Driving comes with many hidden costs. A recent study found that owning and driving a
vehicle costs about $10,728 a year for 15,000 miles. A big part of that cost is insurance.
The average full-coverage premium was $1,694 for a medium sedan and $1,529 for a
medium SUV.
In this post, we’ll help you understand how your auto insurance applies when renting a
car. We’ll also outline what to look for before accepting or declining rental company
coverage. Knowing where you’re covered—and where you’re not—can save you time,
money, and stress.
Review What Your Current Policy Covers
Let’s begin with your auto insurance. In many cases, if you already carry full coverage, it
extends to rental cars used for personal travel.
Here’s what you may be covered for:
● Liability coverage: Usually extends to rental cars, up to the limits in your policy.
● Collision and comprehensive: May also carry over, but you’ll still pay your
deductible.
● Exclusions: Luxury vehicles, trucks, or international rentals may not be covered.
Always check with your insurance provider and see what your liability coverage is.
Consider Where and How You’ll Be Driving
Even if you’re covered, how you use a rental car still matters. Insurance plans aren’t all
the same, and the details can change based on how and where you drive.
Keep these things in mind before you get behind the wheel:
● Business or rideshare use may not be covered by your personal policy.
● Driving out of state or long distances can increase your risk.
● Letting someone else drive the car could void coverage if they’re not listed.
If an accident happens, it helps to know how to handle the aftermath of a car accident.
Understand Your Options at The Rental Desk
Next, take a look at the protection offered by the rental company. While it may seem
expensive, some options can provide peace of mind.
Here are the common rental insurance options:
1. Collision Damage Waiver (CDW): Removes your responsibility if the car is
damaged or stolen.
2. Supplemental Liability Insurance: Adds extra protection beyond your own car
insurance.
3. Personal Accident Insurance: Helps cover medical costs for you and your
passengers.
4. Personal Effects Coverage: Protects your items inside the rental car.
You may already have some of this coverage, but these add-ons can help if there are
gaps in your policy.
Keep Your Driving History in Mind
Your driving record can change what your insurance covers—even with a rental car.
Companies use it to see how risky you are as a driver.
Why it matters:
✔ A clean record might give you better coverage and lower costs.
✔ If you’ve had accidents or tickets, your policy might cost more or cover less. Some
plans may also ask for extra info.
✔ In some cases, your rental coverage might only apply under specific conditions if
your record includes recent violations.
Not sure how your record stacks up? SFM Insurance can help you see how your driving
history affects your policy and rental coverage.
Want to learn more? Read about how your driving record impacts your auto insurance.
Drive Smarter With Clear Coverage
Like you, we believe a little planning can go a long way. Rental coverage can be
confusing, but knowing your policy helps you stay in control.
At SFM Insurance, we help drivers go over their current auto policies. We explain how
those policies work when renting a car. Whether you’re going on a trip or need a car for
a few days, we’re here to help.
Not sure what your policy includes? Talk to SFM Insurance for a simple, friendly review
before your next drive.
