How does Farmers rental reimbursement work?

Rental car liability insurance is coverage that pays for injuries or property damage that you cause in an accident when you are driving a rental car. Rental car liability insurance does not protect you or your rental car from collision damage, car theft, loss of personal effects, or injuries.

Should You Get Rental Car Liability Insurance?… read full answer

In most states, some rental car liability insurance is included with the rental. However, the state-mandated minimum insurance that these cars carry might not be enough to protect you from the financial repercussions of an accident. Because of this minimal coverage, rental companies sell supplemental liability insurance at the counter. Rental car companies also offer other types of coverage like loss damage waivers, roadside assistance, and personal accident insurance.

You might already have rental car insurance through your current insurance coverage or your credit card, however. Your current auto insurance policy likely extends its liability coverage to rental cars, whereas credit cards often provide the equivalent of comprehensive or collision coverage but no liability coverage.

When Your Standard Insurance Covers Rental Cars

• You have personal auto insurance
• Your personal liability coverage limits are equal to or higher than the limits required for the vehicle that you're renting
• You're only using the rental car for personal reasons, not business-related
• You're only traveling inside the United States
• You have homeowners or renter's insurance

When Your Credit Card Covers Rental Cars

Some credit cards, including many travel rewards cards, provide rental car insurance if you use the card to pay. Here are some key things to know about how credit cards cover rentals:

• Certain cards provide primary coverage, which means you don’t have to file a claim with your insurance company before you file with the card company.
• Certain cards offer secondary coverage, meaning they pay only after your insurance company has reached its limits.
• Most cards only cover damage to the rental car, not damage to other people’s property, your property, or anyone’s injuries. So be sure to check with your credit card company to see if – and what type of – rental car insurance is included.

Getting Rental Car Liability From the Rental Company

If you do not have a personal car insurance policy and your credit card doesn’t cover you, you can purchase supplemental liability insurance from the rental car company. However, this can quickly get expensive, especially since liability insurance for the rental car is sold separately from other coverage.

If you rent cars frequently, it might be more efficient to buy rental car liability insurance from another source. For instance, travel insurance companies offer rental car liability insurance, often at lower prices. You can also buy a non-owner car insurance policy, which offers liability coverage. Another option is to compare credit cards that covers rental cars

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.… read full answer

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.

No, you do not need insurance to rent a car because rental companies have their own insurance. Rental car companies usually provide minimum liability coverage only, so if you don’t have personal insurance, you’ll probably want to purchase extra rental car insurance through the rental company. If your personal car is insured and you pay for your rental with a credit card, you can probably skip the optional coverage offered at the rental counter.… read full answer

Coverage Offered by Rental Car Companies

• Collision Damage Waiver:

Covers: Damage to the rental car in an accident

Similar to: Collision and comprehensive

• Supplemental Liability

Covers: Damage and injuries to the other driver from an accident you cause

Similar to: Bodily injury and property damage liability

• Personal Accident

Covers: Medical costs for injuries to you and your passengers

Similar to: Personal injury protection, MedPay and health insurance

• Personal Effects

Covers: Personal items stolen out of the rental car

Similar to: Homeowner’s or renter’s insurance

You don’t have to purchase all of these coverage types to be protected while driving your rental. But minimum liability insurance carried by the rental car company isn’t enough protection if you get into an accident.

When You Don't Need The Rental Company's Insurance

Before you buy the rental company’s insurance, you should consider what coverage you may already have through your personal car insurance. The coverage limits and deductibles you have on your personal vehicle typically still apply to rentals, as long as you’re renting for personal use. Many major credit cards also offer coverage for rental cars if you pay with your card and decline the collision damage waiver offered by the rental company.