Does My Car Insurance Cover My Rental Car?

November 20, 2019

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Have you ever wondered if rental coverage is necessary or not?

When you rent a car, it can be hart to know if you need rental insurance coverage. For some drivers it is a necessity and for others it is a redundant expense. 

With Thanksgiving travel next week, I thought this might be important to cover. 

Does my car insurance cover rental cars?

The limits and deductibles on your regular car insurance policy typically still apply to your rental car so as long as you are driving it for personal use. 

If it is a commercial or business rental, your personal car insurance may not apply. 

Be sure to check with your agent to find out which coverages extend to your rental car. 

If you'll be paying for the rental with a credit card, check to see what additional rental car coverage is provided. Call the phone number on the back of the card to pay for the rental before buying extra protection. 

Know your options!

There are generally 4 coverage options available when you rent a car.

  • Loss-damage waiver (aka collision damage waiver)
    • Typically waives financial responsibility if the rental car's damaged or stolen; also covers loss-of-use charges while the rental's in the shop, towing charges, and related fees
    • Costs roughly $9–$19 a day
  • Liability coverage
    • This state-required coverage protects you from potential lawsuits
    • Costs around $7–$14 a day
  • Personal accident insurance
    • Covers medical costs after an accident
    • Costs $1–$5 a day
  • Personal effects coverage
    • Insures what you keep in the rental car
    • Costs $1–4 a day

Depending on your policies (auto insurance, renters/home insurance and health insurance, you can save a good chunk of change by declining insurance. 

Here's why:

  • When you buy auto insurance, you're required to buy a state-mandated amount of liability coverage (except in New Hampshire, where it's optional), meaning you likely won't need to add it at the counter.
  • If you have health insurance, consider declining personal accident insurance if your health plan covers accident-related injuries. If you have personal injury protection and/or medical payments coverage on your car insurance policy, it would also offer the same protection if an accident occurs.
  • And finally, if you have renters or homeowners insurance with off-premises coverage, your things are already insured before you stash them in the rental car. So consider declining personal effects coverage as well.

Keeping you protected.




All Access Insurance in Littleton, CO,  who represents multiple insurance companies as a “Broker” and provides products for auto, home,  commercial, workers compensation, and much more! Call us today for a free quote at (303) 932-1700.