Budget Car Rental Insurance: Is It Really Worth Your Money?


Budget Car Rental Insurance: Is It Really Worth Your Money?

Do you book rental cars for your trips or vacations? There are situations when the service provider asks you to buy budget car rental Insurance. What is car rental insurance, and why do you need it? 

Rental car insurance is crucial as it covers the cost of vehicle damage. There is confusion about this term. Let's talk about insurance for budget car rental in detail.

What Is Budget Car Rental Insurance?

Budget car rental insurance is the coverage cost offered by the insurance companies on renting a car. The rental car insurance comes with different coverage plans. It ensures the safety of the rental car in case of any damage. 

These insurance coverage plans include Emergency Sickness, Supplemental Liability, etc. The goal of car rental insurance is to ensure your safety in the future. In case there is any damage to the rental car, the Insurance will cover the whole cost.

Different Budget Car Rental Insurance Plans

When you purchase the Insurance for a rental budget car, you have been offered various coverage plans. These plans come with different coverage for rental vehicles. Most budget car rental providers ask you to choose the insurance plan. Here are the different Budget car rental insurance plans:

Loss Damage Waiver (LDW) Plan

The Loss Damage Waiver Insurance plan ensures you don't pay for the vehicle damage. In this insurance plan, you don't need to pay for the total loss of the rental car. During situations like environmental damage, theft, and accidents, LDW insurance coverage saves your money. It acts as a collision policy for the budget rental car. When the vehicle needs a repair, this budget car rental insurance covers all the damage costs.

Liability Coverage Plan

Budget car rental insurance offers a liability coverage plan to cover the personal damages. This insurance plan covers the driver and rental car in case of an accident. Most Liability insurance covers this cost unless your trip is for the business. If you travel in luxury cars during your trip, you need to increase your liability coverage. The limit for the coverage plan depends on the vehicle as well as on your location.

Read Also-: Travel Security: The Ultimate Guide For Beginners In 2022

Personal Accident Plan

The Personal Accident insurance plan covers all the medical expenses. This budget car rental insurance pays for the medical, death, and dismemberment of passengers during the accident. It covers the damage cost of the personal property too. This budget car insurance plan offers a coverage limits as follows:

  • It offers $175,000 to the renter for the death and dismemberment. While for the passengers it covers $25,000.
  • You can claim $10,000 as the medical expenses from this plan.
  • Personal Accident plans give 30 days of hospital accident benefits as $500 per day.

Personal Effects Coverage Plan

The Personal effects coverage plan offers the protection of your items. It covers electronics, clothing, luggage, and personal accessories. This budget car rental insurance plan gives a $1000 claim per item. At the same time, the limit of coverage in this plan is up to $3000.

Credit Card And Travel Insurance Plan

This plan is the most common insurance plan sold by rental companies. All the premium credit card companies cover the rental cars. The travel insurance company covers the collision and damage to the vehicle. You need to book a budget rental car with a credit card to claim insurance coverage.

Factors That Affect The Price Of Budget Car Rental Insurance

The price of the budget car rental insurance varies on different factors. You may notice the variation in the various car rental insurance prices. Here are some factors that affect the price of budget rental cars.


The location of the rental decides the price of the Insurance. It depends on the state in which you purchase the plan. The state rules and regulations play an important role in deciding the insurance costs. Various states of the U.S. make it compulsory to have a personal effects plan.

Moreover, Budget rental insurance companies also consider the ZIP code while setting the price. These codes help the companies to offer the price in analyzing the risk of damage at the location.

Type Of Rental Car

The other factor that plays an important role in the price of an insurance plan is the type of rental car. The budget car rental insurance costs are more for luxury cars. In case of the Luxury damage, you may need to pay more as insurance cost per month. If the rental car replacement cost is more, it may cost you more money as monthly coverage.

Insurance Plan Or Coverage

The Insurance plan or coverage you select also decides the price. You may pay more for the greater damage and medical benefits. The more coverage your rental car insurance carries, the higher the price. Choose the plan according to your requirements.

Is Budget Car Rental Insurance Worth Your Money?

It would be best to remember that budget car rental insurance is optional. Your car insurance can cover the rental car if mentioned in the policy. But if you don't have personal car insurance, it is best to purchase rental car insurance. 

This rental budget car insurance will cover all your requirements in the future. However, if you are concerned about the condition of the rental vehicle, it is best to purchase the Insurance at the time of booking.

It offers overall protection to your health and vehicle during the journey. In case of vandalism, theft, and accident, you don't need to pay anything to the rental company. Your rental car insurance covers all the medical and repair expenses in the form of a claim. It is always a smart move to purchase budget car rental insurance. The cost may vary with the coverage plans, but it is worth your money.

How To Buy Rental Car Insurance On A Budget?

Once you know the importance of budget car rental insurance for a cart, one of the major factors in purchasing rental car insurance is looking for your requirements. Here are the tips for buying Insurance on a budget.

Look For Various Options

Various rental insurance companies have different pricing. The first thing you can do is to research plans and pricing. Don't rely on one insurance company. The best way to find a budget car rental insurance is to compare different insurance policies. You will find a great coverage plan at a good price.

Claim Your Deductibles

It's always good to claim your deductibles while purchasing rental car insurance. If you are the driver who drives safely, then it's not a bad idea to choose the higher deductible. This step helps you find the budget car rental insurance.

Look For The Discounts

Wherever possible, claim the discount on the car rental insurance. Check if you are eligible for student discounts, pay-in-full discounts, and safe driver discounts. If you have taken a defensive driving course in the past, you can claim a higher discount during purchase.

If My Car Breaks Down, Will Insurance Cover A Rental Cost?

Every driver asks the most common question: If my car breaks down will insurance cover a rental cost?

The answer to this question is your Insurance will cover a cost if you have rental reimbursement coverage in your plan. However, the coverage also depends on your Insurance policy. The plans like Liability Coverage don't pay for rentals after a vehicle breakdown. You only get rental assistance if you have a rental car reimbursement in your insurance policy.


The necessity of the Budget car rental insurance is no more secret. Every person who rents a car looks for Insurance in advance. Different car rental companies offer Insurance with the package. The important thing you need to consider is the insurance plan and cost. The information mentioned above helps you find the relevant insurance plan within budget. 

Amerigo Voyage offers travel insurance for people who travel locally or internationally. Our travel insurance plans cover your personalized needs within a budget. These insurance covers offer a variety of facilities while traveling across the globe. To get travel insurance for your next trip, visit our website now.

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