Rental car insurance explained – Does my car insurance cover rental cars?

Do you need insurance for a rental car? Of course! What would you do if you got into a car accident or a head-to-head collision? Nobody would be glad to pay the full price for a rental car.

Lucky those who have rental car insurance in their coverage plan. You might be wondering, ‘does my car insurance cover rental cars’? Most insurers likely cover some part of the damage in the agreed event and not more than the agreed coverage limit. In fact, your rental car insurance might have additional restrictions, like how much insurance coverage it will provide for extended rentals.

If you want to know more about how rental coverage works, you are exactly at the place you need to be! Scroll down to get your answers

Rental Car Insurance Explained:

Often people confuse rental car insurance with rental reimbursement. The latter one is the insurance package that pays you for car rentals when your vehicle is away for repair due to a covered loss. On the other hand, rental car insurance comes into play when you rent a vehicle from a rental car company and get insurance for the car so that you won’t be liable in the case of damage.

Types of Insurance for Rental Cars:

Every company has different insurance policies and plans to cover you if you get into an accident or collision driving a rental car.

Let’s begin with the most anticipated one.

  • Liability: This one comes as a basic in most insurance policies. The coverage policy pays for any damage caused by your rental car to other vehicles. Typically it covers bodily damage by your fault.
  • Collision: This plan covers the repair and replacement of the rental vehicle in the event of a car wreck due to a collision with an object like a tree or something.
  • Comprehensive: This one also covers the repair and replacement of the rental vehicle due to theft or damage other than collisions such as hitting an animal.
  • Personal Injury Protection/Medical payments: Just like its name suggests, the personal injury protection plan covers the medical expenses of the driver and the passengers, irrespective of who was at fault for the accident.

Now that you know rental car insurance comes in different types, it is best to ask your insurance company agent to guide you to which one you should get when driving a rental car.

Does my car insurance cover rental cars?

In most cases, yes! Your auto insurance covers rental cars just exactly as it covers your own vehicle. For instance, if you have collision and comprehensive coverage on your insurance policy, your plan will protect you against physical/bodily damage to your rental car.

Moreover, you will probably not need personal accident insurance individually as well. Your medical insurance or personal injury protection on your own vehicle will cover you in such an event. For death benefits, it’s better to get term life insurance.

This is why reviewing your current insurance plan is advisable before getting another separate insurance for your rental car.

Do you need rental car insurance?

Are you stuck at that point where you just can’t figure out whether you need rental car insurance or not? Let us help you! You will need rental car insurance in the following situations:

  • Your current plan does not cover rental cars
  • You don’t have a car or an auto insurance
  • You rent cars more often
  • You have strict monthly budgets and fear a high deductible
  • You are on a work tour, and your organization does not cover you

In another scenario, if you rent cars more often than a regular person and do not own any insurance policy, you should consider getting nonowner car insurance. The plan will cover you for all bodily damage in the event of an accident. The best part is it is cheaper than standard insurance plans, keeping you within your budget.

If you decide to keep your current insurance and not get a separate one for your rental vehicles, below are a few things to be aware of:

  • If your rental car gets stolen or damaged and you need to file a claim, it will impact your premium the same way it would if it were your own car.
  • The car rental company may charge you an advance deposit and then refund you when you return the car in good condition.
  • If you are renting a big vehicle like a moving truck or caravan something, your personal car insurance won’t work in that case. You will need to get separate insurance from the truck rental company.
  • DO NOT rely on credit card offers for rental car protection. They should not be your plan A. Considering so many downsides, these offers are simply not worth using at all. However, they can kick in when your personal insurance drains out.

Cost of Rental Car Insurance:

Honestly, it varies from provider to provider. Generally, full coverage insurance for a rental car costs $30 to $40 a day. That said, if you choose to get a separate one, here is how much each will cost:

  • Liability Insurance: $15/day
  • Collision insurance: $20/day
  • Personal accident insurance: $5/day
  • Personal effects coverage: $2/day

Fortunately, you are not bound to get rental car insurance from the car rental company only. Several third-party providers are now offering exciting offers and plans for rental cars. The best part is that they are cheaper than those exorbitant rental car insurance packages. Still, some people stick to their current insurance plans or get rental car insurance added to their current plan for convenience.

Is rental car insurance required for international travel?

While planning a trip, one question often comes to mind: Do we need rental car insurance for international travel’? Well, renting a car across the border has its own challenges. In fact, some providers don’t cover rental car insurance internationally. Therefore, you should ask your service provider if they cover internationally as well before getting a separate one.

Some people like to play safe and get additional insurance when traveling outside their home country due to different laws and traffic and driving conditions. This will surely help you file a claim in a stranger country where you know nothing about anything.

Conclusion – Does my car insurance cover rental cars?

To be on the safe side, just ask your car insurance agent if your personal plan covers the car your plan to rent. It’s even better if you share the exact details of the vehicle you’re going to rent, as it will clear out if your current plan is enough to cover that vehicle or what adjustments you have to make to ensure you are covered.

If you just want to rely on your personal insurance, anyway, make sure you keep your policy paperwork with you when you head to a rental car company. Doing so will help you answer all the questions you didn’t expect coming, on the spot. Lastly, don’t forget to save your insurance agent’s contact number on your phone. You will need it anytime for clarification.

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