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Does Car Insurance Cover A Rental Car?

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By Amanda Moss | Licensed Agent at Learnandserve.org | Powered by A Plus Insurance

In most cases, the answer is NO; a personal auto insurance policy is NOT required to rent a vehicle. Rental car companies, like Enterprise, will typically offer their own insurance options that can be purchased at the time of rental. These options often include collision damage waivers, liability coverage, and personal accident insurance. However, the specific requirements may vary depending on the rental company and the country or state where you are renting the vehicle.

Your personal auto insurance policy will cover most rental cars with the same coverage limits and deductibles you have. For example, if you have comprehensive and collision coverage on your car insurance policy, you’ll be protected against physical damage to your rental car. Your liability coverage will also apply when you get behind the wheel of your rental.

Does Car Insurance Cover A Rental Car? Yes!

You many be wondering, what coverages are necessary?

Liability helps protect you financially if you are found responsible for causing an accident to someone else. It is a mandatory requirement in most states to have this type of coverage and it consists on two components:

1. Bodily Injury Liability: This coverage helps pay for the medical expenses and lost wages of the other party involved in an accident if you are found to be at fault. It may also cover legal expenses if you are sued as a result of the accident. It only cover’s up to the liability limit that you set in place.

2. Property Damage Liability: This coverage helps pay for the repair or replacement costs of the other party’s vehicle or any other property damaged in the accident. It only cover’s up to the liability limit that you set in place.

Comprehensive and collision coverage are two types of insurance coverages that protect your vehicle (or your rental) in different situations. This is known as Full Coverage.

• Collision Coverage: Collision coverage helps pay for repairs or replacement of your vehicle (or your rental) if it is damaged in a collision with another vehicle or object, regardless of who is at fault. This coverage is particularly useful in scenarios such as accidents with other vehicles, or an object like a tree. Collision coverage has a deductible, which is the amount you’re responsible for paying before the insurance coverage kicks in.

• Comprehensive Coverage: Comprehensive coverage helps pay for repairs or replacement of your vehicle if it is damaged by events other than collisions like theft, vandalism, fire, falling objects, natural disasters (such as hail, floods, or hurricanes), and hitting an animal. Comprehensive coverage also usually comes with a deductible that you need to pay before the coverages kick in.

Personal Injury Protection (PIP) and Medical Payments Coverage (MedPay) are two types of insurance coverages that help cover medical expenses related to injuries sustained in an automobile accident.

1. Personal Injury Protection (PIP): It provides coverage for medical expenses, lost wages, and other related costs resulting from injuries sustained in a car accident, regardless of who is at fault.

2. Medical Payments Coverage (MedPay): MedPay is a form of coverage that pays for medical expenses resulting from an accident. It covers medical and funeral expenses for you, your passengers, or pedestrians injured in an accident, regardless of fault. MedPay coverage is optional and typically has lower coverage limits compared to PIP.

So, does car insurance cover a rental car? Yes.

You CAN rent a vehicle without having a personal car insurance policy. Rental car companies typically offer their own insurance options that you can purchase at the time of rental. These insurance options often include collision damage waivers, liability coverage, and personal accident insurance.

When renting a car, the rental company will ask you to provide proof of insurance or offer you the option to purchase their insurance coverage. If you don’t have a personal car insurance policy, you can still rent a vehicle by purchasing the rental company’s insurance. This way, you’ll have coverage for potential damages, accidents, or liability during the rental period.

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Last Updated on February 29, 2024 by Lauren Mckenzie