When you rent a car, you’ll have the option to purchase the rental agency’s car insurance to cover the vehicle. It can be tricky to decide if you need to spring for that extra coverage, especially since whether or not your own car insurance applies depends on multiple factors. Before you rent a car, it’s best to call your insurance company and learn about how rental car insurance works so you can make a well-informed decision.
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Personal car insurance policies will often cover a rental car as long as you’re using it for personal purposes, like a vacation or as a replacement while your personal vehicle is in the shop. If you’re renting a car for business, your personal insurance policy usually won’t cover the vehicle.
It’s also important to think about the type of coverage that you have. If you only have personal liability coverage, you could still be financially responsible for repair costs resulting from an accident. Additionally, check your policy limits. If you have low collision coverage limits because you drive an older, more affordable car, but you rent a new SUV, your policy will only pay out to those lower limits. If you’re in a serious accident, you could still be responsible for paying the remaining balance from the vehicle’s repairs or replacement.
Before you rent a car, call your car insurance company to make sure that you’ll be covered. Try to get an idea of the type of vehicle that you’ll be renting, and ask the agent to help you decide if you need extra coverage.
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Some credit card companies provide insurance coverage if you use your credit card to pay for your vehicle rental. Before you rely on this coverage, contact your credit card company for details. Some companies limit coverage to collision insurance only, and your coverage might exclude certain vehicle models, types of collisions, and types of damage to the vehicle. Be sure to verify that the coverage limits are high enough to pay for potential expenses that could result from an accident.
Possibly, as long as you’re renting a car for personal use. It’s best to call your insurance company and confirm before you rent a car.
If your personal car insurance includes collision coverage, and your car insurance covers your rental car, then yes, that collision coverage would help to pay for repairs and damage caused by an accident.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
