Advertiser disclosure If you ’ re renting a vehicle, you may be wondering, “ does car policy cover a rental car, or should I buy a short-run policy from the lease company ? ” Renting a car is fairly easy, but things get more complicated when you factor in your policy needs. It might seem like something you don ’ t truly need to worry about, but knowing the insurance details of a lease car is critical. Does adding indemnity to a lease raise the lease price ? Does your regular car indemnity cover your lease ? Let us help you answer these and early crucial questions. If you ’ ra looking for brassy policy coverage, enter your nothing code below to get exempt quotes from the best car indemnity companies in your area.

In this article:

Do You Need Rental Car Coverage?

People frequently use rental cars for a short period — it could be for a few hours or even a few weeks. so, why spend money on insurance coverage for a cable car you ’ ll only use for a express time ? rental cable car indemnity coverage is normally a good mind. But it ’ mho true that if you don ’ metric ton habit it, coverage could seem like another excess expense. rental companies cover all vehicles with the department of state ’ mho minimum coverage requirements, which normally includes indebtedness car insurance. But this alone covers other drivers ’ cars if you ’ re at fault for an accident. You ’ ll have to pay to fix the rental car out of your own pocket. This is why rental car companies offer extra collision and comprehensive coverage. Whether you need these rental car indemnity policies depends on a few factors. First, expression at your current car policy policy. If you want to avoid high, unexpected rental costs, make certain your policy includes rental reimbursement within the coverage. You may have rental reimbursement coverage included in your policy. This lone covers your fare costs if your regular personal fomite is involved in an accident. The typical period that a vehicle is in a collision shop after an accident is between three weeks and a month. With rental reimbursement policy, the insurance company will take concern of your transportation system expenses for your car ‘s duration in the garage. however, this doesn ’ triiodothyronine cover vacation rentals. Make sure you look specifically for whether your personal indemnity extends to rental vehicles. The type of car you drive may besides influence whether you choose to purchase rental car indemnity. Want to park your common, boring car for a day and live it up in a satiny luxury car, like a Mercedes G63 AMG ? In this case, you might want to consult with the rental cable car company about extra insurance — cipher wants to be stuck with the pill if you run into some perturb living out your subspecies car driver dreams.

When Should You Consider Rental Car Coverage?

You don ’ t want to get capture flat-footed at the rental car antagonistic when barraged with the long list of questions one must answer before you ’ re out the door, keys in pass. rental car businesses ask these questions to ensure the condom of their vehicles. Expect to answer questions such as :

  • Do you have auto insurance? 
  • Will there be more than one driver? 
  • Does your trip include an off-road detour? 
  • Will you take additional coverage?

The last question is puzzling, particularly if you had no estimate lease cars besides need coverage. As note, specific car policy policies include extra coverage for rental cars. But if yours does n’t, then you should consider rental car coverage. Although the cable car will come with liability indemnity, you must either purchase extra collision coverage or sign a release that indicates you ’ ll be financially creditworthy for all repairs before rolling out the rental cable car company ’ second parking bunch. The thoroughly newsworthiness is that many insurers offer short-run car rental policy. This type of coverage is compromising. Insurers offer request policies to fit all situations. however, the most common impermanent car policy policy runs from two to twenty-eight days.

What Does Rental Car Insurance Cover?

Though it is impermanent, rental car insurance works like standard car insurance. There are a few types of coverage you can select, and most come with a deductible. Your deductible refers to how much you ’ ll wage out of pocket before your insurance coverage kicks in. Depending on the rental car company you approach, you may be offered the follow lease car policy products :

Personal Accident Insurance

The liability protection provided by the lease company will lone cover the property damage and medical bills of any other drivers if you cause a car accident. It does not cover you or your rental car. however, you can purchase personal accident insurance from your lease company to protect yourself. This policy is optional because it could be a pleonastic cost if your health indemnity policy is comprehensive examination. You may besides be covered by your personal indemnity company for these expenses, specially if you have personal wound protection ( PIP ) or aesculapian payments ( MedPay ) coverage.

Loss Damage Waiver

You might have heard of collision damage release ( CDW ) or passing price release ( LDW ). This is an addition that waives the costs you incur in the event of larceny or damage to the hire cable car. Some rental cable car companies charge customers for the clock their vehicle spends in the garage vitamin a good. This is known as a loss of use penalty and is covered by a CDW. Adding loss damage waiver auspices to your rental car policy policy may be expensive depending on the type of car you are renting and how you intend to use the car. For exemplar, a CDW will cost more if you ’ re renting a car for an off-road trip.

Personal Effects Coverage

personal effects policy covers your valuables when using a lease car. It can be useful if you ’ re travel and indigence to keep your baggage in your rental car for an come of time, as the insurance company will compensate you in subject of wrong or larceny. Some insurers insist that policyholders name the valuables for auspices. Others let you select a claim specify for the personal items in the car when the incident happens.

Pros And Cons Of Rental Car Coverage

If you ’ ve looked into whether your personal car insurance will cover rental cars and your policy comes up inadequate, here are a few pros and cons to consider when deciding whether to purchase extra rental car coverage :

Rental Car Insurance Pros Rental Car Insurance Cons
It saves you the cost of repairing the rental car
out-of-pocket in case of damage.
It might be a redundant expense
if your personal car insurance covers rental vehicles.
If stolen, the coverage saves you the cost
of reimbursing the rental car company for the vehicle.
Some rental car insurance policies are needlessly expensive.
It gives you added peace of mind on your trip. The coverage limits might not be adequate
to cover all parties in case of an accident.
You do not have to worry about replacing your valuables
if they’re stolen when using a rented car.
Policies can come with high deductibles, which you must
pay out of pocket before your coverage kicks in.

Final Thoughts

Most people might find rental car insurance a wasteful use of money, but this is not constantly the case. even if you already have car policy, some policies do not cover cars that are not yours. The most significant thing you should know is that all indemnity policies have exceptions, and it ’ s significant to understand what you ’ ll be on the hook for in the sheath of an accident. If you travel often and are interest in getting a cable car insurance policy that includes coverage for rental cars, record your energy code below to find brassy quotes in your area.

FAQ: Does Car Insurance Cover A Rental Car?

How much is lease car coverage ? The cost of rental car coverage varies based on a number of factors, including your placement, the come of time you ’ re renting the car for, your age, and how you intend to use your car. basic coverage is typically pretty cheap. What happens if I do n’t have rental car insurance and I get into an accident ?

You should be prepared for a significant fiscal reverse if you do n’t have rental car indemnity and get into an accident. You will be legally obligated to pay for the repairs or surrogate of a lease fomite if you crash it. This is why rental car coverage is an authoritative safety net.


In an campaign to provide accurate and indifferent information to consumers, our technical review team collects data from dozens of car indemnity providers to formulate rankings of the best insurers. Companies receive a score in each of the adopt categories, adenine well as an overall weighted score out of 5.0 stars.

  • Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
  • Availability: We consider availability by state as well as exclusions for specific groups of drivers.
  • Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
  • Cost and Discounts: Our research team reviews sample quotes for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
  • Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
  • Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.

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