Does Car Insurance Cover Rental Cars?

rental car appYou’re standing at the rental car counter with a long line behind you. You got a great rate on a car for the week, and you’re ready to go on vacation with the family. Then, you’re handed a clipboard with an intimidating rental car contract filled with confusing insurance options. Suddenly, you wish you’d spent less time packing and more time researching rental car insurance.

Here’s your chance to be prepared at the rental car counter so you can be on your way faster, and you’ll keep the people in line behind you happy.

I have car insurance. Do I really need to buy their coverage, too?

This is the most common question when it comes to renting a car for domestic travel. The answer is: it depends. You want to make sure you’re covered, but you also don’t want to pay for unnecessary duplicate coverages that could double the price of your rental.

The first step is to check your auto insurance policy, or contact GEICO to see what type of coverage for rental cars may already be included in your personal auto insurance. If you carry comprehensive and liability coverage on your personal car, coverage typically will extend to your rental car. If you’re renting a car of similar value to your personal car, in all likelihood the insurance coverage will be adequate for the rental. But if you’re off to a blowout beach weekend in a slick set of wheels like a Corvette Stingray and you’re leaving your 2008 Subaru Forester at home, the extra coverage offered by the rental company may be a good idea.

You should also check with the credit card company—the credit card that you’ll be using for your car rental. If there are any gaps in coverage with your personal auto policy, the credit card company could provide secondary coverage.

Rental Car Insurance Defined

Know before you go. Most rental companies typically have a short, predictable suite of offerings. Check your auto insurance policy to make sure you’re already properly covered and you may be able to decline the offered coverage at the rental counter. Rental car insurance is usually broken out into the following coverages:

  • Liability coverage
  • Personal accident insurance
  • Collision Damage Waiver (CDW)/Loss Damage Waiver
  • Personal Effects Coverage

Insurance You May Have Already

Liability coverage. This is a basic component of most car insurance policies. If you have adequate liability coverage on your own vehicle (check with your insurance provider), you may choose to skip this one.

Personal accident insurance. This covers your medical bills in the event of a crash in the rental car. As long as you have personal injury protection or medical payments coverage on your auto policy and reliable health insurance, you may not need this coverage.

Protection You Might Need

Collision Damage Waiver (CDW)/Loss Damage Waiver. This is not an insurance product, but rather a waiver that transfers financial responsibility from you to the rental car company in case of damage or theft. In most cases, waivers also provide coverage for “loss of use” if the rental car company charges for the time a damaged car can not be used because it is being repaired.

Personal Effects Coverage. If you have a homeowners, renters or condo policy, your personal items will generally be covered even if they are stolen from a rental car. Review your policy documents to be sure before you elect or decline this coverage.

Next steps: To learn more about your policy and rental car insurance, call us at 1-800-841-0728 or review your policy documents on

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  1. John says

    I’m taking the family car on a two-day trip by myself. If I rent a car for my wife to use while I’m gone will my regular auto insurance cove the rental?

  2. Amanda says

    I’m thinking of renting a car for an upcoming trip. I know Geico helps with repair rentals. Do they help with general rentals for someone who would need help with payment of a week long rental?

  3. silvia says

    Does my insurance cover a rental car in a different state other than my home state. Say for example I live in CA and am traveling to TX and renting a car.

    • Aviral Sharma says

      Jose, call Geico as they can exactly figure out your situation

      However as stated above, if you are renting car in the similar category as your car AND if your insurance coverage limits are good enough, you should be good

      In my personal experience, it helps to rent with a popular rental agency.. easier to work with in case something happens

      • David Webb says

        I also want to know the answer to this. What is the definition of rental car as far as the policy is concerned? Is it specifically only a vehicle registered as a rental car owned by a rental car company, or is it any car that I can rent via a car sharing platform like Turo?

