Do I Need To Buy Insurance When I Rent A Car?
If you have full car insurance on your own vehicle, including collision and comprehensive coverage, and you go and rent a vehicle for pleasure only, e.g. on vacation, you do not need to buy extra car insurance from the rental company.
In fact, in most states your basic rental fee will include liability coverage for damage or injury to others. But different rules apply when you rent a car for business purposes, so check with your agent for details.
However, if you do not have your own car insurance, be aware that many car rental liability policies cover you only at the state's required minimum. Also, you should buy the collision and comprehensive car insurance coverage offered by the rental company for your own protection.
Do not buy a collision damage waiver (CDW) from the rental company assuming it is insurance. A CDW simply releases you from financial responsibility if you damage the vehicle you are renting, provided you comply with the terms of the rental contract. But those terms can vary considerably, and CDWs are not state-regulated, which means they are technically not insurance.
It's always a good idea to review your car insurance policy before renting a vehicle and, if necessary, contact your agent for clarification.