Rental Car Insurance
Are You Covered?

Rental Car Insurance

There are two types of rental car insurance that you should be aware of, and one that you should definitely consider adding to your auto insurance policy.


The first rental insurance is coverage for a replacement rental car in the event of an accident. What would you do if your own car was out of commission for a day, a week, or even a month?


How would you get to work, do your grocery shopping, or run the kids to school and other activities?

I told you this was important! If you had to pay for a rental car out of your own pocket, the cost could be quite surprising and not in your budget.


Even cheap rental cars are at least $25 per day (and I haven't seen those low rates for quite some time).


This type of rental car insurance coverage is not automatically included in your policy, even if you have comprehensive auto insurance or collision coverage. You might want to double check and make sure you have it added on as an extra.


Think about it. If your car is in an accident and has to be in the shop for repairs, it could cost you several hundred dollars to rent a vehicle to replace yours.


Rental reimbursement coverage is good value for money. You can get rental reimbursement coverage for as little as a $1 or $2 per month. Even if you only have to use it once every 5-10 years, it will more than likely pay for itself.

Auto Rental Insurance

Rental Car Insurance

The second type of rental insurance you may need, is insurance that covers you when you rent a vehicle.


The car rental agency will require you to have insurance for renting a car to cover any damage that may happen to their vehicle when it is in your care.


My husband and I were traveling in our own car several years ago when it broke down completely. Ugh!


We ended up having to rent a car to continue on our trip. Because we did not have comprehensive or collision coverage on our vehicle nor rental reimbursement coverage, we had to not only pay for our rental vehicle, but also had to have insurance to cover that vehicle.


The car rental agency also required that we have a credit card to rent a vehicle. They want it as security so they can charge you for any damage they may discover when the car is returned, or if it is not.


It was then that we discovered another little secret. Most credit cards will automatically provide insurance if the card is used to rent a vehicle.


Two things to check when renting a vehicle:

  • Check with your insurance company to see if your coverage extends to cover your rental vehicle. If you don't have full coverage you can be sure that it doesn't. Even if you do, don't assume. Double check with your auto insurance agency.

  • Check with your credit card company to see if you are automatically covered when you rent a vehicle. If you have more than one card, don't assume they all offer the same benefits. My cards differ, so I know which ones to use for particular charges and purchases.


Why Bother?

The reason you should take the time to find out the details of your rental car insurance is because of the amount of money you can save. If you don't have some type of your own coverage, you will be required to purchase car rental insurance through the car rental agency. This will typically cost you between $25 and $50 per day for a combination of collision, liability, personal accident, and personal effects.



Rental car insurance is something we often don't think of until we are in a bind and it is too late. Be prepared and know what options are available to you so you don't get caught out.


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