Does My Auto Insurance Cover My Rental Car?

Whether you are on a business trip or on vacation, you may have heard the question that car rental companies usually ask; This is if you want additional insurance for your rental car. You can say yes and buy it out of fear or refuse it, thinking you are covered for your rental car purchases. However, the truth is that unless you look up your current auto insurance policy and see if you’re covered, you won’t really know and you could lose out on some savings. It is always a good idea to contact your insurance agent for details about your policy.

Usually, there are two situations in which you are covered by car insurance for a rental car. Each of these ideas has its pros and cons.

Having a car insurance policy. Some insurance companies extend their coverage to car rentals as well, as long as you are on a leisure vacation, so be sure to ask your insurance agent this question. But know that whatever coverage gaps your policy has, it will extend to your rental car as well. And if you are traveling for business, your employer must pay for the insurance, as your car insurance policy will not apply.

Get auto insurance protection with a credit card company. Some credit card companies can protect you for cars that are rented with their credit cards. While coverage varies by credit card company, the terms and conditions of your policy may change from time to time. However, insurance protection usually only covers physical damage to the vehicle; It usually does not cover personal injury, liability, or theft of personal belongings.

Types of additional auto insurance coverage through leasing services

If you know that getting additional coverage suits your situation, know that there are usually four common insurance options offered by most car rental companies:

Collision damage waiver and loss damage waiver (CDW and LDW). It pays if you lose your rental car to theft, or if it is vandalized or damaged from a collision.

Personal Accident Insurance (PAI). Pays your medical costs due to a car accident in your car rental.

Supplemental Liability Insurance (SLI). It gives you up to $1 million for extended liability coverage.

Personal Effects Coverage (PEC). Pays for any personal belongings stolen from your rental car.

Some things to consider with car insurance

Here are some tips to keep in mind when figuring out if you want to add additional coverage to your rental car:

Don’t buy the same coverage twice, if you have an auto insurance policy, unless you have coverage gaps.

Talk to your auto insurance agent before you decide to purchase additional car insurance for your rental car.
Ask the car rental company for a copy of their insurance documents.

Compare the company’s rate with auto insurance quotes in your area to see which one is better.

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