Car rental in Anchorage for Europeans

Question

Hello all !

We will be visiting Alaska (Anchorage area) in August pre-cruise and are planning our 13 day roadtrip.

Decided to book the rental car first but this is not as easy for us at it seems:

* we requested several quotes and the price differences are huge…also the difference in the terms and conditions is very confusing

* the major issue for us is the car insurance and all offered varieties/additions…in our country we insure our car and with our car insurance we will not be insured when we use someone elses car..in that case the car is again insured by its owner…so if someone from the US for example rents a car in Alaska that person will be insured for the rental car if he/she has it’s own car insurance ….not us. question: how does this work - what car insurance should you buy from the rental company ?

* then - rental companies offer CDW of which they say - this is “not an insurance” ? and liability etc etc…so this does not seem to be the ‘car insurance’

* we have contacted several companies for quotes that also include permission to drive the Denali Highway gravel road but for that money you could almost buy a car…so we have decided to skip Denali Highway.

* third party rentals like rentalcars or autoeurope come with very good rates for an SUV for example but are very not clear about what insurances they have included or on offer or that are mandatory…their rates seem to be very reasonable - but are they ?? will they for example force us as Eurpeans to purchase a US car insurance when we collect the car in Anchorage - and be a big financial disappointment?

* how can two different car rental companies offer the same type of car with a 40 % price difference…what do we overlook here ?

Is there anybody who can help us with this complicated issue - maybe somone from Europe who has done this before.

Thank you so much in advance

Answer

Renting a car in Anchorage as a European traveler can indeed be confusing, particularly because insurance requirements and rental terms differ from what you may be used to in Europe. Here’s a detailed explanation to help you navigate this.

1. Price differences between rental companies

It is common to see large price differences for the same type of car. Several factors contribute to this:

Inclusion of insurance or protection packages – some quotes include Collision Damage Waiver (CDW), theft protection, liability coverage, or airport fees, while others quote a bare rate.
Rental location – airport rentals often include additional surcharges and taxes compared to off-airport locations.
Fuel policies and mileage limits – unlimited mileage may be included in some rates but not in others.
Vehicle age and model – newer vehicles or SUVs in high demand can command higher rates.

2. Understanding insurance options

In the US, including Alaska, car insurance for rentals is different than in Europe. Your personal car insurance from Europe usually does not cover rental cars in the US. Therefore, the rental company will require you to have some form of coverage. Here are the main types:

CDW / Loss Damage Waiver (LDW) – This is not technically insurance, but a waiver that relieves you from financial responsibility for damage or theft of the rental car. Most rental companies strongly recommend it, especially for tourists.
Liability insurance – Covers damage or injury to other people or property. In the US, this is mandatory. Some rental companies include the state minimum liability coverage in the rental, but it is often minimal.
Supplemental Liability Insurance (SLI) – Optional but recommended. Provides additional liability coverage above the state minimum, which can be useful in case of a serious accident.
Personal Accident / Personal Effects Coverage – Optional coverage for injuries or belongings inside the car.

As a European renter, you typically need to purchase CDW/LDW or show proof of equivalent insurance coverage from a global insurance provider. Many credit cards provide rental car insurance coverage in the US if you pay for the rental with the card, but check carefully for exclusions (like SUVs, certain off-road roads, or Alaska-specific conditions).

3. Third-party bookings

Booking via platforms like Rentalcars or AutoEurope can provide good rates, but their insurance inclusions vary:

Some include basic CDW, but you may be required to pay for additional coverage at the counter.
Mandatory state liability is usually included, but the level may be low.
Always read the fine print regarding “off-road” exclusions, like the Denali Highway, which many rental companies prohibit. Driving there without permission can void your insurance.

Be prepared that rental counters may ask you to purchase additional insurance if they do not recognize your European insurance coverage. This can indeed be a financial surprise if you haven’t clarified it in advance.

4. How to navigate this efficiently

Check with your European car insurance or travel insurance provider if they offer US rental coverage, and obtain a written confirmation.
Check credit card benefits: many premium credit cards offer CDW coverage in the US if the rental is paid with the card. Confirm if SUVs and Alaskan roads are covered.
Compare total costs including mandatory insurance and surcharges, not just the base rental price.
Book rentals that explicitly allow the roads you plan to drive (most rentals restrict certain gravel or unpaved roads like Denali Highway).
Ask rental companies directly: it’s worth clarifying insurance inclusions, CDW limitations, and any additional charges for foreign renters.

In summary, the low rates you see online may not reflect the full mandatory costs of insurance and surcharges, and as a European renter, you will likely need to either purchase CDW/LDW from the rental company or show adequate coverage from your insurer or credit card. Planning ahead and confirming in writing can prevent major financial surprises at the counter.

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