Does my auto insurance cover rental cars? (2024)
In many cases, your personal auto insurance policy may extend coverage to rental cars. For example, American Family and Geico cover rental car damages with a personal policy. Below, we recommend policies as we detail car insurance for rental cars to help you best answer, "Does my auto insurance cover rental cars?"
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Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
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UPDATED: Apr 26, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Apr 26, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Your personal car insurance may cover rental cars
- You can purchase car rental insurance coverage at several companies
- Credit card companies may provide additional coverage for rental cars
Even when renting a car, you still need to be insured to drive the vehicle. That leads to the question, “Does my auto insurance cover rental cars?” Good news: The insurance you carry on your vehicle should also automatically cover any rental car.
But should you still purchase insurance for a rental car, or do you have enough coverage that you don’t need to worry about it? Before making any final decisions on rental car insurance coverage, you should consult your auto insurance policy.
If your regular insurance policy extends to rentals, then you don’t need to purchase additional coverage. However, in some cases, you may need to buy a rental company’s insurance in order to be appropriately covered.
Our guide to rental car insurance coverage will go over what you need to know, including how your coverage relates to the types of auto insurance you have. Then you can look into rental car insurance online by entering your ZIP code into our free quote comparison tool.
Personal Car Insurance That Covers Rental Cars in Many Cases
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.
For example, while there is no Geico rental car insurance, Allstate car rental coverage, or Esurance rental car coverage specifically, your Geico auto insurance policy should extend to any rental car in your name. Check out our Geico insurance review to learn more about Geico coverage on rental cars.
You only have as much coverage on your rental as you do on your vehicle. If you have a full coverage policy that includes collision and comprehensive coverage, those coverages also extend to your rental car. 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: Best Rental Car Insurance That Covers Additional Drivers
Rental Car Insurance With Geico
Does Geico cover rental cars after an accident? 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 liability and full coverage car insurance in each state, along with rates from Geico.
State Average by State Geico Monthly Premium
Alaska $285 $240
Alabama $297 $239
Arkansas $344 $290
Arizona $314 $189
California $307 $240
Colorado $323 $258
Connecticut $385 $256
District of Columbia $370 $308
Delaware $499 $311
Florida $390 $315
Georgia $414 $248
Hawaii $213 $280
Iowa $248 $191
Idaho $248 $231
Illinois $275 $232
Indiana $285 $188
Kansas $273 $268
Kentucky $433 $386
Louisiana $476 $513
Maine $246 $235
Maryland $382 $319
Massachusetts $223 $126
Michigan $875 $536
Minnesota $367 $292
Missouri $277 $240
Mississippi $305 $341
Montana $268 $300
North Carolina $283 $245
North Dakota $347 $222
Nebraska $274 $320
New Hampshire $263 $135
New Jersey $460 $230
New Mexico $289 $372
Nevada $405 $305
New York $357 $202
Ohio $226 $156
Oklahoma $345 $286
Oregon $289 $268
Pennsylvania $336 $217
Rhode Island $417 $467
South Carolina $315 $265
South Dakota $332 $245
Tennessee $305 $274
Texas $337 $272
Utah $301 $247
Virginia $196 $172
Vermont $270 $183
Washington $255 $214
West Virginia $216 $177
Wisconsin $301 $327
Wyoming $267 $291
Median $305 $256
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.
Can you add rental car insurance from Geico after an accident? You can also get Geico rental car reimbursement, which covers the cost of a rental car through Geico if your car is in the shop due to a covered claim (Learn More: Rental Car Reimbursement Coverage)
Does Geico provide rental cars? While it doesn’t offer rental cars, Geico insurance rental car coverage can help you pay for one.
American Family Auto Insurance Rental Coverage
American Family also extends personal auto insurance coverage to any vehicles you rent, so any coverages you have apply 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.
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The Cost of Rental Car Coverage
How much does rental car insurance cost? Different rental car companies charge different amounts for coverage. The table below shows other companies’ average amounts for rental car coverage.
Rental Company Collision Damage Waiver Liability Coverage Personal Accident/Effects Total Cost
Alamo $25 $13 $6 $44
Budget $9 $15 $7 $31
Enterprise $30 $17 $13 $60
Hertz $27 $19 $7 $53
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.
