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FAQ: Other Insurance Coverage
Should I buy the auto insurance coverage that comes with a rental car?
When you rent a car you often have to decide whether or not to purchase the many "extras" that the rental company offers— including auto insurance. In some cases this "extra" may be worthwhile; however, depending on the auto insurance coverage you already have, you may not need to spend the extra money.
If you carry liability, comprehensive, and collision coverage on your policy and you plan on driving the rental car in the U.S. and Canada, your existing coverage should transfer to your rental car with the same limits and deductibles.
Nevertheless, in some cases, rental agreements may require additional auto insurance coverages that you don't have on your own auto insurance policy. In that case, you'll need to buy additional auto insurance coverage from the rental company. For instance, you may want to consider buying additional auto insurance from the rental company if you want to increase your limits or if you're missing a particular coverage like comprehensive or collision.
If you're involved in an accident in a rental car, most auto insurance companies pay comprehensive and collision claims at the car's actual cash value, which factors in age, mileage, and wear and tear. However, this probably won't cover the replacement cost some rental companies charge customers if they wreck a rental car. Some rental companies may also charge customers for the diminished resale value of a wrecked rental car or for lost rental income while a damaged rental car is being repaired.
Most U.S. auto insurance policies apply only in the U.S. and Canada. If you're traveling elsewhere, you'll need to call your rental car company to find out the auto insurance requirements for that particular country. Before you rent a car, understand the charges you might be responsible for— that way your relaxing vacation can stay relaxing.
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