What rental car insurance do you need?

Renting a car gives you freedom and flexibility, but do you really know what insurance you need? Many travelers either overpay for unnecessary coverage or take risks by skipping essential protection. In this guide, we’ll break down the different types of rental car insurance and help you choose the best option for your trip.

🚗 1. Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW)

This covers damages to the rental car in case of an accident or theft. Without it, you might have to pay out of pocket for costly repairs. Some credit cards include this coverage—so check before you buy!

🔰 2. Liability Insurance

This covers damages to other vehicles, property, or injuries to third parties in case of an accident. Many rental companies offer this, but your personal car insurance might already include liability coverage.

🛡️ 3. Personal Accident Insurance (PAI)

PAI covers medical expenses for you and your passengers in case of an accident. If you have travel insurance or health insurance, you might not need this extra coverage.

🎒 4. Personal Effects Coverage (PEC)

This protects your personal belongings if they get stolen from the rental car. However, travel insurance or homeowners’ insurance often provide similar protection.

So, What Should You Choose?

✅ Check your personal car insurance and credit card benefits before purchasing extra coverage.
✅ If you want peace of mind, opt for CDW and liability insurance.
✅ Avoid unnecessary add-ons if you’re already covered elsewhere.

By understanding these options, you can rent a car with confidence—without paying for coverage you don’t need! 🚘