British car buying

Car rental insurance: comparing the options available

Christmas holidays, warm summer weather, a week off in winter are all good occasions for a road trip. If your plan for your days off includes renting a car, you need to consider investing in car rental insurance as well.

There are four different options that drivers can choose from when buying rental car insurance: the one offered by car rental companies, by credit cards, the one included in their regular car insurance policy and the one offered by third party car rental damage insurance companies. Let’s compare the different alternatives so that you can decide which one is a better suit for your needs.

Accepting The Offer of the Car Rental Company

The insurance at the car rental desk can cost between $30 and $40 per day (often more expensive than the car rental). This is a real sinking feeling for renters who often don’t anticipate that there is an insurance charge in the first place, and even if they know there is insurance required, they are often shocked how expensive it is at the rental desk.

  Therefore, renters  are advised to look for alternatives that are much more affordable.

Using The Auto Insurance Policy

If drivers have an auto insurance policy, it may include car rental damage insurance if they have paid extra for this coverage. The downside of using it is that if you have to make a claim you will more than likely have to pay a deductible between $500-$1500, and your auto policy is most certainly going to increase by up to 44%.

Take Advantage Of Your Credit Card

Many credit cards have some level of car rental insurance coverage, but what renters often don’t realize is that this option is only secondary insurance. In other words, if the renter has an auto policy, they will have to claim on that first given the credit card coverage is only used if the renter has no primary insurance options.

An additional shortcoming of credit card coverage is that many a time there are exceptions hidden in the fine print. For example, hail damage not being covered, or loss-of use and diminished value also not being covered.

Third Party Car Rental Damage Insurance

Third party car rental damage insurance, such as the one offered by, is an alternative that many drivers consider. With Bonzah, a primary insurance is offered, which means that if the renter has to make a claim they will not have to use their auto insurance and, therefore, won’t have to pay any deductible or auto premium increases.    

Additionally, for those renters who have an auto policy that does not include car rentals, or who don’t have their own car or car insurance, 3rd party car rental insurance becomes an essential and very affordable option with coverage from just $7.99 per day.

These are all the options that drivers can choose from when they need to purchase car rental damage insurance. Whichever suits your needs best, buying an insurance policy for your rental car is essential for enjoying your ride from the first minute.