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.
Cost of Rental Car Reimbursment
Rental car reimbursement coverage helps pay for a rental vehicle while your gets repaired during a covered claim.
Does Geico cover rental cars while car is in the shop? Yes, you can get assistance paying for a car rental from Geico if you carry rental car reimbursement.
Insurance Company | Daily Coverage | What's Covered |
---|---|---|
21st Century | $25-$90 | Temporary rental for covered auto accidents |
AAA | $25-$50 | Temporary rental (breakdowns, repair, or serving) or short-term leisure use rental |
Allstate | Up to $30 | Temporary rental or other transportation during repair (collision or other insured loss) |
American Family | Direct billing with Enterprise Rent-A-Car | Rental car costs, ride share services, taxis, city busses, light rail, commuter trains |
Amica Mutual | $20 | Rental car costs, ride share services, taxis, city busses, light rail, commuter trains |
Auto-Owners Insurance | Direct billing | Temporary rental after a covered accident |
Esurance | Up to 45 days or $3,000 | Temporary rental after a covered accident of car theft (CarMatch) |
Farmers | Allows direct billing for up to 30 days | Temporary rental after a covered accident |
Geico | Set your limit or use direct billing with Enterprise Rent-A-Car | Temporary rental after a covered accident |
Liberty Mutual | Offers discounts with Enterprise Rent-A-Car; will pay all costs at approved auto repair shop | Temporary rental after a covered accident |
Mercury Insurance | $30-$100 | Temporary rental after a covered accident |
Nationwide | $30-$75 | Rental car or alternative transportation after a covered accident |
Progressive | $40-$60 | Temporary rental after a covered accident |
Shelter Insurance | Not specified | Temporary rental after a covered accident or theft |
State Farm | $25-$50 | Temporary rental and limited travel expenses after a covered event |
Travelers | Up to $100 | Temporary rental and limited travel expenses after a covered event |
USAA | Direct billing with Enterprise Rent-A-Car | Temporary rental and limited travel expenses after a covered event |
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.
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.
If you only carry liability coverage on your Geico auto rental insurance policy, the company recommends policyholders to 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. So if you’re in an accident and you’re at fault, your liability insurance will not help you pay for the damages to the rental car.
Your liability insurance won’t pay for the repairs to the rental car after an accident unless you also have collision and comprehensive insurance.Kristen Gryglik Licensed Insurance Agent
The best coverage to help with damage from accidents is collision coverage. Collision auto insurance works to cover your vehicle if you are in a car accident, even if you are at fault. However, collision coverage has limits, and you must pay a deductible before your insurance kicks in.
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: Pays for repairs to your car if you crash into another vehicle or an object.
- Comprehensive Auto Insurance: Pays for 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. However, 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.
Why We Recommend Full Coverage for Rental Cars
If it works with your budget, you should consider purchasing a full coverage auto insurance policy on your vehicle, which would extend to rental cars in many cases. This means that your full coverage insurance will include coverage for rental cars.
For instance, you may wonder, “Does my Geico insurance cover rental cars?” The answer is yes, Geico car insurance does cover rental cars, meaning whatever Geico coverage you have applies to cars you rent.
Full coverage offers you financial protection if you’re in an accident, your car is vandalized, your car incurs damage from hail or other inclement weather, and much more. Still, a full-coverage auto insurance policy can cost hundreds or even thousands more than a liability-only policy.
If you choose to purchase a full coverage policy, your full coverage will extend to your rental car, and you can avoid paying up to $60 per day in rental car insurance.
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Car Rental Discounts From Top Providers
Typically, auto insurance providers don’t have 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 the company’s rental reimbursement program, but this coverage only helps if you need a rental car because yours requires repairs. Keep in mind that rental reimbursement won’t help you pay for a rental car when you go on vacation in a different state.
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.
Buying Coverage for Rental Cars From a Rental Car Insurance Company
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 auto insurance limits and increase your protection in case you damage someone else’s property or injure them.
- 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 after a car crash, personal accident insurance will help pay for 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.
When to Get 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.
