Budget Car Rental Insurance: Know Your Options
PUBLISHED ON Mar, 05 2023
UPDATED ON Apr, 14 2026
Introduction to Budget Car Rental Insurance
Budget Car Rental offers a range of rental car protection plans to ensure that you have peace of mind during your travels. Whether you are on a business trip or a vacation with your family, the Budget rent a car insurance now has you covered with diverse options for car insurance. These protection plans are designed to limit your financial liability in case of an accident, theft, or damage to the vehicle. Additionally, Budget car rental insurance also includes coverage for personal accident and effects, giving you added protection in case of any unfortunate events. In this article, we will provide an overview of Budget car rental insurance, including the available coverage options, costs, and benefits. By the end of this article, you will have a better understanding of Budget’s rental car protection plans and how they can benefit you during your travels.
Budget Car Rental Insurance Explained – Types of Budget Car Rental Insurance
Budget Car Rental offers a variety of rental car protection plans to suit your needs and budget. The following are the different coverage options offered by Budget Car Rental Insurance:
- Collision Damage Waiver (CDW) is a protection product that can waive your responsibility for the cost of damage to the rental vehicle in the event of a retnal car accident or theft. Although it is a part of your rental fee, there is an excess. Should something happen to your rental car, you are financially responsible for this excess. The excess amount at Budget for small – large vehicles is £ 1000. For Premium vehicles the excess is £ 1500.
Budget car rental excess cost
Budget’s collision damage waiver covers the following:
- All damage to the Budget rental car
- Coverage for vehicle theft up to the car’s full value.
Your Budget collision damage waiver essentially covers all damage to the car and theft of the vehicle with no costs to you or your insurance company, provided you weren’t driving in a banned manner.
Excess Reduction, a package offered by Budget, lowers the excess for the majority of cars to € 0. The daily fee for this service is € 22 – € 37 per day. It is significant to keep in mind that excess reduction fees can change according to the location and type of rental car being used. For the most precise and recent information regarding excess reduction fees, it is advised to contact Budget directly.
How much does Budget Excess reduction cost
- Windscreen Damage Waiver (WDW) – Windscreen Cover protects you from charges if your rental vehicle’s windscreen is broken or cracked.
- Personal Accident Insurance (PAI): PAI coverage provides protection against accidents, injuries, and loss to personal property. This option covers medical expenses, ambulance fees, and accidental death or dismemberment expenses for you and your passengers. PAE protection also covers the loss or damage to personal property inside the rental car.
- Supplemental Liability Insurance (SLI): SLI is an optional coverage that provides protection against third-party liability claims. This coverage offers up to $1 million in liability protection and helps to pay for damages or injuries caused to others while driving the rental car. Notably, effective January 1st, 2025, SLI limits have been updated to $500,000.
- Emergency Sickness Plan (ESP): The ESP option provides medical and emergency assistance to you and your passengers in case of an illness or injury while traveling. This coverage includes emergency medical transportation, medical referral assistance, and other emergency assistance services.
Budget Car Rental Insurance coverage options can vary by location, so it’s essential to check with your local Budget office to understand which plans are available to you. It’s also important to note that rental car insurance coverage options are not mandatory, but they offer added protection and peace of mind while driving a rental car.
What are the Budget car rental insurance requirements?
Budget does not appear to have specific insurance requirements for renting a car from them.
It’s important to note that while Budget does not have specific insurance requirements, they may require you to have certain qualifications such as a valid driver’s license, a minimum age requirement, and a credit card in the renter’s name with available credit to cover the rental cost and any potential damages or fees.
When renting a vehicle, understanding your insurance options is crucial. This is especially true for business users, whether you’re renting a car or need specialized van insurance for business purposes.
Budget Car Rental Insurance Cost
The answer to the question “how much is Budget car rental insurance?” can vary depending on the coverage options selected. Budget offers four main types of car insurance coverage options, including a collision damage waiver (CDW), personal accident and effects (PAE), supplemental liability insurance (SLI), and an emergency sickness plan (ESP).
While the Budget collision damage waiver is part of your rental fee, it is subjected to an excess. Should something happen to your rental car, you are financially responsible for this excess which ranges between € 1000 – € 1500.
Excess Reduction is offered for € 22 -€ 37 per day. If you purchase CarInsuRent car rental insurance, the excess amount can be eliminated and reduced to zero for as low as $8.49 per day (based on 10 days coverage) to $129.90 for an annual policy.
Windscreen Damage Waiver protects you from charges if your rental vehicle’s windscreen is broken or cracked and costs €3.36/Day.
