Imagine this: you’re standing at the rental car counter with a long line behind you. You got a great rate on a car for the week, and you’re ready to go on vacation with the family. Then, you’re handed a clipboard with an intimidating rental car contract filled with confusing insurance options. Suddenly, you wish you’d spent less time packing and more time researching rental car insurance.
Since rental car insurance isn’t something most of us deal with on a daily basis, it’s easy to get confused or overwhelmed when presented with a choice for this type of coverage.
Continue reading to learn some basic facts about rental car insurance and whether you’ll need extra coverage beyond your personal auto insurance policy.
What Is Rental Car Insurance?
This coverage is not to be confused with rental reimbursement coverage, which is an add-on to your auto insurance policy that provides reimbursement for fees associated with a rental car in the event your own car is being repaired due to a covered loss or accident.
When it comes to the company you rent a vehicle from, car sharing platforms like Turo are handled differently than conventional rental car companies.
Coverage specifics for car sharing platforms vary by state. Before you decline coverage, be sure to check your policy or reach out to us to verify how your policy applies.
Do I Need Rental Car Insurance?
How To Tell If You Need Rental Car Insurance Coverage
If you’re renting a car in the U.S. of similar value to your personal car, it is likely that your auto insurance coverage will be adequate for the rental. But if you’re off to a blowout beach weekend in a slick set of wheels like a sports car and you’re leaving your 2008 family sedanat home, purchasing the extra auto insurance coverage offered by the rental company may be a good idea.
Does Car Insurance Cover Rental Cars?
Do You Need Car Insurance to Rent a Car?
Does My Credit Card Provide Rental Car Insurance?
The two main types of coverage are primary and secondary. Primary coverage handles damages to the rental car regardless of other insurances, while secondary coverage only kicks in after your other polices, such as your personal auto policy.
Both types usually cover rental vehicle damage, not liability. Make sure you have proper liability protection elsewhere. To ensure the details of your card’s benefits and coverage, reach out to your credit card company when using it for payment.
What Is Covered Under A Typical Rental Car Insurance Policy?
Rental car insurance is usually broken out into the following coverages:
- Liability coverage
- Personal accident insurance
- Collision Damage Waiver (CDW)/Loss Damage Waiver
- Personal Effects Coverage
Insurance You May Have Already
Comprehensive Coverage
Comprehensive coverage helps cover the cost associated with non-collision-related damages to your vehicle, such as vandalism, theft, or weather.
Collision Coverage
Collision coverage helps cover the repair expense for your vehicle in case of an accident with another car or object.
This coverage typically extends to vehicles you rent and may negate the need to accept the Collision Damage Waiver (CDW) coverage from the rental car company. You should consider additional factors, such as the deductibles you carry for each of these coverages. See further for more details on Collision Damage Waivers.
Liability Coverage
Liability coverages, such as property damage and bodily injury, are a basic component of most car insurance policies. If you have adequate liability coverage on your own vehicle (check with your insurance provider), you may choose to skip this one.
First Party Medical
First party medical coverages may pay your medical bills and lost wages if you’re injured in an accident.. As long as you have Personal Injury Protection or medical payments coverage on your auto policy and reliable health insurance, you may not need this coverage. It’s also a good idea to review any limits or deductibles related to these coverages before you decide.
Rental Car Coverages You Might Need
Collision Damage Waiver (CDW)/Loss Damage Waiver
This is not an insurance product, but rather a waiver that transfers financial responsibility from you to the rental car company in case of damage or theft. In most cases, collision damage waivers also provide coverage for “loss of use” if the rental car company charges for the time a damaged car cannot be used because it is being repaired.
Personal Effects Coverage
Having a homeowners, renters or condo policy usually extends coverage for your personal items, even if they are stolen from a rental car. It’s important to be aware that the coverage kicks in only after any applicable deductible is met. Consider the value of the items you will be taking with you. If the cost to replace them is below your deductible, your policy won’t provide coverage.
Should I Get Rental Car Insurance?
