Two kinds of rental car coverage
People use the same phrase for two different things, so it helps to separate them.
- Rental reimbursement: an add-on to your own auto policy that helps pay for a rental while your car is in the shop after a covered loss.
- Coverage for a car you rent: protection when you rent a car on a trip, which may come from your own policy, a credit card or the rental company.
How rental reimbursement works
If your car is damaged in a covered claim and can't be driven, rental reimbursement can pay toward a rental. Policies usually set a daily limit and a maximum per claim. If you rent a pricier car than your limit allows, you pay the difference.
It usually applies only when the damage is covered by your policy, such as a collision claim when you carry collision coverage. Routine maintenance or a breakdown generally isn't included.
Does your policy cover a car you rent?
Many personal auto policies extend some of your coverage to a rental car you drive for personal use. Often, your liability coverage applies, and your collision and comprehensive coverage may apply if you carry them. Your deductible still applies. Coverage outside the U.S. and rentals for business can be different, so check your policy or ask your agent.
What the rental counter offers
Rental companies sell several products. Knowing what each does helps you decide what you need.
- Collision or loss damage waiver: releases you from paying for damage to the rental car, subject to the agreement.
- Supplemental liability: adds liability protection above what you have.
- Personal accident coverage: medical costs for you and your passengers.
- Personal effects coverage: your belongings in the car.
Check your credit card
Some credit cards include rental car benefits when you pay with the card and decline the rental company's damage waiver. Some are secondary, meaning they pay after your own insurance. Others may be primary. Read your card's benefit terms before you travel.
Questions to ask before you rent
- Do my collision and comprehensive coverages extend to rental cars?
- Do I have rental reimbursement, and what are the daily and claim limits?
- Am I covered when renting for work or outside the U.S.?
- What does my credit card cover, and is it primary or secondary?
