Do I Need Supplemental Liability Insurance When Renting A Car| (In 2023)

Do I Need Supplemental Liability Insurance When Renting A Car

In the event of an accident with a rental car, will your auto insurance cover the damage to the rental? Then, you thought do I need supplemental liability insurance when renting a car? A rental car is usually covered under your existing policy, so there is no need to buy extra coverage.

Here’s an overview of rental company coverage, insurer coverage, and gap coverage. Next, you may need to decide if your policy is good.

What Does My Personal Insurance Cover?

Rental car insurance includes the same coverage as personal auto insurance. 

In addition, the rental car company covers you (up to your policy limits) with comprehensive insurance. 

Most landlords’ or renters’ insurance policies cover personal items stolen from rental cars. Check your policies before purchasing supplemental coverage from a rental car company. Also, you should know what is excess liability insurance.

Likewise, check your existing policies before declining rental car coverage. For example, some policies exclude commercial vehicles, luxury vehicles, or business trip rentals.

Comparing Coverage| Do I Need Supplemental Liability Insurance When Renting A Car In Florida

How rental car company coverage compares with other types of coverage:

Rental Car Company Policies

  • Car Insurance Policies
  • Supplemental liability insurance
  • Bodily injury and property damage liability coverage
  • Collision damage waiver (CDW) and Loss damage waiver (LDW)
  • Comprehensive collision coverage
  • Personal accident insurance
  • Personal injury protection and health insurance
  • Personal effects coverage
  • Homeowners or rental insurance personal property coverage
  • Supplemental Liability Insurance vs. Personal Liability Insurance

California requires liability coverage for bodily injury and property damage. A state’s limited coverage must apply to the cheapest car rental insurance companies.

When deciding whether to add supplemental liability insurance, ask yourself these questions:

  • In an unfamiliar car, will I have to drive more?
  • Do I have to drive on unfamiliar roads (if I am renting a car for vacation, for example)?

A person should have at least $25,000 of bodily liability insurance, $50,000 per accident, and $25,000 of property liability insurance. It ensures you have enough coverage in case of a collision.

  • Collision Damage Waiver/Loss Damage Waiver vs. Comprehensive and Collision

You can decline this waiver if you already have collision and comprehensive coverage. Ensure the insurance limits cover the rental car’s actual cash value (ACV).

  • Luxury Vehicles – Collision or Loss Damage Waivers

Comprehensive and collision coverage covers similar repairs to your vehicle. 

However, your policy may not cover the full cost of repairs if you rent a more expensive vehicle, such as a luxury car. In the event of damage to a rental car, you won’t be responsible. 

Besides, it reduces rental company fees. A comprehensive policy usually covers collision costs. Check your policy before deciding on a collision. 

  • Personal Accident Insurance vs. Personal Injury Protection and Health Insurance

Policies covering personal injury and health care cover medical expenses. The rental company will not need you to buy personal accident insurance if you have no-fault, medical payments, or good health coverage. 

Health insurance can also cover medical bills from accidents. As collision injuries can amount to hundreds of thousands of dollars, you should have adequate coverage.

  • Personal Effects Coverage

In the event of theft, personal effects coverage reimburses you. You can decline an existing policy if it covers personal items.

Does My Insurance Cover Rental Cars?

Most insurers include rental car liability insurance cost coverage in their policies, but You should check with your agent or policy. National insurers that cover rental cars include:

  • State Farm
  • Geico
  • Progressive
  • Allstate
  • Liberty Mutual
  • Travelers
  • Farmers
  • USA
  • Nationwide
  • American Family

Credit Card Rental Insurance

You can also buy this policy from your credit card if you pay the whole amount. 

Sometimes, this policy applies after your plans. You may also have to decline collision loss waivers.

Mastercard, for example, only provides coverage if the renter:

  • A collision loss release for a rental car is declined.
  • There is a 15-day limit on the rental period.
  • There are no other policies available.

Ensure you understand your card’s benefits and exclusions, as Mastercard excludes trucks, full-size vans, and vintage vehicles.

When to Consider Rental Insurance

In some cases, you may need supplemental insurance even if your regular policy already covers you. These include:

  • You have only a liability policy. A collision damage waiver (CDW) is best in this case. The other driver’s liability policy will cover the damage to their car but not damage to your rental car, so you’ll be responsible for paying all repair costs and loss-of-use fees.
  • You have the minimum liability policy coverage. In case you damage another vehicle or injure its passengers, consider buying this policy from the rental company. You can use this to cover any liability gaps.
  • Your personal policy has a high deductible. Consider a collision damage waiver if you have a high deductible on your auto policy. Then you won’t need to worry about repairs if your rental car gets scratched, dinged, or otherwise damaged. Make sure the CDW doesn’t come with a high deductible before purchasing.
  • You’re an at-risk driver or want to protect your policy premiums. Buying a CDW, liability, or personal accident insurance might be a good idea if you’re worried about your driving record or what a collision might do to your insurance premiums—particularly if you’ve had an at-fault claim within the past three years. Increases in personal policy premiums can result from successive claims within three years; supplemental insurance claims don’t.
  • You have low limits on your existing collision or comprehensive plan. Your collision and comprehensive policy may not cover your rental car if your vehicle is worth less. A CDW is suitable if your rental is more valuable than your car.

It depends on several factors, including your personal vehicle coverage and whether you need supplemental insurance. Review your policy, as coverage needs can change over time.

At Last Words

Lastly, consider several factors before buying supplemental liability insurance when renting a car. In the event of an accident, liability coverage offered by rental car companies may not always suffice.

Moreover, liability insurance adds a layer of protection beyond the rental company’s coverage. You may enjoy this type of insurance if you lack personal auto insurance coverage, which protects you from lawsuits and high accident expenses.


What is a supplemental liability on a rental car?

SLP is available at the time of rental for an additional daily fee. A limit of $300,000 applies to third-party liability claims for renters and authorized drivers.

Do I need SLI when renting a car?

Rental cars come with third-party liability insurance, so you don’t need additional insurance. It would help to buy supplemental liability insurance depending on the minimum coverage in different countries.

Do you need extra insurance when renting a car in the USA?

In your state, rental companies automatically cover the bare minimum for uninsured drivers. You might need rental car insurance if you want more protection or if you’re traveling abroad.

Do rental cars need liability insurance?

Do I need supplemental liability insurance when renting a car. Your rental car comes with third-party liability insurance. Excess and supplemental liability insurance is available from rental agencies if you need more coverage.