Does Auto Insurance Cover Rental Cars?

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   Trevor Toft

   Vice President, State Bank Agency,

   You're going to want to read your policy. Often times, your auto insurance will extend the highest level of coverage on your policy to a vehicle you are driving with permission or renting. If you have full coverage(ie. comprehensive and collision coverage), you would be extended full coverage. However, almost all insurance policies exclude coverage for loss of use of that other vehicle and will only pay market value for the loss of the vehicle. So, if you are in an accident with a rental car, the rental company has the right to charge you for each day it is out of service being repaired(YOU PAY THIS, NOT INSURANCE). Also, if the auto company has a value on the books of $20,000 for the vehicle and your insurance company only pays $15,000 for the car in a total loss, you are responsible for the difference. EVERY insurance agent who knows anything, would tell you to take the third party insurance coverage. If you plan ahead however, Travel Guard by Chartis offers the same coverage the rental companies will, minus liability which would be through your insurance, to protect against the loss of use and the difference in value.

   Answered on April 3, 2013

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