WalletHub, Financial Company
@WalletHub
Yes, your car insurance covers rental cars, in most cases. Standard auto insurance policies cover car rentals in the U.S., up to your normal policy limits and with your regular deductible, but it’s best to check the details of your car insurance policy to make sure you’re aware of any specific rental car restrictions.
In addition, other policies, like health or home insurance, kick in for certain situations. Your health insurance will usually cover injuries resulting from a car crash, and home or renters policies cover items stolen from a car. Also, depending on the credit card you used to rent a car, you may be able to file a claim through it, too.
When Your Car Insurance Does Not Cover Rental Cars
Although every standard car insurance company has its own criteria for covering rental cars, a few situations are commonly excluded.
- Most insurers do not cover rental cars outside of the U.S., though you can buy specialty rental car or travel insurance to fulfill another country’s insurance requirements.
- If you get into an accident, the rental car company may charge you for things that your insurance won’t pay for, like loss-of-use or administrative fees.
- Many personal car insurance policies do not cover cars rented for business reasons
- Most companies have time limits, meaning that your insurance will cover a rental car for a few weeks or a month at most.
- If you carry full coverage, your insurance will only pay for the limits established by the value of your usual car, even if the rental car is worth more.
When to Buy Additional Rental Car Insurance
- You don’t have your own car insurance policy.
- You have a personal insurance policy but want additional coverage.
- You are renting a car for business purposes.
- You are renting a car outside of the U.S.
Keep in mind that not every state requires rental car companies to automatically provide the minimum mandated insurance coverage. In California, for example, you need to carry a personal car insurance policy with liability coverage or purchase the rental car company’s additional liability coverage in order to drive legally.
To learn more, check out WalletHub’s full guide to rental car insurance.
People also ask
Which insurance is best for rental cars?
The best rental car insurance is your personal car insurance policy, which should cover rental cars in the United States and Canada. If you don’t have car insurance, you can purchase coverage from the rental car company or third-party providers like Allianz and Bonzah. Third-party rental car insurance providers are affordable, costing around $11 to $23 per day depending on the coverage, while insurance sold at the rental counter can easily cost twice as much.
... read full answer by Lilah Butler, Car Insurance WriterWhat is third party rental car insurance?
Third-party rental car insurance covers anyone's medical expenses and property damage in the event of an accident, apart from for you and the rental car. Major third-party rental car insurance companies include Allianz and Bonzah. However, online travel agencies and travel insurance companies usually offer this type of coverage as well.
Key Things to Know About Third-Party Rental Car Insurance
If you need rental car insurance, buying from a third party is normally...
read full answer by WalletHub, Financial CompanyDo I need rental car insurance?
You need some form of insurance to drive a rental car, but you only need to buy extra car insurance from the rental car company if you don’t have personal auto insurance or you’re traveling internationally. Standard car insurance policies usually extend to rental cars, so most drivers are already covered. Many credit cards also provide insurance against damage to the rental car itself.
You Might Need to Buy Rental Car Insurance If You:
- ...
Did we answer your question?
Important Disclosures
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers. For full transparency, here is a list of our current advertisers.
Advertisers compensate WalletHub when you click on a link, or your application is approved, or your account is opened. Advertising impacts how and where offers appear on this site (including, for example, the order in which they appear and their prevalence). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.
Advertising enables WalletHub to provide you proprietary tools, services, and content at no charge. Advertising does not impact WalletHub's editorial content including our best picks, reviews, ratings and opinions. Those are completely independent and not provided, commissioned, or endorsed by any company, as our editors follow a strict editorial policy.