If you own a car insurance policy or a credit card, examine your coverage and benefits. Most credit cards that have rental car insurance benefits cover damage to the vehicle or theft of the rental. However, the credit card company usually doesn’t provide additional liability coverage or medical coverage.

Any coverage you purchase for your car typically applies to rentals, too. If you’ve already purchased the bodily injury liability coverage required by most states, you have the basics covered.

If you don’t want the rental company to file a claim against your personal car insurance should you get into an accident, consider purchasing the optional coverage from the rental company.

Insurance companies usually extend coverage to rental vehicles on a conditional basis, but your policy might have the following restrictions:

US, US territories, and Canada

A rental period of 30 days or less

Certain vehicles like passenger cars and small moving trucks

Most auto insurance policies don’t cover rental vehicles for commercial and business purposes, either.

What if you don’t have your own car?

Don’t own a car? No problem—some credit card companies offer rental car coverage!

You could qualify for a Collision Damage Waiver and Loss Damage Waiver just by using your credit card to pay for the rental agreement. However, these benefits seldom include

bodily injury liability insurance

property damage liability

, or personal effects coverage (more on that later).

It's up to you to check the fine print on your car insurance policy and credit card agreement, but let’s dive into the reasons why you should purchase rental car insurance.

MORE:

What does rental car insurance cover?

When should I consider rental car insurance?

Renters who don’t have

comprehensive insurance

collision coverage

should consider buying rental car insurance.

According to the terms of your rental agreement, you must return any rental vehicles in the same condition as when you borrowed them or pay for their repair. Furthermore, the

Florida Supreme Court

ruled that if you get into a rental car accident, you are the one liable—not the car rental company. That means you’ll pay for any medical expenses, property damage to the rental car, and other damage that you might cause in an accident.

Take a look at the insurance offered by the rental car company if you don’t already have auto insurance or if your insurance company doesn’t cover rental vehicles. Most car insurance policies extend to rentals in the U.S. and Canada but typically don’t cover overseas trips.

Finally, if you’re using a credit card, note that you might need an add-on or two to access bodily injury and property damage liability coverage.

MORE:

What to do if you’re in an accident with a rental car?

What rental car coverage is required?

None. While rental car companies are obligated to buy the

minimum auto insurance required by state law

, they cannot compel their customers to buy additional coverage. They also don’t have the right to demand

proof of insurance

. That said, the rental car company has the right to refuse to provide a rental vehicle if they believe their property is in danger.

Bring proof of your own auto policy to the counter (just in case) and remain calm in affirming your right to decline rental car insurance.

MORE:

Do you need insurance to rent a U-haul?

What rental car coverage is optional?

All rental car insurance is optional. It can be a wise investment if you don’t have liability insurance or collision coverage, but let’s go over each type of coverage sold at the counter:

A Collision Damage Waiver (CDW) offers no benefits. Instead, you pay the rental car company to waive its right to seek collision damages for the rental vehicle. Often, these damages extend beyond repair bills to lost revenue, towing charges, and fees.

A Loss Damage Waiver (LDW) pays the rental car company to waive its right to seek compensation for a wrecked or stolen vehicle. It also protects you from extra charges.

Rental car liability coverage pays for any bodily injuries or property damages resulting from a car accident where you’re at fault up to a certain limit. Like liability insurance, it’s reserved for an injured third party and not your expenses.

Personal accident insurance pays the medical bills for any bodily injuries that you and your passengers sustain in a car accident, regardless of whether or not you’re at fault.

Personal effects coverage insures any belongings stored in the rental vehicle against theft up to a certain dollar amount.

MORE: How to avoid being unfairly charged for rental car damage

How much does Florida rental car insurance cost?

Rental car insurance is charged by the day. Ultimately, the cost will depend on the number of add-ons you buy and the length of your rental agreement.

Here’s a rough price guide:

CDW/LDW: $10 to $30 per day

Rental car liability coverage: $10 to $16 per day

Personal accident insurance: $3 to $9 per day

Personal effects coverage: $1 to $6 per day

MORE: How to get a car rental discount code

Where to buy rental car insurance coverage in Florida

You can buy rental car insurance at the counter or kiosk of any rental car company. There are very few agencies that don’t offer additional coverage. You can also check with your credit card company to see if it provides adequate property damage and liability coverage.

Your last option is to buy travel insurance from a third-party insurance company.

You can get a quote from AAA

for products geared toward traveling renters, both domestic and foreign.

MORE: 7 ways to save money on car rentals

RECOMMENDED