Rental Car Insurance 101: Domestic, International & Peer-to-Peer Rentals

by Lauren Pezzullo

Renting a car can feel like a breeze—until you get to the counter and they hit you with a bunch of insurance options you weren’t expecting. CDW? SLI? Personal Accident Insurance? If your eyes glaze over, you’re not alone. The truth is, some of that coverage might be really helpful, but some of it you might already have through your own insurance or credit card. Before you pay for extras you don’t need, let’s break down what each of these options actually covers—and how to figure out what protection you already have.

What Does Rental Car Insurance Cover?

When you rent a car, the rental company will probably offer you a bunch of insurance options to protect you in case something goes wrong. These usually include things like:

• Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) – Covers damage to or theft of the rental car.
• Liability Coverage: Pays if you accidentally damage someone else’s car or injure someone while driving the rental.
• Personal Accident Insurance – Covers your medical bills if you’re hurt in a crash.
• Personal Effects Coverage: Reimburses you if anything is stolen from the car.

Sounds like a smart move, right? But here’s the catch: you might not need to pay extra for all of that. Depending on your personal auto insurance, credit card benefits, and where you’re renting, you could already be covered.

Renting a Car in the U.S.? Here’s What to Know

1. Check your personal car insurance first

If you’re renting a car here in the U.S. and you already have personal car insurance,  there’s a good chance you’re already covered. Then you might not need to buy extra coverage at all. Most personal policies cover rental cars as long as:

• You’re renting in the U.S. or Canada
• It’s for personal use (not business)
• The rental vehicle is similar to your own car— for example, not a moving truck or exotic sports car.

If you’ve got liability, collision, and comprehensive coverage on your own car, it usually applies to your rental, too—up to the limits of your regular policy.

However, if you only carry liability on your personal car (like if your car’s older and not worth much)  that won’t help with damage to the rental itself.  In that case, springing for the Collision Damage Waiver (CDW) could be a smart move.

2. Credit cards can be a lifesaver

Good news—if you pay for your rental car with a major credit card and say “no thanks” to the rental company’s Collision Damage Waiver (CDW), your card might still cover you.

Most credit cards offer secondary coverage, which pay only after your personal auto insurance kicks in. But some offer primary coverage—meaning your credit card handles it all and your own insurance doesn’t get involved. This saves you from having to file a claim–and can also help you avoid a rate hike. Before you travel, give your credit card company a quick call and ask the following:

• Does this card offer rental car insurance?
• Is it primary or secondary coverage?
• Are there any exclusions—like fancy cars or certain countries?

3. Don’t forget about liability insurance.

Even if your personal insurance or credit card covers damage to the rental car, that doesn’t necessarily mean you’re covered if you hurt someone or damage their property. That’s where liability insurance comes in—and it’s required by law. Most rental companies include the bare minimum liability coverage, but it won’t go very far if something serious happens. For extra peace of mind, you can choose to add Supplemental Liability Insurance (SLI) before completing your rental.

Renting a Car Abroad: Here’s What Changes

If you’re thinking about renting a car while traveling internationally, heads up—things can get a bit more complicated once you’re outside the U.S.  Your usual auto insurance probably won’t cover you, and credit card benefits vary widely by country, so they may not help either. Here’s what you need to know:

1. Your U.S. car insurance likely won’t apply.

Most U.S. car insurance policies don’t cover rentals overseas—especially in places like Europe, Asia, or South America. The main exceptions are usually Canada and sometimes Mexico, but even then, coverage may be limited or require you to add a special endorsement for the trip.

What to do: Don’t guess—call your insurer and ask exactly what they do (and don’t) cover when you’re driving internationally.

2. Your credit card might help—but it depends.

Some credit cards do offer international rental car coverage, but it varies by card and country. Here are a few common catches to watch for:

• Many cards exclude Italy, Ireland, and Jamaica.
• Others exclude certain types of vehicles, like motorcycles or SUVs.
• Some countries legally require you to purchase CDW from the rental company—which covers damage to the rental car in an accident, including collision, theft, and vandalism.—even if your card technically offers it.

What to do: Print out proof of your credit card’s coverage in advance. Rental agents in other countries may push back if you try to decline their insurance.

3. When in doubt, just buy the insurance.

If you’re unsure about what’s covered, it might be worth paying for the rental company’s insurance. This is especially true if:

• You’re not familiar with the driving laws or road conditions where you’ll be traveling.
• The country has strict or high-limit insurance requirements.
• You just want peace of mind on your trip.

 Peer-to-Peer Rentals: Here’s What to Know

Apps like Turo and Getaround make it easy to rent a car from a regular person instead of a big-name company like Avis or Hertz. But when it comes to insurance, things work a little differently—so it’s important to know what you’re signing up for.

1. Peer-to-peer car rental apps offer their own insurance.

When you rent through a peer-to-peer platform, you’ll usually choose from a few different insurance tiers offered by the platform itself. Each plan comes with different levels of coverage and costs. For example:

• Turo’s plans range from minimal liability only, all the way to full coverage with a $0 deductible.
• Getaround’s rentals include basic liability coverage automatically and offer optional collision protection.

Sometimes the cost of insurance is built into the daily rate, and other times it’s added as a separate fee when you check out—so be sure to look closely before booking.

2. Your regular car insurance might not help here.

Unlike traditional rental companies, peer-to-peer rentals can fall into a gray area with insurance. In fact, some providers won’t extend your personal policy to cover these types of rentals at all! In this case, your regular car insurance might leave you unprotected. To make sure you have coverage, call your insurer and ask directly:  “Am I covered if I rent a car through Turo or Getaround?”  Don’t assume you’re protected unless you hear it straight from them.

3. Credit cards usually don’t cover these rentals.

Here’s a common surprise: many credit cards that offer rental car coverage don’t include peer-to-peer rentals. So even if your card covers you at Enterprise or Alamo, it might not apply if you rent through an app like Turo or Getaround. Double-check your credit card benefits guide before renting, or call the company directly to ask if you’re covered when using these apps.

Quick Recap: What to Do Before You Rent

Whether you’re driving across your state or across the globe, here’s a checklist to help you make the smartest insurance decision for your rental before you hit the road:

• Call your personal auto insurer. Find out what’s covered and where.
• Check your credit card’s perks. Look for rental coverage details and country exclusions.
• Call the rental car company. Ask for exactly what their insurance includes.
• Make sure you have adequate liability coverage. Don’t rely on bare minimums.
• With peer-to-peer rentals, double-check everything. Your usual policies might not apply.
• Skipping the rental company’s insurance? Print your proof of coverage—especially if you’re traveling abroad.

Get Your Free Car Insurance Quote Today

Not sure which health insurance plan is right for you? You’re not the only one. The good news is, getting a free quote can make it easier to compare plans, costs, and coverage—all in just a few minutes. Whether you’re picking a plan for the first time or just looking for something more affordable, a free online car insurance quote can help you compare your options in minutes.