Do You Need to Buy Rental Car Insurance?

Remember, a credit card will only cover damage to the car, not liability claims against you. That means your credit card won´t protect you if you injure others or destroy property. In addition,

Rental Insurance
If you don´t have adequate coverage through your auto insurance policy or credit card, you should purchase coverage through the rental agency.

The most misunderstood part of rental insurance is the collision damage waiver. A collision damage waiver isn´t really insurance; instead, it´s a guarantee that the rental company will pay for certain damages. Rental agencies offer collision damage waivers or loss damage waivers for about $14 to $20 per day. If you decline the collision damage waiver, you accept responsibility for all damages.

The collision damage waiver also covers "loss of use" — the money a rental agency loses when the vehicle can´t be rented due to damages. In most states, an automobile insurance policy won´t cover this cost.