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Do I need the rental car company's insurance?

What your own policy usually does, what a credit card may add, and when the coverage sold at the rental counter is worth buying.

Updated September 8, 2026 · 3 min read · by Gerino Alejos

Usually not, if your own policy already carries collision and comprehensive, the two coverages that pay to fix or replace your own car. That coverage generally follows you into a rental car in the United States. If you carry liability only, which pays for the harm you do to other people, the coverage sold at the counter deserves a real look.

The rental counter is a high pressure place to decide. Sort it out before you get there and the answer takes ten seconds.

What your own policy usually does

Say you carry liability, collision and comprehensive on a car you own. That coverage generally extends to a rental car you drive for personal travel in the United States. It carries the same limits and the same deductible, the amount you pay yourself before the coverage starts paying. See what full coverage includes.

If you carry liability only, your policy will not repair the rental. That is the situation where the counter product matters.

What rental counter insurance actually covers

The counter usually offers four things.

• A collision damage waiver. It is not insurance. It is the rental company agreeing not to hold you responsible for damage to their vehicle.
• Supplemental liability. It raises your liability limits above what your own policy provides.
• Personal accident coverage. For most people it repeats what health insurance and medical payments coverage already do.
• Personal effects coverage. It usually repeats what a homeowners or renters policy already does for your belongings.

What a credit card adds

Many cards include rental car coverage when you pay for the rental with that card and turn down the counter waiver. Whether your card does is a question only the card company can answer.

Most card benefits are secondary. That means the card pays after your own insurance pays. A smaller number are primary, which means the card pays first and keeps the claim off your policy. A claim is the request for payment you file after damage.

Call the number on the back of the card and ask which kind yours is, before the trip.

When to buy the waiver anyway

Buying at the counter is worth thinking about here.

• You carry liability only on your own vehicle.
• You do not own a car, so you have no personal auto policy.
• You are renting for business and your employer does not provide coverage.
• You want to keep a claim off your own policy, and your card benefit is secondary.
• You want cover for loss of use and the paperwork fees the rental company charges. Loss of use is what they bill for the days their car sits in the shop. Many personal policies do not pay all of it.

Renting outside the country

Coverage generally does not extend to Mexico. A rental there needs coverage bought locally, and the same rules apply as driving your own car across.

Check before your trip

Call us with your rental dates and we will tell you what your own policy does. Two minutes on the phone saves an argument at the counter. Call our McAllen office at (956) 687 3334, or use the ZIP form on this page. Se habla español.

Gerino Alejos

Licensed insurance agent · License 3128710 · NPN 18243381

Owner of McAllen Insurance Group, an independent agency on North 10th Street in McAllen. Works with clients across Hidalgo, Cameron and Starr counties on Medicare, Marketplace health, life and auto coverage. Se habla español.