Do I Need Car Insurance to Rent a Car in Texas? What to Know


Do I Need Car Insurance to Rent a Car?

Maybe you’re in Texas on vacation and looking to rent a convertible and take it to the beach. Perhaps you’re in the Dallas/Fort Worth area for a business trip and need a classy sedan. There are a variety of reasons you would need to rent a car, all of which are pretty exciting.

The last thing you want to do is to turn your trip sour by getting in trouble. That is why you are wondering if it is a good idea to have car insurance when you rent a car. Does the rental car cover any potential issues if you need to file a claim, or do you? Let’s get to the answer right now!

Table of Content

Do You Need Car Insurance to Rent a Car?

The short answer is, probably. The long answer is, you typically don’t need to show proof of car insurance when renting a car. The only time you would need to is if you use a debit card to pay for the car rental, as many companies don’t allow this and require a credit card instead. If you use a credit card, you won’t need proof of your own personal car insurance, but you’ll still need to purchase some level of insurance through them to rent the vehicle. Consider your options:

Rental Company’s Car Insurance

Car Insurance in Texas

Rental agency companies provide temporary car insurance that you can buy for the term of your rental.

You’ll generally be offered four types of rental car coverage:

  • Loss damage waiver (LDW) or collision damage waiver
  • Liability coverage
  • Personal accident insurance (PAI)
  • Personal effects protection (PEP)

This will be offered at the time you rent the car. You can choose to rent a car without buying any protections or coverage through rental car companies. This is a huge risk, though. You will be responsible for anything that happens to the rental car, from a collision, to vandalism, to a flat tire. You’ll also be liable for your own medical bills.

Your Personal Auto Insurance

If you already have car insurance, ensure that this insurance policy also covers cars rented for personal use. If you don’t yet have liability insurance through a car insurance agency but are considering purchasing it, this occasion may be the perfect time to research your options and get a policy.

Non-owner Car Insurance

Car Insurance for Renting a Car

Some drivers do not own a car but frequently rent them. If this applies to you, you may want to consider purchasing non-owner car insurance. This type of policy provides liability coverage for property damages or bodily injury you cause while driving a car you don’t own. If you want a policy like this, be sure it includes personal injury protection and medical payments coverage. This coverage pays medical and other costs if your passengers are hurt in an accident that occurs while you are driving the rental car.

It is important to keep in mind, though, that non-owner insurance does not cover damage to or loss of the rental car itself. You’ll still need other coverage for that protection from an insurance company.

Credit Card Coverage

A credit card is essential for your trip, from buying personal items to renting a car. Some credit card companies include car rental insurance when you rent a car using the specific card. Since the rental car companies often require or prefer a credit card over a debit card for the rental anyway, this is a way to get coverage.

Clearly, you have some options to think over. Before you rent your car, contact Pronto Insurance and ensure you have the coverage you need to enjoy your trip. We’ll go over everything you need to know, and even the rental car terms and conditions with you.

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