Does my auto insurance cover rental cars? (2025)

Does my auto insurance cover rental cars? Good news: the insurance you carry on your vehicle usually applies to any rental car.

However, should you still purchase insurance for a rental car? You should consult your auto insurance policy before deciding on rental car insurance coverage.

If your auto insurance policy extends to rentals, you don’t need to purchase additional coverage. However, you may need to buy a rental company’s insurance to be appropriately covered. Check out the best companies for cheap rental car insurance to find the right coverage.

Does Geico cover a rental car for repairs? Yes, so keep reading to compare rates from different companies. Get rental car insurance quotes online by entering your ZIP code into our free comparison tool.

Personal Auto Insurance Covers Rental Cars

Does my car insurance cover rentals? Most car insurance policies cover rental cars. With auto insurance providers, insurance for rental cars is covered under a standard auto insurance policy.

However, if your car insurance policy only covers liability, you may need to purchase additional coverage through the rental company when getting your rental car.

Learn More: Do you need proof of insurance to rent a car?

Liability Coverage For a Car Rental

Does liability insurance cover rental cars? If your insurance extends to rental cars, your liability auto insurance coverage will cover other parties’ costs if you cause an accident.

What kind of coverage do you need for a rental car? Does full coverage insurance cover rental cars? Generally, you will need the same coverages that you carry on your personal vehicles, including:

• Collision Auto Insurance: Collision coverage pays for repairs to your car if you crash into another vehicle or an object. 
• Comprehensive Auto Insurance: A comprehensive policy covers repairs to your car if you crash into an animal or the car is damaged from falling objects, weather, vandalism, or theft.

If you are wondering if you need collision insurance on a rental car, the answer is always yes. In fact, we recommend full coverage for rental cars. A full coverage auto insurance policy offers you financial protection through collision coverage if you’re in an accident — you can also rely on its comprehensive insurance to pay out if your car is vandalized or gets damaged by weather.

Can I use my Geico insurance for a rental car if I only have liability? If you only carry liability coverage on your Geico auto rental insurance policy, the company recommends that policyholders get additional coverage on their rental vehicle. The main reason is that liability-only auto insurance coverage only covers damage you cause to other people and their vehicles.

If you don’t have these extra coverages, you should purchase coverage from the rental car company, so you don’t have to pay out of pocket if you wreck the rental car. Scroll down to explore the types of coverage offered at the rental counter.

Other Types of Auto Insurance For Rental Cars

When you purchase rental car insurance from the rental car company, you usually will see the following types of insurance offered:

• Collision or Loss Damage Waiver: Most rental car companies will offer this to customers, although it is not technically insurance. If you damage the rental car, the waiver will help pay for repairs and loss of revenue use. 
• Liability Insurance: Liability insurance through the rental car company is usually intended to extend the limits of your personal policy, protecting you from out-of-pocket expenses following an at-fault accident in your rental.
• Personal Effects Insurance: The rental car company may offer insurance to protect your personal belongings if they are stolen from the rental car, such as your laptop or phone.
• Personal Accident Insurance: If you or your passengers are injured in a car crash, personal accident insurance will help cover your medical bills. This coverage may also be called personal injury protection (PIP) insurance or medical payment coverage. 

If you don’t have collision and comprehensive insurance on your own auto insurance policy, purchasing the collision or loss damage waiver is vital. Otherwise, you’ll have to pay out of pocket for damages to the rental if you don’t carry full coverage insurance for a rental car.

In addition, you should also consider a personal effects policy for your rental, which is a type of insurance to help pay for the loss or theft of any of your personal belongings (Read More: If someone breaks into your car, does car insurance cover it?).

However, check your renters or homeowners insurance policy to ensure it doesn’t already cover personal items in vehicles. You don’t want to end up paying for coverage you don’t need.

The Cost of Rental Car Coverage

How much does rental car insurance cost? Different rental car companies charge different amounts for coverage, and it also depends on personal factors, such as driving record, location, and more. Check out the table below to see how much you could pay for rental car coverage:

Rental Car Insurance Rates per Day

As you can see, Enterprise’s rates are significantly higher than other companies, and Budget comes out as the least expensive rental car insurance option. However, if other companies offer better rates for rentals, the insurance price may not matter as much.

While there’s no Geico rental car insurance, Allstate car rental coverage, or Esurance rental car coverage specifically, your personal auto insurance policy should extend to any rental car in your name.

Regardless of the company you choose for your rental car, it’s evident that rental car insurance rates are much higher than standard insurance rates for the same coverage. Scroll down to compare rental rates from different providers.

Learn More: Best Rental Car Insurance That Covers Additional Drivers

Rental Car Insurance With Geico

Does Geico cover rental car insurance? Yes, your personal car insurance does cover rental car damages if you get in an accident. However, you’ll need Geico full coverage for rental car damages, since liability only covers damages you cause to others in your rental car from Geico.

The table below shows average rates for full coverage car insurance in each state, along with rates from Geico. Check out our Geico insurance review to learn more about Geico coverage on rental cars.

Geico Full Coverage Auto Insurance Monthly Rates vs. State Average

Geico rates for full coverage are lower in each state than the average coverage cost. You can get cheap full coverage insurance for car rentals thanks to car rental discounts from Geico.

American Family Auto Insurance Rental Coverage

American Family also extends personal auto insurance coverage to any vehicles you rent, so any coverage you have applies to the rental vehicle. In addition, Am Fam carries rental car reimbursement coverage to help pay for a rental while your car gets repaired after a covered claim.

See how much you could pay for American Family coverage and more in our review of American Family insurance.

Rental Car Insurance From Credit Card Companies

Sometimes, your credit card company may offer additional protection if you pay for the rental car using their credit card. You can call your credit card company’s number to see if this is a perk that it offers.

