If you cause damage to a car you are renting while your vehicle is in the shop, your insurance will cover the damage as long as your policy has comprehensive and collision coverage. This is the case anytime you rent a car. Your insurance policy covers your rental as long as you have comprehensive and collision coverage.
Is a rental car covered under your insurance?
When you rent a car, rental companies give you the option to insure the vehicle. However, you may not need it if rental cars are already covered under your existing insurance policy. If your policy includes collision and comprehensive coverage, it might cover rental cars, too.
Is my rental car covered by my insurance?
There are only two instances when your car insurance company may cover your rental car costs. The first requirement is that the breakdown of the vehicle is a result of a covered loss. And second, you or the other driver must have the appropriate car insurance coverage.
Should I pay for insurance on my rental car?
You may not have to purchase rental car insurance if you are traveling for business, either. In most cases, your personal auto insurance will cover you as if you were driving your own car. Major credit cards generally include some level of collision insurance when you reserve and pay for the entire rental with that card.
Does your credit card fully cover your rental car insurance?
When your personal auto insurance won’t cover your rental car completely, your credit card can provide the answer. When credit cards provide rental car insurance, it will come in the form of either primary or secondary coverage.
What insurance does a rental car company offer?
Rental companies offer a number of insurance options. Some of the most common ones are: . Loss/collision damage waiver: It covers costs if your rental car is stolen, damaged in an accident, or vandalized. Liability/supplemental liability insurance: This covers you if you cause damage to other vehicles or property while driving the rental car.
What insurance do you need to drive a rental car?
Liability/supplemental liability insurance: This covers you if you cause damage to other vehicles or property while driving the rental car. It can also pay for medical expenses for the other driver and their passengers if you’re at fault in an accident. Personal accident insurance: This pays for medical bills for you and your passengers ...
What does supplemental liability cover?
This pays for the other driver’s injuries if you’re at fault in an accident. It also covers damage you cause to other vehicles and property. As long as you have a level of coverage that you’re comfortable with, you can usually skip on purchasing the supplemental liability coverage.
What to do when renting a car?
It’s up to you to do your research before renting a car. Knowing how much your auto policy covers for a rental car will prevent you from signing on for coverage from the rental car company that you don’t need.
What does collision insurance cover?
Collision insurance pays for damage from situations when you’re driving. For example, if you hit a car or you hit an object. On the other hand, comprehensive insurancecovers damages to your car that are outside of driving situations. That could mean weather damage, fire, or theft.
Does credit card cover rental car insurance?
Does your credit card cover rental car insurance? Credit cards are another option when it comes to rental car insurance. Finding out if you have additional coverage is as easy as calling the 1-800 number on the back of the card to ask. If your credit card comes with rental car insurance, keep in mind a few questions you should ask the issuer: ...
Does comprehensive insurance cover stolen cars?
Comprehensive insurance applies if the actual car is stolen. But it won’t cover personal items left in the car. But if you have homeownersor renters insurance, your stuff will be covered. You should be able to decline the rental company’s coverage. 5.
How long does insurance pay for a rental car?
Your coverage may be set at a daily limit, like $40 a day for 30 days, or an overall maximum dollar amount, like $1,000.
What to do if you get into an accident in a rental car?
If you get into an accident in a rental car, you should handle it the same way you would if you got into an accident in your own car — pull over, call 911, exchange information with the other driver, and document the accident with photos or videos.
What is rental reimbursement?
Rental reimbursement coverage, also called substitute transportation coverage or car rental expense coverage, can help you pay for transportation expenses if your car is in an auto shop due to a covered loss. This can include public transportation fares or a replacement rental vehicle while yours undergoes repairs.
What is not covered by insurance?
Mechanical breakdowns and other regular maintenance issues are not covered by auto insurance, so you should expect to pay for mechanical repairs, like regular wear and tear and corrosion, on your own. Rental reimbursement will only cover the cost of a rental car if your car needs repairs after a covered loss. That means that the cost of a rental car will not be covered if yours is in the shop for: 1 New tires 2 Engine failure 3 Faulty brakes 4 Fluid leakage
How much does rental reimbursement cover?
