Auto Insurance and Rental Cars: Are They Covered?

Whether you need a rental car while your own is in the shop or you’re going on a weekend trip, it’s crucial to understand how that vehicle is covered by insurance. Some personal auto insurance policies may offer coverage for rental cars, but it’s important to know the limitations. You can also usually purchase coverage from the rental company when you pick up the keys.

Does Personal Auto Insurance Cover Rental Cars?

Your personal auto insurance policy might extend to rental cars, but there are important limitations to be aware of. The following coverages typically apply to rental vehicles:

• Liability coverage may cover property damage or personal injury to others if you are at fault in an accident.
• Collision and comprehensive coverage may cover damage to the rental from accidents, theft, or natural disasters as outlined in your policy.
• Medical payments coverage may cover medical expenses for you and your passengers after an accident.

It’s always important to discuss your specific policy coverage with your insurance broker to understand exactly what is and isn’t covered concerning your rental car.

Should You Purchase Insurance From the Rental Company?

Some situations may require more than your personal auto coverage. Consider the following scenarios in which you may want to purchase insurance from the rental company:

• You’re renting a vehicle outside the U.S. or Canada.
• You’re renting a luxury, exotic, or commercial vehicle, which may cost more to repair than what your personal auto insurance limits could handle.
• Your personal auto policy doesn’t include full coverage.
• You want to avoid using your insurance and deductible.

Contact Us

Even if your personal auto insurance policy extends coverage to a vehicle you rent, it’s always a good idea to check with your insurer to fully understand what is and isn’t covered. Contact Tennessee State Insurance in Knoxville, TN for more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.