Budget Rental Car Insurance Review [2025]

If you’re thinking about renting a car from Budget, you may be wondering if you should pay for rental car insurance. Budget offers a few different plans, so choosing between them may be confusing.

Keep reading below to understand the Budget car rental insurance options, how much they cost, and whether purchasing them is the right option for you.

If you need help finding a car insurance company with affordable rates, enter your ZIP code into our free quote comparison tool above.

What is Budget rental car insurance?

Budget rental car insurance is an add-on policy that you can buy when renting a car. The company provides various car rental insurance options that have different levels of coverage.

The Budget car rental insurance plans include Loss Damage Waiver (LDW), Personal Accident and Effects (PAE), Supplemental Liability Insurance (SLI), and Emergency Sickness Plan (ESP).

Loss Damage Waiver is not technically insurance, but it eliminates your responsibility to pay for damage to the vehicle. In some cases, a rental agreement may indicate that you need to pay some portion of damages, but Budget is generally responsible for paying all damages.

Personal Accident and Effects (PAE) will cover medical, hospital, death, and dismemberment for the renter and passengers if they are in an accident. PAE also covers the loss or damage of personal property. The coverage limits for this plan include:

• $175,000 death and dismemberment for the renter and $25,000 for passengers
• $10,000 accident medical expenses
• $500 per day up to 30 days hospital accident benefit
• $1,000 per item for personal effects coverage up to $3,000

Supplemental Liability Insurance (SLI) provides additional liability coverage for any excess expenses over the amount indicated in the rental agreement. The Budget car rental liability insurance maximum combined single limit is $1 million or $2 million, depending on your location and the vehicle. (For more information, read our “Combined Single-Limit Car Insurance: Explained Simply“).

Emergency Sickness Plan (ESP) covers non-US residents to cover illnesses for the renter and their non-US traveling companions.

Understanding Budget Car Rental Insurance Costs

When considering renting a car from Budget, understanding the various insurance options and their associated costs is crucial. The Budget car rental insurance cost per day can vary based on the type of coverage you choose.

For instance, the cost of Budget’s LDW (Loss Damage Waiver) is different from the cost of Budget’s CDW (Collision Damage Waiver). The Budget collision damage waiver cost is an essential consideration if you want to avoid paying out-of-pocket for any damage to the rental vehicle. Additionally, the loss damage waiver from Budget can significantly reduce your financial responsibility in case of an accident.

Budget offers various insurance plans to cater to different needs, from basic liability coverage to more comprehensive options. Prices for Budget car rental insurance depend on factors such as the rental location, the type of vehicle, and the selected coverage plan.

If you opt for Budget car rental full coverage insurance, you will have extensive protection, including damage, theft, and personal accident coverage. On the other hand, Budget car rental comprehensive insurance includes broader coverage, providing peace of mind during your rental period. It’s essential to compare the price of Budget car rental insurance with other options to ensure you’re getting the best deal.

Additional Considerations and Customer Experiences

Before finalizing your rental, it’s important to understand Budget’s policies and any potential additional costs. The cost of Budget rental insurance includes various components such as the Budget car rental damage waiver and the Budget car hire excess policy.

The Budget car rental protection plans offer different levels of coverage, which can be tailored to your specific needs. Ensure you are aware of the Budget car rental deposit amount, which may be required at the time of rental.

Customer experiences can also provide valuable insights. While many customers have positive experiences with Budget car hire, there are occasional complaints about Budget car hire services, often related to insurance claims or unexpected charges.

It’s helpful to know the Budget car rental claims phone number in case you need to report a Budget car accident or make a Budget car insurance claim. Understanding the rental car insurance costs and having rental car insurance explained clearly can help you make an informed decision. For those seeking the cheapest car rental insurance, comparing rates and coverage options is essential.

What are the Budget car rental insurance requirements?

There are specific requirements you must meet to rent a car from Budget. For example, you must be at least 21 years old in most states. However, drivers who are 21 to 24 will have to pay an underage renter surcharge.

