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.
Carolyn Smith says,
Going to dealership Friday for headlights replacement. If I have to leave it does my insurance cover rental car.
Tony Lam says,
I will be travelling to Houston from Melbourne, Australia in 2 weeks time. I intend to rent a car when I arrive but I do not have any car insurance in the US. What insurance I need from the rental company? Or what should I do in this situation. I appreciate any assistance in the matter.
Emad says,
Is Turo considered Car Rental? Apparently not according to GEICO
I considered to rent with them, but after talking with a GEICO representative over the phone, she stated that even though I would be renting through a car company (Turo) since the rental vehicle is privately owned, I would not have coverage under my comprehensive GEICO policy 🙁
And Turos coverage options are not cheap, so I suppose Ill be sticking with regular rental companies.
Anyone have experience with Turo and GEICO?
Devin Jones says,
I would NOT recommend renting a car through Turo and declining their insurance, as Geico does NOT cover renting a “ride share” and Turo is loop holed into being considered a ‘ride sharing service.’ (even though they advertise as a Rental company, and their cars as ‘rentals.’
I found this out the hard way sadly..
My experience is a mess.. but it goes as follows:
-I go on vacation and choose to rent a car with Turo
-I have renters insurance, so I call Geico and affirm that if I rent a car through Turo I would be covered.. she says yes
-I rent the car – and get rear ended
-Topping it off, the guy who hit me does not have a license, insurance, or any brain cells
-I get a police report, with signature that I was not at fault
-Geico then weeks later tells me I am SOL and will not be covering any portion
-The person who hit me does not insurance – and this is confirmed as well
-Turo demands the $4500
-I am faced with paying this out in payments within a limited amount of time
In summary, Geico, the at fault driver, and Turo all point the finger at me.. and I am stuck with the responsibility.
Not fair, but the loop hole Geico used was that Turo is a “ride sharing” service, and so does not constitute as a rental. (even though Turo advertises their cars as ‘rentals.’)
So my 2 cents.. don’t expect any of the parties (Rental, Insurance, or Non-Insured Motorist) to take responsibility or help out in the event of an accident if you decline Turo’s overpriced coverage, EVEN if your covered by ‘Renters’ insurance.
-Devin
Bill says,
I will be renting am auto in St Croix USVI. Do I need to purchase rental insurance?
Rosie robles says,
Do I need to bring my policy insurance while driving rental car?
Jose Montoya says,
I plan to rent a car in Costa Rica. Will my insurance cover me for this rental?
LMKikutis says,
I’m looking to rent a car in the UK this Fall, do I need extended coverage for the rental?
Thank you!
Mike says,
You need to purchase coverage in the UK it won’t extend
Becky Joellenbeck says,
Would our car insurance cover the rental of a moving truck? If so, would the contents of the truck (our household goods) also be covered?
Glyniz says,
Why do you need to use your car insurance when rental car has insurance
Jasmine says,
Insurance on a rental car is in addition to the cost of the price to rent the car…..so if you have a rental car for $20 a day, if you add the insurance options the rental car has…you could pay $20-30 extra per day for coverage which means $40-50 a day for the rental car per day….that adds up. If you already have insurance on your car that is sufficient and also insures you if you are driving a rental car, than you can decline that coverage because technically it’s a waste of money.
Tremayne Parker says,
That does not include loss of use the rental company can charge or any additional fees the rental company can charge that Geico does not pay for. Its good to get the CDW/Loss damage waiver for rental cars to cover any ” gaps”
Husam says,
Does my car insurance remain valid on rental if I sold it before the insurance expires?
mk says,
This info really helps. Thanks!
Patricia Williams says,
Thanks so much for the information on rental insurance. I have learn what kind of insurance that I need to have if going to rent a car. I know that I can use my insurance coverage.
Desire S baird says,
Thank you Geico for posting these very many factual details on safe driving, witnessing accidents; that is to say as to “what to do,” as also the rental car details and many other driving subjects. It is one thing to save people money, but saving and helping lives by way of free knowledge is an excellent move on your part, and putting it right into our emails, so that we must focus on them! I have seen your funny commercials, but this is not why I have chosen you over the years for coverage, it is more your candor, price, accuracy in billing and not forgetting to inform me when I need to renew, very important. I do not believe I need a check back for good driving, otherwise that benefit would have to be incorporate into the cost in my own policy, consumers are not ignorant, completely. However, I really like the loyal way with which you have dealt with myself and others who have related to me that they also have Geico, (auto). Please listen, I know we are all very busy, and I am no exception, and it is Sunday, and I am able to take a minute here, so, I really want you to know that I feel it highly responsible on your part, especially since you are exposed to drivers errors on such a frequent basis, and we all want to save policy cost and lives, that you’re posting these safe driving tips all of the time do not go unnoticed and are greatly appreciated. I am going to make it a point, to look closer at them, even though I have a very good driving record, because I really care much more about safety than getting anywhere and try to focus on my surroundings and drive safe always, we can all learn and keep informed all of the time, continually. Good job to you that means more than saving money, your effort to help take responsibility and I don’t know what it cost you, but I am willing to believe that it might even save you money in posting these good safety tips.
It is nice when what we do every day, is not just for money or a job, but that we can all have a part in interconnecting and helping one another with the effort that our wonderful God has given us in living our lives in and among one another. Thank you Geico for the good variety of safety tips!
Hal says,
I have found GEICO reps helpful and they have arranged rentals for me. They were able to guide me and I did not have to worry about transferring insurance to the rental or the unnecessary expense of additional insurance. My credit card would have if needed covered what my insurance would not which would have been the deductible. Good info GEICO.
Bill says,
Very informative! A good rule of thumb is, “know before you go”, rent a car that is.