Does auto insurance cover rental cars??
Are you wondering, "does my insurance cover rental cars?" You definitely need to find out whether your auto insurance covers rental cars and under what circumstances before you end up needing one, just in case. In most cases, you need to at least have collision car insurance coverage for your auto insurance company to include rental reimbursement in your policy. Many auto insurance companies will reimburse you rental car costs after a covered accident but cap their coverage at around $30 per day. Also consider other options you have if you need to use a rental car for any reason.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
UPDATED: Nov 4, 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: Nov 4, 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 insurance industry 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
- If your auto insurance company offers rental reimbursement coverage, it is only available if you have comprehensive and/or collision insurance coverage
- Rental reimbursement coverage is often limited to a specific number of days and dollar amounts
- You may need to find other means for auto insurance coverage if you need rental car insurance long-term or for leisure
If you have ever wondered, “Does my insurance cover rental cars?” the short answer is no. However, your auto insurance company might give you some relief in specific cases.
Some of the best auto insurance companies will offer car rental reimbursement insurance. However, you may only include it if you already have the right coverages as part of your policy. Which coverages are those, and are there any limitations to rental reimbursement coverage?
Read on to know when your auto insurance covers rental cars and what you can do to reduce costs when you need to rent a car. But if you need to see rates from a few of the top auto insurance companies in your area, enter your ZIP code into our free quote tool above.
Does my auto insurance cover rental reimbursement if my car is repaired?
In some cases, yes. You need to have collision or comprehensive auto insurance to add rental reimbursement coverage to your policy. And if that is the case, you can only receive reimbursement if your car takes on damage during a covered event.
Specifically, collision auto insurance coverage covers damage to your car after these events:
- An accident involving another car. It does not matter who is at fault
- Hitting a stationary object, like a tree
- Running over a pothole
Read more: Does auto insurance cover city pothole claims?
Comprehensive auto insurance covers the following events:
- An animal running into your car
- A falling object hitting your car
- Natural disasters, including fires and floods
- Theft
- Civil disorder, including riots and vandalism
Insurance Information Institute notes that if your car got hit by an asteroid, that may also count as a covered event.
That said, even when your auto insurance company covers your rental car usage, the company will place limits on how much it reimburses you.
- Most companies have a per-day limit, usually around $30-$40
- The period for the rental may only last 30 days
- Some companies may partner with rental car companies that directly bill your auto insurance company to reduce or eliminate your out-of-pocket costs. However, going out of network means that you are responsible for all rental car costs
Also, your auto insurance will most likely not cover a rental car if your car is in the shop for regular maintenance or repairs due to a mechanical breakdown.
Read more: Does my auto insurance cover rental reimbursement if my car is being repaired?
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Does my auto insurance cover rental cars when I am on vacation?
Specifically, does your auto insurance cover your rental costs when you are out of state? Also, will your insurance cover your rental car costs if you are traveling to a foreign country?
Generally, auto insurance follows you out of state only if you use a vehicle named in your policy. Some companies may allow for out-of-state rentals, but they only reimburse you after the fact. And to get reimbursement, you’ll have to show your insurance company receipts.
Your car insurance will often follow you if you are driving your own car to Canada. However, you will need extra insurance if you are traveling to Mexico or renting a car anywhere outside the United States.
In many cases, your auto insurance company will not offer foreign country rental coverage, but some companies act as brokers with other companies. Review your auto insurance company to see if that is the case.
Which auto insurance companies cover rental cars?
Here is a list of companies that offer rental reimbursement coverage:
Auto Insurance Companies With Rental Reimbursement Coverage| Company | Daily Cost Covered (Maximum) | What's Covered |
|---|---|---|
 | $25-$90 ($750-$1500) | Temporary rental for covered auto accidents |
 | $25-$50 | Temporary rental (breakdowns, repair, or serving) or short-term leisure use rental |
 | Up to $30 | Temporary rental or other transportation during repair (collision or other insured loss) |
 | Direct billing with Enterprise Rent-A-Car | Rental car costs, ride share services, taxis, city busses, light rail, commuter trains |
 | $20 ($600) | Rental car costs, ride share services, taxis, city busses, light rail, commuter trains |
 | Direct billing | Temporary rental after a covered accident |
 | Up to 45 days or $3,000 | Temporary rental after a covered accident of car theft (CarMatch) |
 | Allows direct billing for up to 30 days | Temporary rental after a covered accident |
 | Set your limit or use direct billing with Enterprise Rent-A-Car | Temporary rental after a covered accident |
 | Offers discounts with Enterprise Rent-A-Car, will pay all costs if you used an approved auto repair shop | Temporary rental after a covered accident |
 | $30-$100 | Temporary rental after a covered accident |
 | $30-$75 ($900-$2,250) | Rental car or alternative transportation after a covered accident |
 | $40-$60 | Temporary rental after a covered accident |
 | Not specified | Temporary rental after a covered accident or theft |
 | $25-$50 ($600-$1,200) | Temporary rental and limited travel expenses after a covered event |
 | Up to $100 ($2,200) | Temporary rental and limited travel expenses after a covered event |
 | Direct billing with Enterprise Rent-A-Car | Temporary rental and limited travel expenses after covered accident |
From this list, Amica Mutual may be the most generous with its coverage. Policyholders may seemingly seek reimbursement after using rental cars during their vacations in other states.
