Does My Auto Insurance Cover Rental Cars?

MyTPG Blog
Published: 11/18/21 5:00 AM

Title image for Does My Auto Insurance Cover Rental Cars? showing a row of cars in a parking garage.

Does My Auto Insurance Cover Rental Cars?

This article was published on: 11/18/21 5:00 AM




Does my auto insurance policy cover rental cars? When renting a car, the rental company will normally ask if you’d like to buy insurance coverage for the auto. It is at this point when you must decide what to do.

Although most auto insurance policies will cover rented automobiles, you need to never assume you are protected.  Car policies differ. So, it’s a great idea to call your agent and ask them to review your policy. They can help you to identify if you have the proper amount of coverage when renting an auto.

Analyzing Whether Your Auto Insurance Will Cover Rental Cars

 If you have the following coverage, you might not need to purchase additional protection from the rental car company:

  • Do you have liability, collision or comprehensive vehicle insurance coverage?
    • Liability insurance provides protection if you damage or hurt another individual or their property.
    • Collision insurance provides coverage if your motor vehicle is involved in a collision, either with another vehicle or object.
    • Comprehensive insurance coverage provides protection if your car is damaged by a variety of things such as theft, vandalism, or natural disasters.
  • Does your policy cover loss of use or towing charges?  This coverage can be useful if a car you rent is lost, stolen or damaged.
  • Do you have a renters or homeowners policy that will cover your personal belongings if lost or damaged? Your homeowners or renters policy covers your personal belongings. It covers your personal belongings from theft, fire or vandalism whether in your house or your car. So, don’t despair if personal valuables in your automobile are taken or damaged. Your insurance may cover a percentage of your losses.

What Protection Options do Car Rental Companies Provide?

Car rental companies provide four different protection options:

  1. Supplemental liability insurance: Most car rental companies need to have the minimum amount of liability protection required by the state, but oftentimes it isn’t an adequate amount of coverage. If you carry a high liability limit on your auto insurance, you may not need additional coverage.
  2. Collision deductible waiver (CDW): Collision deductible waiver ensures that if an uninsured motorist damages your car, you’re not left paying the deductible,
  3. Medical coverage: This will cover the driver and any passengers within the rented auto for any medical expenses brought on by an auto accident. This coverage is useful if you do not already have medical insurance or if you have a high deductible on your medical.
  4. Personal effects coverage: This covers any personal belongings that are stolen from the rented automobile. If you currently have renters or homeowners insurance coverage, this may currently be covered under your policy.

The protections provided are usually the same as what you already have for your individual motor vehicle insurance. Again, to prevent paying for coverage you already have, review your policy prior to renting a vehicle.

Does Your Credit Card Provide Rental Insurance?

Many credit card companies offer rental insurance to their clients. To use this type of coverage, you need to put the total amount of the rented vehicle charges on your credit card. Sometimes, they will also require you to reject any insurance provided by the car rental company in order to use their coverage.

Ask If Your Auto Insurance Covers Rental Cars

Choosing your rental car coverage can be a difficult venture. Prior to purchasing any additional protection, speak with your insurance agent about your policy and whether you might need to buy any additional insurance coverage.

If you have any concerns or are unsure if rental motor vehicles are covered under your policy, contact TPG Insurance Services today by calling 909.466.7876. Also, want to learn more about our auto coverages? Discover more on Auto Insurance by visiting our page now!