Question

Does my car insurance cover rental cars?

Yes. Your car insurance will cover your rental car and extend the coverage you have for your own car.

Does your car insurance cover rental cars? 

If you have personal car insurance, then that will, in most cases, cover the same coverage limits and deductibles. In other words, whichever coverage you have, may it be collision, comprehensive, or liability coverage, it will extend to your rental car too.  

However, not all states extend the liability coverage to rental cars. In case your state doesn’t extend liability coverage to rental cars, the comprehensive and collision coverage that you have on your policy will extend to your rental car.  

It might look like it is mandatory to have personal car insurance to rent a car. But it is not so. You can rent a car without a personal insurance policy, as you can buy it through the car rental company, which will usually include liability coverage. Similarly, you can make use of your credit card, which might offer rental car insurance.  

When should you buy rental car insurance coverage? 

You can buy rental car coverage under these circumstances: 

• If your current policy doesn’t include comprehensive and collision coverage. 
• Your car is covered under a commercial car insurance policy. 
• If you are driving abroad.  
• You do not have liability insurance. 

If you are buying rental car insurance from the rental company, then it will include liability coverage, collision damage waiver, personal effects, and personal accident coverage. So, make sure your personal policy doesn’t overlap with the extra rental coverage you purchase.