Confusion about rental car insurance often leads drivers to overpay or leave gaps in coverage. In 2025, misinformation still swirls around this topic. This article tackles common myths, helping you decide whether to buy rental insurance or lean on your existing policy—saving money and stress.
Myth 1: Your Personal Policy Never Covers Rentals
One of the biggest common myths is that your auto insurance never extends to rental cars. Truth is:
Reality: Most standard policies with liability, collision, and comprehensive coverage apply to rentals in the U.S. and Canada—check your existing policy for specifics.
Caveat: Coverage might not match your car’s limits, and international rentals often require extra insurance.
In 2025, call your insurer before renting to confirm—no need to double up on rental car insurance if you’re already covered.
Myth 2: Rental Companies’ Insurance Is Always Overpriced
Many assume rental car insurance from agencies is a rip-off. Here’s the real deal:
- Reality: Rental companies charge $10-$30 daily for coverage, which can add up—but it’s not always overpriced if you lack collision or comprehensive in your existing policy.
- Benefit: Their plans often include zero deductibles and cover “loss of use” fees—charges your policy might skip.
In 2025, compare costs: agency insurance might beat paying a high deductible out-of-pocket after an accident.
Myth 3: Credit Cards Provide Full Rental Coverage
A persistent common myth is that credit card rental coverage is a complete substitute. Not quite:
- Reality: Many cards (e.g., Visa, Mastercard) offer secondary collision coverage if you decline the agency’s waiver—but it won’t cover rental car insurance for liability or theft.
- Limit: Coverage often excludes luxury cars, long rentals, or international use—read the fine print.
In 2025, don’t bank solely on your card—pair it with your existing policy for full protection.
Source: Insurance Industry Insights and Rental Agency Policies