{"id":3229,"date":"2023-03-05T14:36:00","date_gmt":"2023-03-05T14:36:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=3229"},"modified":"2025-01-17T16:48:53","modified_gmt":"2025-01-17T16:48:53","slug":"liability-insurance-for-rental-car","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/liability-insurance-for-rental-car\/","title":{"rendered":"Does My Auto Insurance Cover Rental Cars?"},"content":{"rendered":"\n<p>In most cases, your existing <a href=\"https:\/\/www.freeway.com\/auto-insurance\/\">auto insurance<\/a> will cover a rental car up to the same limits. Most of us have stood at the rental car desk trying to decide if we should add their rental car liability insurance. After all, we\u2019re already paying a pretty penny for coverage, right? And renting a vehicle isn\u2019t cheap either. And yet\u2026 We are torn because we aren\u2019t sure if we need the extra insurance or not.&nbsp;<\/p>\n\n\n\n<p>Whether or not you\u2019ll be covered depends on the specifics of your policy, though. Before buying <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/rental-car-reimbursement\/\">rental car insurance reimbursement coverage<\/a>, check your auto insurance policy. If you have liability insurance that extends to rental cars, see how much you carry. Is it enough to pay for property damage and medical costs if you\u2019re in an accident? If so, you likely won\u2019t need <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/liability\/\">liability insurance<\/a> for a rental.&nbsp;<\/p>\n\n\n\n<p>Clearly, having some kind of coverage for your rental is imperative. But do you really need to buy those expensive add-ons at the service counter? Let\u2019s take a look at some reasons you might not need to purchase separate rental car coverage \u2014 and some instances where it could help.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"What Insurance Companies Don&#039;t Tell You About Auto Insurance Rental Coverage\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/NsOVRYVn2Iw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Four Rental Car Insurance Options&nbsp;<\/h2>\n\n\n\n<p>When you rent a vehicle, the person at the rental counter will ask if you want to purchase rental protection. You can also buy a rental insurance policy online if you make your booking virtually. Usually there are four types of insurance available, and you might need all four or none, depending on your circumstances.&nbsp;<\/p>\n\n\n\n<p>Most car rental companies offer a collision damage waiver, liability coverage, personal accident insurance, and personal effects coverage. Rental car insurance can be expensive. The rates are charged by the day and can add up for long-term rentals.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s take a look at these four types of insurance and decide if we need them.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Rental Car Collision Damage Waiver&nbsp;<\/h3>\n\n\n\n<p>What It Is: <a href=\"https:\/\/www.consumer.ftc.gov\/articles\/0208-renting-car\" target=\"_blank\" rel=\"noopener\">A collision damage waiver<\/a>\u202fprotects you if the rental car is stolen or damaged and covers towing and loss-of-use charges when the vehicle is being repaired. It typically runs between $10-$30 a day. If you\u2019re in the United States, you won\u2019t have to pay a deductible for coverage. However, some other countries will require you to pay a deductible for coverage to kick in. It\u2019s very similar to\u202fcollision and comprehensive coverage.&nbsp;<\/p>\n\n\n\n<p>The Verdict: If you already have <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/collision\/\">collision insurance<\/a> and <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/comprehensive\/\">comprehensive car insurance<\/a>, then you don\u2019t need to purchase the Collision Damage Waiver. Your own policy should cover you and the rental car. If you pay with a major credit card, you\u2019ll likely have even more protection. If you do not have these coverages, then you should purchase this waiver.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Rental Car Liability Coverage&nbsp;<\/h3>\n\n\n\n<p>What It Is: Rental car insurance liability coverage protects you from lawsuits in the event of an accident. For example, this might kick in if you cause an accident and someone sues you for their medical bills. This doesn\u2019t provide any protection for damages suffered by you, your passengers, or the car. Expect it to run about $10-$16 a day.