Does car insurance cover rental cars? (2022)


The next time you need to rent a vehicle, you may be wondering if car insurance covers car rental policies. Although this is usually the case, it is a good idea to ask your car insurance agent about your personal policy coverage before you arrive at the car rental counter.

The Home Media review team looked at when personal auto insurance covers rental cars, and we’ll mention those situations below. We have also studied the best car insurance industry companies to help you find the right coverage for your needs.

Will personal insurance cover my rental car?

Check what your personal auto insurance covers if you plan to drive a rental car without purchasing a short-term policy. It is illegal to drive a vehicle, rental car or otherwise, if it lacks minimum coverage. Also, car rental companies usually do not offer their own coverage.

Major auto insurers usually extend your coverage to rental cars, but that’s not always the case. Also note that car insurance companies generally only provide coverage to drivers when they are in the United States, Canada, or territories such as Puerto Rico. Car insurance does not cover rental cars in other countries, so buy your own coverage if you are going elsewhere.

When determining whether your personal auto insurance policy covers rental vehicles, consider the value of your car versus that of your temporary car. If the rental car is worth significantly more than your model, you can set higher short-term coverage limits.

Will credit card companies cover rental cars?

Many credit card companies offer some form of rental car insurance coverage if you use your card to rent the vehicle. Your credit card issuer might reimburse high deductibles on auto insurance if you make a claim on a rental car, or they might even cover the value of the rental vehicle in the event of total loss or loss of use.

You may receive primary or secondary coverage from your credit card company. Those with primary coverage will have their credit card issuer cover most damages, while drivers with secondary coverage will only receive benefits after the car insurance has paid most of the damage. complaint. Check with your credit card company to find out what type of coverage you qualify for.

Types of rental car insurance

If you need cheap car insurance to cover a rental car or looking to increase your protection, consider the following insurance products:

  • liability insurance: It is absolutely essential that all rental cars have sufficient coverage to meet or exceed the state’s minimum coverage requirements. Liability protection is not optional, so almost all motorists must provide proof of coverage. You will find that there are two types: bodily injury and property damage liability insurance.
  • Loss Damage Waiver (LDW): Often known as Collision Damage Waiver (CDW), an LDW waives your liability if your rental car is damaged or stolen. This choice depends collision coverage and full coverage for those who use a personal policy.
  • Personal title insurance: This additional insurance covers personal items that could be stolen from your rental car. Personal effects insurance is a smart coverage option for those traveling to cities known to have many car break-ins. Although coverage for personal effects is standard for homeowners or renters insurance, this is not the case for cars.
  • Personal accident insurance: If you have a car accident while driving your rental car, personal accident protection covers medical expenses for you and your passengers. This option is extremely similar to medical payment coverage and injury protection in that it covers most medical bills.

If you have minimum coverage auto insurance on your personal vehicle, it may be a good idea to add LDW or personal effects coverage to your rental car. You could face a greater likelihood of having an accident on unfamiliar roads when driving a rental, and you could have valuables stolen. Also consider adding additional coverage if you have a rental car model that is more expensive to replace than your own vehicle.

Note that rental car reimbursement coverage is about getting a free replacement vehicle if yours is damaged or goes to the repair shop. In other words, it’s not a type of coverage you’ll choose when intentionally looking for a rental car.

Does car insurance cover rental cars? : Conclusion

Although auto insurance mostly covers rental cars, be sure to check for exclusions when doing your own research. Ask your auto insurance agent and credit card company before you rent to understand exactly what coverage you already have.

Drivers with minimal insurance should strongly consider increasing the level of coverage for their rental car. It’s expensive to repair or replace a rental car, and the small cost of adding collision damage waiver is well worth it for the majority of motorists.

Top Car Insurance Recommendations

If you want to find the best rates on car insurance, be sure to compare car insurance quotations from several suppliers. State Farm and Geico are two car insurance providers that cover rental cars, and we suggest you check them out when looking for affordable premiums and peace of mind on the road.

State Farm: Editor’s Choice

We give State Farm, the nation’s most popular auto insurance provider, a 9.3 out of 10.0 star rating and our Editor’s Choice award. State Farm holds a A+ rating from the Better Business Bureau (BBB)​​and ranked #1 for customer satisfaction among major insurers in the JD Power 2022 U.S. Insurance Purchases Study℠.

More reading: State Farm Insurance Review

Geico: affordable for most drivers

Geico is known for its competitive pricing and widespread availability, which are two reasons behind its 9.1 out of 10.0 star rating. We also give Geico 9.8 stars out of 10.0 for its solid reputation in the industry and note its A+ rating of the BBB. In short, Geico is a reliable auto insurer with great rates for most types of drivers.

More reading: Geico Insurance Review

Does car insurance cover rental cars? : FAQs
Below are frequently asked questions about whether car insurance covers rental cars.

Our Methodology

Because consumers rely on us to provide unbiased and accurate information, we’ve created a comprehensive rating system to formulate our ranking of the best car insurance companies. We’ve collected data on dozens of car insurance providers to score companies on a wide range of ranking factors. The end result was an overall score for each provider, with insurers who scored the most points at the top of the list.

Here are the factors taken into account by our assessments:

  • Cost (30% of total score): Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
  • Coverage (30% or full score): Companies that offer a variety of insurance coverage choices are more likely to meet consumer needs.
  • Reputation (15% of total score): Our research team considered market share, industry expert ratings, and years in business to assign this score.
  • Availability (10% of total score): Auto insurance companies with greater state availability and fewer eligibility criteria scored higher in this category.
  • Customer experience (15% of total score): This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by JD Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own customer analysis.

*Data correct at time of publication.

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