Can You Rent a Car Without Insurance?

When renting a car, the rental agency tends to offer a litany of extra, optional coverages. These jack up the cost of renting a car, but do you have to have insurance to rent a car? If you don’t understand how your car insurance covers rental cars, or if you don’t have car insurance at all, you might be wondering what you should buy. 

Let’s take a look at everything you need to know about renting a car without insurance, renting a car with insurance, and how insurance deals with rental car damage.

Yes, you can get a rental car with no insurance, as rental cars usually come with a minimum amount of liability coverage. If you pay with a credit card, your card provider likely contains some form of rental car protection, too. 

If you have your own car insurance policy, your coverage should extend to your rental car in the United States. Every state mandates drivers to have a minimum amount of liability coverage to protect other drivers on the road in case they cause an accident. 

Even though car insurance tends to follow the car, not the driver, the situation of renting a car is a typical exception to this rule. 

Your liability coverage can follow you since it’s not contingent on the type of car you’re driving like other auto coverages are. Your amount of liability on the road remains the same depending on what state you’re in — whatever that state’s minimum required coverage is — because it’s supposed to cover other people you may crash into in an accident, not you.

This means the same limits and deductibles that apply to your car insurance should also apply to your insurance on a rental car. If you don’t have personal car insurance, that’s okay. Rental cars usually come with liability coverage. However, rental cars with insurance typically just have the state minimum amount. 

Usually, the cost of liability insurance is already factored into the rental car rate, so it’s not like you’re paying “extra” for it. But, this can vary by state. In Texas, for example, if you don’t have your own car insurance when renting a car, the cost of getting liability insurance on a rental car is additional.

If you don’t have car insurance and your credit card doesn’t provide car insurance for a rental, you’ll need to rely solely on the rental car company. In addition to their liability coverage, you may want to buy a collision damage waiver or loss damage waiver to protect against physical damage to the car.

It’s important to note, too, that this information only applies to regular passenger vehicles. If you’re renting a truck, like a U-Haul, different coverage rules apply.

No, since renting a car without car insurance is allowed, you don’t need full coverage to rent a car. However, if you have a full coverage policy, you may not need an additional rental car policy offered by your agency.

If you have collision and comprehensive coverage, this will likely follow you to your rental car, too (again, an exception to the car insurance following the car rule). This means you’ll be covered from many of the forms of damage that you’re normally covered from when driving your own car, like theft. You may want to double-check with your carrier beforehand, though, just to make sure.

Although you don’t need a policy to rent a car, nor do you need full coverage, it may be a good idea to get liability insurance for rental cars when signing your rental agreement with the agency. 

No, rental car proof of insurance isn’t necessary because you can rent a car without car insurance. If you don’t have coverage, the rental car company will offer you some. The typical requirements to rent a car are a driver’s license and a way to pay. 

Rental car companies typically require you to pay with a credit card when you get a vehicle. They do this because if you damage the car, they usually charge you for it upfront and then settle the matter with the relevant insurance companies later.

As a result, many credit card companies offer insurance for renting a car, like collision coverage,  when you book rental cars to encourage you to use their card. This protection may cover physical damage to your car, no matter who’s at fault, and some charges that the rental car company may put on you in the aftermath of an accident.

If you want to use a debit card to book, then the rental car agency may ask for your insurance. If you do get in an accident and you only have a debit card on file, there’s no guarantee that you have enough in your account to cover damages if the company needs to charge you. 

So, they’ll either ask for a credit card too, or ask for proof of insurance for your rental car to know that you have further financial backing for your rental.

Most states require you to be at least 25 years old to rent a vehicle. According to data collected by the National Highway Traffic Safety Administration (NHTSA), young drivers tend to be over-involved in traffic accidents, thus, rental car agencies don’t want to take the risk with young drivers. Other than that, renting a car without car insurance is permissible because you can get some coverage from the agency at the counter. 

Check with your credit card company before you rent to learn what’s covered and not covered so you can decide what to get from the rental car company. In some instances, a credit card will only act as supplemental coverage, meaning you need to have additional liability rental car insurance in place before it kicks in.

Some of the top rental car providers, like Enterprise, Avis, and Hertz, allow drivers to purchase a rental car with no insurance. Providers often recommend purchasing a rental car insurance policy if you don’t have one of your own to ensure you’re safe while on the road. 

If your credit card company provides car insurance for a car rental, you may not need a policy through your rental car provider if you don’t wish to have additional coverage. 

Since renting a car without car insurance is allowed and common, the process is pretty straightforward. Drivers who don’t have their own auto insurance policy to rely on for coverage can purchase car insurance for a rental with the agency as they’re renting their vehicle. 

Some agencies even allow drivers to purchase a rental without any coverage. While some agencies may allow this, it’s important for drivers to understand they’re liable for any costs incurred due to damage to the vehicle. 

You have a lot of options to get some sort of car insurance for your rental. Here are a few scenarios that may help you determine what your expenses will be after a rental car accident, depending on your insurance coverage:

1. You don’t have a personal auto insurance policy, and you decline the rental agency’s coverage. Maintaining no car insurance and renting a car makes this a potential worst-case scenario.

To rent a car with no insurance at all, you’d be responsible for paying most or all of the damage done to your car and potentially other vehicles (and injured people) if you cause an accident, which could be financially devastating. Having no car insurance on a rental car is highly risky.

2. You have your own auto insurance policy and decline the rental agency’s coverage. In this case, your personal auto policy may step in to cover the cost of damage done to the vehicle minus your standard deductible.

If another driver causes the accident, their liability insurance should pay for the damage. But, the rental car company may charge your credit card upfront, and then put the burden on you and your insurance provider to receive reimbursement from the at-fault driver’s insurance.

3. You have your own auto policy, and you pay for additional coverage from the rental agency. If you have your own coverage and you pay for extra insurance on a rental car, like a loss or collision damage waiver, you should be safe from most, if not all, charges in case of an accident.

Your liability insurance for your car rental would cover injuries and damage that you cause to others. Either the collision damage waiver or your full auto coverage should cover the rental car damage. And, personal injury protection (PIP), or a related option offered by the rental company, could cover you and your passengers’ injuries if needed.

So, the next time your friends ask can you rent a car without car insurance, you can tell them the short answer is yes, but the long answer is much more nuanced. Just because you can, doesn’t mean you should.