&nbsp;<\/p>\n\n\n\n<p>The Verdict: Most states regulate minimum liability insurance, so every rental should already come with this standard coverage. You only need to pay for this if you want extra coverage. Think of it as <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/bodily-injury\/\">bodily injury liability<\/a> and <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/property-damage\/\">property damage liability<\/a>, but just for rental vehicles.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Personal Accident Insurance for Rentals&nbsp;<\/h3>\n\n\n\n<p>What It Is: This coverage pays for medical costs due to an accident. It covers you or anyone in your vehicle at the time of the accident. It might cost between $3-$9 a day and is most similar to\u202f<a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/no-fault\/\">personal injury protection<\/a>\u202fand <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/medical-payments\/\">medical payments insurance<\/a>, which, in most cases, are standard <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/\">types of car insurance<\/a>.&nbsp;<\/p>\n\n\n\n<p>The Verdict: If you already have PIP\/MedPay with your auto policy, or if you have health insurance, you probably don\u2019t need this coverage. However, you should check with your insurer to make sure you would be covered in the event of injuries associated with a car accident in your rental vehicle.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Personal Effects Coverage&nbsp;<\/h3>\n\n\n\n<p>What It Is: If you\u2019re vacationing in a touristy area, you have to be especially careful about thieves and burglars. Personal effects coverage protects the items stored in the rental car. This might include your luggage, clothing, or electronics. Just be aware, expensive electronics may have a coverage limit or exclusion, meaning you might not be fully reimbursed. This runs $1-$6 a day and is most like the coverage you get from\u202fhomeowners\u202for\u202frenters insurance.&nbsp;<\/p>\n\n\n\n<p>The Verdict: If you have <a href=\"https:\/\/www.freeway.com\/insurance-options\/homeowners-insurance\/\">homeowners insurance<\/a> or <a href=\"https:\/\/www.freeway.com\/insurance-options\/renters-insurance\/\">renters insurance<\/a>, your personal belongings should be covered. If you don\u2019t have either of these coverages and you expect to leave valuable belongings in your rental car, this option might be worth purchasing.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">I Don\u2019t Have Car Insurance \u2014 Can I Rent a Car?&nbsp;<\/h2>\n\n\n\n<p>Yes, you can. If you don\u2019t own a car, you have no need for car insurance, you can rent a car. You won\u2019t have as much protection as you would with a personal auto insurance policy. In these cases, we\u2019d recommend choosing rental car liability insurance. The car will automatically come with the local minimum coverage required by law. However, that may not be sufficient coverage if you get into a serious accident. And if you\u2019re traveling out of the country, laws can vary wildly, so you may or may not be protected.&nbsp;<\/p>\n\n\n\n<p>If you don\u2019t own a car and you plan to regularly rent or borrow a vehicle, you should look into <a href=\"https:\/\/www.freeway.com\/auto-insurance\/coverage\/non-owner\/\">non-owner car coverage<\/a>. One of its benefits is that it is generally cheaper than paying the rental companies\u2019 rates if you are a frequent car renter.&nbsp;<\/p>\n\n\n\n<p>Liability insurance is typically the only required insurance coverage in <a href=\"https:\/\/www.freeway.com\/auto-insurance\/states\/\">each state<\/a>, so most rental cars probably won\u2019t include collision or comprehensive insurance unless you add these on. Without your own policy to protect you, you\u2019re at risk for huge repair bills, so adding extra protection here is a great idea.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Do I Need Rental Car Insurance If I Have Health Coverage?&nbsp;<\/h2>\n\n\n\n<p>Not if you are traveling in the United States. Here most health insurance policies will cover your injuries in a car accident without question. Even policies with strict network requirements should cover emergency room visits, or medically necessary hospital stays at the in-network rate. This means if you need life-saving care, you won\u2019t have to bankrupt yourself to get it (though you may need to transfer to an in-network hospital as soon as medically viable).