JUMP TO Section Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.- Personal car insurance may cover your rental car
- Homeowners and renters insurance cover theft of personal property in car rentals
- Does your credit card cover your rental car?
- Purchasing rental car insurance from the rental car company
- What about car sharing programs like Zipcar or Turo?
- Risks of going without rental car insurance
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- If you already have liability coverage or collision coverage car insurance, it will extend to rental cars.
- Your credit card may offer primary or secondary car insurance coverage, too.
- If you don't have car insurance and use rental cars frequently, consider non-owner car insurance.
- See Insider's guide to the best car insurance companies.
The holidays and summer vacation are generally when most people use rental cars and the prices go up. In addition to higher prices, the cost can go up even more if you need to purchase rental car insurance. However, you may already have the coverage you need.
Personal car insurance may cover your rental car
If you already have liability coverage or collision coverage it will extend to rental cars in the US and depending on your insurance carrier maybe Canada and Mexico, Josh Damico, vice president of insurance operations at Jerry, told Insider. Comprehensive and collision coverage usually extends to rental cars.
Collision insurance repairs your car if it's damaged in a collision with another vehicle or object. Car accidents are usually when collision coverage is involved. Comprehensive insurance covers damage from theft, fire, vandalism, natural disaster, whereas liability for injuries.
Damico said it's best to check with your insurance provider because some carriers exclude rental cars to keep costs down. Also, he said not to confuse "rental reimbursement coverage" with renting cars. Your personal auto insurance rental reimbursement coverage applies if you're involved in a covered loss and offers a rental car while your personal vehicle is being repaired. This doesn't apply to going out to rent cars.
| Damage | Comprehensive | Collision | Liability* | Full |
| Theft | Yes | No | No | Yes |
| Vandalism | Yes | No | No | Yes |
| Fire | Yes | No | No | Yes |
| Natural disaster | Yes | No | No | Yes |
| Falling objects (tree) | Yes | No | No | Yes |
| Animal damage | Yes | No | No | Yes |
| Collision/accident | No | Yes | No | Yes |
| Rollover | No | Yes | No | Yes |
| Bodily injury/medical bills | No | No | Yes | Yes |
| Physical damage | No | No | Yes | Yes |
| Property damage | No | No | Yes | Yes |
| Uninsured motorist | No | No | Yes | Yes |
*Most states require some type of liability coverage
Homeowners and renters insurance cover theft of personal property in car rentals
If you have homeowners insurance or renters insurance, it will cover any personal property stolen from your personal vehicle or rental car due to a break-in.
Homeowners and renters insurance cover theft of your personal property, even if it occurs outside of your home. If your personal laptop is stolen while you're at a coffee shop, homeowners and renters insurance will cover it. If your laptop was stolen from your car, homeowners and renters insurance will cover the theft of the laptop, but not damage or theft of your car.
Does your credit card cover your rental car?
The short answer is it depends. Damico said credit card companies offer primary or secondary car insurance coverage, but most only pay if the vehicle is damaged or stolen. He said you need to check with the credit card you use to reserve and rent the vehicle and ask if the coverage is primary or secondary.
The Insurance Information Institute said that most credit card coverage is usually secondary insurance, which "kick[s] in after your personal insurance policy or the insurance coverage offered by the rental car company are utilized."
Damico said if you don't own a car and have no primary auto insurance, then secondary credit card coverage will not help you and you will need to purchase insurance from rental company.
Some credit cards issuers like Chase Freedom, state that "if you do not have personal automobile insurance or any other insurance, this benefit reimburses you for covered theft, damage, or administrative and loss-of-use charges imposed by the rental company, as well as reasonable towing charges that occur while you are responsible for the vehicle." However, this doesn't offer liability coverage if you are in an accident and damage another vehicle or injure its driver and passengers.
If you travel a lot and use rental cars, Damico recommends getting non-owner car insurance. Non-owner car insurance is basically liability-only coverage for drivers who don't own a car.
Purchasing rental car insurance from the rental car company
If you don't have primary coverage through personal auto insurance, credit card primary coverage, or non-owner car insurance, then you'll need to purchase insurance from the rental car company.
These are the types of coverage you may be offered, according to the Insurance Information Institute:
Damico said purchasing insurance from the rental car company can be $10-$30 per day and if you take all three it could cost more than the vehicle rental itself.
What about car sharing programs like Zipcar or Turo?
Companies like Zipcar offer hourly rentals of a variety of vehicles and usually include the cost of insurance in the membership fee. Zipcar's website states that it offers secondary insurance coverage. The Insurance Information Institute said that "if the car is involved in a collision or is stolen, the renter may be billed for a specific dollar amount that is stated in the membership agreement."
Turo is different from Zipcar because instead of the cars being owned and managed by a company, consumers are renting a car from a regular person — like an AirBnB for cars. Turo offers third-party insurance for the owners (hosts) of cars through Liberty Mutual.
If you don't have personal auto insurance and use car sharing programs frequently, you should consider a non-owner car insurance as your primary coverage.
Risks of going without rental car insurance
If you do not have personal auto coverage or non-owner car insurance and decide to forego insurance from the rental car company, you are responsible for any damages. If you have a car accident that involves another vehicle, you will also be responsible for those damages and injuries and might be subject to a lawsuit.
Ronda Lee Ronda Lee is an insurance expert covering life, auto, homeowners, and renters insurance for consumers. In addition to her contributions at Business Insider, she was a writer for insurance aggregator PolicyGenius, as well as an attorney practicing insurance defense and commercial litigation. Aside from insurance coverage, Ronda has written for HuffPost with featured articles in politics, education, style, black voices, and entrepreneurship. Read more Read less Top Offers From Our Partners 
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