Does My Auto Insurance Cover Rental Cars?
When driving around your own town, you enjoy the protection of a good car insurance policy. When traveling, however, you might worry about the limitations of your policy when using a rental car. When the agent asks you if you want to purchase additional coverage, you may be asking questions like, “Does my auto insurance cover rental cars?”
The good news is it is easy to learn everything you need to know about car insurance and rental cars.
Ready to get started? Keep reading to discover the most important details before you plan your next trip.
The Common Question About Rental Cars: Do You Need Additional Coverage?
It is common for rental agencies to ask if you would like to purchase additional coverage for your rented vehicle. At this point, you may be wondering if your own existing coverage will work or if you need to buy rental car insurance to play it safe.
Here is some good news: Most of the time, your existing automobile coverage will provide sufficient protection for the rented vehicle.
Whether or not the rented vehicle will have enough protection depends on how much coverage you currently have. If you are worried about not having enough protection, you may wish to purchase additional coverage.
The Extent of Rental Car Coverage in Standard Auto Insurance
Like all drivers, you have a choice in how much car insurance to get. Most states require liability coverage, and this pays for damage to people and property that you accidentally cause. You can optionally add collision coverage that repairs your vehicle if you are at fault, and comprehensive coverage protects the automobile from threats even when you are not behind the wheel.
To sum up, the answer to “Does car insurance cover rental cars?” is yes, but the rented vehicle is limited by the policy you have. If you have all three types of standard car insurance (this is known as having full coverage), then you should not need to purchase additional rental protection. However, if you have a limited policy (say, only liability), you may wish to purchase separate protection from the rental company to cover any damage to or theft of the vehicle.
Understanding Your Current Auto Insurance Policy
You may be wondering if your own insurance is sufficient to cover a rented vehicle. To answer that, you need to re-read your current policy and ensure that you understand it. For example, you need to know how many different types of coverage are included.
Having liability insurance is required by most states, and many people add collision coverage to help repair the vehicle even if they are at fault for an accident. You may have also added other types of coverage, including comprehensive (which covers threats when you are not driving) and uninsured/underinsured motorist (which protects you if you are hit by someone with insufficient coverage or even no coverage).
It is vital you know your policy’s limits. Your carrier will only pay out up to these limits, so if you want to save as much money as possible (which is why automobile insurance is so important in the first place), you need to set the limits high enough to give yourself peace of mind.
There is other “fine print” you should know, including circumstances where the carrier will not pay out (for example, if your vehicle is damaged while street racing). You should also be aware of any discounts currently on your policy, helping drive down your premium.
Once you fully understand your existing auto coverage, you can better determine whether you need separate rental car insurance.
The Specifics of Rental Car Insurance Options
One of the terms drivers often use is “rental insurance,” which is a shorthand for special coverage offered by the rental agency. The term may make you think there is only one type of coverage. In reality, there are four different types of supplemental protection you can purchase for your rented ride.
- The first is the collision damage waiver (also known as the loss damage waiver). With this waiver, you may have to pay a deductible, but you otherwise will not pay anything if the vehicle is stolen or damaged.
- The second is the supplemental liability insurance. This supplements the liability coverage of your existing automobile policy and helps pay for any damage you accidentally cause to people or property.
- The third is personal accident insurance. This goes beyond supplemental liability coverage and can pay the costs for an ambulance, medical bills, and even death benefits for you and any passengers in your rented vehicle.
- The fourth and final option is personal effects coverage. This financially protects your possessions inside the vehicle (up to a predetermined limit) if they are stolen. Keep in mind that your homeowners insurance may already protect your personal belongings in a car.
Scenarios Where Extra Coverage Makes Sense
It is not always easy to tell when you need to purchase rental coverage for the vehicle while you are traveling. It is a decision that benefits some drivers more than others, and your exact circumstances may change whether it is an important decision for you.
If you are on the fence, do not worry. Below, you will find more information about the scenarios where extra protection makes perfect sense.
Traveling Abroad With a Rental Vehicle
As long as you have full coverage and are renting a vehicle in the United States, it is fine to skip out on getting extra rental protection. However, if you are traveling abroad with a rental vehicle, you should purchase the loss damage waiver for the simple fact that your existing policy does not offer protection outside the country.
In some cases, travel credit cards may promise protection for your rented vehicles when you travel abroad. Given all the headaches of getting the credit agencies to pay for damage, though, you may find you are better off with an LDW that quickly takes care of everything. It is ultimately just one more way to stay safe on vacation.
Protect Your Personal Car and Your Future Rental Cars
All it takes is a single moment for a rented car to become damaged or even destroyed. If you are not careful, this can leave you with a large bill and a small mountain of paperwork. Fortunately, you can financially protect both yourself and your ride by finding a carrier offering the best possible insurance solutions for both your rental car and your permanent one.
At InsureOne, we are here to keep you and your vehicle safe. Whether you are traveling for business or pleasure, we are ready to make that trip as smooth as possible. When you are ready for the best in white glove protection, come get a quote online. If you are too busy to drop by, you can also pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to find an InsureOne office near you and visit us in person.