          • Dave says


            I contacted Geico’s twitter account and I got this response which didn’t make me feel confident:

            “I apologize. Insurance follows the vehicle, but insurance responsibility usually follows the policyholder. The owner of the vehicle may be liable for anything the driver does to the vehicle or while driving the vehicle. You will need to ensure that the vehicle you are using is insured, and you should never drive an uninsured vehicle. In the event of a claim, the vehicle owner’s insurance would pay first, and, if necessary, GEICO would pay second. -Jim”

  4. Marcel says

    ‘Check your policy documents at’….wow, great advise. I wouldn’t have thought of that!
    Unfortunately that website tells you nothing about the subject matter.

  5. Margaret says

    Thanks to everyone who posted questions & answers. Really made my decision about additional coverage on my rental car very easy.

  6. Bob Cornacchioli says

    One more question about car rental insurance.. does Geico or any other insurance coverage – pay the rental agency for lost revenue if the car was damaged and couldn’t be rented until repaired? Is there a limit to the # of days Geico would pay the rental company?

  7. James G Corum says

    This article seems to be misleading. I called GEICO to see if my liability coverage would cover a rental car in New Zealand, and the customer service representative said no.

    But you say here in this article: “Liability Insurance – If you have adequate liability coverage on your own vehicle, this is one coverage you can always decline on your rental.”
    Which seems to be a yes.

    Which is it?

    • Jennifer says

      Your personal auto policy covers you within the US, Canada and Mexico –it does NOT cover you anywhere outside of these territories. I tell my clients to always ask what the rental co’s coverage costs per day and if any coverage is offered beyond the collision, comp and liability that your personal auto policy extends. your personal auto policy does not offer coverage for LOSS OF USE which the rental co is going to charge you for the amount of days the car cannot be used because tis in the shop. Bottom line, if you are renting for a week or more, I would suggest taking the rental co’s insurance if its reasonable. It fills in the gaps where your own policy leaves off.

  8. Donna Watkins says

    i will say that Geico reps have friendly customer service but you people and your comments below are getting this all wrong. IFyou have rental coverage on your Geico policy that transfers to a rental vehicle , that’s fine and dandy . Geico will pay the physical damage to the rental car if it gets damage ,but what Geico doesn’t tell you is that they will not cover the other charges the rental company has in their contracts for you. Ie.. loss of use, diminished value, admin fees, appraisal fees etc.. The tell you ohh we covered the whole thing for you, then here comes the bill for the balance from the rental agency. You call Geico to ask why did you tell me you paid this and it was settled yet i am still getting a bill? That’s when they break it to you that they only cover the Estimate only. when i first sent them the bill they told me, yes, you have rental on your policy but the rental company wont provide fleet logs, so we cant pay their loss of use. .. that’s stupid for a rental company to provide logs. duhh its a rental agency, they have a million other cars in their fleet, but the rental company did lose the right to use this car because i accidently damaged it. You (Geico) being my Carrier, said you would cover all the loss. But now that im getting a bill, you tell me to file with my credit card benefits. You leave it up to my credit card to cover this. that’s wrong. so ppl if geico tells you they will your entire loss from the rental agency, just know they will only cover part of it. this applies to almost all policy’s that have rentals. myself and 3 other ppl i know have had this happen with geico. Guess what, we dropped and changed companies. My other insurance company has no problem being upfront about what they will and will not pay. They don’t leave it to their insured’s to pay out of pocket. . Gieco DID NOT AND WOULD NOT PAY LOSS OF USE, Even Though i had rental reimbursement on my policy.

    • Ange says

      Thank you for identifying the additional charges the rental company inflicts if damage to vehicle.
      I just called Geico and as you said, rep said yes covered. Then I asked about additional charges, no, they do not cover.
      When I asked about having to go thru credit card first, she wanted to transfer me to claims dept.
      I have decided to get additional coverage from rental company.
      Although it will be an additional expense, if anything happens to the car, I can take key to rental company and say goodbye.

  9. Alma J. Johnson says

    I enjoy the reminders about what to do in certain situations. I’m a very careful driver because I witness such strange driving from others. Thanks for addressing these issues that may occur. Thanks for taking the time to think about us as customers!!!!!!`