How Much Is Dollar Rental Car Insurance?

Last Updated on February 5, 2026

When you rent a car from Dollar, you can rely on existing coverage (like your personal auto policy or certain credit card benefits) or choose Dollar’s optional protections at the counter. If you’re new to the topic, start with our guide to rental car insurance.

Dollar’s “rental car insurance” menu is a mix of waivers and insurance products. The biggest one is usually the Loss Damage Waiver (LDW), which can reduce or eliminate your financial responsibility for damage to the rental vehicle—so long as you follow the rental agreement.

Because availability, names, and limits can vary by location, it’s smart to review Dollar’s official descriptions before you travel. One helpful reference is Dollar’s “Peace of Mind” brochure (PDF): Dollar Rental Protection Options (PDF).

“Rental Car Insurance” Includes Waivers and Policies: Dollar’s menu can include LDW (a waiver) plus optional insurance products like LIS and PAI/PEC.
Your Existing Coverage May Already Apply: Many drivers already have rental coverage through a personal auto policy and/or a credit card benefit, but details vary by policy and card.
LDW Helps With the Biggest Potential Bill: Declining LDW can leave you responsible for rental-car damage and related charges depending on the rental agreement terms.
Price and Availability Are Location-Specific: Dollar’s optional protections are usually daily fees and can vary by location, vehicle class, and rate—always check your reservation and rental agreement.

Table Of Contents

How Dollar Rental Car Insurance Works
Available Dollar Rental Car Insurance Coverage Types
Do I Need to Buy Dollar Rental Car Insurance?
How Much Does Dollar Rental Car Insurance Cost?
How to Check Dollar’s Rental Car Insurance Pricing
Final Word on Dollar Rental Car Insurance
FAQs on Dollar Rental Car Insurance

How Dollar Rental Car Insurance Works

Dollar offers optional rental protections for an additional daily charge shown on your rental agreement. These add-ons are optional and may duplicate coverage you already have through your personal auto policy, a credit card, or other insurance.

In many cases, your ordinary car insurance policy can extend to a rental car (especially for U.S. rentals), but the details depend on your policy terms, the type of vehicle rented, and where you’re driving. If you already have auto insurance—say, with GEICO—confirm what carries over (liability limits, collision/comprehensive, deductible, and any exclusions) before you decline coverage at the counter.

If you don’t have personal auto insurance (for example, you don’t own a car), Dollar’s add-ons may be more important—especially for damage to the rental vehicle and liability claims from others.

Quick tip: Before pickup, pull up your auto policy declarations page and your credit card rental coverage terms. Knowing your liability limits and deductible makes the counter decision much easier.

Available Dollar Rental Car Insurance Coverage Types

Dollar’s optional protections may include a damage waiver for the car itself, extra liability protection, and add-ons for medical expenses, personal belongings, and roadside services. Coverage varies by location and is subject to the rental agreement and policy terms.

Dollar Rental Protection Options Compared

Option	What It Helps With	Key Details to Know
Loss Damage Waiver (LDW)	Damage to or theft of the rental vehicle	LDW is not insurance. It’s a waiver that can relieve you of financial responsibility for covered loss/damage if you don’t violate the rental agreement. (Details: Dollar LDW brochure (PDF))
Liability Insurance Supplement (LIS)	Extra liability protection if you injure someone or damage property	Dollar’s brochure describes LIS up to $1,000,000 per accident (and up to $2,000,000 for liability only in CA & FL), plus uninsured/underinsured motorist BI coverage up to $1,000,000 in many locations. Limits and availability vary.
Personal Accident Insurance (PAI) + Personal Effects Coverage (PEC)	Limited accident medical/ambulance and accidental death benefits, plus coverage for certain personal items	PAI/PEC is typically purchased as a bundle. Dollar’s brochure lists example benefits (e.g., accidental death benefit and limited medical/ambulance expenses) and PEC limits (e.g., up to $600 per person, $1,800 max per rental; NY differs).
Premium Emergency Roadside Service	Lockout, flat tire, fuel/battery help, and certain travel interruption reimbursements	Dollar’s brochure describes roadside help plus travel interruption reimbursements (up to $1,000 in certain situations), subject to terms and location availability.
Emergency Sickness Protection (ESP)	Limited sickness-related medical benefits for eligible non-U.S. renters	Available only in select locations and for eligible renters. Terms and exclusions apply. (See: Dollar Canada Terms (PDF))

What LDW Does (and Doesn’t) Cover

LDW is usually the most expensive add-on because it deals with the biggest potential bill: damage to the rental vehicle. It’s similar in concept to a collision damage waiver, but the exact protections and exclusions are defined by Dollar’s rental agreement and the LDW terms in your location.

If you decline LDW and the car is damaged or stolen, rental company terms can make you responsible for more than just repairs. Depending on the location and agreement, that can include towing/storage, loss of use, diminution in value, and administrative fees. (See the example language in Dollar’s terms: Dollar Canada/U.S. Terms (PDF).)

