Does My Car Insurance Cover Rental Cars?
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Many car insurance policies cover rental cars but the coverage you get and when you can use it will depend on the terms of your policy.
You may want to buy more insurance from the rental car company if your policy's limits are low or you're concerned about paying for damage to the vehicle.
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Does my auto insurance cover rental cars?
Most major insurance companies cover rental cars, but the coverage amounts and options will depend on your policy's details.
You can check those details by contacting your insurance company to learn more about your policy's terms. Your insurance agent or a customer service representative with your insurance company can find out if you have rental car coverage. If you're comfortable with more technical language, you can also read your car insurance policy's booklet to see if it includes rental car coverage.
Should I use my car insurance on a rental car?
Pros | Cons |
|---|---|
| Coverage is included in your standard policy | Coverage limits may be lower than you need |
| Coverage limits are the same for the rental as they are for your own vehicle | You may still have gaps in the types of coverage needed |
| Claims are handled through your insurance company |
Car rentals on business trips may not be covered
The rental car coverage most insurance policies offer typically only covers rentals used on vacation or for personal purposes.
When you're traveling for work, you may need to buy rental car insurance from the rental agency or look into another way to protect yourself behind the wheel. If you reserved the rental car with a business credit card, the card may offer a limited type of insurance for the rental.
Your employer may also cover your rental car through its business car insurance policy.
What your car insurance covers with rentals
Your rental car will usually get the same insurance coverage that your personal car does. If your personal insurance pays for damage when you cause an accident or a tree falls on your car, it will do the same for your rental.
The coverage limits on your rental will be the same as on your personal car for each type of coverage you have.
How rental car insurance works
Rental car insurance is a policy you buy from the rental agency. It covers your liability if you get in an accident, pays for repairs to the rental and the other car if you cause the crash, and can help cover medical treatments for you and the other drivers. You usually need to accept or waive the coverage when you pick up the car.
If you choose to buy rental car insurance, you'll pay extra for it. But if you don't have personal insurance, getting rental car insurance can protect you. Without rental car insurance, you'll have to pay for any accidents you cause.
Talk with the reservations agent to learn more about the options available to you through their agency and for your particular rental car.
What rental car insurance covers
Rental car insurance is offered by the rental company when you get the car. This policy usually covers everything your personal auto insurance policy does, including liability, collision damage, theft and medical costs if you injure someone. Some policies also offer roadside assistance.
Extended Liability
Liability coverage kicks in if you damage another person's vehicle or property or injure someone. The coverage limits for extended liability often range from $300,000 to $1 million.
Collision and loss waiver
The collision and loss waiver helps pay for damage to your rental vehicle. It also covers the cost of the vehicle if it's stolen while you're using it. If you have comprehensive coverage and collision coverage for your personal vehicle, you may be able to waive this policy.
Personal accident insurance
Personal accident insurance helps pay for medical expenses tied to injuries you or your passengers suffer in an accident. If you have either personal injury protection (PIP) medical expense coverage with your personal insurance policy, you can probably waive this coverage.
State | Minimum PIP requirement |
|---|---|
| Delaware | $15,000 per person, $30,000 per accident |
| Florida | $10,000 |
| Hawaii | $10,000 |
| Kansas | $9,000 |
| Massachusetts | $8,000 per person |
| Michigan | $250,000 or opt out |
| Minnesota | $20,000 for medical expenses, $20,000 for nonmedical expenses |
| New Jersey | $15,000 |
| New York | $50,000 |
| North Dakota | $30,000 |
| Oregon | $15,000 per person |
| Utah | $3,000 per person |
Personal effects coverage
Many rental car insurance policies offer personal effects coverage that protects the things you keep in your rental car. This can include your phone, computer, luggage, wallet and other similar items. If they're damaged or stolen, this type of insurance will help cover the repairs or the cost to replace them.
If you waive this coverage, your normal auto insurance policy may not help.
Car rental insurance through credit cards
Many credit card companies offer car rental insurance/link] if you reserve the vehicle on that card.
Contact your credit card issuer to see if they offer this type of coverage.
When should I buy rental insurance, even if I'm already covered?
There are a few cases when it's a good idea to buy insurance from a rental company, even if you're already covered by your personal policies:
- You only have liability insurance.
- You only have the state-mandated minimum liability insurance.
- Your personal auto insurance policy has high car insurance deductibles.
- You don't want your personal auto policy premiums to go up if you're in an accident.
Frequently asked questions
Will my insurance cover a rental car?
Most car insurance companies include rental car insurance in their standard car insurance policies. But some companies may not offer coverage. Contact your insurance company ahead of time to see if it will cover your rental car. If it won’t, you may need to buy rental car insurance through the rental agency.
Do I need rental car insurance?
You will need rental car insurance if your personal auto insurance policy doesn't cover rentals or if you don't have car insurance. If you're booking a rental car with a credit card, you may be covered by insurance through the card issuer. Check your card's terms before you waive rental car insurance coverage at the counter.
What should I do if I'm in an accident with a rental car?
If you're in an accident while driving a rental car, contact the rental car agency as soon as possible. If you bought coverage through the rental company, they'll guide you through the claims process.
Who is responsible if a rental car breaks down?
Usually, the rental car company is responsible if the car breaks down during your rental period. However, if the car breaks down because of something you did, you may be responsible for covering all of the costs associated with the breakdown. This may include towing expenses and an extra rental fee for a replacement car to get you back on the road.
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