No, if your car breaks down, insurance will not cover a rental car unless you have rental reimbursement coverage and the breakdown was the result of something covered by comprehensive or collision insurance. If the breakdown was the result of an underlying mechanical issue, your rental coverage will not apply.
Even if you don’t have rental reimbursement coverage with your car insurance company, you may be able to get it through an extended warranty. Extended warranties are service contracts that cover repair costs if your vehicle suffers a major mechanical failure. In addition to the breakdown coverage, extended warranty providers often include rental reimbursement coverage in their contracts. Extended warranties are usually not available from insurance companies, so you’ll need to purchase one from either a third-party company or your car’s manufacturer.
Extended car warranties are worth it if a driver doesn’t carry sufficient savings to pay for vehicle system repairs or is worried about their car’s reliability. But for most drivers, extended car warranties go unused, so the potential benefits are not enough to justify the upfront cost.
A good time to consider the value of an extended warranty is when the manufacturer’s warranty on your vehicle has expired or will expire soon. This typically happens after three years or 36,000 miles, depending on which comes first. If you plan on keeping your car beyond the manufacturer warranty’s expiration, then purchasing an extended warranty might give you peace of mind moving forward.
An extended warranty might also be worth it if you’re concerned about your ability to pay for major mechanical repairs in the future. Car repairs cost about $400 on average, which is less than the $1,500 average for an extended warranty. On the other hand, the least common and most catastrophic mechanical failures can often cost several thousands of dollars to repair.
If your car isn’t very reliable and you’re not in the financial position to risk either paying for repairs or replacing the car yourself, it might be worth it to pay a higher upfront cost for protection through an extended warranty.
When An Extended Car Warranty Isn’t Worth It
Your car is reliable
Your car is not worth very much
Your car is still covered by the manufacturer’s warranty
You have a large enough emergency fund to pay for major vehicle repairs
Bear in mind that you don’t have to purchase an extended warranty when you buy your car. It’s likely a smart move for you to wait until the manufacturer’s warranty is about to expire to evaluate your situation and determine whether you want to pay for an extended warranty. To learn more, check out WalletHub’s guide to the best extended car warranties.
Yes, USAA offers discounts on rental cars from Enterprise, Avis, Budget and Hertz Car Rental. The exact amount of a USAA rental car discount depends on factors such as the type of car and the length of the rental period, but USAA customers can save up to 25%. In order to get a discount, you will need to provide the rental car company with your USAA policy number.… read full answer
USAA Rental Car Discounts
USAA Customer Discount
up to 5%
up to 25%
up to 25%
up to 25%
Can I Use USAA’s Insurance for My Rental Car?
If you have liability, comprehensive, or collision coverage on your USAA policy, they will transfer to your rental car. Your rental car will have the same coverage limits as your personal car. As long as the car you’re renting is of similar value to your own, you can probably skip the rental company’s coverage. You’ll also want to pass on rental insurance at the counter if you plan to use a credit card as secondary coverage.
Yes, Progressive offers rental car insurance. If you already have a personal auto policy with Progressive that includes liability, comprehensive, and collision coverage, this insurance will likely extend to cover your rental car. If you only have liability insurance with Progressive, physical damage to the rental vehicle will not be covered.… read full answer
You can talk to a Progressive customer service representative at 1 (888) 671-4405 to see if your personal policy will extend to your rental car. If you do not have sufficient coverage through Progressive to cover your rental car, you can purchase insurance from your rental car company, or see if it is offered by your credit card company.
Progressive Rental Car Coverage
Liability Insurance. Progressive liability insurance will usually extend to your rental as long as you are driving in the U.S. Your personal liability insurance will pay for others’ medical expenses and repairs to others’ property resulting from an accident you caused in your rental vehicle.
Collision and Comprehensive Insurance. If you have collision and comprehensive insurance with Progressive, this will typically cover any damage that occurs to the rental vehicle itself during your rental period. However, your Progressive collision and comprehensive coverage limits may not be high enough if you are renting a car with a much higher value than your personal vehicle and the car gets totaled.
Personal Injury Protection or MedPay. If you have personal injury protection (PIP) or MedPay through your personal auto policy, medical expenses for you and your passengers will be covered even after a rental car accident. If you do not have either type of coverage, you can purchase personal accident insurance through the rental car company.
Progressive also offers rental car reimbursement coverage, which helps pay for the cost of a rental car while your personal vehicle is being repaired for a covered claim. If you add rental reimbursement to your policy, Progressive will pay about $40 to $60 toward the cost of your rental, up to 30 days. You select specific rental car reimbursement limits when you purchase the add-on. For example, if you choose $30 per day/$600 per loss as your rental reimbursement limits, Progressive will pay up to $30 per day, but no more than $600 per claim for your rental.
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