The Personal Accident and Effects (PAE) coverage option protects you and your passengers against accident, injury, and loss to personal property and costs €5.00/Day.
The Supplemental Liability Insurance (SLI) coverage option provides coverage for damage or injury to others, and starts at $14 per day.
The Emergency Sickness Plan (ESP) coverage option provides medical and emergency assistance in the event of sickness or injury during your rental period. The cost of ESP protection from Budget is $5 per day.
It’s important to note that these prices may vary depending on location and other factors, and additional fees or taxes may apply. When renting a car from Budget, customers are encouraged to review the different protection plans and their costs before making a selection to ensure that they have the appropriate coverage for their needs and budget.
Budget Australia Excess Reduction – 1 week rental December 2024
See How Much You Can Save on Your Car Rental Insurance
Get StartedHow does CarInsuRent differ from Budget Car Rental Insurance?
- CarInsuRent car hire excess insurance starts from as low as $6.49 per day to $129.90 for an annual policy. Budget Excess Reduction for Damage & Theft waiver Can be purchased separately for € 22 – € 37 per day.
- Budget Windscreen Damage Waiver protects you from charges if your rental vehicle’s windscreen is broken or cracked and costs €3.36/Day. CarInsuRent car hire excess waiver insurance covers damage to the rental car’s windscreen, auto glass, tyres, undercarriage or roof and is included at the price of the policy.
- CarInsuRent covers baggage and personal belongings – up to US$ 1,500 included at the price.
- CarInsuRent covers the replacement of a lost or stolen Rental Car key.
- CarInsuRent covers exorbitant rental company fees added to your repair bill – including fees for loss of use, processing, relocation and towing.
- CarInsuRent covers single-vehicle accidents – claim even if the damage or theft to your car was not your fault.
- CarInsuRent offers annual worldwide car hire excess Insurance for hiring cars around the world for up to 45 days.
*Prices based on 10 days coverage
Budget France Excess Reduction – 1 week rental December 2024
Here’s How CarInsuRent Car Hire Excess Insurance saved Our Client a Significant Amount of Money
Mrs Tetiana M, rented a car from Budget car rental in France. Despite declining the rental company’s insurance coverage due to its high cost, Mrs. Tetiana decided to purchase standalone car hire excess insurance from CarInsuRent after reading about its benefits.
Copy of Mrs. Tetiana Car Hire Excess Policy
While Tetiana was driving on a narrow road near a beach Sainte-Croix (southern France), the driver of another car overtook her very aggressively and “cut” her (if you understand what we’re talking about). She turned the steering wheel a bit so that he would not crash into her and she collided into the curb of the road. The driver did not stay and left. There were a lot of scratches on the rental car next to the headlights and wheels and the front passenger door didn’t open due to the bent body.
Budget Damage to Rental Car – Mrs Tetiana
Unfortunately, Budget charged Tetiana EUR 1,161.54 for the damage.
Budget Damage – Repair Costs – Mrs. Tetiana
However, Mrs Tetiana had purchased car hire excess insurance, which covered the excess amount he would have to pay in such situations. As a result, he was able to file a claim with CarInsuRent, and we reimbursed him for the repair costs incurred by the rental company. This saved Tetiana more that a thousand Euros, as she only had to pay US$ 51.52 for the car hire excess coverage instead of the full repair bill.
Amazing service. always efficient, friendly, responsive. I got my payment within days of submission. Bill is warm. A pleasure to work with them. highly recommended. I feel safe with them.
How much could you save on Car Hire Excess Insurance for your Budget car hire? (Updated for winter 2025)
Car hire excess insurance for 10 days rental cars in Europe with CarInsuRent will cost US$64.90 compared to US$ 305 when purchasing the equivalent coverage from Budget. Total potential saving: US$ 240.10.
We compared and analyzed Super Collision Damage Waiver costs for a 7-day rental of a standard car class (December 21st – December 27th). The car rental insurance rates listed here are subject to change by the car rental companies without notice. For the most up-to-date pricing information, we encourage you to request a free online quote prior to booking.
