Standing at the rental car counter after a long flight, you’re often asked the same question: “Would you like to add rental car insurance?” Before you automatically say yes—or no—it’s important to understand what coverage you already have.
In many cases, your personal auto insurance policy extends to rental vehicles used for personal travel in the U.S. That means your liability, collision, and comprehensive coverage may follow you to the rental car. However, there can be important gaps. Rental companies may charge for “loss of use” while the vehicle is being repaired, and many personal auto policies don’t cover rentals outside the United States.
Credit card benefits can help, but they’re often misunderstood. Many cards provide secondary coverage, meaning they pay only after your auto insurance responds. Coverage varies significantly by card and may exclude certain vehicle types or destinations.
So, when should you accept the rental company’s coverage? Consider it if you don’t carry collision coverage on your personal vehicle, you’re traveling internationally, or you want to avoid potential out-of-pocket expenses and claim hassles.
Before your next Hill Country road trip or family vacation, review your auto insurance policy so you’ll know exactly where you stand before reaching the rental counter.
