Rental Car Insurance Coverage

Key Takeaways

• Rental Car Damage protection often comes as an optional upgrade on comprehensive travel insurance policies.
• This protection can reimburse you for damage to the rental vehicle, but typically will not cover damage to other vehicles or people.
• It’s also important to note that this coverage is not liability protection and only covers damages.
• Since Rental Car Damage protection is typically only available on certain premium travel insurance policies, we recommend you filter for policies with rental car coverage using our quote tool.

What is Rental Car Damage Insurance?

Rental Car Damage is a travel insurance benefit that provides reimbursement for damage to, or theft of, a rental vehicle during a covered trip. While this coverage is not typically included in standard travel insurance policies, some providers may offer it as an optional add-on.

Rental car coverage is typically limited to expenses related to the vehicle you are operating. Any damage to other vehicles, property, or drivers will likely not be covered by your travel insurance policy.

Does Travel Insurance Cover Car Rentals?

No, most standard travel insurance plans do not cover rental cars. With that said, a small number of travel insurance companies offer this coverage as an optional policy upgrade that can be added when purchasing travel protection. While this can add peace of mind to a trip, including this coverage may increase the overall cost of your policy.

Policies that include Rental Car Damage coverage can be found at the bottom of this page., or by using the “Rental Car” filter when comparing quotes on Squaremouth.

What Does Rental Car Insurance Cover?

Car rental insurance offered through travel insurance generally covers damage due to a collision, vandalism, theft, hail, flooding, or other events outside of your control. Coverage limits will vary from one policy to the next, and some plans may include deductibles.

If your policy includes the Rental Car Damage benefit, it may cover the following expenses:

• The costs to repair the vehicle back to its original condition
• Fees imposed by your rental car company while the vehicle is being repaired
• The actual cash value of the car if it stolen or damaged beyond repair

What is Not Covered by Rental Car Damage Insurance?

Plans that offer Rental Car Damage include specific exclusions that outline the expenses and scenarios that won’t be covered. These exclusions can be found in a policy’s Certificate of Insurance.

Some Rental Car Damage exclusions you may encounter include:

• Damage to other vehicles, structures, or person as a result of a covered loss
• Motorcycles, campers, trucks, or RVs
• Vehicles older than 20 years
• Vehicles used for commercial purposes
• Loss caused by criminal actions, impairment, or acts in violation of the rental agreement
• Types of vehicles with a MSRP greater than $75,000

Other Ways to Get Rental Car Insurance?

Travel insurance is not the only way to protect your rental car while traveling. There are a few types of coverage available for purchase that can provide comparable protection for drivers.

If you’re planning a trip that involves renting a vehicle, we recommend also considering the following rental car coverage options:

• Credit Cards: Many travel credit cards offer trip protection benefits, including rental car coverage, to policyholders to protect them financially while they travel.
• Personal Auto Insurance Policy: Your personal car insurance plan may include collision coverage that extends to rental cars
• Policy Through Your Car Rental Company: Many rental car agencies offer collision insurance and liability coverage that can be purchased at the rental counter

Please be aware that coverage and eligibility requirements for this benefit differ by policy.

Looking for a policy with Rental Car Damage coverage?

Enter your trip information on our custom quote form. Once you receive your results, select the Rental Car Damage filter to find the best policy for your trip with the coverage that you need.