How Much Does Rental Car Insurance Cost?
Article March 23, 2026 5 mins read

How Much Does Rental Car Insurance Cost?

Howard Page
Howard Page
Author

Rental car insurance costs in the United States range from USD 10 to USD 50 per day. However, the prices vary based on the type of coverage chosen, service provider, and location. For example, renters will need to pay USD 10 to USD 30 per day for the Collision Damage Waiver.

Similarly, the cost for personal accident insurance, liability coverage, roadside assistance, theft protection, and more differ. Therefore, consider the type, vehicle, location, and other factors to know the final insurance fees.

What is the Rental Car Insurance Cost for Different Plans?

There are many coverage and protection plans for rental cars. Depending on the benefits and coverage, one can pay the following:

  • Collision Damage Waiver: USD 10 to USD 30 per day

  • Theft Protection: USD 3 to USD 6 per day

  • Personal Accident Insurance: USD 1 to USD 5 per day

  • Liability Coverage: USD 7 to USD 15 per day

  • Complete Protection Package: USD 46.50 per day

How Much Do Car Rental Companies Charge for Insurance?

The insurance charges by different rental agencies may vary slightly. Here are the estimated rental car insurance costs of prominent companies:

Rental Company

Daily Insurance Costs

Hertz

  • Loss Damage Waiver (LDW): USD 10

  • Personal Effects Coverage: USD 10.99

Budget

  • Loss Damage Waiver (LDW): USD 9

  • Supplemental Liability Insurance (SLI): USD 15

Enterprise

  • LDW or Loss Damage Waiver: USD 22.99

  • SLP (Supplemental Liability Protection): USD 8.44

  • PEC (Personal Effect Coverage): USD 5.99

  • PAI (Personal Accident Insurance): USD 2.68

  • Full Protection Packages: USD 42.99

Avis

  • Loss Damage Waiver (LDW): USD 9

  • Additional Liability Insurance (ALI): USD 10

  • Comprehensive Insurance Coverage: USD 20

 Note: This is an indicative list of insurance fees charged by agencies for different insurance coverage. Also, contact your preferred rental agency for AAA membership benefits, credit card coverage, and more.

Do Car Rental Insurance Rates Vary in Different States of the USA?

Definitely, the states play a crucial role when it comes to the car hire insurance cost. Before buying one, consider the rental insurance in New York or other locations for the estimated cost:

States with the highest insurance rates for rental cars

Name of the State

Average Insurance Cost (Annually)

Georgia

USD 2085

Nevada

USD 2279

Florida

USD 3183

Louisiana

USD 2909

Colorado

USD 2121

Michigan

USD 2691

Delaware

USD 2103

Kentucky

USD 2124

California

USD 2291

New York

USD 3139

States with the lowest rental car insurance rates

Name of the State

Average Insurance Cost (Annually)

Wisconsin

USD 1246

Vermont

USD 879

Indiana

USD 1288

Maine

USD 1066

Alaska

USD 1200

Idaho

USD 728

New Hampshire

USD 1128

Ohio

USD 1538

Hawaii

USD 984

Wyoming

USD 682

Note: These are just estimated/indicative insurance price lists, as there can be a slight variation, depending on the insurance provider, coverage type, and other factors.

Final Thoughts,

The rental car insurance cost is greatly affected by the location, coverage option, vehicle type, and driver’s profile. For instance, if the driver has a profile with multiple claims or the state experiences harsh weather, the insurance premiums are often expensive. So, take everything into account and decide on the best-suited plan.

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Frequently Asked Questions

How much does rental car insurance cost on average?

The average daily rates for insurance coverage start from USD 10 to USD 50.

What factors affect the rental car insurance cost?

The vehicle type, coverage option chosen, driver’s background and track record, rental location, and so on affect the overall insurance cost for rental cars.

How much does insurance cost for a rental car from Hertz?

Although it has many plans, you will need to pay USD 10 and USD 10.99 for the Loss Damage Waiver (LDW) and Personal Effects Coverage, respectively.

Is it mandatory to get insurance for car hire?

In the United States, having an insurance policy while renting a car is mandatory. You need it to cover accidental damages, medical expenses, and others.

What are the alternative for rental company’s insurance coverage?

You can use the coverage provided by a credit card for rental cars, personal auto insurance plans, and more.

Howard Page

About Howard Page

Howard Page is a U.S.-based travel journalist with more than 10 years of experience. He has worked on guidebooks, documentaries, and reports across more than 20 countries. He’s driven by discovering new places. When he encounters something outside the everyday, his curiosity kicks in, his focus sharpens, and his mind feels more alert than usual.