Does my car insurance cover rental cars?

By | December 8, 2018

Does my car insurance cover rental cars?
Today, in this video, I‘m going to answer one of my most frequently asked questions about insurance coverages based on my 14 years of experience.
This is a question that I get asked at least weekly, and I just thought I would share this information with all of you.
“Does my current car insurance coverage extend to a rental car?” In other words, if you rent a car and decline their coverages (collision waiver) and the car is damaged during your rental period, does your current car insurance cover it?
The answer is: “It depends.”
Hi, my name is Humberto Garcia, and I’m the owner of The Vanguard Agency, an independent insurance agency. We shop your insurance with multiple top-rated carriers.
If you rent a car outside of the US, I would advise to always buy their insurance. Most of the insurance companies do not extend coverage outside the US.
If you are renting a car in the US, the coverage extends to the rental car, but there are limitations:
1. Does not cover loss of use of the rental car.
2. Does not cover Admin Fees.
3. Does not cover Loss of Value of the rental car.
4. You are still responsible for your deductible.
5. If you have claim, your current insurance will increase for 3-5 years, depending on your insurance carrier.
If you decide to get the Collision Waiver Coverage, it will cover the items listed above for the rental car that were excluded from your current coverage, and it won’t increase your current insurance rates if you have a claim.
Some credit cards offer rental car insurance, but each one has their own restrictions, so I would recommend reviewing these in detail. For example, most of them don’t cover the car if you drive on dirt roads.
For short trips (1 week or less), I recommend getting the collision waiver since the additional cost is minimal. For longer trips, the cost will obviously be more since they charge per day, so you will have to evaluate the cost versus the risk for your specific situation.
Does my car insurance cover U-haul?
If you rent a U-Haul truck, or another other vehicle not designed to be a passenger vehicle, your personal auto insurance policy will not transfer. Please make sure that you buy their insurance coverage if you rent a U-Haul truck, even if you have a personal auto policy.
If you have any questions about your insurance, please feel free to contact me at 281-453-8770. Thank you.