What is Rental Car Coverage and Types of Rental Car Coverage?

Florida is the best place for vacation, you can visit theme parks, creative hotspots, beautiful beaches, and long coastal drives. You can easily explore the city with a rental car in the Sunshine State.  In this article, we help you to know all about the Rental Car Coverage and its coverages for your happy and adventurous trip. But ensuring that you are safe will also help you have a relaxed and stress-free vacation.

What is Rental Car Coverage and Types of Rental Car Coverage?

Rental car coverage, also known as rental reimbursement coverage, is an optional add-on to an auto insurance policy that provides financial protection when you need to rent a car. This coverage helps pay for the cost of renting a substitute vehicle while your car is being repaired or replaced due to a covered claim, such as an accident or theft.

It is important to note that rental car coverage is not included in a standard auto insurance policy. In Florida it is not required by law, however, it is recommended to protect yourself in case of an accident or theft in your long rental car journey. Rental Car Coverage can be purchased from any rental car company or auto insurance provider.

Types of rental car coverage are as follows:

The type of rental car coverage offered by rental car companies can vary, but these are a few basic coverages that should be included:

  1. Liability coverage: This covers all the damages to third-party property and his/her injury if you’re at fault for the accident. Liability insurance generally covers damages as well as medical costs of other people’s injuries in an accident. In Florida, everyone requires a minimum amount of liability coverage on car insurance policies. So, if you already have liability coverage for your car, you can transfer it from there.
  2. Collision damage waiver (CDW) or loss damage waiver (LDW): The collision damage waiver or loss damage waiver is offered at the time when your rental car is damaged or stolen by the rental car company, or if you are involved in an accident, you don’t have to pay to repair or replace it.
  3. Personal accident insurance: Personal accident coverage covers all of the medical expenses for you and your passengers if you are involved in an accident or Sevier body injuries.
  4. Personal effects coverage: Personal effects coverage covers theft or robbery of personal belongings or antiques from your rental car.

Rental car coverage

Collision Damage Waiver (CDW) vs. Loss Damage Waiver (LDW):

Feature Collision Damage Waiver (CDW) Loss Damage Waiver (LDW)
Definition CDW is an optional insurance product that covers the cost of repairs to the rental car in case of a collision, subject to a deductible. LDW is also an optional coverage. It is a broader form of coverage that includes both collision damage and loss due to theft or vandalism.
Coverage Scope Primarily covers damages resulting from collisions or accidents with other vehicles or objects. Covers a wider range of events, including collision damages, theft, vandalism, and other non-collision incidents.
Inclusions Typically cover the cost of repairs to the rental car but may exclude certain types of damages or have limitations. Covers not only collision damages but also losses due to theft, vandalism, and other non-collision events.
Exclusions May has exclusions or limitations on certain types of damages, such as damages to tires, windshields, or undercarriage. Exclusions may vary but commonly include intentional damage, unauthorized use, or use of the vehicle outside the rental agreement terms.
Deductible Often comes with a deductible, the amount the renter is responsible for paying before the insurance coverage applies. Typically has a deductible that the renter is responsible for, and the waiver covers the remaining costs.
Cost The cost of CDW is lower than LDW since it covers a more limited set of risks. May have a higher cost compared to CDW due to its broader coverage, including theft and vandalism.
Advantages Provides coverage for damages resulting from collisions, offering peace of mind during the rental period. Offers comprehensive coverage, including protection against theft and vandalism, reducing the renter’s financial liability.
Considerations Renters may choose CDW if they are primarily concerned about collision damages and want a more affordable insurance option. Renters opting for LDW may seek more comprehensive coverage, especially in areas with a higher risk of theft or vandalism.

Personal Liability Insurance (PLI):

Personal Liability Insurance (PLI), in the context of rental cars, typically refers to a type of insurance coverage that protects third-party bodily injury and property damage claims. When renting a car, the rental company usually offers various insurance options, and Personal Liability Insurance is one such option.

What are the Additional Coverage Options that we should consider when selecting? 

Rental car coverage is optional for everyone in the Sunshine State. Liability coverage, CDW or LDW, and Personal accident insurance are enough for a rental car.

Following are some additional coverage options for your rental car:

Roadside assistance Auto glass insurance
Credit card coverage Emergency medical Assistance



Q.1) What is the best car rental company? 

Ans. The best rental car companies are Alamo Rent-A-Car and Enterprise Rent-A-Car in Florida.

Q.2) How much does a rental car cost for a week? 

Ans. According to NerdWallet, the average rental cost for a week in Florida is $519.

Q.3) How long will insurance pay for rental cars? 

Ans. In Florida, within 30 days or less, the insurance company will pay.

Bottom Line

Every insurance company needs to provide basic coverage and if you already have auto insurance, check to see if it covers rental cars. Many car insurance coverage offers coverage for rental cars as a part of it or add-on options. In Florida’s no-fault insurance law, it is also important for every driver to carry personal injury protection (PIP) insurance. This type of coverage covers accident coverage & medical expenses, regardless of who is at fault. At last, it is optional for the insurance policyholder.

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