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Does Auto Insurance Cover Rental Cars?

If you rent a car, the rental company may offer insurance for an extra fee. It’s natural to wonder if your personal auto insurance policy provides coverage for rental car damage.  

Whether your current auto policy covers your rental car depends on the type of insurance you have. Since there’s no one-size-fits-all answer to whether your standard auto insurance policy provides enough coverage for your rental car, it’s crucial to contact your agent before renting a car. We can help you understand your current coverage, and help you add rental car coverage if it’s appropriate for your situation.  

Contact Peachstate Insurance in Atlanta, Georgia, to learn more about how your auto insurance policy may work with a rental car.  

What Does Rental Car Insurance Cover?
Rental car insurance may provide coverage for the following damages and expenses associated with an accident or its use:

• Bodily injury for you and your passengers—This coverage, which may include medical payments (MedPay) or personal injury protection (PIP), may consist of medically necessary care due to accident-related injuries.
• Theft—Comprehensive coverage helps pay to replace the rented vehicle if it’s stolen, up to the policy’s limits.
• Damage to the rented vehicle—Collision insurance helps pay to repair or replace the rented vehicle if you hit another vehicle or object. Comprehensive insurance helps cover damages due to non-collision incidents such as vandalism, fire or storm damage.
• Third-party bodily injury and property damage—Liability coverage helps pay for third-party bodily injuries and property damage after an at-fault accident. Rental car insurance may have higher liability limits than your auto policy.
• Personal possessions—A rental car policy may include specific coverage for your personal possessions if they are stolen from the rental car. Your renters insurance or homeowners insurance may also provide coverage for stolen personal possessions, but you may have a high deductible.  
• Additional costs—Some rental car company policies provide coverage to help pay for towing and “loss of use” expenses not typically covered by a standard auto insurance policy.  

When renting a car, carefully compare the coverage offered by the rental car company with your current auto insurance coverage. Be sure to note whether your auto policy’s limits are high enough to cover the potential cost of replacing a rental car in the event that it is a total loss after a covered accident. If your auto policy’s limits are low, it may be wise to purchase additional protection.  

How to Get Rental Car Insurance
If your current auto insurance policy doesn’t provide enough coverage for your rental car, your credit card company may provide access to inexpensive or free rental car coverage. Many drivers choose to add rental car coverage through their agent to get the best possible value for their insurance dollar.  

Contact Peachstate Insurance today to learn more about how rental car insurance can help protect your financial well-being.  



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.

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