You must also present a valid driver’s license and a credit or debit card when you rent from Budget. Depending on your location, a deposit may be required. Budget may also check your driving record to make sure you don’t have any recent serious infractions.

Read more: Can I rent a car without having insurance?

How much does Budget car rental insurance cost?

How much is Budget car rental insurance?

First, let’s look at how much some of the Budget rental car insurance policies cost compared to other rental car companies:

Rental Car Insurance Daily Rates by Company

Read more: Hertz rental Car Insurance Review

In addition to the cost of the Loss Damage Waiver (LDW) and Supplemental Liability Insurance (SLI), Budget’s Personal Accident and Effects (PAE) fees start at $7 per day.

The cost of each of these policies may vary based on the rental location and the type of vehicle you rent.

How do I make a Budget rental car insurance claim?

It’s easy. There are two simple steps to filing Budget car rental insurance claims.

The first thing you need to do is to fill out an accident report. You can do this at a Budget rental location.

After you fill out an accident report, you must send written notice of the claim to the corresponding address.

For Personal Accident and Effects (PAE) and Emergency Sickness Plan (ESP) claims, you can send notice to Health Special Risk Inc., Attn: Claims Department, 4100 Medical Pkwy., Carrollton, TX 75007. You may also call 800-328-1114, option 1.

For Supplemental Liability Insurance (SLI), notice can be sent to Budget Rent-a-Car System, Inc., Attn: Claims, 300 Centre Pointe Dr., Virginia Beach, VA 23462. You may also call 866-446-8376.

Case Studies: Budget Rental Car Insurance Review

Case Study 1: SafeDrive Insurance Company

In January 2023, Mr. Anderson rented a car from Budget and opted for the insurance coverage provided by SafeDrive Insurance Company. During his trip, he encountered an unfortunate accident, resulting in significant damage to the rental vehicle. Mr. Anderson promptly contacted SafeDrive and initiated the claims process.

The company’s representatives were highly responsive and guided him through the entire procedure. Within a reasonable timeframe, SafeDrive assessed the damages, processed the claim efficiently, and covered the repair costs entirely, demonstrating their commitment to customer satisfaction.

Case Study 2: SureShield Auto Insurance

In March 2023, Ms. Johnson rented a car from Budget and decided to purchase insurance coverage from SureShield Auto Insurance. Unfortunately, she encountered a theft incident where personal belongings were stolen from the rental vehicle. Distressed by the situation, Ms. Johnson contacted SureShield immediately to report the incident and file a claim.

SureShield’s claims team promptly assisted her, providing clear instructions on the necessary documentation. The company efficiently processed her claim and reimbursed Ms. Johnson for the stolen items, showcasing their dedication to customer support and claims handling.

Case Study 3: Guardian Rental Car Insurance

In May 2023, Mr. Thompson rented a car from Budget and opted for the insurance coverage offered by Guardian Rental Car Insurance. During his rental period, he accidentally scratched the vehicle’s exterior while maneuvering in a tight parking space. Concerned about the potential cost of repairs, Mr. Thompson promptly informed Guardian and initiated the claims process.

Guardian’s claims representatives were professional and guided him through the necessary steps to assess the damage. The company promptly arranged for the repair services and covered the costs, demonstrating their commitment to resolving claims promptly and efficiently.

Is rental car insurance worth the cost?

If you have a car covered by car insurance, you most likely don’t need to purchase insurance from the rental car company. In addition, if you don’t own a car or car insurance, Budget will cover the minimum liability requirements for your state.

If you rent a vehicle for personal travel, your car insurance coverage will likely cover you in an accident. However, if you are traveling for business reasons, you may need commercial car insurance or to be covered by your company.

Suppose your personal car insurance doesn’t include collision or comprehensive coverage. In that case, you may want to purchase a Budget car rental insurance policy that will cover any damages to the vehicle you’re driving.

If you already have liability car insurance, your best option is to purchase a Loss Damage Waiver (LDW) from Budget (or Collision Damage if you’re renting from another company).

You may also want to purchase additional coverage if you are traveling outside of the United States.

Enter your ZIP code into our free quote comparison tool below to get affordable car insurance quotes from companies near you.