10 Best Companies for Cheap Rental Car Insurance in 2025
The best companies for cheap rental car insurance are Geico, USAA, and Progressive. Geico's rates start at $43 a month. Your personal policy typically extends to rental vehicles, but you can also buy coverage at the counter or from third-party companies. Compare rental car insurance rates for the best price.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
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UPDATED: Jun 16, 2025
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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: Jun 16, 2025
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.
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13,283 reviewsGeico, USAA, and Progressive are the best companies for cheap rental car insurance. Geico 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
Company Rank Multi-Vehicle
DiscountA.M. Best Best For Jump to Pros/Cons
#1 25% A++ Competitive Rates Geico
#2 10% A++ Customer Satisfaction USAA
#3 12% A+ Policy Options Progressive
#4 10% A+ Broad Coverage Erie
#5 20% A+ Few Complaints Nationwide
#6 20% A Insurance Discounts Farmers
#7 8% A++ Reliable Coverage Travelers
#8 25% A Personalized Service Liberty Mutual
#9 25% A+ Policy Setup Allstate
#10 20% B Flexible Policies State Farm
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.
- Geico offers the best car rental insurance coverage starting at $43 a month
- Consider purchasing your own rental car policy if you carry liability-only
- You can get car insurance for rental cars from USAA if you are in the military
Enter your ZIP code into our free car insurance comparison tool to compare personalized quotes to the rates you are currently getting.
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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 & Provider
Insurance Company Minimum Coverage Full Coverage
$87 $228
$32 $83
$76 $198
$43 $114
$96 $248
$63 $164
$56 $150
$47 $123
$53 $248
$32 $84
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.
If you want the cheapest💲, bare-bones insurance coverage, liability-only coverage is what you need. It complies ✅with state requirements, but that’s it. https://t.co/27f1xf1ARb has the pros and cons of liability-only coverage. Check it out here👉: https://t.co/lfA7qrtsHc pic.twitter.com/MBDIne1wEU
— AutoInsurance.org (@AutoInsurance) March 10, 2024
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.
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 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 Daily Rates by Company & Coverage
| Rental Company | Collision Damage | Liability Coverage | Personal Effects | Total Cost |
|---|---|---|---|---|
| Alamo | $25 | $13 | $6 | $44 |
| Avis | $28 | $16 | $10 | $54 |
| Budget | $9 | $15 | $7 | $31 |
| Dollar | $23 | $15 | $8 | $46 |
| Enterprise | $30 | $17 | $13 | $60 |
| Fox | $20 | $15 | $7 | $42 |
| Hertz | $27 | $19 | $7 | $53 |
| National | $26 | $18 | $9 | $53 |
| Payless | $22 | $12 | $6 | $40 |
| Sixt | $30 | $20 | $10 | $60 |
| Thrifty | $24 | $14 | $8 | $46 |
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?
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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 – Geico: Top Overall Pick
Pros
- 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.
- Advanced Digital Tools: Geico provides user-friendly digital tools for managing your policy, including a robust website and a mobile app.
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.
#2 – USAA: Best for Customer Satisfaction
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.
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#3 – 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.
#4 – 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.
#5 – Nationwide: Best for Few 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.
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#6 – Farmers: Best for High Ratings
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 – 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.
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#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 – 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.
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.
Geico, USAA, and Progressive 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.
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. Read about the best property damage liability (PDL) auto insurance companies in our guide.
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.
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.
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. See our guide on where to compare auto insurance rates for more information.
What are the pros of purchasing auto insurance from a car rental company?
Purchasing auto insurance from a car rental company can have its advantages, including:
- 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.
If you are seeking convenience and immediate, hassle-free coverage, these benefits can make buying rental car insurance from a car rental company a viable option.
What are the cons of purchasing auto insurance from a car rental company?
Here are some potential drawbacks to consider when 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.
Considering these potential cons, it’s often better to review your existing auto insurance policy or consult your provider to understand your coverage options before buying insurance from a 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.
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.
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. Read more: Where can I find unbiased reviews of auto insurance companies?
Do I need auto insurance to rent a car?
You don’t need auto insurance to rent a car, but you need some type of coverage. You can get insurance on a rental car by purchasing it from the rental company, using a credit card that offers rental car coverage, or buying short-term car insurance.
Do I need car rental insurance if I have full coverage?
If you have full coverage, you may not need additional insurance for car rental. Your personal auto policy usually covers rental cars for liability, collision, and comprehensive. However, confirm with your insurer to understand any limitations. If unsure, you can purchase insurance for car rental from the rental company for added protection.
Do you need extra insurance when renting a car in USA?
You don’t technically need extra insurance when renting a car in the USA because rental cars already meet the state minimum auto insurance requirements. However, car rental insurance providers offer additional coverage options that can provide extra protection.
Does car rental include insurance?
If you don’t have car insurance, rental companies provide the minimum coverage required by your state. Consider getting cheap car rental insurance for additional protection, especially when traveling abroad or for business. This can offer more comprehensive coverage beyond the basic requirements.
Does full coverage car insurance cover rentals?
Yes, your full coverage car insurance typically extends to rental cars, providing the same coverage limits and deductibles. If your policy includes comprehensive and collision coverage, it will protect against damage to the rental vehicle. Review the rental car insurance cost to avoid unexpected expenses and consider additional coverage if needed.
Does personal car insurance cover rental?
Yes, your personal car insurance typically covers rental cars, providing the same coverage limits and deductibles. When you rent a car, insurance from your personal policy generally applies, ensuring similar protection as your own vehicle.
How to get cheap rental car insurance?
To get cheap insurance for rental cars, compare quotes from different rental car companies and your insurance provider. Use a credit card that offers rental car coverage, and check if your existing auto policy includes rental coverage. Consider rental insurance aggregators for competitive rates. Learn how to compare auto insurance quotes in our detailed guide.
Does State Farm cover rental cars after accident?
Yes, State Farm rental reimbursement can cover the cost of a rental car if your vehicle is undrivable or under repair after an accident. This affordable rental car insurance helps you stay mobile while your car is being fixed.
How much does rental car insurance cost?
Rental car insurance typically costs between $10 and $30 per day. For example, a Loss Damage Waiver (LDW) can range from $9 to $19 per day, while Supplemental Liability Protection (SLP) is about $8 to $17 per day. Personal Accident Insurance (PAI) can cost around $3 to $7 per day.
Can car rental companies force you to buy insurance?
Car rental companies cannot force you to buy insurance, but they will look to your own insurance if there’s an accident. Having additional coverage can provide extra protection. To learn how to get insurance on a rental car, consult with your rental company or your personal insurer. Learn more about the recommended auto insurance coverage levels in our article. Uncover affordable auto insurance rates from the top providers by entering your ZIP code below.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
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.