You’re standing at the rental car counter, they ask if you want to purchase their insurance, and you think, “I already have auto insurance. I’m covered.”
Maybe—but don’t assume.
One of the questions we get from clients is whether their personal auto insurance automatically extends to a rental car. In many situations it does, but there are some important exceptions and potential gaps you should know about before you decline the rental company’s coverage.
Does My Auto Insurance Cover a Rental Car?
If you have a personal auto insurance policy with comprehensive and collision coverage, those coverages will often extend to a vehicle you rent temporarily.
Your liability coverage may also follow you while driving the rental car.
However, exactly what is covered depends on your individual policy, the vehicle you’re renting, how you’re using it, and where you’re renting it.
That’s why we always recommend checking with your insurance agent before your trip instead of assuming you’re covered.
Who Is Driving the Rental Car?
This is an important one.
Your policy may only extend rental car coverage when the vehicle is being rented and driven by someone who qualifies as an insured under your policy.
If you’re traveling with friends, extended family, coworkers, or anyone else who may drive the rental car, don’t automatically assume your policy will cover them.
Make sure every driver is properly listed with the rental car company and check with your insurance agent about how your policy would respond.
Where Are You Renting the Car?
If you’re renting a vehicle for a vacation or personal trip within the United States, your personal auto policy may provide coverage.
International rentals are a different story.
Your U.S. auto insurance policy may provide little or no coverage when renting a vehicle outside the United States, depending on the country and your policy.
If you’re traveling internationally, check your coverage before you leave—and consider purchasing the appropriate protection through the rental company.
What About Turo and Other Car-Sharing Services?
This is another area where you don't want to make assumptions.
Renting through a traditional rental car company isn't necessarily treated the same as renting a vehicle through a peer-to-peer car-sharing service such as Turo.
Depending on your insurance company and policy, coverage may be limited or excluded for vehicles rented through a car-sharing platform.
Before booking, ask your insurance agent specifically about the company you plan to use.
Business Use Can Change Things
If you're renting a car for work or business purposes, your personal auto policy may not respond the same way it would for a personal vacation.
This can get especially important if you're self-employed, traveling on behalf of your company, or using the rental vehicle for deliveries or other business activities.
Tell your agent how you plan to use the rental vehicle so they can help you determine whether your personal policy is enough.
The Coverage Gap People Often Miss: Loss of Use
Here’s one that surprises a lot of people.
Let’s say you damage a rental car and it has to spend two weeks in the repair shop. During those two weeks, the rental company can't rent that vehicle to someone else.
They may charge you for that lost rental income. This is commonly referred to as loss of use.
Your personal auto insurance policy may not cover all—or sometimes any—of this expense.
There can also be other charges from the rental company, such as administrative fees or diminished value, that aren't necessarily covered by your personal auto policy.
This is one reason declining the rental company's coverage isn't always as simple as saying, “I have full coverage.”
Your Credit Card May Provide Additional Rental Car Coverage
Before paying for additional coverage at the rental counter, check the credit card you're using to rent the vehicle.
Some credit cards include rental car benefits when you use the card to pay for the rental and decline certain coverage offered by the rental company.
But the benefits vary significantly from one card to another. Some coverage is secondary to your personal auto insurance, while other cards may provide primary coverage.
Call your credit card company or review your card benefits before your trip so you know exactly what is—and isn't—covered.
One More Tip: Take Pictures and Video
This has nothing to do with your insurance policy, but we recommend it to our clients all the time.
Take pictures and a quick video of the entire rental car when you pick it up and again when you return it.
Document the front, back, both sides, wheels, windshield and any existing scratches, dents or damage.
It takes two minutes and can save you a major headache if there's ever a disagreement about when damage occurred.
Before You Rent, Give Your Insurance Agent a Call
Rental car coverage isn't one-size-fits-all.
Before your next trip, check with your agent and tell them:
Where you're renting the vehicle
Who will be driving
Whether it's for personal or business use
What type of vehicle you're renting
Whether you're using a traditional rental company or a car-sharing service
At Trenchant Insurance, we're happy to review your current auto policy and help you understand how your coverage may apply before you get to the rental counter.
A quick conversation ahead of time is much easier than finding out about a coverage gap after an accident.
Have a rental car coming up? Contact Trenchant Insurance before your trip and we'll help you review your coverage.
Coverage varies by insurance company, policy and individual circumstances. This article is for general informational purposes only and does not change, expand or guarantee coverage under any insurance policy. Please refer to your policy documents and contact your insurance agent for coverage specific to your situation.