&nbsp;<\/p>\n\n\n\n<p>This might change if you\u2019re out of the country, though. That\u2019s why it\u2019s important to closely read the terms of your health insurance to see what is and what isn\u2019t covered. If your coverage is strict about receiving out-of-network care or limits responsibility for bills accrued outside the country, adding on some additional personal accident protection is a good idea. For example, you can purchase <a href=\"https:\/\/www.freeway.com\/insurance-options\/mexican-car-insurance\/\">car insurance to drive in Mexico<\/a> if you\u2019re planning a trip south of the border.<\/p>\n\n\n\n<p>While health insurance may provide medical protection for you during an accident, it doesn\u2019t cover any damage to your vehicle, damage to other vehicles, or other people\u2019s medical bills. So you may need to add on this coverage depending on the other factors we\u2019ve been discussing.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Do I Need Rental Car Insurance If I Have Homeowners or Renters Insurance?&nbsp;<\/h2>\n\n\n\n<p>You typically will not need the Personal Effects Coverage. Your homeowner\u2019s policy can also protect you when you drive a rental car. Your policy might cover your belongings even when they aren\u2019t in the home. If so, you don\u2019t need personal effects coverage.&nbsp;<\/p>\n\n\n\n<p>For example, let\u2019s say you bring along an iPad, a designer purse, and your suitcase filled with clothes in your car. If someone breaks in and takes these things, insurance will reimburse you for your losses. There are just a couple of caveats.&nbsp;<\/p>\n\n\n\n<p>First, high-end electronics and cameras usually aren\u2019t covered unless you\u202f<a href=\"https:\/\/www.freeway.com\/knowledge-center\/homeowners-insurance\/understanding-homeowners-insurance\/items-home-need-home-insurance-riders\/\">take out a specific rider<\/a>\u202fon them. Second, coverage is typically for personal purposes only. If you\u2019re on a business trip, you may have to look to your employer\u2019s insurance for help.&nbsp;<\/p>\n\n\n\n<p>Just like with health insurance, this type of coverage doesn\u2019t cover damage to anyone\u2019s vehicle or any medical bills. Make sure you have enough coverage in those areas before setting off on your trip.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Do I Need Rental Car Insurance If I Have Traveler\u2019s Insurance?&nbsp;<\/h2>\n\n\n\n<p>Probably not. Travel insurance is a great way to make your next trip go smoothly, no matter what happens. It can provide trip cancellation or delay reimbursement, health coverage abroad, and lost baggage reimbursement. It\u2019s basically a combination of health and homeowners insurance, but just for the duration of your vacation.&nbsp;<\/p>\n\n\n\n<p>Your traveler\u2019s policy can also substitute for rental car insurance. It might include collision coverage for rental cars, and it\u2019s typically cheaper than what you\u2019ll pay a rental company. Always read the fine print of any traveler\u2019s policy before buying in. Like with rental car insurance, you may find that you have enough coverage from your existing policies to protect you on the road.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Do I Need Rental Car Insurance If I Have Credit Card Benefits?&nbsp;<\/h2>\n\n\n\n<p>Most major credit cards will provide coverage when you use that card to pay for your rental car. Many credit card companies offer collision protection that can cover you if you\u2019re in an accident. This option usually requires you to exhaust all other forms of insurance first, but it can be your primary coverage if you don\u2019t have other alternatives available.&nbsp;<\/p>\n\n\n\n<p>Just make sure you decline the collision damage waiver offered by the rental car company. If you don\u2019t, this policy will cancel out the credit card\u2019s coverage, meaning they won\u2019t pay anything if you\u2019re in an accident.&nbsp;<\/p>\n\n\n\n<p>Don\u2019t forget, there\u2019s usually a time limit for how long a credit card will cover a rental car. Some cards set the limit as low as 15 days, which might not be enough if you require long-term rental car insurance.