Do I Need to Get a Rental Car Insurance in Florida?

You’re standing at the rental counter in Miami. The agent suggests adding insurance as if it’s non-negotiable. Your heart races: Do I actually need that extra insurance?

Short answer: No, Florida law does not force you to buy supplemental rental car insurance. But whether you should depends on your own auto policy, credit card benefits, and how much risk you want to absorb.

In this article, you’ll learn what Florida law requires and how it applies to you, which extra coverages rental companies often try to sell, how your own insurance or credit card may already provide protection, when it makes sense to accept or decline add-ons, and the steps you can take before driving off the lot to protect yourself. 

Florida’s Mandatory Insurance Coverage Requirements

First, it’s vital to know what is required under Florida law. That sets the baseline. What Florida mandates:

• If you register a vehicle in Florida, you must show proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) coverage. 
• The minimum for both PIP and PDL is $10,000 each. 
• PIP covers 80% of reasonable medical expenses up to that $10,000 limit, regardless of who caused the crash. 
• PIP also covers 60% of lost wages (if you cannot work) up to the same policy limit. 
• In case of a death from an accident, PIP provides a $5,000 death benefit (in addition to medical/disability benefits). 
• PDL (Property Damage Liability) pays for damage you cause to someone else’s property, such as another car, fence, building, etc. 

Because Florida is a no-fault state, your own PIP coverage is your first line of defense for medical bills, even if the other driver was at fault. 

Different Types of Rental Car Insurance

There are usually 4 different types of rental car insurance that rental car companies offer.

1. Collision/Loss Damage Waiver
   • This coverage technically isn’t ‘coverage’ at all. This waiver just states that the rental car company cannot come after you if there is any damage done to the rental car or if there was theft of the car
2. Liability Insurance
   • This covers damage that you do to someone else’s vehicle or property
3. Personal Accident Insurance
   • This covers you and your passengers’ medical expenses
4. Personal Effects Coverage
   • This protects any of your belongings if they are stolen from the rental car up to a set amount

Common Exclusions of Rental Auto Insurance

• Rental companies usually exclude certain risks:
• Off-road or unpaved road damage
• Glass, tires, or undercarriage damage
• Water damage (e.g. flooding)
• Intentional damage or reckless behavior.

How Your Existing Coverage / Credit Card May Help

Before spending extra, check what you already have. Sometimes, you’re covered enough already.

Personal Auto Insurance Policy

A lot of car insurance already covers rental cars. The main thing you need to remember is when you are renting a car you are contractually obligated to bring back the rental car in the same condition you received it in. You just need to make sure with your car insurance company you have the correct coverage for rental cars. If not, using the rental car insurance provided as an option is better! There are a few things to think about and look for when seeing if your car insurance will cover a rental car.

When you look at your own car insurance, checking to see if you have comprehensive and liability coverage is a good indicator that you have enough coverage for the rental car. Comprehensive insurance covers repairing or replacing your vehicle which is similar to the collision/loss damage waiver that car rental companies have as an option.

The next thing you need to think about is the type of rental car you are getting.

If you have an older car that you’ve based your car insurance coverage on and you are renting a newer, more luxurious car, your coverage might not be enough! It is important to make sure you have enough coverage for whatever rental car you are renting. You do not want to be stuck in a situation where your own coverage isn’t enough and paying out of pocket is the only option. Purchasing the proper car insurance from the rental company would be your best option at this point!

Credit Card Coverage

Many credit cards include rental car protection if you pay for the rental with that card, but the details can vary. Some cards only provide secondary coverage, which means you must first file a claim with your auto insurance before the card’s benefits apply. Premium cards may offer primary coverage, stepping in before your auto policy. It’s also common for coverage to exclude certain vehicles, such as luxury or exotic cars, as well as longer rental periods or rentals in specific states or countries.

What to Verify Before Decline

• Does your auto insurance cover damage to a rental in Florida?
• Does it cover administrative / loss-of-use costs?
• Does your credit card policy work in Florida and for the vehicle type?
• Is your rental fully paid with the card that offers coverage?

When It Makes Sense to Accept or Decline Additional Insurance

When it’s generally safe to say “no”

If you have a full-coverage auto policy and a credit card with primary rental car coverage, declining the extras often makes sense.

When it’s risky to decline

• You only have liability insurance
• You’re renting in a high-accident area (busy cities, tourist zones)
• You’re renting for many days or in harsh driving conditions
• You’re unsure what your credit card or auto policy actually covers

Cost vs Risk Example

Suppose the CDW costs you $30/day. If your risk of damage is modest, that premium may be worth it. But imagine a collision leads to $4,000 in repair costs—your out-of-pocket could balloon without CDW.

Scenario A (with CDW): Rental agency fixes damage, you pay very little (if anything).
Scenario B (without CDW, relying on your insurance): You pay your deductible + extra rental fees + possible liability gap.
Scenario C (no protection at all): You may owe full repair costs + administrative and loss-of-use fees.

Tips & Best Practices (Before & During Rental)

Here are smart steps to protect yourself before you drive away:

• Inspect the car thoroughly inside and out. Take photos or video of every angle.
• Read the fine print. Ask about exclusions, deductibles, and fees.
• Ask specific questions: Do you cover damage to tires, windshield, undercarriage? What about loss-of-use or admin fees?
• Use a credit card with coverage and pay for the full rental using that card.
• Contact your insurer ahead of time to confirm their coverage terms.
• Keep all documentation—rental agreement, inspection photos, receipts.
• Know how to file a claim in Florida (with the rental agency, your insurer, or your credit card provider).

In short, understanding rental car insurance in Florida comes down to knowing what the law requires, what your personal coverage already includes, and when it makes sense to accept the extras. Take the time to check your auto policy, review your credit card benefits, and ask the right questions at the rental counter so you can avoid costly surprises. And if you do end up in an accident while driving a rental car, don’t face the aftermath alone—our Florida accident lawyers are here to help. We serve clients across the state, including West Palm Beach, Miami, Fort Lauderdale, Tampa, Fort Myers, Orlando, Port St. Lucie, and we’re ready to fight for the compensation you deserve.