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.
Vanessa Dixon says,
I have two vehicles with liability coverage only. I’m about to go out of town to FL. I’ll need torent a vehicle once there. Can I change my coverage on my two vehicles to include collision to be fully covered in my rental? Then change back after 90 days later to cover me for the future car rentals during summer vacations?
Editor says,
Hi Vanessa, Give us a call at 1-800-947-AUTO (2886) and a licensed agent can discuss your options with you. Thanks!
Burt says,
No. Your GEICO coverage does not cover renting someone else’s car on Turo. I just called and the person I talked to at GEICO seemed to know what he was talking about. He was aware of Turo and he understood that I was renting someone else’s car, not trying to rent out my own car. He said that GEICO does not currently offer coverage for Turo rentals. I forgot to ask if that was because of the state I live in.
mrmiami305 says,
SF Courts recently ruled that Turo is in fact to be considered a car rental firm. I do wonder if that now means companies like Geico must recognize it as such?
John M. says,
I just called Geico 12/26/2021 and confirmed with the agent on the phone that my insurance (Florida) does cover a car rented through Turo. I even made sure that he understood Turo was a car rental app. He confirmed that he knew of Turo and that I was covered.
Mark says,
I just talked to an agent as he said it is very state to state (I think due to local laws). On 3/02/2022, Geico covers Turo (and similar) rentals in Alaska, Florida, Mississippi, North Carolina, New York, West Virginia.
Jon says,
Same result I just had calling GEICO as well.
Dr. Joe says,
That’s funny. I just got off the phone with a Geico rep and he also told me that Geico won’t cover TURO because it is, “…considered a ride-sharing service.” He clearly didn’t understand anything about it, even though I explained what TURO was. TURO is considered, in your Geico policy documents, as a “Peer-to-peer car sharing program”. That’s “car sharing”, and not to be confused with “ride sharing”. My issue is that I cannot find anywhere in the policy documents that explicitly state that “peer-to-peer car sharing” is covered. As far as I can tell, a “peer-to-peer” auto falls under the definition of a “non-owned” auto in the policy, and would be covered from the moment you take possession of the auto under the “peer-to-peer car sharing agreement”, to the moment you return the vehicle. However, you have to be very careful because the policy documents also state that you are NOT covered with a company like TURO if you use the car for “ride sharing” (i.e., you use it to transport passengers with Uber or Lyft, for example); if the car is registered by the owner for ride-sharing (how would you even know this?? You’d have to look that up with the state registration….would anyone even bother to do that??); if the car is “approved for ride sharing….by a ride sharing company” (how on earth would you know if that ever happened??); or if there is anything on the car displaying that it is a car for hire. I haven’t even read all of the pages of the policy documents, so who knows what else could be hiding in there. In short, it seems that a TURO car would fall under the “non-owned” definition of the policy, but I have not found anywhere in the policy documents that explicitly states that “peer-to-peer car sharing” cars are considered “non-owned” vehicles during the time that you are in their possession (and as long as the car is not registered/approved/or used for “ride-sharing”). If a TURO car does fall under the definition of a “non-owned” car in our policy, than you just need to search for “non-owned” in the PDF version of your policy documents to see how you’re covered by your policy.
Jai says,
If I rent a car in Canada, does my Geico insurance cover that car? What coverage, if any is available?
Editor says,
Hi Jai,
Please give us a call at 1-800-947-AUTO (2886) and a licensed agent will be able to go over your coverage with you.
Thanks!
Lyttle says,
Useful information. Thanks for making it available.
Rebecca says,
Rental car info useful . Thanks
Gerardo Orona says,
Does geico provides car rental if I have mechanical issues and need to repair my vehicle? Or just for accident?
Editor says,
Rental Reimbursement is an optional coverage that helps pay your rental car costs while your car is being repaired as a result of a covered claim.
Here’s where you can find more info: https://www.geico.com/claims/claimsprocess/vehicle-rental/
Trudy kaiser says,
Does Geico cover car insurance in Las Vegas
android says,
Your blog provided us valuable information to work on. You have done a marvellous job.
cheryl keech says,
does geico cover for rentals outside the US for US citizens with geico insurance. Is there additional insurance that can be purchased for rentals during travel outside the US?
linda maddox says,
Very helpful, thank you
Mohit says,
Does Geico cover car rental in Puerto Rico?
Kate M says,
Does Geico cover rental cars in Ireland, where the CDW triples the rental car cost?
Rosetta Mccoy says,
I only have liability insurance do I have to put full coverage on my rental which is due to an accident that wasn’t my fault
DAVID GENSLER says,
If I have full coverage on my vehicle does my insurance blanket a vehicle that I just purchased UNTILL I GET IT HOME AND REGISTERED.
T.Do says,
Geico does NOT cover rentals with Turo. I have coverage through Geico and wanted to confirm before renting through Turo, so I called Geico and spoke with one of their agents. The agent confirmed that they view Turo as a “ride sharing” service and not a rental agency. So word of caution and for everyone else’s reference, if you have Geico you will NOT be covered and are personally responsible for any accidents or damages if you decline coverage through Turo.
G says,
Thank you, this was not clear anywhere else.
Grant Collard says,
This is insane. Does it say this in their contract? We have a turo claim and we can’t find it in any contract.
kevin says,
I am having the same issue?
How did you proceed?
Jeff says,
I’d love to hear more about this too. Looking at renting with Turo but as far as I can tell from all the legalese in my policy documents, Geico should cover it.
Cobey says,
Wanted to note that Geico DOES cover Turo cars if you are renting someone elses car. When I called they said they did cover and then I called back to confirm and she said they didn’t but we figured out she was confused and thought I was renting MY car out. But if you are renting someone ELSES car then you’re covered.
Ann says,
I talked to Geico today about Turo and they said that it WILL COVER but it depends on what state you live. I live in North Carolina and NC covers TURO.
Nick says,
Just adding my voice to the pile, I spoke with GEICO support today, and they will cover you if you are driving a car booked through Turo, just make sure your limits are appropriate for what you’re renting.
Patrick says,
now to find it and resend to Turo to see if i can finally try and rent a vehicle.
Patrick OBoyle says,
Also , Be careful signing up with Turo. They use an insurance score not credit. If they deny you the ability to rent under their coverage, but you can resubmit your insurance score or documentation from your insurance stating you be covered.
Also, Im still finding information, but GEICO does have instance if you drive for ride-sharing but the downside is (not 100% sure as of yet). It might not cover a Turo tyoe rental…
you’d think it’d be easy to find this information these days.. lol
michael says,
I just got off the phone with Geico (1/18/2022) and they confirmed they do recognize Turo (he noted it is a vehicle sharing app) as a rental agency since more and more policy holders are starting to use it. The agent assured me that I could use my current policy to cover the rental just as if it were being rented through Hertz or Enterprise.