Does my auto policy cover my rental car?

I'm picking up a rental car today for a road trip I have over the next couple days, which got me thinking...  I get asked at least once a month whether or not someone should purchase the insurance that the rental car company offers.  Like many things in insurance (and life), the answer is "it depends".

Most personal insurance companies (this is the company you use to insure the car you own) will cover liability of a rented car, and if you have physical damage listed on your policy (comprehensive and collision) it will also cover that.  So what are the other limitations?

• Time: Rental cars are usually covered for 30 days in your care by your personal auto insurance.  Make sure you look at your policy contract to confirm, but we usually see 30 days.  So what happens after that 30 days is up?  No coverage.  Best advice is to turn the car in to the rental car company and rent another (or ask for the same one if you liked it).  This starts a new rental agreement and you'll have coverage from your personal auto policy for another 30 days.
• Loss of Use:  If you're in an accident in the rental car, the car company can charge you loss of use.  Basically, they're asking for you to pay because they can no longer rent out the car.  There is almost no personal auto policy that will pay for loss of use to a rental car.  Check with the credit card companies you do business with to see if they offer some coverage.  If you pay for your rental car with that credit card, they may offer some of this coverage for you.
• Deductible: Your personal auto policy usually has a deductible for comprehensive and collision coverages.  If you are in an at fault accident, you will be responsible for that amount before you auto insurance will pay.  This is another place to check with the credit card company that you intend to pay for the service with.  Sometimes they have some built in coverage.

If your credit card company will not offer coverage for loss of use and your deductible (or you do not have physical damage coverage on your auto on your personal auto policy) you may want to consider purchasing that coverage the rental car company offers (and then makes you sign if you decline).  Better to be safe than sorry, but your broker or agent should be able to help you work through the details of what your policy covers and what it does not cover.

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