Keep in mind that the insurance offered by credit card companies is usually secondary coverage meant to be added to your primary insurance. So, if the accident costs go beyond your policy limits, the extra coverage provided by the credit card company will pick up the rest of the bill.

Learn More: What are the recommended auto insurance coverage levels?

When to Buy Auto Insurance From a Rental Car Company

You should get rental car insurance from a company if you don’t have your own auto insurance policy. At a minimum, you’ll need to purchase liability coverage.

Finally, if you are traveling abroad and renting a car, your personal auto insurance policy may not cover you. If that’s the case, you should purchase coverage from the rental car company. 

Learn More: Is it possible to have a rideshare car rental?

Car Rental Discounts From Top Providers

Typically, providers don’t have auto insurance discounts on rental cars, but you can get rental reimbursement, which could help you save money on renting a car if you ever need a rental while your vehicle is being repaired.

Does Geico offer car rental insurance discounts? Yes, policyholders can get a Geico rental car discount of anywhere from 20%-50% on Geico rental cars from Hertz, Enterprise, Alamo, and National Car Rental.

Usually, rental cars are covered under rental reimbursement, but this coverage only helps if you need a rental car because your own vehicle requires repairs. Keep in mind that rental reimbursement won’t cover the cost of a rental car when you go on vacation.

To get rental reimbursement with your auto insurer, you can contact them directly to see how much the coverage would cost in terms of monthly rates.

What Rental Car Reimbursement Covers vs. Rental Car Insurance

Now that you know more about rental coverage, you may be wondering how much you’d pay to get rental car reimbursement coverage. Most companies offer rental reimbursement for around $2 to $15 monthly.

You may be wondering whether insurance covers the full rental costs or if you’ll have to pay a partial amount. Compare coverage amounts from the top providers in the table below:

Rental Car Reimbursement Coverage by Provider

As you can see, Geico car rental coverage allows you to set your daily limit and use direct billing with Enterprise to get a Geico Rent-a-Car.

Does Geico cover rental cars while the car is in the shop? Yes, you can get assistance paying for a car rental from Geico if you carry rental car reimbursement coverage, which helps pay for a rental vehicle while yours gets repaired during a covered claim.

Does Geico provide rental cars? While it doesn’t offer rental cars, Geico insurance rental car coverage can help you pay for one.

Third-Party Rental Car Insurance Coverage

If you don’t want to purchase rental car insurance at the counter, and your own car insurance won’t cover you, then you could opt for third-party rental car insurance.

What rental car insurance company is best? There are a few places to purchase the best rental car insurance explicitly meant for rental cars. 

Allianz Travel Rental Coverage

Allianz Travel insurance policies have a rental car package called OneTrip Rental Car Protector. This coverage will pay for losses of up to $50,000 after an accident. The car rental insurance costs only $11 per day, and Allianz Travel also offers 24/7 emergency assistance.

Wondering if you really need to insure your next vacation? We lay out seven simple reasons to buy travel insurance for every trip. https://t.co/gHCGUjhH7Y

— Allianz Travel USA (@AllianzTravelUS) January 30, 2024

If you are looking for a quick and affordable rental car insurance option where you don’t have to use your own insurance, you may want to look into Allianz Travel. Allianz Travel also sells coverage in other countries, so you can purchase car rental insurance wherever you travel. Check out our Allianz auto insurance review for more information.

Bonzah Rental Auto Insurance

Bonzah offers rental car coverage in all 50 states and other countries. Damage insurance at Bonzah will cover up to $35,000 of accident costs if you collide with another vehicle, and you can also purchase supplemental liability insurance. The cost is usually less than $10 a day for a Bonzah rental car plan.

Read More: Best Auto Insurance for International Drivers

Rental Cover Auto Insurance

Like the other companies on our list, Rental Cover provides insurance in the U.S. and abroad. It has collision insurance as well as supplemental liability insurance.

How much will international auto insurance cost? While Rental Cover doesn’t list its prices, it claims to be 50% cheaper than the average insurance cost of rental coverage at the counter, which is $29. Therefore, Rental Cover should provide coverage for less than $30 daily.

Sure Rental Auto Insurance

Sure is underwritten by Chubb National Insurance Company and will cover up to $100,000 in physical damages to the rental car, which is more than what other rental car insurance companies provide. It also includes coverage for flat tires, lost keys, and other mishaps. 

However, Sure doesn’t list prices readily on its website, so you’ll have to get quotes to determine how much it will cost. You can find more information about Sure and other subsidiaries of Chubb by reading our Chubb auto insurance review.

Before purchasing third-party coverage, you may wonder, “Does Geico cover insurance for a rental car?” Yes, your personal Geico full coverage policy also applies to any rental cars you purchase.

Find Out When Auto Insurance Covers a Rental Car

Does my auto insurance cover rental cars? If you have a full coverage auto insurance policy with your personal insurance company, it is likely that your policy will cover rental cars. For example, Geico covers rental cars if you carry a personal insurance policy with the company.

However, you’ll need to get rental car insurance from the rental company if you don’t carry a full coverage policy on your vehicle. It’s usually cheaper to get rental car insurance from an outside party than the rental car company. You can also check with your credit card company to see if they offer extra coverage. 

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If your budget allows, consider purchasing collision and comprehensive car insurance on your vehicle to give it complete protection. If your insurance company doesn’t cover rental cars or you don’t have full coverage, you should purchase rental car insurance.

Does my car insurance cover rental cars? Yes, but if you don’t have auto insurance or want to explore more budget-friendly options, enter your ZIP code to find the best rates near you and see how much you’ll pay for car rental insurance near you.