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Private Passenger Car Insurance Vs. Rental Company Car Insurance

For private passenger cars, car owners can elect to have Rental Car Reimbursement coverage added to their car insurance policy. The reimbursement coverage pays for a rental car in the event that the insured auto is not drivable or is in the shop for repairs made necessary in a covered auto accident.

The Rental Car Reimbursement does not cover car rental for everyday or business purposes; however, if your car insurance policy includes collision and comprehensive coverage, a rental car used for pleasure may be covered.

Auto Insurance and Rental Cars

For private passenger cars, car owners can elect to have Rental Car Reimbursement coverage added to their car insurance policy. This reimbursement coverage pays for a rental car in the event that the insured auto is not drivable or is in the shop for repairs made necessary in a covered auto accident.

The Rental Car Reimbursement does not cover car rental for everyday or business purposes; however, if your auto insurance policy includes collision and comprehensive coverage, a rental car used for pleasure may be covered.

Questions to Ask Before You Purchase Rental Company Car Insurance

Drivers of rental cars need auto insurance to cover the vehicle in the event of an accident. Before you purchase rental car insurance, check with the car insurance company of your personal vehicle.

If you have collision and comprehensive coverage, and the rental car is being used for pleasure (and not business) purposes, your rental car may be covered. You may also want to check with your major credit card companies. Many offer rental auto insurance to their members, but the amount varies greatly.

Rental Company Car Insurance: Collision Damage Waiver (CDW) Coverage

The Collision Damage Waiver (CDW) Coverage offered by rental car companies provides 24-hour coverage for any collision or theft that occurs to the rental car up to the cash value of the car itself. The terms and conditions of the CDW vary widely from company-to-company and from state-to-state.

If you have auto insurance for your personal auto and/or have homeowner's insurance coverage, you may not need to purchase rental car company insurance. If you do not have car insurance, check with your major credit card company to see what auto insurance they provide.

Rental Company Car Insurance: Personal Accident Coverage

The Personal Accident Coverage offered by rental car companies provides accidental death and medical coverage for the driver and any additional passengers riding or driving the car. This insurance is usually optional. If you do not have car insurance, check with your major credit card company to see what rental car insurance they provide.

Rental Company Car Insurance: Liability Coverage

The Liability Coverage offered by rental car companies varies from state-to-state. The rental companies are required to carry the minimum amount of liability coverage required by your state.

The excess liability coverage provides up to $1 million for the time you rent the car, but is usually not enough to cover a serious accident. If you have car insurance for your personal auto and/or have homeowner's insurance coverage, you may not need to purchase liability rental car company insurance.