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.
Spencer says,
I recently rented a nice car through Turo. At the end of the trip, I scuffed the right rear wheel rim while making a turn in a parking lot. I filed a claim with Geico and they DECLINED to cover the damage after a two week investigation. I paid for it out of pocket. Now you know and wont make the same mistake I did.
John says,
I’m taking the family car on a two-day trip by myself. If I rent a car for my wife to use while I’m gone will my regular auto insurance cove the rental?
Amanda says,
I’m thinking of renting a car for an upcoming trip. I know Geico helps with repair rentals. Do they help with general rentals for someone who would need help with payment of a week long rental?
silvia says,
Does my insurance cover a rental car in a different state other than my home state. Say for example I live in CA and am traveling to TX and renting a car.
Tremayne Parker says,
Yes
Jose r Daniels says,
I want to rent a car will Geico cover it
Aviral Sharma says,
Jose, call Geico as they can exactly figure out your situation
However as stated above, if you are renting car in the similar category as your car AND if your insurance coverage limits are good enough, you should be good
In my personal experience, it helps to rent with a popular rental agency.. easier to work with in case something happens
Jerald VanLeuven says,
bin a geico customer many years. enjoyed & appreciated the reminder
Steven says,
What about rental services such as Turo?
andrew says,
+1
John Clarke says,
I’d like to know if our GEICO policy will cover cars rented from Turo too
David Webb says,
I also want to know the answer to this. What is the definition of rental car as far as the policy is concerned? Is it specifically only a vehicle registered as a rental car owned by a rental car company, or is it any car that I can rent via a car sharing platform like Turo?
Marvin says,
Any answer on this yet? I’d like to rent through Turo as well.
Dave says,
Hi,
I contacted Geico’s twitter account and I got this response which didn’t make me feel confident:
“I apologize. Insurance follows the vehicle, but insurance responsibility usually follows the policyholder. The owner of the vehicle may be liable for anything the driver does to the vehicle or while driving the vehicle. You will need to ensure that the vehicle you are using is insured, and you should never drive an uninsured vehicle. In the event of a claim, the vehicle owner’s insurance would pay first, and, if necessary, GEICO would pay second. -Jim”
Marcel says,
‘Check your policy documents at Geico.com’….wow, great advise. I wouldn’t have thought of that!
Unfortunately that website tells you nothing about the subject matter.
Shannon says,
Definitely helped answer my questions. Thanks for making this available.
Jae says,
Does my Geico insurance extend coverage for rental car insurance in Mexico too?
Margaret says,
Thanks to everyone who posted questions & answers. Really made my decision about additional coverage on my rental car very easy.
Bob Cornacchioli says,
One more question about car rental insurance.. does Geico or any other insurance coverage – pay the rental agency for lost revenue if the car was damaged and couldn’t be rented until repaired? Is there a limit to the # of days Geico would pay the rental company?
A_N says,
Your credit card probably already has LDW (Loss/Damage Waiver) coverage. I just contacted CapitalOne, both of my credit cards (VISA, MasterCard) already has the coverage.
Here’s a link to their benefits guide, if you’re curious:
https://www.capitalone.com/credit-cards/benefits-guide/
Now I’m gonna feel very comfortable declining the exorbitant LDW coverage the rental car companies offer.
DVS says,
A_N thank you so much for the info on the credit card having the LDW!!! I wish I had known that so long ago. I have added too many LDWs to my rental cars when my credit card company has the coverage! UGH! Oh well! Now I know! No rental insurance at all for me; between my auto coverage and my credit card benefits I am all covered. Thank you!
James G Corum says,
This article seems to be misleading. I called GEICO to see if my liability coverage would cover a rental car in New Zealand, and the customer service representative said no.
But you say here in this article: “Liability Insurance – If you have adequate liability coverage on your own vehicle, this is one coverage you can always decline on your rental.”
Which seems to be a yes.
Which is it?
Editor says,
Article refers to domestic travel only.
Jennifer says,
Your personal auto policy covers you within the US, Canada and Mexico –it does NOT cover you anywhere outside of these territories. I tell my clients to always ask what the rental co’s coverage costs per day and if any coverage is offered beyond the collision, comp and liability that your personal auto policy extends. your personal auto policy does not offer coverage for LOSS OF USE which the rental co is going to charge you for the amount of days the car cannot be used because tis in the shop. Bottom line, if you are renting for a week or more, I would suggest taking the rental co’s insurance if its reasonable. It fills in the gaps where your own policy leaves off.
Donna Watkins says,
i will say that Geico reps have friendly customer service but you people and your comments below are getting this all wrong. IFyou have rental coverage on your Geico policy that transfers to a rental vehicle , that’s fine and dandy . Geico will pay the physical damage to the rental car if it gets damage ,but what Geico doesn’t tell you is that they will not cover the other charges the rental company has in their contracts for you. Ie.. loss of use, diminished value, admin fees, appraisal fees etc.. The tell you ohh we covered the whole thing for you, then here comes the bill for the balance from the rental agency. You call Geico to ask why did you tell me you paid this and it was settled yet i am still getting a bill? That’s when they break it to you that they only cover the Estimate only. when i first sent them the bill they told me, yes, you have rental on your policy but the rental company wont provide fleet logs, so we cant pay their loss of use. .. that’s stupid for a rental company to provide logs. duhh its a rental agency, they have a million other cars in their fleet, but the rental company did lose the right to use this car because i accidently damaged it. You (Geico) being my Carrier, said you would cover all the loss. But now that im getting a bill, you tell me to file with my credit card benefits. You leave it up to my credit card to cover this. that’s wrong. so ppl if geico tells you they will your entire loss from the rental agency, just know they will only cover part of it. this applies to almost all policy’s that have rentals. myself and 3 other ppl i know have had this happen with geico. Guess what, we dropped and changed companies. My other insurance company has no problem being upfront about what they will and will not pay. They don’t leave it to their insured’s to pay out of pocket. . Gieco DID NOT AND WOULD NOT PAY LOSS OF USE, Even Though i had rental reimbursement on my policy.
Ange says,
Thank you for identifying the additional charges the rental company inflicts if damage to vehicle.
I just called Geico and as you said, rep said yes covered. Then I asked about additional charges, no, they do not cover.
When I asked about having to go thru credit card first, she wanted to transfer me to claims dept.
I have decided to get additional coverage from rental company.
Although it will be an additional expense, if anything happens to the car, I can take key to rental company and say goodbye.
Alma J. Johnson says,
I enjoy the reminders about what to do in certain situations. I’m a very careful driver because I witness such strange driving from others. Thanks for addressing these issues that may occur. Thanks for taking the time to think about us as customers!!!!!!`