How does Nationwide rental reimbursement work?

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, though online travel agencies and travel insurance companies usually offer this type of coverage as well.... read full answer

Key Things to Know About Third-Party Rental Car Insurance

If you need rental car insurance, buying from a third party is normally much cheaper than buying additional coverage directly from the car rental company. Buying enough coverage is very important, too. Although the mandatory minimum liability insurance is automatically included when you rent a car in most states, this bare-bones coverage is probably not enough to protect you if you get into a serious accident.

On that note, Bonzah is the only major third-party rental car insurance company that offers supplemental liability insurance. The other insurers offer the equivalent of comprehensive and collision coverage, along with some other benefits.

Third-Party Rental Car Insurance Companies

Allianz

• What It Covers: Damage to or theft of rental car; Trip interruption; Loss, damage, or theft of personal effects; 24/7 travel assistance
• Coverage Limits: $40,000 for the rental car; $1,000 for baggage; $1,000 for trip interruption
• Deductible: $0
• Pricing: $9 a day ($7 a day for Florida residents)

Bonzah

• What It Covers: Damage due to collision, theft, vandalism, windstorm, fire, hail, flood, and any cause not in your control; Personal effects; Option to add liability coverage
• Coverage Limits: $35,000 for the rental car; $500 total for personal possessions (or $250 per item); Option of primary liability coverage (state minimum) or supplemental liability coverage up to $1 million total
• Deductible: $0
• Pricing: $7.99 a day; $14.88 extra per day for primary liability; $11.90 extra per day for supplemental liability

Insure My Rental Car

• What It Covers: Damage to or loss of rental car; Option to add coverage for personal property, flat tire expenses, misfuelling fees, towing charges, and lost key reimbursement
• Coverage Limits: $100,000 for the rental car
• Deductible: $0
• Pricing: Varies by state, but often $9.75 a day

P’teet

• What It Covers: Damage to or theft of the rental car; 24/7 travel assistance
• Coverage Limits: $40,000 for the rental car
• Deductible: $0
• Pricing: $9 a day ($7 a day for Florida residents)

Rental Cover

• What It Covers: Damage to the car due to collision, theft, or vandalism; Lost key reimbursement; Loss of use fees
• Coverage Limits: $35,000 for the rental car
• Deductible: $0
• Pricing: $12 a day

Sure

• What It Covers: Physical damage to the vehicle or personal property; Flat tire expenses, misfuelling fees, towing charges, lost key reimbursement
• Coverage Limits: $100,000 for the rental car
• Deductible: $0
• Pricing: Varies by location and driver information

Even if you have car insurance that already covers rental cars, buying coverage from a third-party rental car insurance company can keep you from paying a deductible or from driving up your rates if you need to file a claim. Frequent car renters can also buy annual rental car insurance from Insure My Rental Car and P’teet.

What to Look For When Buying Third-Party Rental Car Insurance

If you plan to buy third-party rental car insurance, be sure to check coverage options and restrictions. Third-party companies often exclude unusual vehicles like limousines or motorhomes, or the coverage may be geographically limited. The many credit cards that offer rental car insurance have similar restrictions, by the way. Some also require you to file a claim with your normal car insurance company first.

Finally, if you are looking for a wider variety of coverage for an entire trip, travel insurance companies like Generali and Travel Guard offer rental car coverage in certain packages.

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.