Is It Necessary To Purchase Insurance When Renting A Car? 
Renting a car is n't the problem , if you have insurance covering a car that you own , often the coverage on that car will extend to other cars you might be driving including a short term rental car . The problem is n't the rental car , it 's the rental agreement you sign and most often fail to read . These agreements often will say you understand the insurance the rental company carries on the car will not apply to you or in some cases it applies only up to the state minimum . So if you do n't have your own coverage , there wo n't be any if you have an accident . Many of these agreements require you to be responsible for any damage to the car even if it is not your fault . Knowingly or unknowingly , you assume a responsibility you normally do not have . If the rental car is damaged , the agreements usually say you agree to pay not only for the repair or replacement of the car but also the loss of rental revenue the company loses while the car is being repaired and any administrative costs the rental company incurs as a result of that damage . You also commonly agree to reimburse the rental company for any legal expenses or judgements they are required to pay . You assume all the risks , they assume none . Some of these assumptions may covered by the insurance you might have on your own car but many may not and that is where the problem lies . They have your credit card and you give them permission to add these charges to your card . It may not be necessary to purchase insurance when you rent a car , but be aware of what you are agreeing to . Make sure you accept those potential risks , are covered for them by your own auto insurance or personal umbrella , are willing to pay those hefty waiver charges or simply do n't rent the car . 