Car Rental Insurance Abroad, Explained

Third-party liability coverage is usually mandatory and included in the base rate, covering damage you cause to other people or property. Collision Damage Waivers (CDW) and Loss Damage Waivers (LDW) reduce your financial responsibility for damage to the rental car itself, often for an additional daily fee.

Before you travel, check whether your personal auto insurance extends to rentals abroad — many US policies do not automatically cover international rentals. Some credit cards offer secondary or primary rental coverage as a cardholder benefit, which can offset the need to buy the rental company's full coverage.

Read the excess (deductible) amount carefully; a low daily insurance rate sometimes comes with a high excess if something goes wrong. When in doubt, ask the counter agent to explain exactly what's covered before you sign.