If you’re driving a rental car, you may be wondering if your personal car insurance will cover you. The answer is maybe. It depends on your car insurance policy and the type of coverage you have.
If you have collision and comprehensive coverage, it may extend to a rental car. But if you only have liability insurance, it will not cover damage to the rental car.
Does Personal Car Insurance Cover Rental?
Yes. In most cases, your own auto policy insurance extends to the rental car with the same coverage limits and deductibles. So you may not need additional insurance from your rental company.
For example, if your rental car is involved in an accident, your personal car insurance policy will cover damages to the rental car only if you have a collision and comprehensive coverage.
The one caveat is that you’re only covered to the limits of your personal vehicle’s auto policy.
If you have a collision and comprehensive coverage for your primary vehicle, be sure that you will be covered for rental cars with a condition; You will be covered only to the limits of your own vehicle’s policy.
So if your want to get a more expensive car with all the bells and whistles for a weekend it will be tricky.
Collision coverage– Pay to repair or replace your vehicle if it collides with another vehicle or object.
Comprehensive coverage– Pay to repair or replace your vehicle if it’s damaged by something besides a collision, including theft, fire, vandalism, or hitting an animal.
If you have comprehensive and collision coverage on your personal car insurance policy, you may be covered for damage to a rental car.
However, this coverage is usually subject to a deductible. So if you have a $500 deductible and the damage to the rental car is $1,000, you would be responsible for paying the first $500 and your insurance would cover the remaining $500.
Most of the common types of rental car protection are identical to coverages available on a regular car insurance policy.
| Your own Policy | Rental Car Insurance |
Comprehensive and collision coverage | Collision damage waiver (CDW)/Loss damage waiver (LDW) |
Bodily injury and property damage liability coverage | Liability coverage |
| Homeowners or renters insurance personal property coverage | Personal effects coverage |
| Personal injury protection and health insurance | Personal accident insurance |
Some exclusions may apply. For example, many policies exclude luxury vehicles, commercial vehicles (eg. U-Hauls), cargo or 15-passenger vans, or rentals for business trips.
Check your policies to ensure you’re covered before declining coverage at the rental counter.
Should I Get Rental Car Insurance, even if I’m Already Protected?
If you’re already protected by car insurance, you may wonder if you need to get rental car insurance as well. It’s a valid question.
Here’s what you need to know about rental car insurance.
If you have comprehensive and collision coverage on your own car, that protection typically extends to a rental car.
However, there may be some instances where your personal car insurance doesn’t cover a rental car. For example, if you’re renting a car for business purposes, your personal policy might not apply.
In general, it’s a good idea to check with your insurer before renting a car to see what coverage they provide. That way, you can make an informed decision about whether or not to purchase additional rental car insurance.
More reasons why you should get rental car insurance are explained below.
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What Does Rental Car Insurance Policy Cover?
Car rental insurance provides coverage when driving a rental car.
There are 4 main car rental insurance options that could be offered through a rental agency namely:
- A loss damage waiver(LDW)/Collision damage waiver (CDW)– releases you from responsibility for damage that occurs to the rental car, including theft and vandalism.
- Liability coverage– Covers you for damages or injuries you cause while driving the rental.
- Personal accident car rental insurance– protects against injuries to you and your passengers while driving a rental car.
- Rental car personal effects coverage– Personal effects coverage covers your personal items if stolen from a rental car.
Rental car companies will also often offer to sell you a CDW at the time of rental (with other types of policies), which typically adds a cost of $9 to $20 a day.
Our study on Does State Farm Cover Rental Cars After Accidents is an excellent resource before you go for that trip.
Reasons Why You Should Get Rental Car Insurance.
If you have a personal auto insurance policy already, you don’t need rental insurance.
However, there are a few instances, however, where adding rental car insurance could be beneficial and worth considering:
- You want more coverage-If you’ll be driving in an unfamiliar area or in bad weather and are nervous about possible damage to the vehicle, you might consider either raising your coverage levels or picking up additional coverage from the rental car company or a third-party provider.
- Your personal car insurance has a very high deductible-Rental car insurance coverage often carries no or low deductibles, so you could pay much less or nothing out of pocket on a claim.
- You are travelling to another country-Most insurance companies cover rental cars in the US and Canada. If you are travelling outside these two countries, you need to get supplemental insurance.
- You are travelling for business-In most cases, your personal auto insurance policy won’t cover you if you are travelling for business. You will need to get supplemental insurance
- You want to avoid claims on your auto policy– Making several claims might raise your premium significantly. To avoid paying higher premiums, you can decide to get car rental insurance.
Our article “Is it Necessary to Buy Rental Car Insurance?” is an excellent resource to answer this question before you go on that trip.
Conclusion( Summary of Does Personal Car Insurance Cover Rental?)
In conclusion, personal car insurance covers your rental vehicle too.
However, it is important to check with your insurance provider to make sure that you are adequately covered before you rent a car.
If you are not covered, or if your coverage is not enough, then purchasing rental car insurance may be a good idea.
