Do you have any memberships or alumni benefits that provide discounted Rental Car Rates?

Example: Hertz Limited Time Rental Offer for ABA Members.

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1️⃣ Rental Car Insurance Coverage ➲ Needs Analysis

If you have ever rented a car in the United States, you will have experienced this conundrum.

Consumers are routinely presented with the option to take up expensive Rental Car Insurance coverage, both at the time they book the rental car and again when they pick up their rental car.

As the profit margins for providing Rental Car Insurance are extremely high for the Rental Car Providers there is often considerable sales pressure applied both at the time of booking and by the Rental Car Provider's staff when these offers are made to the consumer.

As private auto insurance policies in the US routinely extend to cover the driver no matter which car they are driving (which includes Rental Cars) and nearly everyone in the US owns a car and has private auto insurance, it can be very difficult for the consumer to understand what insurance coverage they already have, whether or not they are already covered, or whether additional insurance coverage is needed?

They might also be unaware of the potential for insurance coverage to automatically apply if they deny the standard insurance offered by the Rental Car Provider and book and pay for the rental car using a credit card that includes Rental Car Insurance.

The required analysis gets very complicated very quickly.

This tends to lead most consumers to decide "in the spur of the moment", in an abundance of caution, to opt to take up the Rental Company Insurance which is always expensive (especially for longer rentals) and may not actually be needed.

Low Risk Tolerance

If you are not concerned about the cost & cannot tolerate any level of risk, then in line with U.S. Expert Travel Industry Advice (refer FAQ) we recommend you take up expensive Rental Car Insurance coverage every time you rent a car, regardless of what other insurance coverage you already have in place or can access as an alternative.

Taking up overpriced Rental Company Insurance is the only way to achieve a "drop your keys and forget it!" experience.

Unable or Unwilling to Pay ALL Damages Up-Front

If a collision occurs, and you are unable or unwilling to pay the rental car company up-front to cover ALL Damages, both Direct and "Associated Losses" (refer FAQ for what is generally included) and be out-of-pocket whilst you claim reimbursement from your insurance provider.

Then, in line with U.S. Expert Travel Industry Advice (refer FAQ) we recommend you:

1️⃣ Find a credit card that offers sufficient primary coverage (not all do);

2️⃣ Alternative insurance that matches your risk profile; or

3️⃣ Take up expensive Rental Car Insurance coverage every time you rent a car.

When considering alternatives 1️⃣ & 2️⃣, it MUST be noted that there is NO GUARANTEE that your alternative insurance coverage will reimburse 100% of the "Associated Losses".

Additionally, even if 100% of "Associated Losses" are theoretically claimable, whether reimbursement of specific items of loss is possible, may depend upon cooperation from the rental car company, which can be both difficult to obtain or enforce.

Is the entire Rental Car covered?

Normally, standard Rental Car Insurance excludes the side mirrors, undercarriage, roof, tyres/wheels, windshield, windows, headlights and interior.

For additional peace of mind, you might consider upgrading to a "Super" level of coverage (if available).

Are you covered for Theft Protection, Fire Damage, Flood, Vandalism, etc.?

Does the Rental Car Insurance only cover collisions or is Theft, Fire Damage, Flood, Vandalism, etc. covered as well?

What is the Coverage Limit?

Most Rental Car Insurance policies will include a coverage limit.

The coverage limit might not be enough to fully cover potential damages, especially if you are renting a luxury vehicle.

Primary or Secondary Coverage?

Additionally, it would help if you considered whether the insurance operates as primary or secondary coverage.

Primary coverage means the policy is the first to pay the costs for damage or loss, so you can rely on the coverage such that there is no need to rely on using your private car insurance (which would result in increasing your annual car insurance premiums, and void any "no claim" bonuses you might otherwise qualify for ...

Alternative Rental Car Insurance Coverage Options

You may already have (or have access to) existing Rental Car Insurance coverage that meets your needs by providing sufficient coverage for your risk profile.

Please refer to our FAQ to start considering possible alternatives.

Mandatory Third-party Liability & Rental Car Insurance in Daily Car Rental Rate ➲ Australia

In Australia the above conundrum is mostly avoided as Rental Car Providers are required by law to include the cost of Third Party Liability Insurance and Rental Car Insurance (that is, a Loss Damage Waiver incl. both Collision Damage Waiver & Theft Protection cover) in their daily car rental rate and private car auto insurance generally covers the private vehicle (not the driver) so it does not typically extend to cover rental cars.

The same bundled Rental Car Insurance requirement applies in most other countries (except in the United States, as noted above).

Mandatory Rental Car Insurance in Daily Car Rental Rate ➲ New Zealand

For example, in New Zealand, Car Rental Providers also have a legal requirement to offer basic Rental Car insurance (for collisions and theft) as part of their base rental fees.

2️⃣ Deductible / Excess ➲ Reduction or Elimination

In all countries globally, in the event of a claim, all standard Rental Car Insurance policies generally include a requirement that you contribute a fixed minimum amount (known as a Deductible/Excess/Franchise which are different interchangeable terms used in the USA, Australia and France respectively).

This doesn't mean that the booking and rental process outside of the US is stress-free as the deductible/excess is nearly always materially high and you are presented with the opportunity to choose:

⚖️ Whether to opt to take up the Rental Car Provider's increased daily premiums to reduce or eliminate the normally materially high deductible/excess; or

⚖️ Take a commercially acceptable risk by declining one or both of the Rental Car Provider's excess reduction or elimination options, instead deciding to pay the full or reduced excess, or rely on an alternative source of excess insurance coverage.

