Is Your Rental Car Covered Under Your Auto Insurance Policy?

Renting a car can be a common occurrence, whether it’s for a family vacation, while vehicle is in auto shop or a business trip. One question that frequently arises is whether your rental car is covered under your existing auto insurance policy. Let’s explore this topic to help you better understand the extent of coverage for rental cars under your auto insurance policy in California.

Coverage Extension

In many cases, your personal auto insurance policy may provide some coverage for rental cars. This coverage is usually an extension of the physical damage coverage you have on your own vehicle. However, the extent of coverage may vary depending on the terms and conditions of your policy.

Comprehensive and Collision Coverage

If you have comprehensive and collision coverage on your personal auto insurance policy, it may extend to cover rental cars. Comprehensive coverage protects against damage from non-collision events, such as theft, vandalism, or natural disasters. Collision coverage, on the other hand, covers damage to your vehicle resulting from a collision with another vehicle or object.

Liability Coverage

Liability coverage, which protects you against bodily injury and property damage claims from other parties, typically follows you from your personal auto policy to a rental car. This means that the liability coverage you carry on your personal vehicle may apply to the rental car while you’re driving it.

Rental Car Insurance Options

When renting a car, the rental agency may offer you additional insurance coverage, such as a collision damage waiver (CDW) or a loss damage waiver (LDW). These waivers may provide coverage for damage to the rental car and may relieve you of financial responsibility in case of an accident. However, keep in mind that purchasing these waivers is optional, and you may already have similar coverage through your personal auto insurance policy.

Policy Limits and Deductibles

Before relying solely on your personal auto insurance for rental car coverage, be sure to review your policy limits and deductibles. If the limits are too low or if you have a high deductible, you may still be responsible for additional costs in the event of an accident or damage to the rental car.

It’s essential to review your personal auto insurance policy carefully and consider additional insurance options when renting a car in California.  Our team is here to assist you in understanding your coverage and helping you make informed decisions when it comes to rental car insurance, please just give us a call/text at 714-968-8008.