Does my car insurance cover rental cars?Your auto insurance typically provides the same kind of coverage offered by the car rental company. SECURA’s MILE-STONE® coverage, for example, includes liability coverage for rental cars. If you have physical damage as part of your coverage, that will apply to your rental as well.
If you have collision coverage or comprehensive coverage, you’ve probably covered most of your bases. But rental companies have a way of adding extra fees that go beyond traditional coverage. Before traveling, check your policy and call your insurance agent to make sure you understand what’s covered and what isn’t. Find out if your policy:
- Extends to rental cars
- Covers rental company fees, such as admin fees, towing, and loss-of-use while the vehicle is being repaired
- Covers diminished value claims
- Covers the rental car’s full value in case the car is totaled
- Includes coverage if the car is being valet parked or in the custody of a valet service
Find out what your credit card coversSome credit cards offer car rental insurance when you pay with your credit card. This coverage is typically “secondary insurance,” which means it only covers what your primary auto insurance doesn’t. Terms vary by issuer, but typically include coverage for physical damage and theft…not injury, liability, diminished value, or damage to other vehicles.
Coverage only applies if you decline the rental company’s insurance and may exclude certain vehicles such as large vans, trucks, and expensive cars. Coverage may also be excluded in some popular tropical destinations — like Jamaica.
Consider the rental car company’s insurance if:
- You’re traveling outside the U.S.
- You’re renting an RV, large van, truck, or specialty car.
- Your primary coverage doesn’t include diminished value or other special conditions listed above.