If you have full coverage on your vehicle(s), that coverage likely extends to the car you’re renting, depending on your insurance company and your policy. As of the time of this writing, all of the nation’s ten largest auto insurance companies cover rental cars.
What this means is, if you carry liability, uninsured, collision, and comprehensive insurance on your personal vehicle or vehicles, that same coverage should transfer to the car you rent. But only the same coverage, up to the same limits, and with the same deductibles, as your personal policy. So, if you don’t carry a certain type of insurance on your personal vehicle, you will not magically have it when you rent a car. You will be covered only to the extent you are with your personal automobile policy.
Many major credit cards offer their card members supplemental rental car insurance if a vehicle is rented using their credit card. Coverage varies by credit card, and there may be exclusions and limitations, so it’s important to read your credit card agreement (aka cardholder agreement) or contact a customer service agent to understand precisely what is and isn’t covered.
No matter which types of rental car coverage your credit card may offer, it’s typically secondary coverage, which means it only pays after your primary insurance policy—your personal policy or the policy you purchase from a rental car agency or other entity—pays any submitted claims.
When you’re at the counter and the agent is discussing coverage options, these are the most common types of insurance rental car agencies offer:
There’s no hard, fast rule on when you should or shouldn’t buy rental car insurance, but if any of the following apply to you, you may want to at least consider it.
The next time a rental car agent asks you if you want to purchase their company’s insurance, be armed with all the facts to make a more informed decision. Knowing beforehand what coverage, if any, you have from your personal auto policy, your credit card, or even travel insurance should make it that much easier to say yes or no with confidence.
About the author:
Sean P. EgenAfter realizing he couldn’t pay back his outrageous film school student loans with rejection notices from Hollywood studios, Sean focused his screenwriting skills on scripting corporate videos. Videos led to marketing communications, which led to articles and, before he knew it, Sean was making a living as a writer. He continues to do so today by leveraging his expertise in credit, financial planning, wealth-building, and living your best life for Credit One Bank.
This material is for informational purposes only and is not intended to replace the advice of a qualified tax advisor, attorney or financial advisor. Readers should consult with their own tax advisor, attorney or financial advisor with regard to their personal situations.
Credit One Insurance Agency, LLC’s services are not available in all states.