FAQ: Do I Need Rental Car Insurance?
Rental Car Insurance NJ: Do You Need It?
Renting a car in NJ and unsure whether you need rental car insurance? You’re not alone. At the rental counter, you’ll often be offered multiple “insurance” options — and it can feel easier to just say yes.
But here’s the truth: many NJ drivers already have rental car coverage through their personal auto policy and/or their credit card. Other times, buying coverage from the rental company is absolutely worth it.
This guide explains what rental car insurance in NJ covers, when you need it, and how to avoid overpaying.
What Is Rental Car Insurance?
When rental companies talk about rental car insurance, they’re usually offering a mix of coverages, including:
Loss Damage Waiver (LDW/CDW)
A damage waiver that may cover damage to the rental car or theft. This is usually the most expensive add-on.
Supplemental Liability Insurance (SLI)
Adds additional liability protection beyond what you may already carry.
Personal Accident Insurance
Covers injuries to you/passengers (limited benefits).
Personal Effects Coverage
Covers belongings inside the rental car (often limited and may overlap with homeowners/renters coverage).
Does Auto Insurance Cover Rental Cars in NJ?
In many cases, yes. Your personal auto insurance policy often extends to a rental vehicle for personal use (depending on your policy and the rental situation).
Here’s the simple breakdown:
✅ Liability Coverage (damage/injury to others) often extends to the rental car
✅ Collision/Comprehensive may cover damage to the rental if your policy includes those coverages
⚠️ Your deductible typically applies if you file a claim
Important note: Coverage varies by carrier and policy. Rental companies can also charge additional fees (like “loss of use”) depending on the rental contract.
If you’re not sure, this is one of those “check before you travel” situations.
Does Credit Card Rental Insurance Work in NJ?
Sometimes — but it depends on your credit card.
Many credit cards offer rental coverage if:
you pay for the rental with that card, and
you decline the rental company’s collision/damage waiver (LDW/CDW)
However:
Some cards provide secondary coverage (auto policy pays first)
International coverage rules vary
Certain vehicles may be excluded
You may need to follow specific claim steps to qualify
Bottom line: credit card rental insurance can help, but it’s not guaranteed, and it’s not a substitute for reviewing your auto policy.
When Should You Buy Rental Car Insurance in NJ?
Even if your auto insurance covers rental cars, there are times when buying coverage at the counter makes sense.
You should strongly consider buying rental coverage if:
You do not carry collision and comprehensive
Your deductible is high and you want to avoid paying it
You are renting a car internationally
You want to avoid complications with claims and rental company fees like the loss of use charge
You don’t want a claim on your personal auto policy
Quick Checklist: What to Ask Before Renting a Car in NJ
Before you rent, ask your insurance agent:
Does my auto policy extend to rental vehicles?
Does collision and comprehensive apply to a rental?
What deductible applies?
Are there exclusions I should know?
Are my liability limits high enough?
Would a personal umbrella policy be a good idea?
This takes 2 minutes — and can prevent overpaying or being underinsured.
Still Unsure? We’ll Review Your Rental Car Coverage (NJ Clients Welcome)
At BIS Improved Insurance Agency, we can quickly review your auto policy so you understand exactly what you have before you rent — and whether rental car insurance in NJ is necessary for your situation.
📞 Call: 973-683-1000
📍 Serving Morris County, NJ and surrounding areas
