Do you Need Insurance to Rent a Car from Enterprise: A Customer’s Guide

Relevance of Insurance to Rent a Car from Enterprise

If you are planning to rent a car from Enterprise in the US, you might be wondering if you need to buy car rental insurance or not.

Car rental insurance is a protection plan that covers you and the vehicle in case of an accident, theft, or other damages. It can also provide roadside assistance and other benefits.

But do you really need car rental insurance when you rent from Enterprise?

The answer depends on several factors, such as your personal auto insurance policy, your credit card benefits, and your risk tolerance.

In this article, we will explain the different types of car rental insurance offered by Enterprise, the pros and cons of each option, and how to decide what is best for you.

Car Rental Insurance
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When do you need Insurance for Car Rental Insurance?

Car rental insurance is an optional product that you can purchase when you rent a car from Enterprise. It is not required by law or by the rental company.

However, it can be a wise choice to buy car rental insurance, as it can protect you from paying for costly damages, fees, or lawsuits that may arise from an accident, theft, or other incidents involving the rental car.

Car rental insurance can also give you a sense of security and comfort, knowing that you are covered in case of an unexpected or unfortunate event.

Enterprise offers several types of car rental insurance and protection products, each with different levels of coverage and cost. You can choose to purchase one or more of these products, or decline them altogether.

Considerations when choosing Car Rental Insurance
An Image Illustration of the Considerations when choosing Car Rental Insurance

 

Types of Car Rental Insurance

Collision Damage Waiver (CDW)

Collision Damage Waiver (CDW) is one of the most common and popular car rental insurance products offered by Enterprise. It is not technically an insurance, but rather a waiver that releases you from financial responsibility for the rental car in case of an accident, theft, vandalism, or other covered events.

This means that Enterprise will not charge you for the cost of repairing or replacing the rental car, or for the loss of use fees that may apply while the car is being fixed.

Car Rental
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The cost of CDW varies depending on the type of vehicle you rent and the location you rent from. It can range from $9 to $30 per day. You can purchase CDW at the rental counter when you pick up the car, or online when you make your reservation.

Benefits of Collision Damage Waiver (CDW)

The benefits of CDW are:

  • It covers the full value of the rental car, regardless of the extent of the damage or the market value of the car.
  • It eliminates the need to file a claim with your personal auto insurance or your credit card, which may save you time and money in the long run.
  • It protects you from paying for loss of use fees, which are the charges that Enterprise may impose for the loss of revenue while the car is being repaired or replaced.
Drawbacks of Collision Damage Waiver (CDW)

The drawbacks of CDW are:

  • It does not cover any damage to other vehicles, property, or people. You will still need to have liability insurance to cover these costs.
  • It does not cover any personal items that are stolen from or damaged in the rental car. You will need to have personal property insurance to cover these losses.
  • It does not cover any damage that is caused by negligence, misuse, or violation of the rental agreement. For example, if you drive the car off-road, under the influence of alcohol or drugs, or with an unauthorized driver, you will be liable for the full cost of the damage.
Car Insurance
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Supplemental Liability Protection (SLP)

Supplemental Liability Protection (SLP) is another car rental insurance product offered by Enterprise. It is an optional coverage that provides you with up to $1 million of liability protection for bodily injury and property damage to others caused by an accident involving the rental car.

This means that if you are at fault for an accident that injures another person or damages their property, SLP will cover the costs of medical bills, legal fees, and settlements, up to the limit of $1 million.

The cost of SLP is $14.99 per day. You can purchase SLP at the rental counter when you pick up the car, or online when you make your reservation.

Benefits of Supplemental Liability Protection (SLP)

The benefits of SLP are:

  • It provides you with a high level of liability protection, which may exceed the minimum requirements of the state you are renting in or the limits of your personal auto insurance policy.
  • It covers you and any authorized drivers on the rental agreement, regardless of whether you are driving the rental car or your own car at the time of the accident.
  • It protects you from paying out of pocket for expensive lawsuits or judgments that may result from an accident involving the rental car.
Drawbacks of Supplemental Liability Protection (SLP)

The drawbacks of SLP are:

  • It does not cover any damage to the rental car or your personal property. You will still need to have collision damage waiver or personal property insurance to cover these costs.
  • It does not cover any liability that is caused by intentional acts, criminal acts, or violation of the rental agreement. For example, if you injure someone or damage their property on purpose, or if you use the car for illegal activities, you will be liable for the full cost of the liability.
Insurance Claim
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Personal Accident Insurance (PAI)

Personal Accident Insurance (PAI) is another car rental insurance product offered by Enterprise. It is an optional coverage that provides you with accidental death and medical expense benefits for injuries sustained by you and your passengers in an accident involving the rental car.

This means that if you or your passengers are injured in an accident, PAI will cover the costs of ambulance, hospital, and funeral expenses, up to the limits specified in the policy.

The cost of PAI is $7 per day. You can purchase PAI at the rental counter when you pick up the car, or online when you make your reservation.

Benefits of Personal Accident Insurance (PAI)

The benefits of PAI are:

  • It covers you and your passengers, regardless of who is at fault for the accident or whether you have health insurance or not.
  • It provides you with a lump sum payment of $175,000 for accidental death, $2,500 for ambulance expenses, and $2,500 for medical expenses per person, per accident.
  • It covers you and your passengers for the entire duration of the rental period, even if you are not in the rental car at the time of the accident.
Drawbacks of Personal Accident Insurance (PAI)

The drawbacks of PAI are:

  • It does not cover any damage to the rental car, other vehicles, property, or people. You will still need to have collision damage waiver, supplemental liability protection, or personal property insurance to cover these costs.
  • It does not cover any injuries that are caused by pre-existing conditions, suicide, war, or violation of the rental agreement. For example, if you have a heart attack, or if you injure yourself or your passengers on purpose, you will not be eligible for PAI benefits.
Minimum Insurance Requirement in California
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Roadside Assistance Protection (RAP)

Roadside Assistance Protection (RAP) is another car rental insurance product offered by Enterprise. It is an optional coverage that provides you with 24/7 roadside assistance services for the rental car in case of a breakdown, lockout, flat tire, dead battery, or other mechanical issues.

This means that if you encounter any problems with the rental car, RAP will cover the costs of towing, jump-starting, changing a tire, delivering fuel, unlocking the car, or replacing the keys.

The cost of RAP is $5.99 per day. You can purchase RAP at the rental counter when you pick up the car, or online when you make your reservation.

Benefits of Roadside Assistance Protection (RAP) 

The benefits of RAP are:

  • It covers you and any authorized drivers on the rental agreement, regardless of where you are driving the rental car or what time of the day it is.
  • It provides you with unlimited access to roadside assistance services, with no additional fees or charges.
  • It saves you the hassle and stress of dealing with car troubles, especially if you are in an unfamiliar or remote area.
Drawbacks of Roadside Assistance Protection (RAP)

The drawbacks of RAP are:

  • It does not cover any damage to the rental car, other vehicles, property, or people. You will still need to have collision damage waiver, supplemental liability protection, or personal property insurance to cover these costs.
  • It does not cover any roadside assistance services that are caused by negligence, misuse, or violation of the rental agreement. For example, if you run out of gas, or if you lose or damage the keys, you will be responsible for the cost of the service.
Car Rental Insurance
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Conclusion

Car rental insurance is a complex and personal decision that depends on your individual circumstances and preferences.

When you rent a car from Enterprise, you have the option to purchase one or more of the car rental insurance products described above, or decline them altogether.

Each product has its own benefits

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