In the United States, most auto insurance policies cover standard rental cars, as long as travel is within the states and, in some cases, Canada. Most policies do not cover vans or luxury cars. Look at your policy to see exactly what is and isn’t covered when considering a car rental.

No matter what is limited or excluded in your policy, your personal auto policy will be your coverage for accidents or injuries sustained as the driver of a rented car. If you have additional coverage on your credit cards or if you purchase additional coverage from the rental company, this coverage will only go into effect once you have exhausted your personal coverage.  The term the insurers use for this is “subrogation.”  In addition, filing a claim for damages to a rental car may lead to an increase in your auto insurance rates.

While some states require rental companies to tell you if their coverage duplicates the coverage you already have, some do not.  The laws also make no provision for how you are to be notified.  The best way to find this out is to ask your agent before the car rental occurs.

These are the questions you should ask:

Where am I covered? Is it the United States and Canada, or what exact geographical area?

What is the total of my liability coverage?  (Older cars often carry only a minimum liability amount which is required by the state, and that level may not be enough should you have to replace a new car or if you should unfortunately have to pay an expensive claim for personal injury.)

What is my deductible? (Is the amount reasonable, if  you should have to pay it yourself if the rental is damaged?)

Does the insurance policy only cover the value of the car listed on it?  (In that case, you need to compare the value of the insured car to the cost of replacing the sort of car you intend to rent.)

Will my policy pay for collision damage or theft? (Collision coverage is standard for most U.S. drivers, making the protection the car rental companies sell unneeded.)

After everything has been considered, it is up to you to decide whether or not to purchase optional coverage from the car rental company. Measure the cost of the coverage versus its value.  Keep the information in this article in mind, and use all the facts to make an informed decision.

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