How Much Is Budget Rental Car Insurance?

Last Updated on October 7, 2026

By James Shaffer · Reviewed by Thomas Rockford, insurance industry executive and financial analyst, on October 5, 2026 · How we fact-check

Budget sells five optional protection products you can add to a rental: a loss damage waiver (LDW), supplemental liability insurance (SLI), personal accident and effects coverage (PAE), an emergency sickness plan (ESP) and third-party liability (TPL). Your total cost depends on what you select, where you rent and the vehicle class.

LDW is the only one Budget puts a price on. Its protections page advertises loss damage waiver protection “for as low as $9 a day.” For everything else, including SLI, Budget publishes limits but no daily figure—the amount you pay is the one 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.

1. 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.
2. LDW Starts Low, But Read The Fine Print: Budget advertises LDW as low as $9 a day, and says plainly that it is not insurance and not mandatory. Deductibles and exclusions can still apply depending on where you rent—in Canada the deductible runs from $300 CDN to $5,000 CDN by vehicle type.
3. SLI Is Mainly About Liability Limits: Budget’s SLI carries a $500,000 combined single limit in all states. If your own liability limits are minimal, that is a real cushion for injuries or property damage you cause. Budget doesn’t publish a daily price for it.
4. 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.

Budget Car Insurance Products

Budget’s optional products fall into a few groups: damage to the rental car (LDW), added liability protection (SLI), accident, medical and personal property benefits (PAE and PAE Plus), and two products sold only to renters who don’t live in the U.S.—the Emergency Sickness Plan and Third-Party Liability.

Loss Damage Waiver

Budget’s LDW is similar to a collision damage waiver. Budget’s own page puts it in six words: LDW “is not insurance and not mandatory.” Accept it and Budget assumes responsibility for loss of or damage to the car during the rental, with exceptions written into the agreement for things like stolen keys and towing.

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.” In Canada, Budget says you may incur a deductible if the car is damaged or becomes a loss even with LDW, and it publishes the range: $300 CDN to $5,000 CDN depending on vehicle type. The amount that applies to you is 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 publishes the amounts, and they differ by plan and in ten states (New York, New Hampshire, Connecticut, Indiana, Kansas, Missouri, Montana, Vermont, Virginia and Washington). Outside those states, the published maximums are:

• Accidental death and dismemberment up to $175,000 for the renter and $25,000 for a passenger under PAE; up to $250,000 and $125,000 under PAE Plus.
• Accident medical expenses up to $10,000 under PAE and up to $15,000 under PAE Plus.
• A hospital accident benefit of $500 a day for up to 30 days, and personal effects coverage of $1,000 per item up to $3,000 for everything in the vehicle. Both plans publish the same figures for these two.

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 covers third-party claims for bodily injury and property damage up to a maximum combined single limit of $500,000 in all states. Budget adds that the terms and exclusions can differ where state law requires, and the underwriting carrier is not the same everywhere. The daily charge is not published; it shows up on the agreement when you accept it.

Emergency Sickness Plan

Budget’s Emergency Sickness Plan (ESP) covers illness during the rental period, and it also covers the renter’s non-U.S.-resident travel companions. Eligibility is narrow, and Budget says so without hedging: ESP, where available, is available only to non-U.S. resident renters. Budget publishes no benefit maximum and no price on the page, so get the brochure or certificate at the counter.

Third-Party Liability

Third-Party Liability (TPL) is the other product limited to visitors. It covers third-party bodily injury, death and property damage claims up to a $300,000 combined single limit, and Budget does not sell it to residents of the United States, Canada or Puerto Rico. It isn’t a daily add-on either: when TPL appears on the agreement, it is built into the inbound rental rate.

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.

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. The one figure Budget publishes is LDW “for as low as $9 a day.” It does not publish a daily price for SLI, PAE or ESP, so treat any number you see quoted for those elsewhere with suspicion and go by the agreement.

My advice is to price the same reservation twice, once with the add-ons and once without, before you leave the house. At the counter you are deciding in thirty seconds with a line behind you, and that is how people end up paying for coverage they already carry.

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.

FAQs on Budget Rental Car Insurance Costs

Sources

Checked October 5, 2026

• Budget — Protections
• Budget — Loss Damage Waiver
• Budget — Supplemental Liability Insurance
• Budget — Personal Accident and Effects
• Budget — Emergency Sickness Plan
• Budget — Third-party Liability
• NAIC — Consumer Guide to Auto Insurance