What they offer at the counter
| Product | What it does | You may already have it through |
|---|---|---|
| Collision / Loss Damage Waiver (CDW/LDW) | The rental company agrees not to charge you for damage to, or theft of, the rental car. Technically a waiver, not insurance | Your auto policy's collision coverage; many credit cards |
| Supplemental Liability (SLI) | Raises liability coverage for damage or injury you cause to others | Your auto policy's liability coverage |
| Personal Accident (PAI) | Medical and accidental death benefits for you and passengers | Health insurance, life insurance |
| Personal Effects (PEC) | Covers belongings stolen from the car | Homeowners or renters insurance |
Step 1: call your auto insurer
If you own a car and have collision and liability coverage, your policy often extends to a rental car in the U.S. Ask:
- Does my coverage extend to rental cars, and for what types of vehicle?
- What deductible applies?
- Does it cover the rental company's loss-of-use, diminished value and administrative fees?
- Does it apply for business rentals, and outside the U.S.?
Step 2: check your credit card
Many credit cards include rental car damage coverage when you pay with that card and decline the CDW. Know whether it is secondary (pays after your own insurance) or primary (pays first, so you don't have to claim on your policy). Check the exclusions: some vehicle types, long rentals and certain countries are commonly excluded. Card coverage usually does not include liability.
Step 3: consider third-party coverage
Booking sites often sell their own damage coverage, such as "full coverage" products, usually for less than the counter price. The trade-off: if something happens, the rental company may charge your card first and you then claim the money back from the coverage provider. Read what is covered: tires, glass, roof and undercarriage are common exclusions in counter waivers.
When buying at the counter makes sense
- You don't own a car and have no auto policy (consider SLI as well as CDW).
- Your policy or card excludes this vehicle or trip.
- You want to avoid any claim on your own policy, or any out-of-pocket payment.
- You are renting outside the U.S., where your own policy may not apply. Mexico, for example, requires liability insurance from a Mexican insurer.
This is general information, not insurance advice. Coverage varies by policy, card and state. Confirm with your insurer and card issuer before you travel.
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Compare at Discover Cars →Frequently asked questions
Do I need to buy insurance from the rental company?
Not always. Many U.S. drivers are already covered by their own auto policy and a credit card. Check both before your trip. If you have no other coverage, buying it is sensible.
What is loss-of-use?
A charge for the income the rental company loses while a damaged car is being repaired. Not every personal policy or card covers it, so ask.
Does my credit card cover liability?
Usually not. Card rental benefits typically cover damage to or theft of the rental car, not injury or damage you cause to others.