Rental Car Insurance Market Report 2026

The rental car insurance market size has grown strongly in recent years. It will grow from $10.59 billion in 2025 to $11.33 billion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to increasing global travel activity, expansion of car rental services, rising consumer awareness of liability risks, growth of online travel booking platforms, increased vehicle utilization rates.

The rental car insurance market size is expected to see strong growth in the next few years. It will grow to $14.68 billion in 2030 at a compound annual growth rate (CAGR) of 6.7%. The growth in the forecast period can be attributed to increasing adoption of digital-first insurance models, rising integration with mobility-as-a-service platforms, expansion of electric vehicle rental coverage, growing demand for customized insurance plans, advancements in automated claims processing. Major trends in the forecast period include increasing adoption of add-on insurance at booking, rising demand for flexible coverage options, growing use of digital policy issuance platforms, expansion of short-term rental insurance products, enhanced focus on transparent pricing.

The increasing demand for rental vehicles is expected to drive growth in the rental car insurance market. Rental vehicles, which are automobiles temporarily hired for personal or business use through rental service providers, are gaining popularity due to a shift toward flexible mobility solutions. More consumers, especially in urban areas, are opting to avoid the high costs and responsibilities of car ownership. Rental car insurance supports this trend by offering financial protection during the rental period, making the service more appealing and reliable. For example, Statistics Canada reported that tourism-driven demand for rental vehicles rose by 13.5% in the first half of 2024 compared to the same period in 2023. Consequently, this growing rental vehicle demand is propelling the rental car insurance market forward.

Key players in the rental car insurance market are focusing on innovative digital solutions, such as app-based insurance platforms, to improve convenience, operational efficiency, and real-time policy access. These platforms enable users to purchase coverage, manage policies, and file claims without paperwork or location constraints. For instance, in May 2023, AXA Hong Kong & Macau launched Klook Rental Car Protection in collaboration with Klook. This product provides rental car excess coverage up to $5,376 (HKD 42,000) and personal accident protection up to $15,380 (HKD 120,000). It also offers benefits such as reimbursement for lost travel documents, compensation for non-refundable rental fees due to flight delays, and automatic policy extension. Customers can easily manage policies and claims through the Emma by AXA mobile app, delivering a fully digital insurance experience for travelers abroad.

In July 2024, Priceline.com LLC, a US-based travel technology firm, partnered with Cover Genius to introduce enhanced travel protection. Through this collaboration, Priceline integrated Cover Genius’s global distribution platform, XCover, to offer seamless travel protection for flights, hotels, rental cars, and packages. The service improves user experience with instant claims processing, multilingual support, and AI-driven policy matching. This partnership also aims to increase insurance attach rates and foster customer loyalty across North American markets. Cover Genius Inc. is a US-based Insurtech company.

Major companies operating in the rental car insurance market are Berkshire Hathaway Inc., Allianz SE, AXA Assistance S.A., American International Group Inc., Allstate Insurance Company, Liberty Mutual Insurance Company, The Progressive Corporation, Chubb Limited, The Travelers Companies Inc., Mapfre S.A., Enterprise Holdings Inc., Avis Budget Group Inc., The Hertz Corporation, Generali Global Assistance Inc., Europ Assistance Holding S.A., Budget Rent A Car System Inc., Sixt SE, Dollar Thrifty Automotive Group Inc., State Farm Mutual Automobile Insurance Company, Nationwide Mutual Insurance Company.

North America was the largest region in the rental car insurance market in 2025. The regions covered in the rental car insurance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the rental car insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The rental car insurance market includes revenues earned by entities by providing services such as roadside assistance, personal effects coverage, loss damage waiver, emergency medical coverage, and travel disruption coverage. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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