Does Car Insurance Cover Rental Car?

Are you planning to rent a car for a business trip or a family vacation? You may be wondering whether your car insurance will cover the rental car or if you need to purchase extra coverage. There are a few different scenarios where car insurance may cover a rental car. It is important to understand what is and isn’t included in your policy before renting a car.

Your Own Insurance Policy

Your own insurance policy may cover a rental car, depending on the type of coverage you have and the type of rental car you are renting. Your policy must include comprehensive and collision coverage for it to cover a rental car. This coverage is not required in all states, so you may need to check with your insurance company to see if this coverage is included in your policy. If both comprehensive and collision coverage are included in your policy, then your insurance should provide coverage for a rental car.

Coverage Limitations

Even if you have comprehensive and collision coverage, you should be aware that there may be limitations on how much coverage you have for a rental car. Most policies will limit the amount of coverage for a rental car to the same amount of coverage you have for your own car. For example, if you have $50,000 in coverage for your own vehicle, then your policy will only provide $50,000 in coverage for a rental car.

Types of Rental Cars

Your policy may also place limitations on the type of rental car you can have covered. Most policies will only cover the cost of a standard rental car and not exotic or luxury cars. If you plan to rent an exotic or luxury car, you should check with your insurance company to see if they will cover the cost of the car.

Rental Car Company Coverage

Most rental car companies will offer additional coverage that you can purchase to cover the cost of the rental car. This coverage is usually called Loss Damage Waiver (LDW) or Collision Damage Waiver (CDW). These policies will cover the cost of the rental car in the event of an accident or theft. The cost of this coverage will vary depending on the rental car company and the type of car you are renting.

Bottom Line

Your car insurance may cover the cost of a rental car, depending on the type of coverage you have and the type of rental car you are renting. You should check with your insurance company to make sure your policy will cover the rental car before renting. You may also need to purchase additional coverage from the rental car company to cover the cost of the rental car. It is important to understand what coverage you have before renting a car.