CarInsuRent’s car hire excess protection for rental vehicles offers the same coverage at a 70% lower cost!
| Country | Collision Damage Waiver (CDW) + Theft Protection (TP) | Avg. Super Collision Damage Waiver Cost at Counter* | Avg. Insurance Deductible at Counter* | Avg. Cost for Rental Car Excess Insurance with CarInsuRent | Cost of Deductible with Zero-Excess from CarInsuRent |
| Australia | Included at the rental price | AU$ 53.21 | AU$ 5,584 | US$ 8.49 per day or US$ 129.90 for annual coverage | $0 USD |
| France | Included at the rental price | US$ 25.75 | U$ 2,235 | US$ 8.49 per day or US$ 129.90 for annual coverage | $0 USD |
| Germany | Included at the rental price | € 33.29 | € 1,390 | US$ 8.49 per day or US$ 129.90 for annual coverage | $0 USD |
| Iceland | US$ 21.50 | US$ 26.08 | US$ 1,950 | US$ 8.49 per day or US$ 129.90 for annual coverage | $0 USD |
| Ireland | Included at the rental price | € 24.40 | € 2,190 | US$ 8.49 per day or US$ 129.90 for annual coverage | $0 USD |
| New Zealand | Included at the rental price | NZ$ 32.50 | NZ$ 4,640 | US$ 8.49 per day or US$ 129.90 for annual coverage | $0 USD |
| Spain | Included at the rental price | € 31.65 | € 1,850 | US$ 8.49 per day or US$ 129.90 for annual coverage | $0 USD |
Budget Iceland Excess Reduction – 1 week rental December 2024
See How Much You Can Save on Your Budget Car Rental Insurance
Get StartedHow to File a Claim
What to Do in Case of an Accident or Damage – If you are involved in an accident while driving a rental car, there are certain steps you should follow to file a claim with the rental car insurance company. First, exchange personal information with the other driver, including name, address, license plate number, rental vehicle information, insurance company, and policy number, and document the accident with pictures and notes. If the other driver is at fault, you should get their contact and insurance information and call their insurance company directly to file a claim. If you are at fault or have non-collision damage, you can file a claim with the rental car insurance company. The process for filing a claim with the rental car insurance company may vary depending on the provider, but typically, you would need to provide details of the incident, including the date, time, and location of the accident, as well as any police report numbers, if applicable. Additionally, you may need to provide documentation of the damage, such as photographs or repair estimates.
Required Documentation for Filing a Claim
- A copy of the Certificate of Insurance
- A copy of the rental agreement
- A copy of the police report if:
- you got in an accident with a third party
- It is legally mandated in the country of incident
- your claim is about stolen personal belongings
- A copy of the damage report given by the rental company, detailing each cost incurred. Photographs of the damage are optional but may help ensure that the charges are reasonable.
- Detailed repair receipts, invoices or other documents showing the breakdown of the amount the rental company charged you for the accidental damage or loss
- A copy of your credit card statement that reflects your payment for the claimed damages
- A copy of the driver’s license of the person driving the car during the accident
What Documents Do I Need to File My Claim?
Tips for a Smooth Claims Process: Filing an insurance claim can be a complicated and stressful process. The following tips can help ensure a smoother claims process:
- Document everything: Documenting all the details of the accident or loss, including taking photos and notes, can help speed up the claims process and reduce the possibility of disputes.
- Communication: Communication is key in any insurance claim process. Keep thorough records of all communication with the insurer, and discuss your expectations for the claims process with the adjuster. You can also ask about the frequency of updates and the preferred type of communication.
- Avoid duplicate claims: Avoid submitting duplicate claims, as it slows down the claims payment process and creates confusion.
- Understand your coverage: It’s important to understand your insurance coverage, including the limits and deductibles, before filing a claim. Understanding your policy can help ensure that you receive the maximum benefit to which you are entitled.
- Be patient: Claims processing can take time, so it’s important to be patient.
By following these tips, you can help ensure a smoother claims process, and increase the chances of receiving the maximum benefit that you are entitled to under your insurance policy.
Claims Process
Final Thoughts and Recommendations
In conclusion, Budget Car Rental Insurance offers a variety of coverage options that can provide financial protection and peace of mind while traveling. You should carefully review each coverage option and compare it with third-party car rental insurance providers to choose the best option for their specific needs and budget.
It is important to note that Budget car rental insurance is an optional service, and you can decline to purchase it if you have your own insurance or prefer to assume the risk yourself. However, it is recommended that you carefully consider their options and make an informed decision about whether or not to purchase rental car insurance before renting a vehicle.
Budget’s excess reduction can be the best option if you want the greatest level of comfort and are willing to pay for it. You can save money by shopping around and buy car rental insurance online for as low as $8.49 per day* to $129.90 for an annual policy.
Budget New Zealand Excess Reduction – 1 week rental December 2024
Before choosing a Budget rental car insurance policy, you should confirm what level of coverage is included with your personal auto insurance policy or the credit card you used to reserve the vehicle. By doing this, you can avoid paying for the same coverage more than once.
Ultimately, understanding the different types of insurance available to you and making an informed decision can help you have a stress-free and affordable car rental experience with Budget.