Even if you have your own auto insurance policy, you should consider buying extra coverage from the rental car company if you don’t have extras like comprehensive or collision coverage. Doing so will ensure you don’t have to pay out of pocket if you crash the rental car or the other driver doesn’t have enough insurance to cover repairs.
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.
Third-Party Rental Car Insurance Coverage
What rental car insurance company is best? 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. 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.
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.
Rental Cover Rental 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.
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 $20 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.
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Get 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.
More About Rental Car Insurance
Does my insurance cover rental cars? If you have a full coverage auto insurance policy at your personal insurance company, it is usually best to first see if your policy will cover rental cars. For example, you have Geico rental car insurance coverage if you carry a personal policy with the company.
However, if you do not have full coverage on your vehicle, you may need to purchase rental car insurance through the rental company.
If your budget allows, you should consider purchasing both collision and comprehensive coverage on your vehicle to ensure it is protected in virtually every circumstance.
If your insurance company doesn’t cover rental cars or you don’t have full coverage, you should purchase rental car insurance.
It is 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.
We hope you now have a better understanding to answer “Does my car insurance cover rental cars?” and “Can I use Geico insurance for a rental car?” To find the best insurance company rates in your area for your personal and rental car, use our free quote comparison tool by entering your ZIP code.
Frequently Asked Questions
What is the meaning of rental car insurance?
Rental car insurance works the same way as regular auto insurance: you pay a certain amount of money in exchange for an insurance company’s agreement to cover losses and claims up to an agreed amount. However, rental car insurance comes in different forms than a standard auto insurance policy.
Does Geico have rental car insurance? While it doesn’t have a separate rental car insurance offering, your personal policy follows you with any rental car you drive.
What is insurance for rental cars?
Rental car insurance protects you when you drive a rental car. It works the same way as your personal auto insurance by paying for damages and injuries after an accident. However, you may not need to carry rental car insurance if your personal auto insurance covers you.
So, does my Geico cover rental cars? Yes, if you have a personal full coverage policy with Geico, you’ll also have Geico insurance for car rental damages.
Does auto insurance cover rental cars?
The real question is, does your car insurance cover rental cars? In some cases, any coverages you have on your personal policy extends to rental vehicles.
For example, you may be wondering, “Does Geico insurance cover rental cars?” Yes, if you have a personal policy, you’ll have Geico rental car coverage whenever you rent a vehicle.
Does a car rental come with insurance included or do you need extra coverage?
No, rental cars do come with insurance, but rental agencies typically have minimal coverage on their vehicles. You also don’t need to have your own auto insurance policy to rent a car. However, you could end up responsible for significant expenses if you’re in an accident with the rental and don’t have your own car insurance. But, if you have, you can use your insurance for a rental car.
Do I need liability insurance for a car rental?
Liability coverage may not be sufficient for renting a car as it only covers damage you cause to other people and their vehicles. If you’re at fault in an accident, your liability insurance will not help pay for damages to the rental car.
Does Geico full coverage insurance cover rental cars?
A top question readers ask is, “Does Geico cover rental car damage with a full coverage policy?” Yes, if you carry a Geico full coverage policy, you effectively have rental car insurance with Geico.
If it fits within your budget, purchasing a full coverage policy for your vehicle is recommended, as it consists of liability, comprehensive, and collision insurance. Full coverage offers financial protection in various situations, including accidents, vandalism, and damage from weather conditions.
Does Geico collision coverage cover rental cars? Yes, your collision insurance will follow you to any rental car you drive.
Does Geico comprehensive coverage cover rental cars? Yes, if you hit a deer in your car or it gets stolen, comprehensive coverage will pay out.
Is rental car reimbursement the same as rental car insurance?
No, rental car reimbursement is an optional coverage you can add to your personal auto insurance policy. If you crash your personal car, rental car reimbursement will pay for a rental car until your vehicle is repaired.
So, does Geico cover rental cars while my car is in the shop? Yes, Geico covers car rentals while in the repair shop.
Does my Geico car insurance cover rental cars?
You may be wondering, “Does my insurance with Geico cover rental cars?” If you carry a personal policy with the company, you’ll have Geico car insurance for any rental car you get. There is no specific car rental insurance coverage with Geico.
