Yes, the vehicle is insured by the car rental company. However, if the rental car is damaged or stolen while it is in your possession, you will be liable to pay damage repair costs up to the capped excess amount. 

This amount commonly ranges from $4000 to $8250, depending on the vehicle type. Luxury and specialty fleet may incur higher charges. 

The excess amount for your specific vehicle is outlined in your Rental Agreement. For more information, read our article on financial liability