When renting a car in Missouri or Arkansas, one of the most common questions at the rental counter is: Do I need to buy the rental company’s insurance?
The answer depends on your current auto insurance coverage, credit card benefits, and how much financial risk you’re comfortable assuming.
Does My Personal Auto Insurance Cover a Rental Car?
In many cases, personal auto insurance policies extend coverage to rental cars used for personal travel. This often includes:
- Liability coverage (bodily injury and property damage)
- Collision coverage (damage from an accident)
- Comprehensive coverage (theft, vandalism, weather damage)
However, coverage applies subject to your policy limits and deductible.
If you carry collision and comprehensive on your personal vehicle, damage to a rental car is usually covered — but you may still be responsible for:
- Your deductible
- Certain administrative fees
- Charges not covered under your policy
Rental Car Contracts Often Include Additional Penalties
One important detail many drivers overlook is that rental car contracts often contain penalties that go beyond what personal auto insurance is designed to cover.
These may include:
- Loss of use charges (the rental company billing you for the time the vehicle is out of service)
- Diminished value claims (alleged reduction in resale value after repairs)
- Betterment charges (charging you for “improved” parts after repairs)
- Administrative or processing fees
Not all personal auto policies cover these contract-based charges. This is one reason rental companies push damage waivers — they eliminate many of these potential out-of-pocket exposures.
What Is a Collision Damage Waiver (CDW or LDW)?
Rental companies typically offer:
- Collision Damage Waiver (CDW)
- Loss Damage Waiver (LDW)
These are not traditional insurance policies but contractual waivers that transfer financial responsibility back to the rental company if the vehicle is damaged or stolen.
While convenient, they can be costly and may duplicate coverage you already have — but they often eliminate the contract penalties mentioned above.
Do Credit Cards Provide Rental Car Coverage?
Some credit cards offer rental car protection when you:
- Pay with the card
- Decline the rental company’s damage waiver
However, this coverage is usually:
- Secondary to your personal auto insurance
- Limited to certain vehicle types
- Subject to strict claim rules
- Often excludes certain fees
Always review your credit card’s benefit guide before relying on this protection.
When Does Buying Rental Insurance Make Sense?
Purchasing rental coverage may make sense if:
- You do not carry collision or comprehensive coverage
- You have a high deductible
- You want to avoid a claim on your personal policy
- You prefer to eliminate rental contract penalties
The right choice depends on your current coverage and comfort level with risk.
Review Your Coverage Before You Travel
For drivers in Missouri and Arkansas, reviewing your auto insurance before renting a vehicle can prevent unexpected costs.
A quick review can clarify:
- Whether your policy extends to rental cars
- What deductibles apply
- Whether loss-of-use or diminished value charges are covered
- When purchasing the rental company’s waiver is a smart decision
Before signing at the rental counter, make sure you understand both your insurance policy and the rental contract. Knowing the difference can save you significant money and stress if an accident occurs. 🚗