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Q&A: Insurance Coverage on a Rental Car

Submitted by Community Manager, March 26, 2009

Question: John Melithoniotes asks: My wife and I frequently fly to Pennsylvania on family visits, where we rent a car for 3-4 days. Adding extra car rental insurance is quite expensive. I have asked different sources whether it is worth buying this extra insurance, and I get confusing, conflicting answers. Consumer Reports tells us it's not worth it -- that your own car insurance covers your car rentals -- and yet others (even an insurance agent at the agency where we get our car insurance!) say that it IS worth it because of the hassle that's saved in case you have an accident. Could someone please give us some useful guidance on this?

Answer: AAA Insurance Services Manager Tom Dixon answers: If you have comprehensive and collision coverage with your auto insurance, most insurance companies will cover the damage to the rental car. While the car is being repaired, the rental car company can charge you for the loss of use, which in most cases will not be covered by your auto insurance carrier. Some credit cards will cover the damage to the vehicle and loss of use by the rental car company. My suggestion is that you contact your auto insurance carrier and credit card company to see if they provide this coverage.

AAA members receive additional benefits with Hertz, go to AAA.com/Hertz for more information.

Categories: [Before You Go], [Car rental], [Q&A with AAA]

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Submitted by John M., March 31. 2009 13:17

Thanks to Tom Dixon for his reply. I believe that my auto insurance company and credit card company does cover the damage and loss of use of the rental car, but I'll check. One further question I have is how much of a hassle is an accident or damage to a rental car, if we do not buy their extra insurance and use our own coverage? The rental agency tells you that it's a real hassle (and they'll probably make it as bad as they can), but I don't know if that's true or not. If you have any experience with this, we'd appreciate the answer. If you don't know, then I'll keep hunting. Thanks.

Submitted by Tom Dixon, March 31. 2009 13:19

The rental car company would like you to purchase their optional insurance and in the event of damage to the vehicle, there probably would be less time involved with their coverage. Something you may want to consider is the chance of having an accident versus the extra expense of the rental car insurance. If you are traveling outside of the United States, the rental car insurance may be your only choice.

Submitted by Jack, September 26. 2009 15:14

Thanks for the great information. This information worries me a lot. I am always adding extra rental car insurance when I am renting a car. But it costs a lot. Thanks for your advices, I will try to contact my insurance provider and see what they can do about that.

Submitted by Car Hire, August 8. 2010 07:19

Be wary of prepaid gasoline plans. Always fill the tank yourself before returning the vehicle so that you're only paying for the amount of gas you actually used. Try to avoid the gas stations right near the airport where you're dropping off your car -- the prices tend to be highest there. Instead, fill up a few miles away.

Submitted by Car Hire Adelaide, September 13. 2010 06:24

Great blog, many travelers are unsure about their coverage when they approach a car rental counter. The National Association of Insurance Commissioners (NAIC) surveyed 632 consumers in September, and 42% were "either thoroughly confused or had only a rough idea about insurance."

Submitted by Car Hire Perth, December 9. 2010 06:26

When they get to the rental counter, many renters are unsure about what to do when it comes to accepting or declining an agency's coverages and waivers. Most of the indecision comes from not knowing what their personal or business auto insurance covers while they are renting a vehicle. Many people assume that they have auto insurance for a rental car through their credit card.

The renter of a car is fully responsible for any loss (theft) of the vehicle as well as any damage that occurs to the vehicle during your rental period.

Submitted by Kent Fullerton, April 16. 2011 20:03

Several years ago we rented a car in Orlando and purchased the rentals' insurance. At the hotel I called my agent for peace of mind. He said he would have done the same, as Florida is a "no-fault" state so each driver is responsible for the vehicle they are driving. If I did not have enough $ available on my credit card I could be spending a few days in jail till the insurance companies got together and mine paid! With the rentals' insurance I can just walk away. The rentals' coverage was $8 a day at the time---not a bad investment for safeguarding our trip.

Submitted by Howard Keach, III, July 8. 2011 17:03

If you don't have a current auto insurance policy or credit card as I did after a recent extended illness, you can find rental car insurance online. I found coverage online from TravelGuard by Chartis for a mere $9 a day that provided $45,000 collision protection to ANY car I drove during the covered period. There was a $3 service fee. A far cry from the $20 and up per day fees that my car rental company wanted!

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Q&A: Insurance Coverage on a Rental Car

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