What types of car rental insurance are there in the US, and how do they differ from car rental insurance in Taiwan? Which coverages do you actually need on your trip? If you’ve been wondering about all this, let us walk you through it!
US car rental insurance – types explained
The types of car rental insurance in the US are broadly similar to those in Taiwan: they mainly cover personal safety and damage from collisions, and there is also a system similar to compulsory insurance that provides basic protection if an accident happens. Roadside assistance and theft protection let you handle unexpected situations on the road more calmly, so you can pick the coverage that suits your needs.
The main types of vehicle insurance you’ll see in the US:
Collision Damage Waiver (CDW) / Loss Damage Waiver (LDW): collision and vehicle damage coverage
This covers the cost of damage caused by a collision or other damage to the vehicle, and is one of the must-have coverages when renting a car in the US.
Personal Accident Insurance (PAI)
If the driver or passengers are injured or killed in an accident, the insurance company pays out a set amount.
Additional Liability Insurance (ALI) / Supplementary Liability Insurance (SLI) / Third Party Liability (TPL): third-party liability and supplementary liability coverage
In an accident, this covers a third party’s vehicle damage, medical bills and similar costs (anyone other than the driver and passengers in your car). In other words, if you hit another vehicle or a pedestrian, the insurance company pays the compensation on your behalf.
Extended Roadside Assistance (RSN)
This provides 24-hour assistance if something happens to the car, such as a mechanical breakdown, a flat tire, running out of fuel or losing the keys, so someone is there to help when the unexpected happens. Distances between attractions in the US are often long and there aren’t many support services along the road, so it’s worth adding this if your itinerary takes you far from the city.
Personal Effects Protection (PEP) / Theft Protection (TP): theft coverage
Pays out a set amount if the car or items inside it are stolen.
LDW is the single most important coverage to have when renting a car in the US, and SLI third-party liability is also recommended for extra peace of mind. The rest you can weigh up based on your own needs. Most importantly, read up on what each coverage includes before you get to the counter, so you don’t end up buying something you don’t need because of a sales pitch on the spot.
Differences in optional coverage between US rental car companies
Hertz, AVIS, Budget and the many other US rental brands each offer different insurance. What are the differences? Can you add more coverage? And how do you choose to get both good value and solid protection?
US car rental insurance – coverage compared by rental brand
| Type of coverage / booking method | gogoout | Hertz official site | AVIS official site | RentalCars |
| LDW vehicle damage coverage | ✔️ Depends on the partner rental location; most rental companies include it | 💰️ Must be added at extra cost | 💰️ Must be added at extra cost | 💰️ Must be added at extra cost |
| SLI third-party liability coverage | ✔️ Depends on the partner rental location; most rental companies include it | 💰️ Must be added at extra cost | 💰️ Must be added at extra cost | 💰️ Must be added at extra cost |
| TP theft coverage | ✔️ Depends on the partner rental location; some rental companies include it | 💰️ Must be added at extra cost | 💰️ Must be added at extra cost | 💰️ Must be added at extra cost |
We recommend booking your US rental car with gogoout. When you book Hertz vehicles in the US through gogoout, most listed cars include basic coverage such as vehicle damage and third-party liability (not included for bookings longer than one month or for vehicles in certain areas) — more than other brands offer, so your US rental comes with more protection. Definitely a thumbs up 👍️
Handling accidents and making insurance claims with a US rental car
Once you understand the types of coverage and have chosen the right policy, you can hit the road with confidence!
Even with insurance in place, drive carefully — you don’t want an accident to spoil the trip!
What if you do have an accident? Don’t panic, just follow these steps:
☑️ After an accident, never move the vehicle. Leave the scene as it is, take photos of it, and call the police and wait for them to arrive. The emergency number in the US is 911 — don’t dial the wrong one!
☑️ While you wait, turn on your hazard lights and set out a warning triangle. If possible, move away from the road and wait somewhere safe.
☑️ Notify the rental company so they can help with the insurance claim that follows.
Once the police arrive, cooperate and follow their instructions. If you need to, go to a hospital for treatment or a check-up — staying healthy is what makes the next trip possible!
How do insurance claims work, and what do you need to prepare?
If something happens on your trip and you need to use your insurance, first check where you bought the coverage, because each booking site handles claims differently.
With Rentalcars, for example, you have to pay the costs yourself first and then claim reimbursement from Rentalcars with the receipts. Others, such as Hertz and AVIS, handle it according to your contract, and in most cases everything is settled on the spot with no follow-up application needed.
When you book with a US rental company through gogoout, the insurance is likewise handled on the spot in line with your contract, so there’s no paperwork hassle afterwards!
Now that you know the types of insurance in the US and what to do after an accident, a self-drive trip in the US probably feels a lot less out of reach! Just follow this guide, confirm the details of your coverage and keep the accident procedures in mind, and you’re ready to set off on your American road trip!
Further reading:
[US Car Rental Guide] The complete 2026 guide: 9 things you need to know!
This article was translated by AI from the original Chinese version.
