Does My Car Insurance Cover Rental Cars? – Forbes Advisor

Personal car insurance generally extends to rental cars with the same coverage limits and deductibles as your policy. Still, rental car insurance may be worthwhile for some drivers in certain situations. That’s why it’s prudent to know your rental car insurance options before you pick up the keys at the counter.

Do Rental Cars Require Insurance?

Like any other vehicle, rental cars need car insurance to be operated on the roadway. You’ll need at least liability insurance. It’s state-mandated and pays for injuries and property damage you accidentally cause to others. 

Liability car insurance is the basic coverage states require vehicles to have—including rental cars.

It’s also wise to have other types of car insurance that can help pay to repair or replace a rental car you damage or medical bills for you and your passengers if you cause an accident.  

Does My Personal Car Insurance Cover Rental Cars?

Your personal auto insurance policy will generally cover a rental car used for personal travel. If you’re driving a rental car for business use, be aware that some insurers don’t cover a vehicle rented for business purposes. 

Before booking your rental car, check with your car insurance company to verify whether you have rental car coverage from your current policy and review coverage details. 

Common Personal Car Insurance Coverage Types Extended To Rental Cars

Here are common types of car insurance coverage that may be required by states or optional and how they apply to a rental car.

Check Your Auto Policy for Exceptions

Before renting a car, verify that your car insurance coverage extends to rentals and check your policy for exclusions. For instance, your auto insurer may have an exclusion for exotic vehile rentals or rentals over a certain value. 

Does My Credit Card Provide Rental Car Insurance Coverage?

Some credit cards provide rental car insurance as a perk. These credit card companies usually require that you use their card to pay for the rental car, are the primary renter and decline the rental car company’s collision damage waiver. 

Depending on your credit card, it may offer primary or secondary rental car insurance. 

Most credit cards provide secondary coverage, but the best credit cards for rental car insurance offer primary coverage. Here’s the difference:

• Primary coverage. Your credit card will pay out first for a claim. Primary coverage means you don’t have to involve your car insurance company or pay a car insurance deductible. 
• Secondary coverage. Your credit card will only pay the amount not covered by another insurance policy, such as your personal auto insurance. The credit card might reimburse your deductible. 

Rental Car Insurance Options

Consider a rental car company’s insurance options when you don’t have other coverage for a rental car or would like to supplement your existing coverage. 

For example, maybe you have low liability limits on your personal auto policy and would like higher limits while driving the rental car. In that scenario, you can buy supplemental liability insurance from the rental car company to raise the liability limits. That way your coverage will pay out a higher amount if you cause an accident that injures someone or damages their property.

Here are common coverage types of rental car insurance you’ll find. 

Do You Need Rental Car Insurance?

Your specific situation will determine whether you need rental car insurance. Here’s our take on when to consider or skip buying insurance coverage at the rental car counter.

Rental Car Insurance Alternatives

In addition to your personal auto insurance, you may already have existing coverage from other policies that can extend to your rental car for certain needs. This can include:  

• Your health insurance. Most health insurance policies will cover medical expenses from an auto accident during a rental car trip within the U.S. Your deductible, copays and coinsurance will apply. 
• Your home, condor or renters insurance. Homeowners insurance, condo insurance and renters insurance cover your personal belongings for theft, even when stolen from a rental car. For example, you can file a claim with your homeowners insurance if your laptop is taken from your rental car.
• A travel insurance policy. Some of the best travel insurance companies include limited coverage for rental cars in their top-rated plans. Typically, benefits are paid if the vehicle is stolen or damaged due to unforeseen events, such as a crash, severe weather, vandalism or theft. Examples include: IMG’s iTravelInsured LX plan provides $40,000 in rental car coverage, PrimeCover’s Luxe has $50,000 and Trawick International’s Safe Travels Voyager has $35,000.  
• Non-owner car insurance. Non-owner car insurance is liability coverage you can buy if you don’t own a car. It’s a good option for drivers who frequently rent cars and want to carry their own liability auto insurance. 
• Umbrella insurance. If you cause a car crash in your rental car that exceeds your liability limits on another policy (like your personal auto insurance), umbrella insurance pays the excess amount up to the policy limits.

Stand-Alone Rental Car Insurance

If you don’t have auto insurance or other policies or benefits covering a rental car, you may want to consider a stand-alone policy. 

Some insurance companies sell rental car insurance as a stand-alone policy you can purchase before your trip.

Stand-alone policies can be cheaper than coverage the rental car agency offers. If you want to buy rental car insurance, comparing quotes before going to the rental car counter is wise. Here are some options:

• Allianz Global Assistance
• Bonzah
• Rental Cover
• Sure

Rental Car Insurance Frequently Asked Questions (FAQs)