Staring at that rental car insurance screen, wondering if you’re about to get ripped off? You’re not the first person to question whether Budget’s insurance add-ons are worth the extra cash or just another way to drain your wallet. Let’s cut through the marketing fluff and figure out if budget car rental insurance is worth it for your specific situation.
What Budget Car Rental Insurance Actually Covers
Budget offers several insurance products, but they’re not all created equal. Here’s what you’re actually buying when you click “yes” on those coverage options.
Collision Damage Waiver (CDW)
CDW limits how much you’ll pay if the rental car gets damaged. But here’s the catch – Budget’s standard CDW still leaves you with an excess of €1,500 to €2,400 depending on the car type.
Let’s say someone scratches your rental’s door and repairs cost €2,000. With CDW, you’d pay €1,500 (your excess) instead of the full €2,000. Without CDW? You’re on the hook for everything.
Super CDW (SCDW) costs an extra €18-27 per day but reduces your excess to €0-€1,000. If you’re renting a luxury car or just hate financial surprises, this might make sense.
Theft Protection (TP)
TP covers vehicle theft with the same excess structure as CDW. Skip this coverage and you could face paying the car’s full value if it gets stolen. That’s potentially €20,000+ depending on what you’re driving.
Supplemental Liability Insurance (SLI)
SLI provides third-party coverage up to €5 million for bodily injury and €1 million for property damage. This protects you if you hurt someone or damage their property while driving.
Here’s where it gets tricky – your personal car insurance might not cover international rentals. If you’re from the UK renting in Malta, your domestic policy probably won’t help.
How Budget Insurance Stacks Up Against Your Existing Coverage
Your Personal Auto Insurance
Most personal auto policies extend coverage to rental cars, but there are major gaps:
- International travel: Many policies exclude rentals outside your home country
- Business use: Personal insurance typically won’t cover work-related rentals
- Deductibles still apply: You’ll pay your normal deductible for any claims
According to the National Highway Traffic Safety Administration, impaired driving causes thousands of accidents annually, making liability coverage crucial when you’re in unfamiliar territory.
Credit Card Coverage
Credit cards often provide secondary collision coverage but rarely include liability protection. Your Chase Sapphire Reserve might cover collision damage up to $75,000, but it won’t help if you injure someone.
The key word here is “secondary” – your credit card only kicks in after your personal insurance pays out. No personal coverage? Your credit card benefits might be useless.
The Real Cost Breakdown
Let’s talk numbers. Is budget car rental insurance worth it from a pure dollars-and-cents perspective?
Scenario 1: Going Bare (No Budget Insurance)
- Potential savings: €20-47 per day
- Risk exposure: Full repair costs, theft liability, insufficient third-party coverage
- Worst case: €20,000+ for a stolen vehicle or major accident
Scenario 2: Full Budget Coverage
For a 7-day rental with CDW and TP:
- Daily cost: €20-27
- Weekly total: €140-189
- Protection: Excess limited to €0-€2,400 for collision/theft
| Coverage Type | Daily Cost | What It Covers | Excess Amount |
|---|---|---|---|
| Standard CDW | €20-25 | Collision damage | €1,500-€2,400 |
| Super CDW | €38-52 | Collision damage | €0-€1,000 |
| Theft Protection | €20 | Vehicle theft | €1,500-€2,400 |
| SLI | Often included | Third-party liability | N/A |
When Budget Insurance Makes Sense
You’re Traveling Internationally
If you’re renting outside your home country, your personal auto insurance probably won’t cover you. Budget’s insurance becomes essential, not optional.
Your Credit Card Lacks International Benefits
Many credit cards exclude international car rental coverage. Check your card’s terms before assuming you’re protected.
You Don’t Have Personal Auto Insurance
No car at home means no personal coverage to extend to rentals. Budget’s insurance fills this gap completely.
You’re Risk-Averse
Some people sleep better knowing they won’t face surprise bills. If a €150 insurance charge beats the stress of potential €2,400 excess fees, go for it.
When You Can Skip Budget Insurance
You Have Comprehensive Personal Coverage
If your personal auto policy covers international rentals and business use, you might already be protected. Call your insurer to confirm before traveling.
Your Credit Card Offers Primary Coverage
A few premium credit cards provide primary (not secondary) international rental coverage. These rare gems make Budget’s insurance redundant.
You’re Comfortable with Calculated Risk
Some experienced renters self-insure by setting aside money for potential damages. This works if you rent frequently and understand the risks.
Hidden Costs and Limitations
Budget’s insurance isn’t perfect. Here are the gotchas that might surprise you:
Geographical Restrictions
Budget prohibits taking rental cars across borders in many locations. Drive from Malta to Italy? Your insurance becomes void instantly.
Loss-of-Use Charges
If your rental needs repairs, you might pay “loss-of-use” fees while it’s in the shop. Some credit cards cover this; Budget’s insurance typically doesn’t.
Administrative Fees
Expect additional charges for processing claims, even with full coverage. These fees add up quickly.
Making the Smart Choice
So is budget car rental insurance worth it? The answer depends on your specific situation.
Buy Budget insurance if:
- You’re traveling internationally
- Your personal insurance excludes rentals
- Your credit card lacks international benefits
- You prefer guaranteed peace of mind
Skip Budget insurance if:
- Your personal policy covers international rentals
- You have primary credit card coverage
- You’re comfortable self-insuring
- You’re renting domestically with good existing coverage
| Your Situation | Recommended Action | Why |
|---|---|---|
| International travel, no personal coverage | Buy full Budget coverage | Essential protection gap |
| Domestic rental, good personal insurance | Skip Budget insurance | Redundant coverage |
| International travel, comprehensive credit card | Buy SLI only | Cover liability gap |
| No personal insurance at all | Buy full Budget coverage | No other protection |
Before You Decide
Take these steps before your next rental:
Call your auto insurer and ask specifically about international coverage, deductibles, and business use exclusions.
Review your credit card benefits – don’t assume you’re covered. Many cards exclude international rentals or provide only secondary coverage.
Document everything when picking up your rental. Take photos of existing damage to avoid disputes later.
Read the fine print on Budget’s policy. Understand what’s excluded and where coverage applies.
The bottom line? Budget car rental insurance isn’t automatically a rip-off, but it’s not always necessary either. Your existing coverage, travel destination, and risk tolerance should drive this decision – not the rental counter agent’s sales pitch.
Most travelers with comprehensive personal auto insurance and good credit card benefits can skip Budget’s coverage for domestic rentals. International travelers often need it. When in doubt, err on the side of protection – vacation disasters cost more than insurance premiums.
