users either forget or are not aware that they’re insured to some extent under their credit card agreements whenever they use their cards to obtain rental cars.

American Express credit card services also offer rental car insurance, along with many Visa and Mastercard credit cards issued by banks and financial services.

Read More: Does not paying your auto insurance affect credit?

Best Companies For Cheap Rental Car Insurance

Does auto insurance cover rental cars? Many reputable auto insurance companies offer personal policies that extend to rental car insurance. Some of the best rental car insurance companies for drivers who need to rent a car are Geico, USAA, Progressive, Erie, and Nationwide.

Before deciding on the type and amount of rental car insurance you’ll purchase for your next trip, consider the coverage you currently have.  Then, you’ll know whether to supplement your policy with additional coverage from the best car rental insurance companies. Rental car insurance may not be necessary to buy if you already have it in your current plan from the top ten providers listed below.

#1 – USAA: Top Pick Overall

Pros

• Top Customer Satisfaction: Consistently ranks first in customer service, claims handling, and loyalty.
• Affordable Rates: USAA offers some of the lowest premiums in the industry, especially for military families. Find out why USAA ranks among the cheapest providers in our USAA auto insurance review. 
• Excellent Mobile App: USAA’s mobile app is highly rated and provides convenient access to policy management, claims, and other services.

Cons

• Limited Membership Eligibility: USAA is restricted to military personnel, veterans, and their families.
• No Gap Insurance: USAA does not provide gap insurance coverage.

#2 – Erie: Best for Broad Coverage

Pros

• Comprehensive Coverage Perks: Erie offers additional benefits, including glass repair with no deductible, locksmith service, and coverage for personal items. 
• High J.D. Power Ranking: Erie consistently ranks highly in J.D. Power’s auto insurance shopping and claims satisfaction surveys.
• Numerous Discounts Available: Erie provides a wide range of discounts. Get a full list in our Erie auto insurance review.

Cons

• Average Complaint Volume: Erie receives a typical number of complaints to state regulators for a company of its size.
• Limited Discount Options: Erie offers fewer discounts than other car insurance providers.

#3 – Geico: Best Digital Tools

Pros

• Advanced Digital Tools: Geico provides user-friendly digital tools for managing your policy, including a robust website and a mobile app.
• Affordable Rates: Geico offers competitive rates, often below the national average. Compare free quotes in our Geico auto insurance company review. 
• Customer Service: Many policyholders report positive experiences with Geico’s customer service online.

Cons

• Claims Handling Issues: Despite positive feedback, many customers report challenges with Geico’s claims process.
• No Gap Insurance: Geico does not provide gap insurance.

#4 – State Farm: Best for Flexible Policies

Pros

• Extensive Coverage Options: State Farm offers a wide range of coverage choices, including rental car expenses and travel-related coverage options.
• High Customer Satisfaction: When it comes to customer satisfaction with auto insurance, State Farm routinely scores highly. Find out more in our State Farm insurance review.
• Attractive Discounts: State Farm provides appealing discount opportunities, particularly for students and teenage drivers.

Cons

• Higher Premiums: State Farm’s sample premiums for adult drivers are higher than the industry average.
• No Gap Insurance: State Farm does not offer gap insurance.

#5 – Progressive: Best Rental Coverage Options

Pros

• Variety of Coverage Options: Progressive provides a wide range of coverage options, including specialized and nonstandard policies. Explore policy options in our Progressive auto insurance review.
• Vanishing Deductible Feature: They offer a program that reduces your deductible for each policy period you remain accident-free.
• Usage-Based Discounts: Progressive offers discounts through its Snapshot program.

Cons

• Mixed Customer Service Ratings: Progressive has received average customer service ratings.
• Snapshot Program Can Increase Rates: The usage-based Snapshot program may lead to higher premiums for some drivers if their driving behavior is risky.

#6 – Farmers: Best Discount Variety

Pros

• Many Discounts Available: Farmers offers more discounts than any other national provider. 
• Diverse Coverage Options: This company provides a broad selection of coverage options and add-ons. Take a look at our Farmers Insurance review to learn more.
• Low Complaint Rate: Fewer complaints than expected for a company of its size.

Cons

• High Premiums in Some States: Farmers auto insurance rates can be significantly higher than average in certain regions.
• Slow Roadside Assistance: Some customers have reported delays and inefficiencies with Farmers’ roadside assistance services.

#7 – Travelers: Best for Reliable Coverage

Pros

• Extensive Coverage Options: Travelers provides a wide range of auto insurance coverages backed by an A++ financial rating from A.M. Best.
• Accident Forgiveness: This feature prevents premium increases after the first accident for safe drivers who avoid claims.
• New Car Replacement: Travelers will replace a new car less than two years old if it’s totaled in a covered event. For more information, read our Travelers company review.

Cons

• Low Customer Satisfaction: Travelers Insurance customer satisfaction ratings are below average.
• Limited Discounts by Location: The availability and value of discounts may vary significantly based on your location.

#8 – Nationwide: Best for Fewest Complaints

Pros

• Low Complaint Rate: Fewer than expected complaints to state regulators for auto insurance.
• Comprehensive Coverage Options: Offers a wide variety of options for different drivers and budgets.
• Competitive Rates: Excellent rates for drivers with speeding tickets and those with poor credit. Find out if it has the lowest rates for you in our Nationwide auto insurance review.

Cons

• High DUI Rates: Fourth-highest sample costs for drivers with a DUI on their record.
• Below-Average Satisfaction: Customer satisfaction for auto insurance is lower than average, according to recent J.D. Power studies.

#9 – Allstate: Best for Easy Policy Setup

Pros

• Easy Policy Setup: Allstate receives high marks for the ease of opening a new policy online or with one of its local agents.
• Extensive Coverage Options: Allstate offers a variety of coverage options, including a safe-driving bonus every six months, accident forgiveness, and new car replacement.
• User-Friendly Technology: The plug-in device for their telematics program is simple to use and install.

Cons

• Below-Average Customer Ratings: Allstate’s customer ratings for auto insurance shopping satisfaction are lower than many competitors.
• High Costs in Most States: Allstate can be expensive than other popular providers, like Geico and Progressive. Compare quotes in our review of Allstate insurance.

#10 – Liberty Mutual: Best for Personalized Service

Pros

• Valet Claims Service: Policyholders with rental reimbursement coverage can enjoy the convenience of Liberty Mutual’s valet claims service.
• Variety of Coverage Options: Liberty Mutual offers a wide range of auto policies and add-on coverage. Read our Liberty Mutual review to see more insurance options.
• Numerous Discounts Available: Especially beneficial for young drivers, Liberty Mutual provides many discount opportunities.

Cons

• Higher-than-Average Premiums: Liberty Mutual’s auto insurance premiums can be more expensive than those of other providers, especially for high-risk drivers.
• Below-Average Customer Satisfaction: In customer surveys and reviews, Liberty Mutual often receives lower ratings for trustworthiness, customer support, and overall value.

How to Buy the Cheapest Car Rental Insurance Policy

Do you need proof of insurance to rent a car? Yes. Whether you get a policy from the best third-party car rental insurance company or already have coverage through your personal insurance, it’s important to cover your rental vehicle.

USAA, Erie, and Geico are the best companies for cheap rental car insurance. If you have a personal policy with these providers, you may not need to buy rental insurance at the counter unless you want extra coverage.

You need the best possible rental car auto insurance coverage at an affordable cost. Enter your ZIP code into our free auto insurance comparison tool to find the best rental car insurance choices for you.