What can I do when my auto insurance company does not cover rental cars?
If your auto insurance company does not cover rental cars in any or all circumstances, you have a few options to reduce your out-of-pocket costs and ensure that you have coverage while driving a rental car. The Insurance Information Institute listed some options:
- See if your homeowners or renters insurance covers property theft from any car you drive
- Inquire about the level of auto insurance coverage your credit card company will provide during your travels. Higher levels of credit cards will cover more
- Purchase auto insurance through a rental car company, namely a brick-and-mortal company near an airport or train station. Those companies tend to offer coverage like loss damage waivers, personal accident insurance, and personal effects coverage
- Use a car sharing program like ZipCar, which include insurance costs in their fees
- Use a peer-to-per rental service like Turo
Additionally, you may purchase rental auto insurance through a travel company. Alternatively, you can purchase non-owner auto insurance if you do not own a car and will borrow/rent cars regularly.
Non-owner insurance follows the driver and not the car, so you will not have comprehensive or collision coverage. However, the policy may include medical payments and uninsured/underinsured motorist coverage.
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The Final Word on Rental Car Coverage
As you can see, the various options you have for covering a car rental each have their limitations. Still, if you understand what your auto insurance company covers, you can assess the level of coverage you need for any situation.
We hope this information has helped you determine whether your auto insurance covers rental cars or assisted you in your search for an auto insurance company that does. Now, if you need to see rates from a top auto insurance company in your area, enter your ZIP code into our free quote tool below.
Frequently Asked Questions
How can I lower my auto insurance premium?
There are several ways to potentially lower your auto insurance premium. Some common strategies include maintaining a good driving record, bundling multiple policies with the same insurance company, increasing your deductibles, taking advantage of available discounts (such as for safe driving or installing anti-theft devices), and periodically reviewing and comparing quotes from different insurance providers.
What factors affect my auto insurance rates?
Auto insurance rates are influenced by various factors, including your age, gender, marital status, location, driving record, type of vehicle, annual mileage, credit history, and coverage options. Insurance companies also consider statistical data related to these factors to determine risk and set premium rates.
Does my auto insurance cover other drivers of my vehicle?
Typically, auto insurance follows the vehicle rather than the driver. This means that your insurance generally covers other drivers who have your permission to use your vehicle. However, it’s important to review your policy to understand the specific terms and conditions, as some policies may have limitations or exclusions for certain drivers.
What is the difference between comprehensive and collision coverage?
Comprehensive coverage typically provides protection for damages to your vehicle caused by events other than collisions, such as theft, vandalism, natural disasters, and animal collisions. Collision coverage, on the other hand, covers damages to your vehicle resulting from collisions with other vehicles or objects, regardless of fault.
What is uninsured/underinsured motorist coverage?
Uninsured/underinsured motorist coverage is designed to protect you if you are involved in an accident with a driver who either has no insurance or lacks sufficient insurance to cover the damages. This coverage can help pay for medical expenses, vehicle repairs, and other losses resulting from the accident.
What is a deductible in auto insurance?
A deductible is the amount of money you must pay out of pocket before your insurance coverage kicks in to cover the remaining expenses. For example, if you have a $500 deductible and your car sustains $1,500 in damages from an accident, you would be responsible for paying the first $500, and your insurance would cover the remaining $1,000.
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Tracey L. Wells
Licensed Insurance Agent & Agency Owner
Tracey L. Wells is a licensed insurance agent and Farmers insurance agency owner with 23 years of experience. He is proud to be a local Farmers agent serving Grayson, Georgia and surrounding areas. With experience as both an underwriter and agent, he provides his customers with insight that others agents may not have. His agency offers all lines of insurance including home, life, auto, RV, busi...
Licensed Insurance Agent & Agency Owner
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.