Renting a Hertz car in the near future? At the checkout counter, renters are presented with multiple options for insurance or damage waivers. But are the policies worth it? Below we provide a quick reference chart so you know exactly what you do and do not need.
In the rest of this article, we explain how Hertz Rental Insurance works and what it covers. We will also show you some other ways to get similar or better coverage for a lower price.
How Hertz Rental Car Insurance Works
Liability Insurance up to the state minimum requirement is included in the price of the rental car. Any additional liability insurance through Hertz needs to be purchased.
To use Hertz Rental Car Insurance, select the desired coverage options or waivers during reservation or pick up. Hertz offers five different policies or waivers, and we will look into a more detailed breakdown later.
Here’s a quick breakdown of Hertz’s Rental Car Insurance options and whether we think they are worth it!
| Hertz Rental Coverage | Worth It? | Why? | Alternative |
|---|---|---|---|
| Liability Insurance Supplement | No | Not enough coverage if you end up needing to use it & the alternative is cheaper | Umbrella Policy |
| Limited Loss Damage Waiver | Maybe | You may already be covered if you have full coverage. Hertz is a good option if you don’t. | Regular Car Insurance (Full Coverage) |
| Loss Damage Waiver | No | You may already be covered if you have full coverage. Hertz is a good option if you don’t. | Regular Car Insurance (Full Coverage) |
| Partial Damage Waiver | Maybe | You may already be covered if you have full coverage. Hertz is a good option if you don’t. | Regular Car Insurance (Full Coverage) |
| Personal Accident Insurance | No | Not enough coverage if you end up needing to use it & the alternative is cheaper | Travel Insurance |
The Cost of Hertz Car Insurance
Each coverage through Hertz has its specific costs unless purchased as a package deal.
Make sure to call Hertz before renting any vehicle to confirm pricing, as discounts and deals are available throughout the year!
Loss Damage Waiver
The Loss Damage Waiver through Hertz is an additional $45 per day but may be lower when selected as part of the reservation. When we tested out Hertz’s rental options, we were offered a rate as low as $33.99 for a rental within the United States.
Liability Insurance Supplements
Liability Insurance Supplements were available with online reservations for $12.31 per day.
Personal Accident Insurance
Personal Accident Insurance was offered for $7.51 per day through the online reservation portal.
Discounts
Additional perks and benefits like an included tank of gas are available for up to 15% off when entire insurance and waiver packages are booked in advance through Hertz.
Hertz Insurance Coverage Options
We organized the information from the Hertz policies into a simple chart to demonstrate what each coverage through Hertz offers.
| Hertz Optional Protection Plans | Overview of Benefits |
|---|---|
| Liability Insurance Supplement | Covers Liability of Third Party Liability Claims as a Result of Accident up to $1 Million |
| Limited Loss Damage Waiver | Renter Not Responsible for Cost of Damages Up to $1000 |
| Loss Damage Waiver | Renter Not Responsible for Theft, Loss, or Damages to Rental Car |
| Partial Damage Waiver | Renter Not Responsible for Amount Equal to Auto Insurance Deductible Up to $1000 |
| Personal Accident Insurance | Covers Medical Expenses of Driver During Rental Period up to $2,500, Theft of Personal Items to $600 |
Personal Accident Insurance through Hertz is Inadequate.
Hertz’s Personal Accident Insurance only covers up to $2,500 in medical expenses and only $250 for an ambulance. With soaring medical costs, this coverage is quickly insufficient in an accident or while traveling.
Additionally, this coverage will only cover medical costs for passengers that occur while inside the rental car.
Instead, customers should look into protecting themselves from medical costs in these ways:
- Check auto insurance for personal and passenger medical coverage within the United States
- Find Travel Insurance with better coverage for unexpected medical costs
- Check with medical insurance to find out if or when coverage applies while traveling
Hertz’s Personal Effects Coverage Doesn’t Provide Much Protection.
Included in the Personal Accident Insurance is Personal Effects Coverage. This coverage only covers up to $600, and it only covers damage to belongings in an accident or a police-reported theft.
With low Personal Effects Coverage and a long list of exclusions, this aspect of Personal Accident Insurance is not worth it. Consider coverage through travel insurance.
Hertz Rental Car Insurance Versus Regular Car Insurance
Instead of relying on Hertz’s policies, another option is to work with an agent or a current auto insurance company to secure coverage.
How does Hertz’s insurance compare to policies from auto insurance companies? The rates offered through auto insurance and umbrella liability policies are much more competitive than rates through the rental car company.
We created a chart to illustrate similar coverages between Hertz and Auto Insurance offerings.
| Coverage | Hertz | Auto Insurance |
|---|---|---|
| Liability | Up to $1,000,000 in Most of the United States and Canada | Policy Limits Selected by User Plus Any Umbrella Liability Insurance |
| Rental Car | Loss Damage Waiver: Covers Selected Rental Car | Comprehensive & Collision: Typically Covers Rental Car After Deductible, Check Policy for Details |
| Personal and Passenger Injury | Covers a Maximum of $2,500 in Medical Costs and $250 for Ambulance per Person | Coverage is Usually Higher than Hertz’s, Check Your Policy |
Keep in mind that Auto Insurance likely won’t cover expensive or luxury rental cars.
