Does My Insurance Cover Rental Cars?

If you’ve ever had to rent a car for business or pleasure, you may have asked yourself: does my insurance cover rental cars? The answer is typically yes, but it depends on the type of coverage you have. Whether you have personal auto insurance or a business auto insurance policy, there are several factors to consider when it comes to rental car coverage. Let’s take a look at the different types of coverage, when it applies, and what it covers.

Personal Auto Insurance Coverage

If you have a personal auto insurance policy, you may already have coverage for rental cars. Personal auto policies, including those with comprehensive and collision coverage, often provide coverage for rental cars. Generally, your personal auto policy will cover any damages you cause to a rental vehicle, including liability and collision damage, up to the limits of your policy. This coverage extends to rentals both at home and abroad.

What Does Personal Auto Insurance Not Cover?

While a personal auto insurance policy may provide coverage for rental cars, it typically doesn’t cover theft and vandalism, personal belongings, or loss of use. You may have to purchase additional coverage from the rental car company to get full coverage. The rental car company may offer you supplemental coverage, such as a loss damage waiver, for an additional fee.

Business Auto Insurance Coverage

If you’re renting a car for business purposes, the coverage you need may be different. Most business auto insurance policies provide coverage for rental cars, but they often require you to purchase additional coverage from the rental car company. Some policies may provide coverage for theft and vandalism, but not for collision damage or liability. Additionally, some business auto policies may only provide coverage for domestic rentals, so you may need to purchase additional coverage for international rentals.

What Does Business Auto Insurance Not Cover?

Business auto insurance typically doesn’t cover the cost of towing, legal fees, personal belongings, and loss of use. Additionally, some policies may exclude certain types of vehicles, such as luxury or exotic cars. You may have to purchase additional coverage from the rental car company to get full coverage.

The Bottom Line

When you’re renting a car, it’s important to read the rental car company’s policy to make sure you’re adequately covered. Whether you have personal auto insurance or a business auto insurance policy, you may need to purchase additional coverage from the rental car company to make sure you’re fully covered. If you’re unsure whether your coverage is enough, it’s best to speak to an insurance agent to make sure you’re properly protected.