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.

You can rent a car without having your own car 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 you 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 wreck in an accident, not you.  

This means the same limits and deductibles that apply to your car should also apply to a car you rent. If you don’t have personal car insurance, rental cars typically come with liability coverage, although it’s usually just 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 from a rental car company is an additional cost.

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.

If you book a car rental without insurance of your own and your credit card doesn’t provide any coverage, 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 your 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.

You don’t usually need proof of insurance to rent a car because you don’t need personal car insurance to rent a car. 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 collision coverage when you book rental cars to encourage you to use their card, giving them business. 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 to know that you have further financial backing for your rental.

Most states want you to be at least 25 years old to rent a vehicle, too. Other than that, you don’t need your own car insurance when renting a car because you can get some from the agency at the counter. 

Check with your credit card company before you rent to know 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 your own liability insurance in place before it kicks in.

You have a lot of options to get some sort of coverage before driving your rental car. 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:

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.

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

Your liability coverage 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.