Whether you’re renting a car from a traditional car rental company or using a peer-to-peer car-sharing service, you’ll likely be offered several types of rental car coverage when you schedule your trip. Different rental services offer different types of coverage, and requirements may vary by state. Your personal auto insurance may already cover your rental car. Read on to learn how rental car coverage works and whether your policy with The General® may cover your rental.
Key takeaways
- Your personal car insurance or credit card may already cover rental cars, so always check your existing benefits before paying for extra rental car insurance.
- Rental companies offer several types of optional coverage—like collision damage waivers, liability insurance, and personal effects protection—each designed to help protect you from different out-of-pocket costs.
- You may want additional coverage in select situations, such as having high deductibles, low liability limits, no comprehensive or collision coverage, renting high-value vehicles, or driving internationally.
Do you need personal car insurance to rent a car?
You typically are not required to have personal auto insurance to rent a car. However, keep in mind that if you don’t have a personal auto insurance policy, you may be held responsible for any damage to the vehicle while it’s in your possession. In this case, rental car insurance helps protect you against costs related to damage, theft, or other fees.
Can I use my insurance for rental cars?
If you own a car, auto rental insurance may overlap with your personal auto insurance policy and you may not need to pay for duplicate coverage. You should review your current policy details to determine what coverages you have. If your policy only covers liability, additional rental car coverage may be worth considering if you want added protection. It’s also important to check whether your policy covers expenses like administrative fees, towing charges, and personal effects insurance.
Can I use my credit card for rental car insurance?
Some credit cards offer rental car coverage as a cardholder benefit. Contact your credit card company to find out what kind of coverage the card offers—you usually have to reserve the car with the card as well as contact the card issuer ahead of time to confirm how the coverage works before your trip.
What coverage applies to rental cars?
In general, when you rent from a traditional car rental company, you’ll see similar types of rental car coverage no matter where you rent. Common types of rental car insurance include:
- Collision damage waiver or loss damage waiver. This is often optional and is meant to help relieve renters of financial responsibility if the car is damaged or stolen. A collision damage waiver may be especially helpful if the rental car is worth more than your personal vehicle. A waiver is not technically insurance, but it’s usually included among the insurance offers from the rental company. It typically costs between $10 and $15 per day, depending on the rental agreement.
- Liability insurance. This type of rental car insurance is the minimum amount of coverage required by the state. Depending on the state and the extent of the coverage, it may provide financial support if you are sued as a result of damaging property or injuring another person while driving the car. It may cost between $10 and $12 per day.
- Personal accident insurance. This type of insurance covers both the driver and the passengers for medical expenses related to a covered accident. It may or may not be necessary based on your own health insurance or your personal auto insurance, if applicable. It may cost around $2 per day.
- Personal effects insurance. This type of insurance may reimburse you if any of your belongings get stolen from or damaged in the car. Sometimes homeowners insurance or other coverage may help cover losses. It may cost between $3 and $4 per day.
Peer-to-peer rental services and car-sharing membership programs may also offer different types of insurance. Some services include some coverage into the cost of the rental, which may reduce the need for additional coverage. Make sure you read the fine print on all your agreements so you understand what is and isn’t covered before you drive.
When to consider additional coverage
If your personal auto policy has a high deductible, low liability limits, or lacks collision and/or comprehensive coverage, you may want additional rental car insurance. Here are a few situations where additional coverage may be worth considering.
- High deductible. If your personal policy has a high deductible, rental car coverage may help reduce out-of-pocket repair costs
- Low liability. If your policy has low liability limits, you could be responsible for damages that exceed your policy limits. Auto rental insurance often provides a higher liability limit, which may help reduce your financial responsibility after an accident.
- No collision or comprehensive coverage. A personal auto policy that doesn’t include collision and comprehensive coverage may not cover damage to or theft of the rental car. But the Collision Damage Waiver and Loss Damage Waiver offered through the rental company can help add another layer of protection.
- International travel. In some instances, your personal auto or credit card insurance may not apply to rentals outside of the United States.
- Specific vehicle types. Your personal auto policy may not cover certain vehicle types, such as luxury cars, motorhomes, or commercial vehicles. Be sure to check your policy for any rental exclusions or limitations.
Does The General car insurance cover rentals?
Some personal auto insurance policies extend the same coverage to rental cars as the insured vehicle. However, policies with The General do vary. Chat with one of our customer service representatives at 1-800-280-1466 to confirm whether your policy includes rental car coverage for your upcoming vacation or other needs.
If you’re shopping for auto insurance that may include rental car coverage, be sure to get a free car insurance quote from The General. You’ll be on the road with affordable car insurance in no time.
