Property damage liability insurance only covers damage you cause to other people’s property. And if you hit another vehicle or damage a fence while driving a rental car, your liability coverage may help pay for that other person’s property damage. However, it won’t pay for any damage to the rental car.
You can purchase a Collision Damage Waiver (CDW), also known as a loss damage waiver, from the car rental company. This waiver covers vehicle damage due to accidents, theft, weather, fire and vandalism.
Besides, many credit cards offer rental car coverage as a complimentary benefit. This coverage typically helps pay for damage to the rental car as long as you use that card to pay for the full rental and decline the rental company’s collision damage waiver (CDW). Your credit card’s rental coverage acts as secondary insurance and steps in only after the primary auto policy limits are exhausted.
Will my liability insurance cover the car I rented?
Liability insurance typically does not cover damage to the rental car. Instead, it only pays for damage you cause to other people’s property or injuries to others if you’re at fault in an accident.
To cover damage to the rental car, you’ll need to rely on your policy’s collision and comprehensive coverage or a rental car company’s Collision Damage Waiver (CDW). Check with your insurer to confirm what’s included in your policy before heading to the rental car counter.
What happens if I crash a rental car and only have liability insurance?
If you crash a rented car and only have liability insurance, you’ll have to pay for any damage to the rental car yourself, even if the accident wasn’t your fault.
You will be protected in two cases: If you have a damage waiver from the rental company and if you have collision coverage.
Do I need extra rental insurance if I already have full coverage?
If you already have full coverage car insurance, you might not need additional rental insurance. In most cases, your existing policy will cover the rental car up to your policy’s limits. It’s a good idea to confirm with your insurer that your policy covers rental cars and to understand the specific coverage limits and terms.
Final thoughts
Your existing auto insurance may provide coverage when renting a car, potentially saving you from purchasing additional insurance. If you have full coverage, your policy probably will extend to the rental vehicle – confirm rental car coverage with your insurer before your trip.
Get advice from an experienced insurance professional. Our experts will help you navigate your insurance questions with clarity and confidence.
Browse all FAQs