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  • Writer's picturejoseph retcho

Is a rental car covered by my car insurance?

Updated: May 12, 2023


handing car key to customer

Many of us have been in this situation: you're at the rental car counter, checking in to pick up a vehicle you reserved months before. But before you can check out, you must make a decision: will you acquire automobile rental insurance, or will you deny it and later regret it?


It can be difficult to decide whether or not to acquire rental car insurance. However, researching rental car coverage ahead of time, learning what to expect, and understanding your own personal car insurance policy can help make your selection easier.


What Exactly Is Rental Car Insurance?


Rental car insurance, often known as rental car coverage, is a sort of protection provided at the time of rental to safeguard you when renting a vehicle from a rental car business. When renting a car in this manner, such as at an airport, you may be asked if you want to purchase coverage or waive it.


Not sure if you should pay the extra money for rental car insurance? Here are a few factors to keep in mind so you can assist ensure your safety.


Rental Reimbursement Coverage vs. Rental Car Insurance


Rental car coverage is distinct from rental reimbursement coverage or extended transportation expenditures coverage, which is an add-on to your automobile insurance policy that might cover the cost of a rental car if your own vehicle is damaged in a covered accident.


Is my current car insurance sufficient to cover a rental?


Your existing car insurance coverage should be the first element influencing your decision to obtain rental car coverage. Before you hire a car, go over your insurance coverage. Do you have comprehensive, collision, and liability insurance? Does it apply to any rental automobiles you may drive? In many circumstances, your existing car insurance coverage will cover rental cars to some extent. If you're unsure whether your auto insurance coverage covers rentals, contact your insurance agent.


Do I Require the Rental Company's Insurance?


You should investigate the sorts of coverage provided by the rental automobile business. Is it coverage that your current policy does not provide, or does it, in most cases, overlap with your personal insurance? Here are a few options that rental car companies commonly provide:


Coverage for Liability

Liability insurance is a vital form of protection. Bodily injury and property damage liability coverages compensate you for injuries to others and damage to another person's property if you cause an accident.


There's a high possibility your current policy already covers this. Examine your insurance to see whether you could benefit from greater liability coverage.


Physical Damage Protection


For a covered loss, physical damage coverage covers comprehensive and collision coverage. This extra coverage may be applicable to rental automobile insurance.


Insurance for Credit Card Rental Cars


Do you have a credit card or two? Examine your contracts for any credit card rental car insurance that may be included. As an added benefit, several credit cards include rental automobile insurance to cardholders. Depending on the credit card and provider, these can either replace or enhance your primary insurance coverage. To take advantage of these incentives, you must book and pay for your automobile rental with the credit card in question.


What Is the Cost of Rental Car Insurance?


The cost of rental car insurance varies depending on the type of vehicle you rent, how long you keep it, and other factors.


The Rental Car Claim Procedure


If you are in an accident while driving your rental automobile, you can call your insurance company or the rental company. If you're unsure what to do, seek advice from your local independent agency representative.

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