when you are renting a car there is a question that often arises: will car insurance cover rental cars? Well the answer is not always clear cut as it depends on different factors like the type of car insurance you have, your personal situation and even the country that you are in. Renting a car is a completely convenient option when you need a temporary vehicle. Whether you are on a business trip vacation or your car is being prepared, a rental car can be your best solution. In this guide you can learn everything about does car insurance cover rental cars?
Understanding Car Insurance Basics
Before you dive into whether car insurance covers rental cars it’s important for you to understand the types of car insurance coverage you might have on your personal vehicle. Your personal car insurance policy is the foundation of your protection and understanding your policy can truly help you determine if your insurance will extend to rental cars. Liability insurance is the most basic form of car insurance required by law in many states. It covers the cost if you are responsible for an accident that causes damage to other people or their property. It does not cover your own car’s damage.
Collision insurance covers the cost of repairing or replacing your car if it is damaged in an accident regardless of who is at fault. Comprehensive insurance will cover non collision related incidents like theft vandalism or whether damage to your car. Personal injury protection helps you cover your medical expenses if you or your passengers are injured in the accident regardless of who was at fault.
Does your car insurance cover rental cars?
In most cases your personal car insurance will extend to a rental car but there are exceptions. Whether or not you are fully covered will depend on the type of insurance that you have on your own vehicle and the rental companies policies. If you have liability insurance on your personal vehicle this will generally be sent to your rental car. In the event of an accident whether you are at fault, liability insurance will help you cover damage to other vehicles or property and any medical expenses for the other party involved.
If you have collision or comprehensive coverage on your personal vehicle it will typically apply to a rental car as well. If you damage the rental car in an accident or it gets stolen or damaged because of a natural disaster or collision, comprehensive coverage will usually take care of the repair or replacement expenses. If you have medical payment insurance on your personal car it often applies to rental cars to cover medical expenses if you are injured in an accident.
What if you don’t have full coverage?
What if your car insurance doesn’t include full coverage? If you only have liability coverage or personal car insurance won’t cover damages to your rental vehicle. In that case you might need to buy additional insurance from the rental car company or rely on the credit card that offers rental car insurance.
Collision damage waiver is not technically insurance but rather a waiver that removes your financial responsibility if the rental car is damaged or stolen. But it’s important for you to know that there might be exclusions like damage caused due to reckless driving so always read the fine print.
Loss damage waiver is similar to collision damage waiver and it also covers the rental company’s lost income while the car is being repaired. It often includes coverage for theft or damage to the vehicle it occurs under different conditions.
Supplemental liability insurance is an additional insurance that protects you if you are liable for damage to another person’s property or if someone is injured in an accident where you are at fault. If your personal liability coverage is minimum, purchasing supplemental liability insurance is a great idea.
Read Also: How To Get The Cheapest Car Insurance?
Credit cards and rental car insurance
Many credit card companies offer rental car insurance as a benefit when you use their card to pay for the rental. The coverage typically includes damage to the rental car; the extent of the coverage is likely to vary depending on the card and the rental car company. To activate this insurance you need to use your credit card to pay for the entire rental transaction including taxes and fees. Not all credit cards provide the same level of coverage. Some might only cover collision damage and others might include theft or liability coverage. You need to review the terms of your credit card carefully before you rely on it for rental car insurance.
International Rentals and Car Insurance
If you are travelling abroad and renting a car your domestic car insurance might not cover international rentals. Many car insurance policies cover rentals within the United states but also do not extend to rentals in foreign countries. Furthermore, credit card rental insurance might not apply in every country. To be safe you need to check the details of the car insurance policy or credit card rental insurance coverage before renting a car overseas. You might need to buy supplemental insurance directly from the rental company which can offer policies tailored for international travelers. This can include coverage for liability collision and theft depending on your destination.
In conclusion you can say that car insurance can cover rental cars but it all depends on the type of insurance that you have and the rental company policies. If you have comprehensive or collision coverage it can even extend to rental cars and your liability insurance will likely apply to the rentals as well. But if you don’t have full coverage or if you’re concerned about out of pocket expenses it might be worthwhile to purchase additional coverage from the rental company.
Before renting a car, always check with your insurance provider to understand what coverage you have and consider using a credit card that offers rental car insurance benefits. Whether you choose to rely on your personal insurance credit card coverage or buy supplemental coverage from the rental company it’s very important for you to ensure that you are properly covered before getting behind the wheel of a rental car.