Alternatively, you can also consider:

✅ Paying with a credit card that includes excess coverage (If you have an Australian Credit Card ➲ Please refer to out FAQ);

✅ Securing a cheaper third-party excess cover such as one of the following:

Rentalcover.com;

1Cover;

‍Allianz;

‍carhireexcess.com.au;

‍fastcover.com.au;

racv.com.au;

‍covermore.com.au;

‍raa.com.au;

www.car-hire-international.com^ or Uber Rentals^

^ Both are powered by CarTrawler (Underwritten by AXA Partners in 30 countries).

etc.; or

✅ Third-party collision coverage policies generally also offer reduced or zero excess coverage at a cheaper rate than the Rental Car Providers charge.

CarTrawler Excess Insurance Information

The booking process with the CarTrawler Reservation system will automatically offer you the option to purchase car rental excess insurance at a competitive price.

The excess insurance offered by CarTrawler is a better deal than purchasing from any individual car rental company at their desk when collection your rental car.

3️⃣ Do you need Roadside Assist, Personal Effects, Personal Medical Coverage?

Specifically what is and what is not covered by the Rental Car Insurance and whether you want to take up additional insurance coverage (for roadside assistance, personal effects, personal medical, etc.)?

4️⃣ Do you need Extended or "Super" Coverage?

Extended Coverage, also known as "Super" Cover, gives you all the benefits of the zero deductible/excess but extends the coverage to parts of the car not normally covered by standard zero deductible / excess insurance, such as the tyres/wheels, roof, and windshield.

Note: Exclusions such as side mirrors, undercarriage, windows, and interior may still apply.

5️⃣ Additional Considerations for Frequent Rental Car Users

If you are a frequent rental car user, you, your business or your charity may decide to use this Legal Wizard (and potentially seek our legal advice) to make a fully informed decision as part of setting a Personal or Organisational Policy regarding your ongoing Rental Car Insurance coverage preferences.

When the cost of frequently taking up expensive Rental Car Insurance coverage is accumulated over time, adopting a cost-effective alternative with a commercially acceptable level of risk offers potentially substantial cost-savings.

Regular personal or organizational Rental Car Insurance Policy reviews are recommended (at least every 6 months) as Rental Car Insurance Policies as well as pricing and overall market conditions are subject to change at any time.

⭐ Car-sharing Alternative

Car-sharing is an emerging high-growth alternative to hiring a Rental Car.

It appears that a similar, but potentially less complex insurance coverage needs analysis applies if you book a car-share vehicle instead of a rental car, as it is assumed that fewer insurance coverage options currently need to be considered.

At a later date, we may decide to build a Legal Wizard to assist with your Car-Sharing Insurance coverage needs analysis.

In the meantime, please contact our legal team to assist if you are booking a Car-Sharing vehicle.

⭐ General Liability Protection ➲ Are you covered? For what amount? Is it enough? Do you need Supplemental Liability Insurance?

Regardless of whether or not you decide to take up Rental Car Insurance, it is important to consider General Liability Protection, specifically, what amount you are covered for based on all relevant insurance policies.

Please refer to our FAQ for more information to help you make this determination.

At a later date, if there is sufficient demand, we may decide to build a dedicated General Liability Protection ➲ Legal Wizard.

⭐ Are you travelling overseas?

⚖️ If you are renting a car whilst travelling overseas, whether you also need Travel Insurance & which inclusions are needed.

⭐ Will the Rental Car Provider refuse to give you the car if you don't have an International Driving Permit (IDP)?

Some car Rental Car Companies might ask for an International Driving Permit (IDP) as a part of their standard policy, even if having it is not necessary for that country.

Please refer to our FAQ for more information to help you make this determination.

At a later date, if there is sufficient demand, we may decide to build a dedicated International Driving Permit ➲ Legal Wizard.

⭐ Does your Australian Credit Card offer Complimentary Car Rental "Excess" Insurance?

Canstar Research reviewed Australian Credit Cards listed on their database, and found that a number of companies that do offer complimentary rental car excess cover with their cards.

If you have an Australian Credit Card, please read our FAQ for a summary of the findings.

Rental Car Insurance ➲ Smart List

For further reading + to access our curated links + resources surf our Rental Car Insurance ➲ Smart List and add its RSS Feed.

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Intellectual Property Rights Notice

Credits: This blog article was written by James D. Ford Esq., GAICD CIPP/US CC | Attorney-at-Law, Blue Ocean Law Group℠.

State of California Bar Number: 346590

Social Media Cover Image: Courtesy of Sonnie Hiles on Unsplash

* [USA Beta] Release

Due to the number and complexity of potentially relevant insurance policies, the plan is to initially develop the back-end with a sample insurance policy (for each category type).

We invite your valuable feedback as well as your requests for features.

Please check back regularly for updates as we continue to iterate and improve.

This Coverage Wizard was last updated on 22 May 2025.

^ Inspired by the CodeX Insurance Analyst (CIA) developed by CodeX Computable Contracts Research Developer Preston Carlson.

© Blue Ocean Law Group℠.

Important Notice:

This blog article is intended for general interest + information only.

It is not legal advice, nor should it be relied upon or used as such.

We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.