Will My Insurance Cover a Rental Car After an Accident?

Your auto insurance policy can cover your vehicle after numerous accidents and incidents. The policy typically follows the car, not the driver, meaning it may apply even when someone else drives your car with permission. But how does your coverage work when it comes to rental cars?

Does My Auto Policy Apply to Rental Cars?

While your auto policy generally follows the car, it’s a bit nuanced when it comes to rentals. If you have insurance, your coverage should still apply when driving a rented vehicle; however, it’s important to review your policy with your broker to be sure.

For instance, if you have auto liability insurance for your personal vehicle, that can help pay for losses you cause to others with a rented car. Similarly, your policy’s collision and comprehensive insurance may also cover damage caused to the rented car. If you have medical payments insurance, that can still help pay for your medical bills after an accident in a rental.

Should I Buy Insurance Offered at the Checkout?

Rental car companies often suggest adding coverage for the rental when completing the purchase. This may include rental insurance, a collision damage waiver (CDW) or other options. Adding these coverages is generally optional, and whether you do so may depend on the coverage you have on your personal vehicle.

In some cases, it may make sense to add rental car coverage even if you have auto insurance. For instance, your personal auto coverage limits may be insufficient to cover damage to the rented vehicle. After all, rental cars tend to be newer and may be more expensive to repair or replace than your personal car. Additionally, if you’re renting the car for business purposes, your personal auto insurance may not apply.

How Do I Know If I’m Covered?

Contact Florida Coast Insurance Agency before you rent to verify your coverage. We can help review your policy and discuss whether adding additional coverage when renting a car makes sense.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.