If the car rented has a higher value than the primary vehicle insured on your policy, then getting a higher level of coverage will be necessary to protect you from expensive replacement or repair costs should an accident or theft occur.
The Liability Insurance Supplement is a Primary Policy.
Primary coverage means that claims filed through this coverage option from Hertz do not need to be filed with your auto insurance.
This protects policyholders from premium increases or policy cancellations resulting from a rental car accident, so long as liability remains under the $1,000,000 limit.
Hertz Rental Car Insurance Versus Credit Card Coverage
Hertz’s Loss Damage Waiver is nearly identical to the Collision Damage Waiver(CDW) coverage offered by popular credit cards.
We compared coverage offered by Hertz to coverage offered by competitive credit cards.
| Offer | Cost | Vehicle Exclusions | United States Coverage | Coverage Abroad |
|---|---|---|---|---|
| Hertz Loss Damage Waiver | $45/Day | Covers Rented Car | Primary | Primary |
| Capital One Venture X Travel Rewards Credit Card CDW | Included Benefit | Expensive or Luxury Cars, Large Passenger Vehicles, Verify Coverage for Selected Rental | Primary | Primary |
| Chase Sapphire Reserve CDW | Included Benefit | Expensive or Luxury Cars, Large Passenger Vehicles, Verify Coverage for Selected Rental | Primary | Primary |
| Costco Anywhere Visa Card by Citi CDW | Included Benefit | Expensive or Luxury Cars, Large Passenger Vehicles, Verify Coverage for Selected Rental | Secondary to Auto Insurance | Primary |
| Bank of America Travel Rewards CDW | Included Benefit | Expensive or Luxury Cars, Large Passenger Vehicles, Verify Coverage for Selected Rental | Secondary to Auto Insurance | Primary |
For most rental purposes, the rental vehicle will be covered by a credit card’s Collision Damage Waiver. Additional protections and coverage may be available when purchased through the credit card company or one of their partners in advance.
Collision Damage Waivers (CDW) are not liability insurance. In an accident, you will be financially responsible for third-party property damage and medical expenses. Make sure that your auto insurance liability covers rental vehicles.
The Bottom Line: Should You Buy Hertz Insurance?
If you plan, the policies offered through Hertz can be found for more competitive rates through other policies.
However, Hertz offers convenient coverage options if you cannot use the other options outlined in this article, such as the credit cards shown above.
Frequently Asked Questions
What is the purpose of rental car insurance?
Rental Car insurance protects customers from paying replacement costs for rental cars. This coverage is also called Collision Damage Waiver or Loss Damage Waiver.
Am I responsible for stolen rental cars?
Renters are financially responsible for the cost of a stolen rental car, even if they are not at fault.
Will every credit card cover rental car insurance?
Rental Car Insurance through credit cards is called a Collision Damage Waiver, and not every credit card offers a Collision Damage Waiver.
What is the best credit card for rental car coverage?
Chase Sapphire Reserve provides some of the best Collision Damage Waiver coverage, also known as rental car insurance. Chase offers primary coverage within the United States and Worldwide.
References
(2022). Auto Rental Collision Damage Waiver. chase.com. Retrieved November 15, 2022, from https://www.chase.com/personal/credit-cards/slate/autorental-protection
(2022). Does My Costco Anywhere Visa Card by Citi Include Rental Car Insurance. Costco Travel. Retrieved November 15, 2022, from https://costco-travel-us-mbr.custhelp.com/app/answers/detail/a_id/5902/~/does-my-costco-anywhere-visa%C2%AE-card-by-citi-include-rental-car-insurance%3F
(2020). Hertz Rent a Car Information and Protection Plans. Hertz. Retrieved December 3, 2022, from https://www.hertz.com/rentacar/productservice/index.jsp?targetPage=USHowProtectedAreYou.jsp
(2022). Visa Guide to Benefits. business.bofa.com. Retrieved November 16, 2022, from https://business.bofa.com/content/dam/boamlimages/documents/PDFs/visa_guide_to_benefits.pdf
Jesse Cunningham V is a professional writer and licensed insurance agent. He has worked in the insurance industry in different capacities, starting as a customer service representative and working his way up to an independent agency owner. He is licensed in the states of Maryland and Pennsylvania for Property, Casualty, Life, and Health products. Jesse has worked with many national carriers, including Nationwide, State Farm, Travelers, and Liberty Mutual, and specializes in car and home insurance and health, life, accidental death, and disability insurance. He writes for multiple publications including FIXD and Bauple.com. All articles by Jesse are opinion-based. Speak with your licensed insurance agent about the particulars of your insurance before making any decisions.
