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Does my insurance cover a rental car while I’m on vacation?

Yes. Most companies will extend coverage from your policy to any car you rent.  Take a look at your policy coverages and deductibles.   You can expect to have the same coverage if you are involved in an accident in your rental car.  Simply file a claim with your insurance company.  They will work with the rental car agency to fix the rental car as well as any damage to a third party if needed.


A majority of insurance companies will only extend coverage if you are renting a vehicle within the 48 contiguous states, Alaska, Hawaii and Puerto Rico.  We do have one company, Safeco Insurance, that will cover rental cars anywhere in the world.  If you are traveling to Mexico, some companies offer coverage up to 75 miles into Mexico.  We advise clients to purchase a temporary Mexican auto insurance to be better protected.

Finally, if you have a claim with a rental car, the rental car agency sometimes will charge you for “loss of use”.  This is the income lost to the rental car agency because the vehicle is being repaired. This cost is NOT covered by many insurance companies.   If you are concerned, you should ask your agent to find out if your company pays for this.

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  • Kate Welling says:

    Thanks for your tips about renting a car on vacation! My husband and I want to take an anniversary trip, but we would need to rent a car. I’ll be sure to look into my insurance to see if I am covered! I’m also going to start looking for cars that I could rent for our trip.

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