Does my auto insurance coverage extend to rental cars?

Whether you’re visiting someone far from home, you’re on a business trip or you’re in need of temporary transportation while your everyday vehicle is in the shop, renting a vehicle is probably the most convenient solution. However, it’s important to consider one thing that too many travelers forget before it’s too late — does the rental car have or need auto insurance coverage?

 

While some drivers never even consider insurance before they rent, others assume their personal coverage will automatically apply to their given situation, but this isn’t always the case. Today we’re going to dive into the intricacies of your auto insurance coverage and whether or not it extends to rental cars, plus some other options for you to consider when renting a vehicle.

Unfortunately there’s no catch-all answer to this question, as it will depend on your specific coverage as well as the type of vehicle you’re renting. But to boil it all down, there’s a very good chance that your personal auto insurance policy does extend to rental cars. You shouldn’t just operate under that assumption, though, so be sure to check your policy or reach out to your agent for a definitive answer. Here are a few examples of coverage types that often extend to rental cars:

• Liability Coverage. This type of coverage protects against damages or injuries caused to others while driving your vehicle.
• Collision Coverage. This type of coverage protects against damages to the rental car from accidents, regardless of who was at fault.
• Comprehensive Coverage. This type of coverage protects against non-collision damages such as theft, vandalism and weather-related incidents.

One important thing to note is that, even if your policy does extend to rental cars, your deductibles and policy limits will still apply. That means you might still be on the hook for out-of-pocket expenses in the event of a collision or other accident. There are a few other things you should keep in mind as well, as there are exceptions and limitations you may face even if your rental car is covered, including:

• Your policy may not extend coverage to certain types of vehicles; for example, luxury, exotic and commercial vehicles are often excluded from rental car coverage
• If you have a personal insurance policy, it may not extend to rental vehicles utilized for business purposes.
• Your policy may also exclude international rentals, meaning you’ll be uninsured if you rent a vehicle in a country outside of the U.S.

These are other things to consider checking when reaching out to your agent or otherwise checking your policy.

The vast majority of rental car companies will offer their own additional insurance options. These are important to consider if your policy doesn’t extend to rental cars, or if you’d like to supplement your own policy with additional coverage. Here are some examples of options most rental companies offer:

1. Loss or Collision Damage Waiver. These policies will cover damage to the rental car, but they often feature exclusions that you should study before purchasing.
2. Supplemental Liability Insurance. This policy will provide extra liability protection beyond whatever your personal policy offers.
3. Personal Accident Insurance. This policy will cover medical expenses for injuries sustained in an accident, but only for you and passengers in the rental vehicle, not other involved vehicles.
4. Personal Effects Coverage. This final option will protect belongings inside the rental car from theft or damage.

One other option you can consider involves paying for your rental on a credit card. If you have a credit card that you’re willing to use when renting a vehicle, most major credit card companies offer rental car coverage as long as you pay for the rental with your card. This type of insurance will not typically cover liability or medical expenses, but will cover collision damages as well as, in some cases, theft and vandalism.

 

Hopefully, all of this information has given you a better understanding of your auto insurance and how it might apply to rental cars. If you take just one thing away from this blog, it’s that you should contact your agent to get concrete details on how your policy interacts with rental vehicles before making any purchases. Best of luck in your travels, be sure to get in touch with us if you’d like to discuss a new automotive insurance policy.