You’re typically given a daily limit and a maximum number of days it can be used, or an overall limit. For example, your coverage may provide up to $25 per day for a maximum of 30 days or an overall payout ...
What is covered loss?
A covered loss is a claim or incident that is covered under the terms in your policy. To find out what perils your policy does and does not cover, look at a copy of your policy or contact your insurance company. But generally, as long as rental reimbursement coverage is included in your policy, insurance will cover the cost ...
What is comprehensive coverage?
Comprehensive coverage and collision coverage are additional insurance options you should add to your policy to protect the vehicle itself. And roadside assistance, which delivers emergency support if you’re stranded on the side of the road, can also help round out robust protection.
What is CDW in rental car insurance?
This is not an insurance product, but rather a waiver that transfers financial responsibility from you to the rental car company in case of damage or theft. In most cases, waivers also provide coverage for “loss of use” if the rental car company charges for the time a damaged car can not be used because it is being repaired.
What is liability coverage?
Liability coverage. This is a basic component of most car insurance policies. If you have adequate liability coverage on your own vehicle (check with your insurance provider), you may choose to skip this one.
Does personal effects cover rental car theft?
Personal Effects Coverage. If you have a homeowners, renters or condo policy, your personal items will generally be covered even if they are stolen from a rental car. Review your policy documents to be sure before you elect or decline this coverage. Next steps: To learn more about your policy and rental car insurance, ...
Only If You Have the Right Coverage in Place
Michael Evans has written about insurance for over two decades. His work has been featured in Bankrate, Fox Business, International Living, and Yahoo! Finance, among others. In addition to finance writing, Michael is the author of "Escape to Colombia" and is an accomplished professional photographer.
Rental Car Insurance vs. Rental Car Reimbursement
Rental car insurance and rental car reimbursement coverage might sound similar, but they’re different types of protection. Rental car insurance covers a rented vehicle. For example, if you rent a car while on vacation, you might elect to purchase the rental car insurance offered by the rental agency.
When Does Insurance Cover the Costs of a Rental?
If another driver is at fault for an accident that damages your vehicle, their property damage liability coverage should pay for you to rent a car while yours is in the shop. However, the insurance company may limit the length of time it will pay for the rental.
When You Have To Pay for a Rental Car Yourself
If your car breaks down and you don’t have mechanical breakdown insurance, you’ll have to foot the bill for a rental car. Likewise, if you’re at fault for an accident, your collision coverage probably won’t cover one. After all, that’s why insurance companies offer rental car reimbursement coverage.
Do I Need To Insure My Rental Car?
Your personal car insurance policy might extend coverage to a rental car. Standard auto insurance policies offer bodily injury and property damage coverages, which help pay another driver’s medical expenses and vehicle repair costs when you’re at fault for an accident.
Frequently Asked Questions (FAQs)
Typically, rental car agencies offer liability, loss damage waiver, personal accident, and personal effects coverages. These coverages generally correspond with the bodily injury liability, property damage liability, collision, comprehensive, medical payments, or personal injury protection coverages of a personal auto insurance policy.
How long does a car stay in the repair shop after an accident?
On average, a car is in the repair shop for two weeks after an accident and renting a replacement vehicle for that amount of time can be costly.
Can you wait to pay for a rental car if you are at fault?
Even if your accident is another driver's fault, the details of a claim may take time and you may have to wait get his or her insurance company to agree to pay for your rental car. With your own replacement rental coverage, there's no waiting.
Does insurance cover rental car?
Many insured drivers are surprised to find out that their auto insurance does not automatically cover the cost of their rental because they've overlooked the policy option known as rental reimbursement.
Does rental reimbursement cover insurance?
Rental reimbursement coverage is available for a nominal extra amount with almost every auto insurance policy, although the option is often bypassed by those who are shopping for the lowest cost premium.
