Am I Covered if I Rent a Car on Vacation?

Taking a road trip or flying somewhere sunny? Before you add rental car coverage to your bill, learn when your auto policy may already help protect you—and when buying extra coverage could still make sense.

Vacations come with plenty of decisions. Where to stay. What to pack. Whether you really need one more snack stop.

Buying rental car coverage at the counter should not be a decision you make while people are waiting in line behind you. The good news is you may already have protection through your personal auto policy. The trick is knowing what is covered, what is not, and when extra coverage may be worth the cost.

Here is a simple breakdown to help you feel more prepared before you pick up the keys.

Does my car insurance cover rental cars?
An auto policy’s coverages, limits, and deductibles typically extend to a short-term rental car while traveling within the United States. If you rent a car for more than 30 consecutive days, we recommend asking your insurance agent if your car insurance will still apply. Acuity’s personal auto policy provides coverage for cars rented up to 45 consecutive days.

What is the rental car company offering?
Rental car companies may offer several types of coverage or protection at the counter, including collision damage waiver or loss damage waiver, liability coverage, personal accident coverage, and personal effects coverage. If you have car insurance but do not carry collision coverage on at least one car, you may want to protect yourself by purchasing the collision damage waiver offered by the rental car company.

Some people choose to buy the collision damage waiver even if they have collision coverage on their own car. The waiver transfers financial responsibility to the car rental company if the car is damaged, stolen, or unable to be rented out to others.

When might rental car coverage be worth buying?

Even if your auto policy applies to a rental car, there may still be reasons to buy coverage from the rental company.

For example, if the rental car is damaged, the rental company could charge you for more than the repair bill. You may also be charged for the time the car cannot be rented to other customers, often called loss of use, or for diminished value if the car is worth less after being repaired. Purchasing coverage from the rental agency or adding the auto enhancements endorsement to your policy can help protect you from those charges.

You may also want to consider buying rental car coverage if:

• You do not have a personal auto policy.
• You do not carry collision or comprehensive coverage.
• You are renting a vehicle that is much more expensive than your own car.
• You are renting for an extended period.
• You are traveling outside the United States.
• You want to avoid paying your deductible or filing a claim under your own policy.

How do I know what coverage I have?

To make sure your autos and rentals are properly covered, check the declarations page of your insurance policy or contact your independent agent. Your agent can help you understand what coverages, limits, and deductibles make sense for you.

 

So, do I need to buy rental car insurance on vacation?

It depends on your coverage and your trip.

For many short-term rentals in the United States, your personal auto policy may provide the coverage you need. But there can be gaps—especially for loss of use, diminished value, international rentals, or longer rentals.

The best time to figure it out is before you travel, not when you are standing at the rental counter.

Before your next trip, talk with your independent Acuity agent. They can help you understand your current coverage, decide whether rental company coverage makes sense, and make sure you feel ready before you hit the road.