Does Insurance Cover A Rental Car?

Getting involved in an accident with a rental car can be frustrating because coverage for rental cars crash is not the same as for personally-owned automobiles. As a result, determining liability and uncovering protection can become quite an issue. 

Understanding Rental Car Insurance Protection

When renting a car, there is a lot of documentation to read and sign before getting the car key. Unfortunately, most people drive off in a rental car without knowing how the car is protected – until an accident occurs. Car accidents and insurance protection for rental cars can get tricky. If you’re involved in a car accident with a rental car, here is the insurance coverage that may apply to your situation:

Personal Car Insurance Coverage

Personal car insurance provides coverage when you’re involved in an auto accident with a rental car. This coverage often applies as the rental car is considered a “temporary replacement.” However, whether your personal policy will cover the rental vehicle is determined by the terms of your insurance policy.

Rental Car Company Insurance

You will be given rental agreement paperwork to complete when renting a vehicle. If you have a personal policy, you should review the insurance options made available through the rental car company and compare them to your personal policy. Your personal coverage may be similar to the rental car company’s, meaning you may not need the company’s coverage.

Credit Card Company Insurance

You may get rental insurance coverage from your credit card company if you provide your card for payment. Most credit card companies now include rental car insurance coverage. While the amount of protection could be minimal, understanding the terms of the coverage is very important.