Picture this: you’ve just landed in a sun-soaked paradise, collected your rental car keys, and you’re cruising with the windows down, soaking in the vibes. But then — an unexpected collision. While we’re not in the business of painting gloomy pictures, it’s essential to be prepared for every turn in the journey. If your current auto insurance policy doesn’t cover your rental, it might be wise to gear up with some additional coverage to protect your trip. On the flip side, if your personal policy has got your back, you might be good to go. Quickly reviewing your coverage details before hitting the road can guide you to a more informed decision.
Next steps: To learn more about your policy and rental car insurance, call us at 1-800-841-0728 or review your policy documents on geico.com. Or, if you’re looking for a new auto policy, compare car insurance and see why GEICO is the right choice.
James Bay says,
I will be needing a rental car for a trip next month. I had no idea that my coverage on my personal car could extend over to a rental. I will need to remember this for all of my trips. Thank you for your help.
Barbara Gerwel says,
I World like to rent a car in Spain for 3 weeks. What car insurance I will need? Thank you, barbara
Marie Cox says,
Hi. Thank you for your information on insurance and car rentals. I have a question: I currently have insurance with GEICO for my motorcycle that includes Liability. Would this coverage extend to an auto rental? I am wondering if there is a difference when my existing insurance is for a motorcycle and not a car. Thank you.
Sara Killinger says,
I am traveling to Seattle for a few weeks and will be needing to rent a car. I have never rented a car before and was curious if my current car insurance extends to rental cars or if I would have to get separate insurance from the rental company. Thanks for letting me know that I should contact my insurance company to determine if a rental car is covered under my policy. I’ll be sure to check before renting a car to make sure that I’m not paying for unnecessary duplicate coverage.
Steve says,
Even if your current auto insurer covers rentals (nearly all do in the US, for regular passenger vehicles – NOT for moving trucks like Uhauls though) you should look for a primary insurance carrier. I use Amex since they offer primary insurance coverage for $20 per rental (NOT per day). This way, if the vehicle is damaged I file through Amex for my claim and not my insurer; this ensures my auto insurance rates won’t go up!
yamillete says,
I really have interest about if collinsion insurances cover me, even I Don’t leave in USA.
Ssubar says,
I have a car in a shop due to a “no fault” hit and was provided a rental. The rental vehicle that my insurance paid for while in the shop was hit in a hit and run by a truck and myself and the witness didn’t get the details. All I have is his proof as presence.
I immediately called 911 and they directed me to the collision center but the police said they should have called an officer to the scene.
I also called my insurance..the rental company and told them of it. Furthermore spent 2 hours getting a police report.
Does my insurance extend to the rental car? The rental agent told me I had to decline all the spots on the insurance.
Any insight would help
kim, jaeseung says,
I will have a rental a car in virginia for 4 months, but insurance is very expensive.
Could recommend to me what is the best way.
Chase Wilson says,
Wow, that sounds complicated. Insurance is such a foreign topic for me, I can barely understand it at this point. Hopefully it’ll get better though. I am getting rental cars all the time because I travel so much. So, I need to get comprehensive insurance and liability coverage if I want to save on buying their coverage? Maybe I should just go talk to a few agents.
Ulises says,
Thank you for info is always good to have to good knowledge it definitely give you the power to take control on how to manage your life
David Youkstetter says,
Does car insurance cover rental trucks?
Jorge g says,
Very helpfull thank you
Matt says,
01 Ford Explorer whats The best way to keep it from stolen or safe easy anti theft device
Kerence says,
It was very intrestead to know , I had no idea you live and you learn. Thanks for that great information .
Robin shuler says,
Does it depend on whether you are in a no fault state? Also I was in Michigan and was hit by a driver with no license and it was a no fault state. Luckily , I had purchased both insurances offered by the rental company anyway but I was told that coverage only pertained to me driving my car and did not extend to other cars. Was that because the accident was in a NO fault state? Thx
Rocky Martin says,
great post!! yes, it was very necessary to know some details on insurance while renting a car. I am always searching for the solution of my question that how rental car coverage defined and I will get my answer properly through your article. you have explained it very well!! Thank you for sharing your stuff with us. It really helps me a lot.