What PAI/PEC Covers for People and Belongings

Dollar’s Personal Accident Insurance and Personal Effects Coverage can add limited medical/ambulance and accidental death benefits during the rental, plus coverage for certain personal items. These options may duplicate what you already have through health insurance and personal effects coverage on homeowners or renters insurance—so it’s worth checking before you pay extra.

Do I Need to Buy Dollar Rental Car Insurance?

All of Dollar’s optional protections are optional. Whether they’re worth it depends on what you already have and how much risk you’re comfortable keeping.

A Practical Decision Checklist

If you have personal auto insurance: You may already have liability coverage and (if you carry it) collision/comprehensive that extends to rentals. But you’ll still have a deductible, and a claim could impact renewal pricing.
If you have low liability limits: Consider whether you’re carrying enough auto insurance. A rental doesn’t reduce your exposure to a serious injury claim.
If you want to keep claims off your policy: Even if your policy covers rentals, you may still file a claim, pay a deductible, and potentially see changes at renewal. Learn more about what can happen after a claim: does car insurance go up after an accident?
If you’re relying on a credit card benefit: Many credit cards cover damage to the rental car (often with exclusions), but they usually don’t replace liability insurance. Details vary widely by issuer—see: what credit cards cover when renting a car.
If you’re traveling internationally or crossing borders: Your personal policy may not apply, and separate requirements can kick in. Always confirm restrictions and required coverages for your itinerary.

Quick tip: If you’re unsure about liability limits, consider a quick call to your insurer before your trip. Ask: “Do my liability limits and physical damage cover a rental car, and does my policy cover loss-of-use or diminished value charges?”

For general guidance on what auto policies typically include and how limits work, the NAIC’s consumer overview is a solid reference: NAIC Auto Insurance Basics.

How Much Does Dollar Rental Car Insurance Cost?

Dollar generally prices optional protections as a daily fee, and the total can vary widely based on location, vehicle class, rental length, and what you select. Dollar’s terms emphasize that cost and availability vary by location and rate and that the per-day fees will be shown during the reservation process and on the rental agreement. (Reference: Dollar Terms (PDF).)

Because pricing is so location-specific, avoid relying on “typical” dollar amounts you see online. Your most accurate number is the one attached to your reservation and rental agreement.

How to Check Dollar’s Rental Car Insurance Pricing

Review your reservation flow: Dollar typically shows optional protections and prices during booking (or in the account/confirmation details).
Check the rental agreement at pickup: The daily charges for each selected option should appear on the agreement before you sign.
Ask for a line-item breakdown: If something isn’t clear, ask the agent to explain each protection and its daily cost.
Save proof of what you accepted: Keep a copy/photo of the signed agreement and any coverage brochure you’re given.

Final Word on Dollar Rental Car Insurance

Dollar offers a range of optional rental protections, including LDW (a damage waiver), LIS (extra liability protection in many U.S. rentals), and optional packages for limited medical benefits, personal items, and roadside services.

The right choice depends on what you already have through your auto policy, credit card, and other insurance—and how much risk you want to keep. When in doubt, confirm your existing coverage first, then compare it against Dollar’s terms for the specific location you’re renting from.

FAQs on Dollar Rental Car Insurance

Is Dollar’s Loss Damage Waiver (LDW) the same as car insurance?

Not exactly. LDW is typically a waiver (not an insurance policy) that can relieve you of financial responsibility for covered damage to or theft of the rental vehicle—so long as you follow the rental agreement terms and exclusions.

Does my personal auto insurance cover a Dollar rental car?

Often, yes—especially for U.S. rentals—but it depends on your policy (liability limits, collision/comprehensive, deductible, and exclusions). Check your declarations page or ask your insurer before you decline coverage at the counter.

What is Liability Insurance Supplement (LIS) and do I need it?

LIS is optional extra liability protection that can increase the amount available if you injure someone or damage property. It may be useful if your personal liability limits are low, you don’t have a personal auto policy, or you want additional protection beyond minimum limits.

What does PAI/PEC cover with Dollar rentals?

PAI (Personal Accident Insurance) typically provides limited accident-related benefits (like medical/ambulance and accidental death benefits), while PEC (Personal Effects Coverage) can cover certain personal items during the rental—subject to limits, exclusions, and location-specific terms.

Are Dollar’s optional protections required to rent a car?

Usually no. Optional protections are typically not required, but rules can vary by location, rate plan, and travel itinerary. Always read the rental agreement and local terms before you sign.

Will buying Dollar’s coverage help me avoid a claim on my own policy?

Potentially. For example, LDW may reduce your need to file a physical damage claim for the rental car itself. But liability claims can still involve multiple parties, and the exact claim handling depends on what you purchased and what other coverage you have.

How can I see the exact price of Dollar’s rental car insurance before pickup?

Check your reservation flow and confirmation details, then review the rental agreement at the counter before signing. Ask for a line-item breakdown so you can see each optional product’s daily charge and what it covers.

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