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.
Gail Stevens says,
Thank you for two articles — the one about what to do if you witness and accident, and the very useful one about rental car insurance needs.
Sandra Street says,
The information regarding needed insurance when renting a car was ery helpful. Thank you. It means alot to know what my car insurance covers when other decisions have to be made.
gloria bush says,
Thank you. I will be going back home and have always been undecided on what the best option was regarding whether my insurance would cover the rental.
Norma says,
Enjoy all the tips/facts on your site. I know almost all of them as I have been driving for quite a few years. It is always good to review & refresh info. for better defensive driving & so much more. Thanks Geico ?
Sekhar Narayana says,
It is really helpful. Users must aware that you have to call Geico to transfer your insurance for a rented car. Transfer means it’s a literal meaning. During the rental period your own car is not covered. Example if husband is renting a car and transferred the insurance then wife cannot drive the own car as your insurance can cover one car at a time unless yout have multiple cars at home.
Jeff Vodovis says,
I have a full coverage on my SUV with Geico. I traveling to St Maarten this May and I am planning to rent a car for a week. Will my insurance with Geico provides a sufficiant coverage or I’ll need something local?
Ralph Kaiser says,
Dear Sirs:
I am a Mexican citizen and I´m going to rent a car in Ciudad Juarez in Mexico and then go to el Paso,TX on my way to Ruidoso NM.
My question is : can I acquire an insurance for only 4 days?, will this insurance be valid in the US being that it is a foreign rental automobile?, what type of insurance would you recommend?
Thank you for your valuable insight to these matters and best regards.
Ralph Kaiser
James Borck says,
Yes GEICO covers your car rental insurance the same way it would do for your personal car BUT for what period of time??? My wife’s insurance company does the same without a limit on how long the rental period is . The article doesn’t specify how long the rental period can be before the coverage does not apply. This is a very important point.
Prakash says,
This is useful information and really helps to reduce the cost of car rental insurance. I would have liked this portion clearly included in the policy shared with us rather than such clarification mentioned here on the website while nothing so explicitly mentioned in the policy.
stan henderson says,
my future son in law was using my step daughters vehicle. she only has liability ins, stepson totaled the vehicle and had full coverage. will his full coverage take care of the accident?
Isaiah says,
I’m renting a car for family vacation and would like to know if my personal car insurance covers car rental too. (I have full coverage with Geico)
Thanks
Louis Buchetto says,
This statement from above is vague and is entirely different that the information given by your phone representatives.
“The first step is to check your auto insurance policy, or contact GEICO to see what your coverage is. If you carry comprehensive and liability coverage on your personal car, coverage will extend to your rental car. Usually, if you’re renting a car of similar value to your personal car, in all likelihood the insurance coverages will be adequate for the rental.”
I was told there was no relationship to the value of my car and the coverage I would receive renting a car as a Geico policy holder. And that a side from my deductibles the rental car is fully covered for it’s full value.
Thank you
Linda Gully says,
Do geico have a rental car center? My car is being repaired, but the part will not be here until thursday.
Kenneth E. Myles says,
Will Geico insurance cover loss of use and diminished value if, as a Geico insured, I rent a rental car.
I am contemplating a trip; please advise!
Brian Black says,
I am selling my car to someone and they are making payments to me. They have auto insurance on the car and I am defined as an “additional interest or additional insured” on said policy. My question is….. Can I rent a car using said insurance policy…….??