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November 7, 2022
Ayala Insurance

Auto Insurance and Rental Cars

If you plan to rent a car, you must understand your auto insurance coverage requirements beforehand. It’s essential to know whether your existing auto insurance policy will cover a rental car.

Does My Auto Insurance Policy Cover Rental Cars?

If you own a car and carry liability, collision and comprehensive coverage, it generally extends to rental cars used for personal reasons. Be sure to check with your insurance agent and the rental car company for details and to ensure you have the proper coverage in place. Knowing your policy limits and exclusions is important, as insurance companies usually won’t cover damage costs to a rental car outside your policy’s terms.

silver car

For example, suppose you own a standard automobile and decide to rent a luxury car. In that case, you may not be given proper financial assistance to cover damages to the luxury car because your insurance policy only provides coverage for standard automobiles.

What Coverages Do I Need for Rental Cars?

Rental car insurance requirements are usually similar to standard auto insurance requirements, which is one of the reasons standard auto insurance policies may cover rental cars. The following coverages are commonly available for rental cars:

  • Liability insurance helps insure against claims arising from damage or injuries you cause to others if you are at fault in a wreck.
    • Bodily injury liability coverage helps cover their medical bills (and sometimes deaths).
    • Property damage liability helps pay for damage to the other driver’s property, such as their car.
  • Collision insurance helps cover damage to your vehicle after a wreck or collision with an object.
  • Comprehensive insurance helps pay for non-collision mishaps, such as weather damage.

Ayala Insurance can help you learn more about rental car coverage requirements.

Should I Purchase Rental Car Insurance?

Even if you have an existing auto insurance policy or rental car coverage through your credit card, purchasing rental car insurance might be a good idea, depending on the situation. Rental car companies commonly offer a collision damage waiver (CDW), which generally waives a renter’s responsibility if a car is damaged. The rental car company typically cannot charge you for damages if you purchase a CDW, except in extreme cases. Our agents can help you analyze your options and select the coverage that best fits your needs.

Learn More

If you live near Phoenix, Arizona, the agents at Ayala Insurance can help you learn about standard auto and rental car insurance requirements.

Contact our agency at 602-277-1900 for more information.


This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

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