Car Rentals: Supplemental Insurance Coverage and Waivers Usually Not Worth the Extra Money

Don't automatically assume that your current car insurance policies and credit card benefits will completely protect you in case of damage

Every time you rent a car you face a barrage of offers for collision damage waivers, loss damage waivers, liability supplements and personal accident coverage. Rental companies make huge profits on these add-ons and agents earn commission to push them. Yet most drivers already have coverage that protects them in case of damage or injury. Knowing what your auto policy and credit card benefits cover, understanding North Carolina minimum liability requirements and following a few simple steps at pick-up can save you hundreds of dollars without increasing your risk.

North Carolina Liability Basics and When You Need Supplemental Coverage

North Carolina is an at-fault state with minimum liability limits of $30,000 per person $60,000 per crash and $25,000 property damage. If you cause an accident in a rental that exceeds those limits you are personally responsible for the excess. Rental companies may offer Supplemental Liability Protection, typically $15 to $25 per day, which raises your liability limit to $1,000,000. If your personal auto policy includes adequate liability, many policies start at $100,000/$300,000/$100,000—you probably don’t need SLP. If you carry only the state minimum, or if you are concerned about a major crash claim, SLP can be a reasonable backup.

Collision Damage Waiver and Loss Damage Waiver Explained

CDW and LDW are technically waivers not insurance. For $15 to $35 per day you get protection against damage or theft of the rental vehicle and waiver of loss-of-use fees rental companies charge for days the car is in the shop. Your personal auto policy usually covers collision and comprehensive if you own a car and carry that coverage. However your policy may not cover diminished value fees or administrative fees rental agencies tack on. If you lack collision or comprehensive, if your policy has a high deductible, say $1,000—or if you rent frequently, consider purchasing CDW/LDW to avoid unexpected out-of-pocket costs.

Credit Card Rental Insurance: Primary vs Secondary Coverage

Many major credit cards, Visa Signature, Mastercard World Elite, American Express Platinum—offer rental insurance when you pay with the card and decline CDW. Coverage terms vary: some provide primary coverage that pays first, others secondary that reimburses after your auto policy. Exclusions often include SUVs, luxury vehicles, trucks and rentals over 31 days. Coverage may not apply in certain countries and may exclude underage drivers. Always read the guide to benefits, call the card issuer to confirm details and print the benefit summary to carry with you.

Underage Drivers and Additional Driver Fees

Drivers under age 25 often face a surcharge of $20 to $35 per day and may be excluded from credit card coverage. Some cards explicitly deny coverage for renters under 21. If you are a student or military member aged 21 to 24, some companies offer reduced young-driver fees. Adding an authorized driver, often your spouse or partner—may cost $10 to $15 per day but ensures both are covered under the waiver. Check both rental policy and card terms before declining coverage.

Personal Accident and Personal Effects Coverage

Personal Accident Insurance covers medical and ambulance costs for you and passengers. Personal Effects Coverage reimburses theft of personal items from the car. Most renters have health insurance and existing homeowners or renters policies that already cover personal belongings and medical expenses. Unless you lack health insurance or regularly travel with expensive equipment, you can safely decline these add-ons and rely on your existing plans.

EV Rentals and Specialized Coverage

Electric vehicle rentals are increasingly common but carry unique risks: battery damage, charging cord loss and high towing fees. Some rental companies charge $100 to $200 per day for EV damage waivers. Your personal auto policy may not extend to high-voltage battery repair costs. If you plan multiple days in an EV or drive long distances, investing in the manufacturer’s EV waiver or purchasing a standalone one-day primary policy from a third-party insurer can be prudent.

Peer-to-Peer Rentals and Turo Coverage Options

On peer-to-peer platforms like Turo hosts offer tiered protection plans that range from basic to premier, leaving you with deductibles from $0 to $3,000. Your personal policy and credit card usually exclude peer-to-peer rentals, so you must choose a plan. Compare cost of the host’s protection to a one-day policy from an online specialist like Bonzah or Coterie which may offer lower daily rates and primary coverage for all vehicle types.

Telematics and Usage-Based Rental Insurance

Some rental firms now offer usage-based insurance where rates adjust based on driving behavior, hard braking, speeding and night driving. For frequent business rentals, enrolling in the company’s telematics program can earn discounts of 10 to 20 percent. You share driving data via an app or installed device and get real-time feedback to improve safety and reduce premiums.

Tips to Avoid Unnecessary Charges

• Inspect and document, walk the vehicle with the agent and photograph every scratch, dent and the fuel level; email photos to yourself
• Refuel yourself, pay $4 to $8 per gallon at the counter only if you have no alternative; self-service stations always cost less
• Check mileage and fuel, record odometer and tank readings before leaving lot to avoid false overage or refueling charges
• Watch for extra fees, drop-off surcharges for one-way rentals, airport facility fees, environmental fees and sales tax vary by county
• Decline unnecessary add-ons, GPS units often cost $10 per day when your smartphone maps app is free
• Return during business hours, after-hours drop boxes may not record return time properly leading to extra rental days

North Carolina Consumer Resources

If you believe a rental company charged you for unauthorized coverage or unjust damage fees in North Carolina, file a complaint with the NC Department of Insurance at (855) 408-1212 or visit ncdoi.gov. You can also contact the North Carolina Attorney General’s Consumer Protection Division at (919) 814-5400. Rental agreements must include clear disclosure of all fees; any deceptive practices can be reported for investigation.

Before you reserve your next car, verify your personal auto policy limits, call your credit card benefits line and plan accordingly. In most cases you can decline all supplemental coverage and drive away knowing you are fully protected while saving $15 to $50 per day in unnecessary fees.