Does Auto Insurance Cover Rental Cars?

While it might seem like the most viable option, renting a car isn’t always cheap. Prices have been gradually declining, but adding rental car insurance at the checkout counter is another expense. And you might not need it in the first place. Your personal auto insurance policy could offer all the coverage you need.

You might wonder; does personal car insurance cover rental cars? The simplest answer to this question is usually. If you have personal auto insurance and get into an accident while driving a rental car, your policy will most likely cover you as if you were driving your own vehicle. Auto insurance typically covers the car, not the driver, but there are some misconceptions.

If you’re cheap auto insurance policy covers you in a rental car, your regular coverage limits and deductible will apply. But your policy might not offer the coverage you need for a rental car. For instance, if you don’t carry comprehensive coverage, you will be on your own if your rental car is stolen, vandalized, or damaged. Taking up rental car insurance is what you need to bridge the gap.

An important point to remember is that car rental companies tend to sell coverage of their own. This may include loss damage waiver (LDW). If your rental car is stolen or damaged, an LDW will waive your financial responsibility. They might also cover you if the rental company charges additional fees while the car is being repaired.

You can also choose to go with liability coverage. After all, rental car companies are required to offer enough liability insurance to meet their state’s requirements. Your personal auto insurance policy may be sufficient, but those who don’t have their own policy may want to purchase liability coverage.

Last but not least, you should check to see if medical payments or personal injury protection are included in your cheap auto insurance policy. Both cover medical bills if you or your passengers are hurt during an accident, regardless of who’s at fault. Personal accident insurance works in a similar way.


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