Should drivers buy rental car insurance from rental companies?
Wondering — do I need rental car insurance? It is usually best to first see if your auto insurance coverage will cover your rental car.
Can I add a rental car to my Geico insurance? Geico insurance covers rental cars. If you carry a full coverage policy, it should transfer to any cars you rent.
However, if you don’t have personal auto insurance, or a full auto insurance policy, or are traveling overseas, you should purchase car insurance from a rental car company.
Can I decline rental car insurance at the rental car counter?
Yes, you can decline rental car insurance at the counter if you have coverage through your personal auto insurance policy or other means. For example, you’ll have Geico coverage for rental cars if you carry a personal policy with the company.
However, be sure to understand the potential risks and consequences before making this decision.
It’s always a good idea to review your existing coverage and consult with your insurance provider if you have any doubts.
Does State Farm cover international car rentals?
Most U.S. auto insurers won’t cover you while driving abroad, except for driving in Canada and driving in Mexico. Unless you have a credit card offering rental car insurance, you’ll probably need to purchase your insurance from the rental company.
Read more in our articles “Does auto insurance cover you when driving abroad?” and “Best Auto Insurance When Traveling to Mexico.”
This might lead you to ask, “Does Geico cover international car rental?” Generally, your Geico car insurance for rental car damage extends to all U.S. states, territories, and Canada. However, you’ll likely need to get international coverage for other countries.
How much is rental car insurance?
The cost of rental car insurance varies depending on the rental car company. Rates can differ significantly, with Enterprise being the most expensive and Budget being the least expensive option.
Can I get a Geico car rental discount?
When it comes to Geico policies with rental car coverage, the company doesn’t offer discounts specifically for rental cars. However, Geico rental reimbursement coverage can help you save money on renting a car if your vehicle requires repairs.
How long will Geico pay for a rental car?
According to the provider, the total number of rental days for Geico car rental insurance coverage is based on the circumstances of your claim. So your best bet is to contact the company directly for their Geico rental car policy.
Want to find cheap rental car insurance coverage with Geico? You can easily search for quotes by entering your ZIP code into our online pricing tool.
Does Geico cover loss of use for rental cars?
Does my Geico policy cover rental cars for loss of use? Whether Geico has loss of use coverage depends on your policy details. While many rental reimbursement policies cover loss of use fees, call customer service and see if the Geico rental car policy for insurance includes loss of use.
Does Geico car insurance cover rental cars in Puerto Rico?
Many readers may wonder whether you can use your Geico insurance for rental cars driven in Puerto Rico? Your Geico insurance for rental car damages should transfer to a rental car in Puerto Rico if you carry a full coverage policy with Geico.
Can I rent a car through my insurance for vacation with Geico?
Similarly, does State Farm cover rental cars on vacation? While your rental car will have coverage if you have a full coverage policy with Geico or State Farm, you can’t use your rental car reimbursement for a vacation rental.
Does Direct auto insurance cover rental cars?
Yes, Direct Auto Insurance covers rental cars by extending liability, collision, and comprehensive coverages to rental cars.
Does USAA cover rental cars for repairs?
Yes, if you carry auto insurance rental car reimbursement, they’ll cover rental car costs while your car gets repaired after a covered claim.
Does Geico liability coverage cover rental cars?
Yes, in most cases, Geico’s liability coverage extends to rental cars.
Does Esurance cover rental cars?
Esurance covers rental cars. Your Esurance full coverage does cover rental car damage.
Does Progressive insurance cover rental cars?
Your Progressive auto insurance policy includes liability, comprehensive, and collision coverage, which generally extends to rental vehicles.
But does Progressive cover rental cars for vacation? Progressive won’t cover you while driving abroad, except for driving in Canada and Mexico.
Does Mercury insurance cover rental cars?
Yes, Mercury does cover rental cars. Your Mercury auto insurance policy generally extends coverage to rental cars if you have an existing auto insurance policy with them.
Does Liberty Mutual cover rental cars?
Yes, Liberty Mutual typically covers rental cars under most auto insurance policies.
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Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.