Does Personal Car Insurance Cover Rental Car?

Whether you're planning an extended vacation or just need a car while yours is in the shop, you may be considering a rental car. But do you need to purchase additional insurance? The answer may depend on the type of coverage you already have in place.

Personal Auto Insurance

Most personal auto insurance policies will extend to a rental car, as long as you are driving it for personal use. You may want to check with your insurance provider to make sure you have the correct coverage. Generally, if you are in an accident, your personal insurance should cover the cost of the damages to the rental car. However, if you are found at fault, you may still be responsible for any deductible and other fees associated with the car rental.

Liability Insurance

Liability insurance is the type of coverage that pays for any bodily injuries or property damage that you cause to someone else while operating a car. Your personal auto insurance should also provide this type of coverage for a rental car. However, it is important to check with your provider to make sure that you have the correct coverage limits. If you are renting a car in a state with higher liability limits than your home state, you may need to purchase additional coverage.

Collision and Comprehensive Coverage

Collision and comprehensive coverage are the types of coverage that pay for any damages to your rental car. If you already have this type of coverage through your personal auto insurance, it should extend to the rental car. However, if you don't have this type of coverage, you may want to consider purchasing a policy from the rental car company. This type of coverage can be quite expensive, so you may want to compare the cost of the rental car company policy with the cost of adding this type of coverage to your personal auto insurance policy.

Rental Car Company Insurance

If you don't have personal auto insurance or if you want to be extra cautious, you may want to consider purchasing rental car company insurance. This type of policy provides liability and collision coverage while you are driving the rental car. It is important to note that this type of coverage is often much more expensive than simply adding the coverage to your personal policy. Additionally, it may not provide as much coverage as your personal auto insurance policy.

Conclusion

If you are planning to rent a car, it is important to check your personal auto insurance policy to make sure you have the correct coverage. Generally, your personal auto insurance should provide liability, collision, and comprehensive coverage for the rental car. However, if you don't have the right coverage, you may want to consider purchasing a policy from the rental car company. It is important to compare the costs and coverage levels of the rental car company policy with your personal auto insurance policy in order to make an informed decision.