See How Much You Can Save on Your Car Rental Insurance
Get StartedFAQ
How much is Budget car rental insurance?
The cost of LDW protection can be as low as $9 per day, according to Budget’s website. However, the cost may vary depending on the renter’s location and the value of the rental car. The cost of PAE protection is not explicitly mentioned in the provided search results
Budget offers a range of insurance options for car rentals, with prices varying depending on the type of coverage, rental location, and length of the rental period. Below is an overview of the common insurance products offered by Budget and their approximate costs:
– Loss Damage Waiver (LDW) – $9 per day
– Personal Accident Insurance (PAI) – $7.75 per day
– Supplemental Liability Insurance (SLI): SLI provides coverage against third-party injury and property-damage claims. It’s available for around $15 per day.
– Emergency Roadside Assistance – $5–$9 per day
– Zero Excess – $20–$40 per day
First time renting from Budget and the counter agent quoted me $24/day for their full coverage package. I had a CarInsuRent policy already and declined. The agent’s response was genuinely theatrical – implied I was taking a significant personal risk and asked me to sign a waiver acknowledging I’d declined. I signed it, drove away, returned the car spotless. The performance at the counter is designed to make you feel exposed. Having the certificate made me confident enough not to be moved by it.
The signed waiver acknowledgement is a standard pressure tactic at several major rental companies – it’s designed to feel consequential when it’s really just a standard documentation step. Having coverage you understand and trust completely changes how you experience that moment. Glad the rental was incident-free.
I will be renting car from Budget which I booked using expedia.com.
This would me my first time ever renting a car, I wanted to ask some questions.
– Should I be calling the agency to ensure they will have the car available ahead of time? (I requested 7 seater, very important for my trip)
– What insurance should I be purchasing to cover myself from small scratches and scuffs that may happen on the road?
FYI – I have collision and comprehensive from Geico w/ $1000 deductible that would cover rental. I also have Chase card which can cover up to $60,000 for covered theft or collision damage. I can purchase Collision Damage from expedia for $24/day
– Anything else I should be aware of as a 26 year old renter? (Extra charge/insurance, etc)
A few practical answers:
on the 7-seater, yes — call Budget directly to confirm the vehicle class is available at that specific location. Brokers don’t always guarantee a particular model, just a category.
On insurance: your Geico comprehensive + collision covers the rental car damage (with your $1,000 deductible), and the Chase card can cover that deductible as secondary insurance — so you’re actually well covered without buying Expedia’s $24/day CDW. Skip that.
At 26 you’re past the young driver surcharge threshold (usually under 25) at most companies, but confirm with Budget.
The main things to watch for at the counter: pre-pay fuel (decline it — pay as you use), roadside assistance upsells (usually unnecessary), and the pressure to buy their own CDW despite your existing coverage.
I currently have a Budget rental.
It’s a brand new 2026 Toyota Tacoma, just over 1k KMs on it.
While driving, a semi on the road lost many rocks out of the back and one bounced up and hit my windshield. The chip is small, about the size of a pea but I am concerned because I declined any type of insurance.
I do have State Farm full coverage, and I paid with an American Express card.
Is this worth reporting to budget and insurance now? Or should I just return the car and go about my life? I’m not sure if it’s better to not say anything or if that can increase the problem later. It is tiny and in front of the passenger seat.
Your advice is appreciated.
This is stressful but more manageable than it feels right now.
Here’s the honest advice: Do NOT just return the car and say nothing.
Here’s why: Budget conducts post-return inspections, and chips are specifically looked for – even small ones. If it’s discovered after return without being reported, it looks like you’re hiding it, and you lose any ability to control the narrative or involve your coverage proactively.
Your coverage situation is actually reasonably good:
* State Farm full coverage – comprehensive coverage (which is part of “full coverage”) typically covers windshield chips and glass damage. A pea-sized chip may be repairable rather than replaceable, which is often covered at zero cost under your comprehensive with no deductible impact in many states. Call State Farm before you return the car.
* American Express — Amex cards (particularly Gold, Platinum, and some Blue Cash variants) include secondary CDW that covers windshield damage. Check your specific card’s benefit guide
Recommended steps right now:
1. Photograph the chip immediately with a timestamp and something for scale.
2. Call State Farm today and ask specifically about glass/windshield claims under your comprehensive.
3. Report it to Budget proactively — frame it as “a rock hit the windshield while driving and I wanted to report it immediately.” This demonstrates good faith.
4. Do not attempt any DIY repair on a rental.
Reporting it is always better than hoping it goes unnoticed. Budget’s inspectors are trained to find exactly this.