Car Insurance & Rental Cars

What Is Rental Reimbursement Insurance And What Does It Do?

Rental reimbursement insurance is a small amount of coverage toward the cost of renting a car because your own car is under repair for a collision. This amount is often minimal, usually about $10 to $20 a day.

Does My Car Insurance Policy Cover Rental Cars?

There is no easy answer to this question because of the wide variations in the legal requirements of both the contracts of the rental car company and the policy statements of your own personal car insurance. Each car rental company and each car insurance policy has different rules about what they want from you and what they can do for you. The only way to find out the right answer is to read the details in each contract, the one from the car rental company and the one from your personal car insurance.

Are U-Haul And Other Rental Moving Trucks Covered By My Car Insurance Policy?

Car insurance policies rarely cover rented moving truck companies like U-Haul and other rental trucks. This is because rental trucks are notorious for being poorly maintained and difficult to drive. In the event that your car insurance policy does cover a rental truck, should you happen to have an accident, you must first fully compensate the rental truck company immediately after you return the truck. You will then have to wait for your own personal insurance company to reimburse you.

Renting a Car In Mexico Or Canada - Things to Know

Your U.S. car insurance policy will often cover you when renting a car in Canada because both countries recognize the same coverage on your policy, namely liability insurance, comprehensive insurance, and collision insurance. However, this legal compatibility between countries does not always apply for Mexico. While some U.S. car insurance policies will cover you for areas around the Mexican border, Mexican car rental companies remain faithful to Mexican auto liability legislation.

Rental Car Insurance - Summary

Before renting a car from a rental car company, become familiar with all your insurance choices. Call your personal car insurance agent to find out about how much your existing car company covers. Another option is to call your credit card company to see if they offer rental car coverage. Finally, if neither of these agencies offer you sufficient coverage, you should purchase the insurance of the rental company. Never, unless you are either really rich or foolhardy, should you fail to get insurance for a rental car. Life, especially in an unfamiliar car, is unpredictable, so choose to be safe. It’s better to spend money on car rental insurance than to have to deal with the expenses of a rental car collision.