Personal Insurance · Bancorp Insurance
Rental Car Insurance
Know Before You Go.
Should you buy coverage at the rental counter? We’ll give you a straight answer — and make sure you’re never paying for something you don’t need.
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The Honest Answer
Do You Need Rental Car Insurance?
It depends on what you already have. The person at the rental counter isn’t a licensed insurance professional — we are. Here’s what you need to know.
 You Probably Don’t Need It If…You carry collision & comprehensive on your personal auto policy. In most cases, it extends to rental vehicles used for personal travel. Your deductibles still apply. |  You Should Buy It If…You don’t carry collision & comprehensive, or you’re renting for business purposes. Without these, your policy won’t cover damage to the rental vehicle. |  Not Sure? Ask Us First.The best time to answer this question is before you’re standing at the rental counter. A quick call to our office saves you from overpaying — or being underinsured. |
What’s Actually Covered Your personal auto policy |
Covers damage to the rental vehicle from accidents, theft, weather & more — if you carry it on your own policy.
Pays for damage or injuries you cause to others. Your personal auto liability limits apply to rental vehicles too.
Some credit cards offer secondary rental coverage. Check your card benefits before the trip — it may fill gaps your auto policy doesn’t cover.
Personal auto policies often exclude business use. If you’re renting for work, the rental company’s coverage may be necessary. |
Collision & Comprehensive
Liability Coverage
Credit Card Coverage
Business Use ExceptionUnderstanding the Options
What the Rental Counter is Selling You
Rental car coverage can double your daily rate. Know what each product does before you sign.
CDW / LDW Collision / Loss Damage WaiverWaives your financial responsibility if the rental car is damaged or stolen. Most expensive option but provides the most peace of mind. | SLI Supplemental Liability InsuranceAdds liability coverage beyond the state minimum the rental company must provide. Worth considering if your personal liability limits are low. | PAI Personal Accident InsuranceCovers medical costs for you and passengers after an accident. Usually redundant if you have health insurance or PIP on your auto policy. | PEC Personal Effects CoverageCovers personal belongings stolen from the rental car. Your homeowners or renters policy likely already covers this — check before buying. |
Frequently Asked Questions
Straight Answers About Rental Car Insurance
The questions we get asked most by travelers before they pick up the keys.
Does my personal auto policy cover rental cars? +
In most cases, yes — for personal travel. If you carry collision and comprehensive on your own vehicle, those coverages typically extend to a rental car. Your liability coverage extends too. Deductibles still apply.
What if I don’t have collision & comprehensive? +
If you don’t carry these coverages on your personal vehicles, your policy won’t cover damage to a rental car from an accident, theft, vandalism, or animal collision. In this case, the rental company’s CDW/LDW is worth buying.
How expensive is rental car insurance from the counter? +
Very. On a daily basis, rental car coverage can cost 10 to 20 times more than your personal auto policy. Buying all the coverages offered can easily double the daily cost of the rental vehicle.
Does my auto policy cover rental cars for business trips? +
Not always. Personal auto policies often exclude business use. If you’re renting for work — or mixing business and personal travel — talk to your agent before assuming you’re covered.
Does my credit card provide rental car coverage? +
Some credit cards offer secondary rental car coverage, which kicks in after your personal auto policy. Check your card’s benefits guide — coverage varies widely by card and issuer.
What liability coverage do rental companies provide for free? +
Most states require rental companies to provide liability coverage at the state’s minimum limits at no charge. These minimums are typically very low — often $15,000/$30,000/$5,000 — and are rarely sufficient if you cause a serious accident.
What Our Clients Say
Real Reviews from Real Clients
Don’t just take our word for it.
What Our Clients Say
Real Reviews from Real Clients
Don’t just take our word for it.
From the Blog
Things worth knowing.
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Not sure what you’re covered for?
Let’s find out together.
Book a free, no-pressure consultation. We’ll review your current coverage and answer the rental car question once and for all.
51473 Hwy 97, La Pine, OR 97739 · 800-452-6826 · bancorp@bancorpinsurance.com
