What car rental company has the best auto insurance?
The car rental companies with the best auto insurance are Hertz, Enterprise, and Avis, averaging $47/day. However, you could get the best rental car insurance from a personal policy with State Farm, Geico, or third-party companies. Compare rental car insurance rates to get the best and cheapest policy below.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- You can find the best car rental insurance from Avis, Hertz, Budget, and Enterprise, averaging $47 daily
- Consider Allianz, Bonzah, or Sure if you’re searching for the best third-party rental car insurance companies
- However, you can also get car insurance for rental cars from State Farm or Geico if you have a personal policy
You’ll pay around $47 daily to get coverage from the car rental companies with the best auto insurance, including Avis, Hertz, Budget, Enterprise, and Alamo. You can also get rental car insurance coverage from some of the top providers, such as Geico or State Farm auto insurance, or a third-party car rental insurance company.
We’ll go over how to find the best car insurance companies for rental cars, the various rental car insurance coverage types, and the providers with the cheapest car rental insurance. Enter your ZIP code into our free car insurance comparison tool to compare personalized quotes to the rates you are currently getting.
Best Companies for 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 insurance company. We’ll overview the best car rental insurance in the USA from the best auto insurance companies for rental vehicles.
Car Rental Company Auto Insurance
Generally, you can always buy rental car insurance from the same company you get your rental vehicle with. Some of the best car rental companies with auto insurance include:
- Avis
- Hertz
- Enterprise
- Alamo
- Budget
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.
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.
Auto Insurance Company Rental Car Insurance
So, does auto insurance cover rental cars? Many reputable auto insurance companies offer both personal car insurance and rental car insurance. Some of the best rental car insurance companies for drivers who need to add rental coverage to their policies are are Geico, Allstate, Travelers, Progressive, Esurance, and AARP.
Read More:
- Geico Auto Insurance Review
- Allstate Auto Insurance Review
- Travelers Auto Insurance Review
- Progressive Auto Insurance Review
- Esurance Auto Insurance Review
- AARP Auto Insurance from The Hartford Review
American Express credit card services also offers rental car insurance, along with many Visa and Mastercard credit cards issued by banks and financial services.
Rental car insurance may not be necessary to buy if you already have it in your current plan from your current company. 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.
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Types of Car Rental Insurance Coverage
Although auto rental insurance policies vary among insurance providers and according to individual 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. 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. So, a CDW transfers liability for collision damages from the vehicle renter to the auto rental company itself.
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 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.
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.
You may find it more economical to choose a floating policy under the homeowner's or renter's insurance. With this added coverage, personal items have protection both at home and when you travel.Daniel Walker Licensed Auto Insurance Agent
Together, liability and personal injury insurance will cover any damage or injury you may cause to another driver, car, or to property while you are behind the wheel of your moving vehicle.
Cost of Auto Insurance for Rental Cars
Currently, 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. Check out the table below to see the average cost for coverage from the best car rental insurance companies:
| Rental Company | Collision Damage Waiver | Liability Coverage | Personal Accident/Effects | Total Cost |
|---|---|---|---|---|
| Alamo | $25 | $13 | $6 | $44 |
| Budget | $9 | $15 | $7 | $31 |
| Enterprise | $30 | $17 | $13 | $60 |
| Hertz | $27 | $19 | $7 | $53 |
Of course, 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:
| Insurance Company | Daily Coverage | What's Covered |
|---|---|---|
| 21st Century | $25-$90 | Temporary rental for covered auto accidents |
| AAA | $25-$50 | Temporary rental (breakdowns, repair, or serving) or short-term leisure use rental |
| Allstate | Up to $30 | Temporary rental or other transportation during repair (collision or other insured loss) |
| American Family | Direct billing with Enterprise Rent-A-Car | Rental car costs, ride share services, taxis, city busses, light rail, commuter trains |
| Amica Mutual | $20 | Rental car costs, ride share services, taxis, city busses, light rail, commuter trains |
| Auto-Owners Insurance | Direct billing | Temporary rental after a covered accident |
| Esurance | Up to 45 days or $3,000 | Temporary rental after a covered accident of car theft (CarMatch) |
| Farmers | Allows direct billing for up to 30 days | Temporary rental after a covered accident |
| Geico | Set your limit or use direct billing with Enterprise Rent-A-Car | Temporary rental after a covered accident |
| Liberty Mutual | Offers discounts with Enterprise Rent-A-Car; will pay all costs at approved auto repair shop | Temporary rental after a covered accident |
| Mercury Insurance | $30-$100 | Temporary rental after a covered accident |
| Nationwide | $30-$75 | Rental car or alternative transportation after a covered accident |
| Progressive | $40-$60 | Temporary rental after a covered accident |
| Shelter Insurance | Not specified | Temporary rental after a covered accident or theft |
| State Farm | $25-$50 | Temporary rental and limited travel expenses after a covered event |
| Travelers | Up to $100 | Temporary rental and limited travel expenses after a covered event |
| USAA | Direct billing with Enterprise Rent-A-Car | Temporary rental and limited travel expenses after a covered event |
Always compare rates and coverage options to find cheap auto insurance for rental cars.
