Should I decline rental car insurance?


Editorial team Published on

You can decline rental car insurance if your personal auto insurance policy or credit card already provides adequate coverage for damage, theft, and liability.

Opinions are mixed on Quora; while many users decline coverage to save money, others prefer buying the rental agency's plan so they do not involve their personal insurance after an accident.

Before you say no at the rental counter, verify what protection you already have.

When You Can Safely Decline

  • You have full auto coverage: If your personal auto insurance policy includes comprehensive and collision coverage, it typically extends to personal rental cars in the U.S. and Canada. Your own deductible will apply if you file a claim.
  • Your credit card offers primary or secondary coverage: Many travel credit cards pay for damage or theft if you charge the entire rental to the card and decline the rental company's Collision Damage Waiver (CDW). Check if your card provides primary coverage (pays first) or secondary coverage (pays after your personal auto insurance).

When You Should Buy Coverage

  • You do not own a car or lack auto insurance: If you do not have personal auto insurance, you must buy at least the state-mandated minimum liability coverage from the rental agency.
  • You want to protect your personal auto rates: Filing a claim through your personal insurance after a rental car accident can cause your regular auto insurance premiums to increase. Buying the rental company's Loss Damage Waiver (LDW) keeps the incident off your personal record.
  • You are traveling internationally: Many personal auto policies and credit cards exclude coverage in certain foreign countries. For example, some cards exclude countries like Ireland, Israel, or Jamaica, and countries like Italy may legally require a local collision waiver.