Is My Car Insurance Coverage Good for Rental Cars?
Renting a car for a vacation or business trip is a necessity for many travelers. As with your own vehicle, you could be liable for any damage that might occur when you're behind the wheel. You have several ways to protect yourself financially, and one is to use your own car insurance policy.
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Covering a Rental
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Most auto insurance policies in the United States cover rental cars, as long as you or a family member on the policy rented the car. If you are going on a business trip, check your policy to see if the coverage applies.
Check Your Policy
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Look for language on your insurance policy that discusses coverage of "non-owned" vehicles, which can include cars, trucks, vans or trailers.
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Limited Liability
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Some insurance companies write the rental car insurance coverage into the policy's liability section. In that case, you should check your physical liability damage limit, which is the amount of damage the policy will cover in an accident in which liability coverage applies. If it's less than the value of the rental car, you may have to pay the difference yourself.
What Isn't Covered
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Your auto insurance policy may not cover the rental of a moving truck, personal watercraft, ATV or motorcycle. Call your insurance company to make sure.
Protecting Yourself
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Before renting a car, call your insurance company to find out what your policy covers. Ask how a claim for damage to a rental car can affect your deductible and future premiums. If you don't want to use your auto policy on a rental car, you either can buy the collision damage waiver that the rental car company sells or pay for the rental with a credit card that offers rental car insurance.
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