How Much Is Budget Rental Car Insurance?
Last Updated on February 5, 2026
Budget sells optional protection products you can add to a rental, like a loss damage waiver (LDW), supplemental liability insurance (SLI), and personal accident/effects coverage (PAE). Your total cost depends on what you select, where you rent, and the vehicle class.
Budget advertises LDW “for as low as $9/day” and SLI “for around $15/day” in the U.S., but the only reliable price is the exact daily rate shown during checkout and on your rental agreement.
Below, we’ll break down Budget rental car insurance pricing, what each option covers, and when it may be unnecessary because you’re already protected through your own auto policy or credit card.
- Your Price Is Location-Specific: Budget add-on costs vary by rental market and vehicle class; the rental agreement is the most reliable price source.
- LDW Starts Low, But Read The Fine Print: Budget advertises LDW as low as $9/day, but deductibles/exclusions can apply depending on where you rent.
- SLI Is Mainly About Liability Limits: If your personal liability coverage is minimal, SLI can add meaningful protection for injuries or property damage you cause.
- Check What You Already Have: Your personal auto policy and credit card benefits may already cover rentals, but deductibles and rental-company fees can still create gaps.
How Budget Rental Car Insurance Works
Budget, like most rental companies, offers a menu of insurance products and protection plans you can accept or decline at checkout or the counter.
If you already carry personal auto insurance—say, through GEICO on your personal vehicle—you may not need to buy every add-on. In many cases, your policy extends to cover a standard rental car, usually with the same coverages, limits, and deductibles you have on your own vehicle.
That said, Budget’s add-ons can still make sense if you want to avoid a claim on your own policy, don’t carry collision/comprehensive, want higher liability limits for the trip, or need specific travel-style benefits.
Quick tip: The fastest way to decide is to check (1) whether you have collision and comprehensive, (2) your deductibles, and (3) your liability limits. That’s what usually determines whether Budget’s add-ons are helpful or redundant.
Budget Car Insurance Products
Budget’s optional products are often grouped into a few categories: damage to the rental car (LDW), added liability protection (SLI), accident/medical and personal property benefits (PAE/PAE Plus), and travel-style coverage for certain non-U.S. renters (ESP).
| Budget Add-On | What It’s For | Pricing Notes | Common Reasons To Consider |
|---|---|---|---|
| Loss Damage Waiver (LDW) | Damage/theft to the rental car (a waiver, not traditional auto insurance). | Advertised “as low as $9/day”; your actual daily rate depends on vehicle/location and appears on the rental agreement. | You don’t carry collision/comprehensive, you want simpler handling, or you want to avoid using your own policy. |
| Supplemental Liability Insurance (SLI) | Extra liability protection for injuries/property damage you cause to others. | Advertised “around $15/day” in the U.S.; limits and availability vary by jurisdiction. | Your personal liability limits are low, or you want higher limits for a specific trip. |
| Personal Accident & Effects (PAE) / PAE Plus | Accident-related benefits (medical/hospital/AD&D) and limited personal effects protection. | Daily pricing varies by location; benefits and state variations apply. | You want extra accident benefits for occupants and/or a small layer for personal items. |
| Emergency Sickness Plan (ESP) | Coverage for certain illness-related medical expenses during the rental period (where available; generally for non-U.S. resident renters/inbound travelers). | Daily pricing varies; details are provided in Budget’s brochure/certificate at the counter. | You’re traveling to the U.S. and want an extra medical-expense backstop tied to the rental period. |
Loss Damage Waiver
Budget’s LDW is similar to a collision damage waiver: it’s a contractual waiver intended to limit what you may owe if the rental car is damaged or stolen, subject to the rental agreement’s exclusions.
LDW is optional. If you decline it and the car is damaged, the rental company may still hold you responsible—then you look to your own insurance (or a credit card benefit) to see what will reimburse you.
One nuance: depending on where you rent, LDW may still involve a deductible or “excess.” For example, Budget notes that LDW in Canada can involve a deductible amount that depends on vehicle type and is shown on the rental agreement.
Personal Accident and Effects Insurance
Budget bundles accident-related benefits and personal effects protection into Personal Accident and Effects (PAE) and, in some locations, PAE Plus. In general, these products can include limited accident medical benefits and personal effects coverage (for example, stolen luggage) while the items are in the rented vehicle.
Budget’s published benefit maximums can vary by state. As shown in Budget’s disclosures, PAE/PAE Plus can include:
- Accidental death and dismemberment benefits (amounts vary by plan and state).
- Accident medical expense benefits (amounts vary by plan and state).
- Hospital accident benefits (where available) and limited personal effects coverage (subject to per-item and total limits).
Because these are fixed benefits with state-by-state variations, always rely on the brochure/certificate linked in Budget’s booking flow or provided at the counter for your rental location.
Supplemental Liability Insurance
SLI is designed to increase the liability protection available if you cause injuries or property damage while driving the rental. It is separate from (and can duplicate) your personal auto liability coverage, which is explained here: auto liability insurance.
Budget’s SLI is intended to cover third-party claims for bodily injury and property damage, up to the limits shown in Budget’s terms for the jurisdiction of rental.
Emergency Sickness Plan
Budget’s Emergency Sickness Plan (ESP), where available, is a travel-style coverage option generally offered to certain inbound travelers/non-U.S. residents for illness-related medical expenses during the rental period. Availability and eligibility rules can vary, so confirm details in Budget’s ESP brochure/certificate at the counter.
Factors That Impact the Price of Budget Car Insurance
Budget’s add-on pricing is location- and vehicle-specific. The same add-on can be priced differently depending on the rental market and vehicle class. Common pricing factors include:
- Rental location (airport vs. off-airport, state-specific requirements, local claims costs)
- Vehicle class/value (economy vs. premium/luxury, specialty vehicles)
- Trip length and whether add-ons are priced per day or per rental
- Which products you select (LDW, SLI, PAE/PAE Plus, ESP)
The practical takeaway: don’t rely on generic “average” prices. Price your reservation online with and without add-ons, and then verify the daily amounts listed on your rental agreement before you sign.
Do You Need Budget Car Insurance?
All Budget add-ons are optional. Whether you need them depends on what coverage you already have and how comfortable you are with deductibles and claims.
Three common scenarios where Budget coverage may be worth considering:
- You don’t carry collision and comprehensive: LDW can be the simplest way to avoid being personally responsible for rental-car damage (subject to contract exclusions).
- Your liability limits are low: SLI can add a larger cushion for injuries/property damage you might cause.
- You want convenience: some renters prefer waivers to avoid filing through their own insurer (and to avoid paying their deductible), even if they technically have coverage.
Also consider credit card protection. Many cards offer rental coverage for damage/theft of the rental car, but rules vary and you typically must pay for the rental with the card and decline the rental company’s waiver for coverage to apply. Learn more here: what your credit card covers when renting a car.
Quick tip: If you’re declining LDW because you have “full coverage,” ask your insurer (or review your policy) how rental-company charges like administrative fees or “loss of use” are handled. Those details can be the difference between being fully reimbursed and paying out of pocket.
Final Word: Budget Rental Insurance Cost
Budget’s rental protection pricing varies by location and vehicle class, and you’ll see your exact daily rate during booking and on your rental agreement. As a baseline, Budget advertises LDW “for as low as $9/day” and SLI “for around $15/day” in the U.S., but your totals can change significantly depending on what you add.
Insurance and waiver terms vary by state and by contract. Always read your rental agreement and confirm your personal policy and credit card benefit rules before relying on any single source of coverage.
