It depends on your automobile policy.

Here’s why: If you damage a rental car, the rental car company may charge you for the damage to the car as well as for the rental income it loses while the car is being repaired. In order to cover these potential charges, the rental car company may try to sell you a collision damage waiver which can cost anywhere from $8-$15 per day. If your automobile policy covers rental vehicles under the liability portion of your policy, you may not need to buy the collision damage waiver if the policy provides coverage for your legal obligation to the rental agency. Additionally, you won’t be charged the deductible.

If your automobile policy covers rental cars from the comprehensive and collision coverages, you may only be covered for the damage to the car, but not for the loss of rental income that the rental company could charge you. What’s more, you would be obligated to pay your deductible. In that case, you should consider purchasing the collision damage waiver.