Does My Personal Auto Insurance Cover a Rental Car?
Picture this… you’re at the rental car counter, excited for vacation, and they hit you with the question: ‘Would you like to add rental car insurance?’ You pause. Do you need it? After all, you’ve got personal auto insurance, right?
Well, not so fast! Using your personal insurance might seem like the easy choice, but it could cost you more than you think. Stick around, and I’ll explain when skipping rental coverage could come back to bite you—and how to protect yourself.
Introduction
Hey everyone, from Trailstone Insurance here! So, alright, let’s break down how personal auto insurance works for rental cars. In most cases, your personal coverage extends to rentals, but only if you have comprehensive and collision coverage on your own car.
What Are the Basic Personal Auto Insurance Coverages?
Let’s talk about the most common personal auto insurance coverages:
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Liability: If you hit someone else.
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Collision: For the rental car if it gets damaged.
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Comprehensive: Covers things like if the car’s stolen or vandalized.
Sounds solid, right? But here’s the catch: Your deductible still applies, and if you file a claim, it can increase your premium. Plus, if the rental car’s value exceeds your personal car’s value, your policy might not cover the full cost.
Loss of Use Coverage
Here’s where it gets tricky. Most personal policies don’t cover ‘loss of use’ fees—which is the fee the rental company charges for each day the car is unavailable for rental. And forget about diminished value or administrative fees—they’re usually excluded, too. This is a big issue if you have an accident.
Why Rental Insurance Might Be Worth It
So, should you get the rental company’s insurance? In many cases—yes! Here’s what their packages usually include:
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Collision Damage Waiver (CDW): Covers damage to the rental, with no deductible.
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Supplemental Liability: Provides extra protection if you injure someone or damage property.
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Personal Accident Insurance: Covers medical costs for you and passengers. This could be huge in another country if your health insurance doesn’t cover you.
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Personal Effects Coverage: Protects your belongings inside the rental.
So the rental car insurance might cost $10 to $30 a day, but it can save you thousands if something goes wrong. And the best part? It keeps your personal insurance out of the equation, so your premium stays put.
Real-World Example
Let me give you a real-world example. Cynthia rented a car in Denver… she skipped the rental company’s insurance, thinking her personal coverage had her back. Well, someone sideswiped her rental in a parking lot.
Her personal insurance covered the $3,500 damage, but she paid a $1,000 deductible. Worse, her premium jumped by $40 a month—that’s nearly $500 more per year!
Now, compare that to Mike, a Trailstone client—he rented a car, added the $20-a-day collision waiver, and—surprise, surprise—someone hit his parked car, too. But Mike? He walked away without paying a dime. No deductible. No premium increase.
Sometimes, peace of mind really is worth the price.
Peace of Mind
So, what’s the move? If you’re renting a car, don’t just assume your personal insurance has you fully covered. Check your policy, weigh the risks, and when in doubt, consider the rental company’s coverage.
If you’re not sure what your policy covers, call us at Trailstone. We’ll break it down for you, so you can rent with confidence and enjoy the ride—worry-free.
Safe travels and happy driving!