Who does Hertz use for insurance?

Hertz partners with licensed third-party insurance providers to underwrite its optional protection plans, primarily using ACE American Insurance Company (a subsidiary of Chubb) and Empire Fire and Marine Insurance Company.

Here is how the specific optional coverages are underwritten:

• Supplemental Liability Insurance (SLI / LIS): Issued by ACE American Insurance Company (a Chubb subsidiary).
• Personal Accident Insurance (PAI) and Personal Effects Coverage (PEC): Underwritten by Empire Fire and Marine Insurance Company or ACE American Insurance Company depending on the specific policy details and region.
• Loss Damage Waiver (LDW / CDW): Note that a damage waiver is not insurance. It is an agreement where Hertz waives its financial right to recover repair or replacement costs from you directly, so it is not underwritten by an outside insurance carrier.

You really need liability insurance to cover damage or injuries to others, and a Collision Damage Waiver (CDW) to cover damage to the rental car itself, but you may already have both through your own auto policy or credit card.

1. Liability Insurance (Mandatory)

• What it does: Pays for other people's medical bills and property damage if you cause an accident.
• Do you need it? Yes, it is legally required. Rental companies usually provide the state-minimum required by law, but limits are often very low ($10,000 to $25,000).
• Skip it if: You already own a car and have a standard personal auto liability policy or an umbrella policy that extends to rentals.
• Buy it if: You do not own a car, do not have personal auto insurance, or your current policy has low limits and you want Supplemental Liability Protection (SLI) for peace of mind.

2. Collision Damage Waiver / Loss Damage Waiver (CDW/LDW)

• What it does: This is technically not insurance, but a waiver stating the rental company will not charge you if the rental car is damaged, vandalized, or stolen.
• Do you need it? It protects you from paying thousands out of pocket for vehicle repairs or "loss of use" fees while the car is in the shop.
• Skip it if: You have comprehensive and collision coverage on your personal auto policy, or if you pay with a credit card that offers rental car coverage. (Note: Most credit card coverage is secondary, meaning it kicks in after your personal insurance pays, though it can cover your deductible).
• Buy it if: You do not have comprehensive/collision coverage on your own auto policy, you do not want to risk a personal insurance rate hike after a claim, or you are renting abroad where your domestic policy does not apply.

Coverages You Usually Can Skip

• Personal Accident Insurance (PAI): Covers medical costs for you and your passengers. Skip this if you already have health insurance or personal injury protection on your auto policy.
• Personal Effects Coverage (PEC): Covers stolen luggage or items from the car. Skip this if your homeowners or renters insurance already covers off-premises theft.

Hertz optional insurance and protection plans typically cost between $15 and $50+ per day for individual coverages, or $35 to $60+ per day for bundled protection packages, depending on your location and the vehicle type.

Breakdown of Daily Hertz Protection Costs

Individual coverage estimates generally average out to the following rates:

• Loss Damage Waiver (LDW) / Collision Damage Waiver (CDW): ~$11 to $25+ per day. This eliminates your financial responsibility for physical damage or theft of the Hertz vehicle.
• Liability Insurance Supplement (LIS): ~$12 to $17.50+ per day. This provides up to $300,000 (or more depending on state laws) in third-party bodily injury and property damage protection.
• Personal Accident Insurance / Personal Effects Coverage (PAI/PEC): ~$6 to $8 per day. This covers medical expenses and accidental death benefits for you and your passengers, plus protection for personal belongings inside the car.

Bundled Plans and Variations

When booking on the Hertz Official Website, coverage is often presented in packages (Basic, Standard, or Complete Protection). Bundled complete protection plans frequently run from $35 to $45+ per day or higher. Total costs vary significantly based on the rental location (high-cost metropolitan areas or airports are pricier) and whether you purchase coverage online in advance or at the counter.

Yes, Hertz officially lists proof of insurance as a required document at the time of rental according to their Hertz Rental Qualifications and Requirements, though experiences can vary.

When Hertz Asks for Insurance Proof

• Declining Optional Coverage: If you decline Hertz's optional loss damage waiver or insurance packages, agents at the counter may ask to see proof that you are covered by personal auto insurance or a corporate policy.
• Using a Debit Card: If you pay with a debit card instead of a credit card, Hertz frequently requests additional verification, which can include proof of insurance or a utility bill confirming your address.
• Local or Counter Rentals: Travelers on Reddit note that neighborhood or local non-airport counters are much more likely to strictly request physical or digital insurance cards than busy major airports.

What Customers Experience

• Mixed Enforcement: According to discussions on platforms like Facebook, opinions are mixed, and many frequent renters report that they are rarely asked for physical documentation if they are loyalty members or have pre-entered their details online.
• Digital Proof: When agents do ask, showing a digital insurance card on your smartphone app or providing the carrier name is usually acceptable.

Extra rental car insurance is usually not worth buying if your personal auto policy and credit card already cover rental vehicles.

When You Don't Need Extra Insurance

• You have full personal auto coverage: If your personal policy includes liability, collision, and comprehensive coverage, it usually extends to a rental car for personal use in the U.S. and Canada.
• Your credit card provides perks: Many major credit cards offer free collision damage waiver (CDW) coverage if you use the card to reserve and pay for the entire rental. Check if your card offers primary or secondary coverage.
• Opinions on extra coverage: On Facebook, mixed opinions exist; while some users consider counter insurance an unnecessary expense or a scam if you have full coverage, others note that personal policies might not cover "loss of use" fees or specific damage types without extra add-ons.

When Buying Extra Insurance Is Worth It

• You do not own a car or have liability-only: If you lack personal auto insurance, you need at least the minimum liability coverage from the rental agency to drive legally.
• You are traveling abroad: Personal auto policies and credit card coverages often do not apply outside the U.S. and Canada, meaning a local policy or Consumer Reports recommended waiver is necessary.
• You want to protect your rates: Buying a collision damage waiver (CDW) from the rental desk prevents a rental accident from going through your personal insurer, which can cause your personal premium rates to spike.
• You are renting special vehicles: Exotic, luxury cars, or large moving trucks and cargo vans may be excluded under your standard personal policy or credit card perks.