Is it worth getting collision coverage on rental car?
Mia Cox
Published Jan 20, 2026
Rental car insurance can be expensive — it can easily double your rental costs if you purchase a full coverage package. You also technically don’t need to purchase insurance since rental cars are automatically covered for the minimum in their state. However, it can still be worth it in some situations.
How much is collision damage waiver at budget?
Collision Damage Waiver Cost by Rental Company
| Company | Daily Rental Cost | Daily Damage Waiver Cost |
|---|---|---|
| Budget | $42 | $17 |
| Enterprise | $44 | $15 |
| Hertz | $47 | $16 |
Where can I buy insurance for my rental car?
Buying insurance from the rental car company. You can typically purchase a collision damage waiver and other levels of liability and personal effects insurance directly at the rental car counter. It’s a good idea to purchase coverage if: You don’t have an Auto or personal property policy with us.
Do you get collision coverage with a rental car?
These days, most credit cards provide “free” collision coverage for car rentals, provided you use the card to secure the rental. A sample credit card benefits statement describes coverage as: “Physical damage and/or theft of the covered rental vehicle.
What does a rental car collision damage waiver mean?
The collision damage waiver covers only the rented vehicle and means that the rental company waives its right to pursue you for damage. Your rental car company may call it a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), and may also be referred to as Collision Damage Waiver insurance or Loss Damage Waiver insurance.
Do you need insurance to rent a car in Canada?
But this coverage is generally limited to driving in the U.S. and maybe Canada, and won’t cover car rentals in Mexico, Europe, or anywhere else. So, before you plan on using your own insurance, check its coverage. If it does cover rentals, you can place a claim on it.
