Does Travel Insurance Cover Rental Cars?

Some travel insurance plans include coverage for rental cars or offer it as an optional add-on to cover car rental when you travel. Essentially, this coverage ensures that if a traveler rents a vehicle and it’s damaged or stolen, they won’t have to pay all of the cost of repairs and additional rental charges imposed by the car rental company.

See our review of travel insurance cover for rental cars for full details.

What kinds of problems does travel insurance cover for rental cars?

The travel insurance cover for rental cars breaks down to protecting you if the car is damaged due to a collision, theft, vandalism, windstorm, fire, hail, and flood. Essentially, anything that’s not within your control while the car is in your possession. In addition, the travel insurance cover for rental cars protects you if the car is stolen while in your possession.

It’s important to note that car rental collision coverage reimburses you for the cost to repair the rental car if it’s broken into, but it does not cover items inside the vehicle.

Why do travelers like car rental coverage with their travel insurance?

Travelers like car rental coverage with their travel insurance because:

• They have a single number to call in a travel disaster
• It costs less – significantly less – than the coverage at the rental counter
• It’s primary coverage, which means this plan pays before other insurance sources
• A claim made on this plan won’t raise your personal auto insurance rates
• The coverage limits may be higher than the traveler’s auto cover back home
• It covers ‘loss of use’ charges, which are not included in the plans you buy at the rental counter

What are the exclusions to travel insurance rental car coverage?

It’s important to note that coverage for car rentals is not the same as your auto insurance back home. For example, it won’t cover trucks, motorcycles, RVs, etc. It also won’t cover personal liability.

Some countries don’t accept coverage for rental cars if it’s purchased outside the country too. Note what’s not covered your travel insurance car rental coverage.

Where else can travelers get car rental coverage?

Some travelers with car rental coverage on their credit cards like to have the excess covered with their rental car coverage on their travel insurance plan. This is because the policy limits on their credit card may not be enough if the vehicle is completely destroyed, for example, but the combination of both plans helps.