Understanding Rental Car Insurance: A Guide by Univista Insurance Orlando

Renting a car can be a convenient and essential part of travel, whether for business or leisure. However, navigating the complexities of rental car insurance can be daunting. Univista Insurance Orlando is here to simplify the process and help you make informed decisions about your rental car insurance needs.

Why Do You Need Rental Car Insurance?

Rental car insurance is crucial for protecting yourself against potential financial risks associated with car rentals. Here are some common reasons why rental car insurance is necessary:

  1. Accidents and Damage: Rental cars are just as susceptible to accidents and damage as your personal vehicle. Without insurance, you could be responsible for costly repairs or replacement.
  2. Theft: If your rental car is stolen, rental car insurance can cover the loss.
  3. Liability: In the event of an accident where you are at fault, liability coverage can protect you from financial claims made by other parties.

Types of Rental Car Insurance

When renting a car, you will encounter several types of insurance coverage options. Here’s a breakdown of the most common ones:

1. Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW)

CDW or LDW is not technically insurance but a waiver that relieves you of financial responsibility if the rental car is damaged or stolen. However, it may not cover all types of damage, such as damage to tires, windows, or undercarriage.

2. Liability Insurance

Liability insurance covers you if you cause an accident that results in injury or property damage to others. Most states require a minimum level of liability coverage, which your personal auto insurance policy may already provide.

3. Personal Accident Insurance

This insurance covers medical expenses for you and your passengers in case of an accident. It can be redundant if you already have health insurance or personal injury protection (PIP) under your auto insurance policy.

4. Personal Effects Coverage

Personal effects coverage protects your personal belongings inside the rental car. If you have renters or homeowners insurance, it may already cover personal property theft.

Do You Need to Buy Rental Car Insurance?

Before purchasing rental car insurance from the rental agency, check the coverage you already have:

  1. Personal Auto Insurance: Your existing auto insurance policy may extend to rental cars, providing coverage for collisions, liability, and personal injury.
  2. Credit Card Benefits: Some credit cards offer rental car insurance as a perk. Verify the extent of the coverage and any exclusions by contacting your credit card company.
  3. Travel Insurance: If you have travel insurance, it may include rental car coverage. Review your policy to understand the details.

Choosing the Right Coverage

When deciding whether to buy rental car insurance, consider the following:

  • Destination: Driving in unfamiliar areas or countries with different road rules may increase the risk of accidents.
  • Duration: For long-term rentals, purchasing additional coverage might be more cost-effective than relying on your personal insurance.
  • Value of the Car: High-end or luxury vehicles often come with higher repair costs, making additional coverage more appealing.


Navigating rental car insurance doesn’t have to be complicated. By understanding your existing coverage and the options available, you can make informed decisions that provide peace of mind during your travels. Univista Insurance Orlando is here to help you evaluate your insurance needs and ensure you’re adequately protected. Contact us today for personalized advice and comprehensive insurance solutions tailored to your unique requirements.