Does car insurance cover a rental car?

Often, yes, at least in part. Many personal auto policies extend the coverage you already have to a car you rent for personal use. That means the rental is usually covered the same way your own car is. If you only carry liability, the rental is usually protected only for liability too.

Coverage depends on your policy, so read the details. Many policies extend:

• Liability: injuries or damage you cause to others while driving the rental
• Collision: damage to the rental from an accident, if you carry collision on your own car
• Comprehensive: theft, weather, fire or animal damage, if you carry comprehensive
• Medical payments and uninsured motorist coverage, if they're on your policy

Even with full coverage, a rental can leave you with costs your policy may not pay. Common gaps include:

• Your deductible, which you'd usually still owe after a covered claim
• Loss of use: what the rental company charges for the days the car can't be rented
• Administrative fees and diminished value charges
• Rentals used for business, which some policies treat differently
• Rentals outside the U.S., which personal policies often don't cover
• Moving trucks, large vans and some luxury or exotic cars

Rental companies often sell a damage waiver, sometimes called a collision damage waiver or loss damage waiver. It isn't insurance, but it usually means the company won't charge you for damage to the car or theft. They may also offer extra liability, personal accident and belongings coverage.

Whether you need these depends on what your own policy already covers. Buying them can make sense if you don't carry collision, want to avoid a deductible, or are renting for business or abroad.

Some credit cards include rental car coverage when you pay with the card and decline the counter waiver. It's often secondary, meaning it pays after your own policy. Terms differ a lot by card, so read the benefit guide before you rely on it.

Rental reimbursement is an optional add-on that pays for a rental car while your own car is being repaired after a covered claim. It doesn't cover damage to a rental you drive on vacation. Many drivers mix up the two.

• Check your declarations page for collision and comprehensive.
• Call your agent or carrier and ask what carries over to a rental.
• Ask whether loss of use and admin fees are covered.
• Check your credit card's rental benefit.
• Walk around the car and take photos before you drive off.

CapCenter's in-house insurance agency compares coverage across multiple carriers. An agent can review your auto coverage and help you understand how it would apply to a rental before your trip.