Know Your Current Coverage Before Getting Rental Car Insurance
Before deciding on the type and amount of rental car insurance you’ll purchase for your next trip, consider the coverage you currently have if you’re covered by a car owner’s policy. Then, you’ll know whether to supplement your policy with additional coverage from the best car rental insurance companies.
Also, find out the extent of insurance provided by the credit card you’re using to rent a car and look at the coverage options offered by the rental car company.
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How to Buy the Cheapest Car Rental Insurance Policy Online
Finally, consider the option of purchasing your own rental car policy, if you’re a frequent auto renter. 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.
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— AutoInsurance.org (@AutoInsurance) October 8, 2023
You need the best possible rental car auto insurance coverage at an affordable cost. So, it’s important to know to get multiple auto insurance quotes to find the cheapest car rental insurance before your road trip. Enter your ZIP code into our free auto insurance comparison tool to find the best rental car insurance choices for you.
Frequently Asked Questions
What is auto insurance offered by car rental companies?
Auto insurance offered by car rental companies is a form of coverage that protects you financially in case of damage or theft of a rental vehicle. It typically includes collision damage waiver, personal accident protection, personal effects insurance, and liability coverage.
What are the top three rental car companies?
Enterprise, Budget, and Hertz are the top three car rental insurance companies, based on customer satisfaction and cost.
Which rental car company has the lowest insurance rates?
Budget is the car rental company that has the best auto insurance rates, averaging $31/day. However, always compare rental car insurance cost before buying the first policy you find.
What is the best car rental company for customer satisfaction?
J.D. Power ranked Enterprise as the highest in customer satisfaction for the second year in a row in 2022.
What are the pros of purchasing auto insurance from a car rental company?
- Convenience: Car rental companies provide a one-stop-shop for both renting a vehicle and obtaining insurance coverage.
- Peace of mind: Having auto insurance from a car rental company ensures you are protected against potential financial losses due to accidents or theft.
- Streamlined claims process: If an incident occurs, you can directly contact the rental company, making it easier to navigate the claims process.
- Additional coverage options: Car rental companies often offer supplemental coverage options, such as personal accident insurance or roadside assistance.
What are the cons of purchasing auto insurance from a car rental company?
- Cost: Auto insurance from car rental companies can be relatively expensive compared to other insurance options.
- Limited coverage: Car rental company insurance may come with limitations and exclusions, so it’s important to review the policy details carefully.
- Overlapping coverage: If you have existing auto insurance or coverage through a credit card, you might already have some level of protection for rental cars, making the additional coverage redundant.
Can I use my personal auto insurance for rental cars?
In many cases, your personal auto insurance policy may extend coverage to rental cars. We recommend you contact your insurance provider to understand the details of your coverage, including any deductibles or limitations.
Additionally, some credit cards also offer rental car insurance coverage when you use the card to pay for the rental. Reviewing your existing policies can help you determine if you need additional coverage from the car rental company.
What does Allianz rental car insurance cover?
Allianz rental auto insurance coverage includes a collision damage waiver of up to $50,000, supplemental liability insurance, personal accident insurance, and personal effects coverage. You also have 24-hour emergency roadside assistance coverage.
Is Allianz travel car insurance good?
Yes, Allianz offers affordable insurance for rental cars, and its plans are suited for business travelers.
Which is better: Alamo or Enterprise?
While Alamo offers the cheapest car rental insurance of the two, averaging $44/day, Enterprise has better customer satisfaction from J.D. Power. So, the best rental car insurance company depends on your needs.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.