Does My Car Insurance Cover Rental Cars?

Because different policies can have different coverages, it can be tricky to answer broad questions about what your car insurance covers. While you’ll always want to review your specific policy before making any decisions, we wanted to provide a general answer to the question: does my car insurance cover rental cars so that you can make a more informed decision when renting a car.

Does My Car Insurance Cover Rental Cars?

Generally, yes. If, for example, you have liability car insurance, personal injury protection insurance, and collision and comprehensive insurance, these coverages will likely still apply up to the policy limits when you’re driving a rental car, assuming the rental car is of similar value to your own vehicle. However, if you have the minimum-required coverage for your state, your liability limit may be low, which means that without purchasing extra coverage, you could end up paying thousands out of pocket.

Even with your personal car insurance policy, there may still be some gaps in coverage. Car rental companies often have a “loss of use” fee, which accounts for whatever income they lose while the rental car is being repaired. This will likely not be covered by your personal auto insurance policy. You should also note that your personal policy only covers rental cars for personal use. If, for example, you’re renting a car to meet clients for your job, this will likely not be covered by your personal policy.

Other Car Rental Insurance Alternatives

In addition to your personal auto insurance policy, you may receive some coverage through your credit card, your Homeowners insurance policy, and/or your Umbrella insurance policy. Some credit cards offer primary or secondary rental car insurance, assuming you use the card to book the rental. With primary coverage, your credit card pays out the claim first, without involving your personal insurance policy. With secondary coverage, your credit card will pay any additional amount not covered by your personal insurance policy, including things like loss of use and towing charges. Your Home, Condo, or Renters insurance likely covers personal items stolen from a rental car, and Umbrella insurance pays the excess amount up to your policy limits if the crash exceeds your liability limits on another policy.

Should I Get Rental Car Insurance?

As long as your car insurance policy and your credit card policy provide adequate coverage, you likely don’t need to purchase rental car insurance when renting a car. That said, make sure to consider the different types of coverage you have, as well as your coverage limits when making this decision. If, for example, you don’t have collision and comprehensive insurance, it may make sense to purchase additional insurance when renting a car.

Need to discuss or update your Auto insurance coverage? Contact an independent agent today. In the meantime, check out the Grange Insurance Association blog, where we answer questions like can someone else drive my car and do you have to add a teenage driver to your insurance?

The content available via Grange.com is for informational purposes only and may not be used for any other purpose. Content provided or expressed on Grange.com, including that of third parties, may not reflect Grange Insurance Association’s (GIA) policies or conform to any agreement you may have with GIA and its subsidiary companies. Please contact a licensed insurance agent to obtain particular advice.