Insurance When Renting a Car
Ever wonder how insurance works when renting a car? For this entry, we’ll be doing a Q&A with insurance expert John Ortega to find out!
Am I covered by my personal insurance when renting a car?
Yes. If you have full coverage (collision and comprehensive) you are covered in the United States and Canada for any vehicle you are renting for personal use (not business). This means if you drive the car into Mexico, you are definitely not covered.
Should I add insurance to my rental car when given the option?
Yes. As long as you have full coverage on your car you will be covered on your rental car, excluding your deductible. There are also certain credit card companies that will cover the deductible in case of an accident. While your auto policy will cover you for physical damage to the vehicle and any injury you cause, what is not covered by most policies is depreciation of value, loss of use for the rental company, and any ancillary charges related to the vehicle. These costs can add up to thousands of dollars and are not covered by your personal auto insurance. An accident in Hawaii (where costs are extremely high) could cost you thousands.
What happens if I total a rental car?
In many cases, your insurance company will pay the actual value of the car while the rental company wants the sticker value of the car. In this event, the rental company will try to come after you for the difference between the actual value of the car and full paid value. In some situations, your credit card company may actually cover the difference, but if not, this is another area in which you can take a loss.
Am I covered if the rental company tries to sue?
It most likely will not come to this as they will be able to simply charge your credit card on file.
Thank you John! It is tough to foresee any of these issues happening when you need a rental, but they do. Protect yourself by making sure you have the right personal coverage, and opt in for the rental car insurance if you want to have a peace of mind in the event of an accident!