&nbsp;<\/p>\n\n\n\n<p>Curious about what exactly a credit card covers? Here\u2019s a look at\u202f<a href=\"https:\/\/www.americanexpress.com\/content\/dam\/amex\/us\/credit-cards\/features-benefits\/policies\/NAC-Benefit-Guides\/Benefit-Guide-1-1-20\/CRLDI_Benefit_Guide_371-397_EDT01.20REV_10.20.pdf\" target=\"_blank\" rel=\"noopener\">the coverage for the Platinum Card from American Express<\/a>:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Rental vehicle damage and theft up to $75,000\u00a0<\/li>\n\n\n\n<li>Accidental death or dismemberment up to $200,000 per cardmember and $20,000 per passenger, up to a total of $300,000 per accident\u00a0<\/li>\n\n\n\n<li>Accidental injury coverage up to $5,000 per car rental claimant\u00a0<\/li>\n\n\n\n<li>Car rental personal property coverage up to $1,000 per claimant for a total of $2,000 per incident\u00a0<\/li>\n\n\n\n<li>Also, your card might cover towing costs\u00a0<\/li>\n<\/ul>\n\n\n\n<p>As you can see, this coverage is pretty comprehensive and should offer you complete protection if you\u2019re involved in an accident.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Should You Get Additional Coverage?&nbsp;<\/h2>\n\n\n\n<p>You still want to know, \u201cShould I insure my rental car?\u201d It all really depends on the amount of coverage you currently have or don\u2019t have.&nbsp;<\/p>\n\n\n\n<p>If you don\u2019t have comprehensive and collision coverage, you should consider getting the collision damage waiver. Also, if you don\u2019t have personal injury protection or health insurance, you\u2019ll need personal accident insurance. You can also consider personal effects coverage if you don\u2019t have protection.&nbsp;<\/p>\n\n\n\n<p>Some people are comfortable with lesser amounts of coverage, while others prefer to have a blanket of protection. At the end of the day, it\u2019s up to you to decide how covered you\u2019d like to be.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Find Affordable Auto Insurance Online Today&nbsp;<\/h2>\n\n\n\n<p>Review your policies before buying car rental insurance. You likely won\u2019t need it. If you do, purchase the type of policy you need to protect your financial interests when on the road.&nbsp;<\/p>\n\n\n\n<p>Still not sure if insurance will cover your rental car? Our insurance experts at Freeway Insurance can help!\u202f<a href=\"https:\/\/www.freeway.com\/auto-insurance\/cheap\/\">Get a free car insurance quote today online<\/a>, over the phone, or at one of our <a href=\"https:\/\/locations.freeway.com\/\" target=\"_blank\" rel=\"noopener\">offices near you<\/a>. If you prefer, you can speak to one of our insurance agents at 800-777-5620.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-1 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color has-background wp-element-button\" href=\"#modal-turbo\" style=\"background-color:#0047bb\">Get a Quote<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color has-background wp-element-button\" href=\"tel:800-777-5620\" style=\"background-color:#0047bb\">Call Us<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-3 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color has-background wp-element-button\" href=\"https:\/\/locations.freeway.com\/\" style=\"background-color:#0047bb\" target=\"_blank\" rel=\"noopener\">Find Your Office<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In most cases, your existing auto insurance will cover a rental car up to the same limits. Most of us have stood at the rental car desk trying to decide if we should add their rental car liability insurance. After all, we\u2019re already paying a pretty penny for coverage, right? And renting a vehicle isn\u2019t [&hellip;]<\/p>\n","protected":false},"author":1002606,"featured_media":5369,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[],"importance":[],"type-content":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/3229"}],"collection":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/users\/1002606"}],"replies":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=3229"}],"version-history":[{"count":35,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/3229\/revisions"}],"predecessor-version":[{"id":10404,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/3229\/revisions\/10404"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media\/5369"}],"wp:attachment":[{"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=3229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=3229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=3229"},{"taxonomy":"importance","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/importance?post=3229"},{"taxonomy":"type-content","embeddable":true,"href":"https:\/\/www.freeway.com\/knowledge-center\/wp-json\/wp\/v2\/type-content?post=3229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}