Does my car insurance cover rental cars?

When you rent a car, you're asked if you want to buy car insurance from the rental agency.

The question for many people is: Do I need it?

If you already have car insurance, your policy may extend to a rental car. Here's how to know if you have enough coverage and when you should consider rental car insurance.

If you have full coverage car insurance and are using the rental for personal, not business reasons, your policy will usually cover rental cars

Usually required if you have a car loan or lease, full coverage includes:

• Liability coverage: Pays for damages or injuries to others if you're held liable for a collision. Drivers in nearly every state are required to have liability insurance.
• Collision coverage: Pays for damages to your car if you're held liable for a collision.
• Comprehensive: Pays for damages from non-collision incidents, including theft, vandalism and hitting an animal.

Depending on where you live, your personal auto policy may also include:

• Personal injury protection (PIP): Pays for medical expenses, lost wages, child care and other costs for you or your passengers after an accident, regardless of fault.
• Medical payments (MedPay): Drivers in Maine, New Hampshire and Pennsylvania must have MedPay, which is similar to PIP but considerably more limited.
• Uninsured motorist/underinsured motorist coverage: Pays for damages or injuries if you're in a collision with someone with too little or no insurance at all. UM coverage can also be useful in a hit-and-run.

There are six main types of insurance available for rental cars:

• Primary liability insurance: If you don't already have liability coverage from a car insurance company, you can get it from the car rental agency. Some level of it is required in almost every state.
• Supplemental liability insurance: If you do have insurance, this can boost your liability coverage.
• Collision damage waiver (CDW): If the rental car is damaged, a CDW absolves you from having to pay for repairs (minus a deductible). A loss damage waiver (LDW) will protect you if the car is damaged or stolen.
• Personal accident insurance: Pays medical bills for you and any passengers in the event of a crash.
• Personal effects coverage: Pays for laptops, luggage and other items stolen from your rental.
• Roadside assistance: Helps if you have a dead battery or flat tire, are locked out or run out of gas, among other scenarios.

Many people bypass rental car insurance, but it can be useful in some situations.

• You don't have full coverage car insurance: If you have a liability-only policy — or no insurance at all — you could be on the hook for thousands of dollars in repairs if there's an accident. Rental car insurance is the easiest way to be fully protected.
• Your policy has low limits: If you drive an old beater but rent a top-of-the-line ride, your provider may not be willing to pay the difference. This could lead to thousands in out-of-pocket costs if you get in an accident.
• You're traveling abroad: A full coverage policy is usually valid across the U.S. and Canada. If you rent a car in Paris, however, you'll likely be outside the coverage territory for your policy.
• You're using the rental car for business: Your private passenger auto policy won't cover a rental car you're using while on a work trip.
• If something is stolen from the car: Personal car insurance doesn't cover items stolen from a car. If you don't have homeowners or renters insurance to protect your belongings, a rental car policy could come in handy.

There are several ways to replace or supplement a car rental insurance policy.

Standalone rental car insurance

Available for $11 a day, Allianz Global Assistance's OneTrip Rental Car Protector plan provides up to $50,000 if your rental is stolen or damaged in a covered accident. It's primary coverage and comes with trip-interruption protection and 24-hour emergency assistance.

Bonzah offers primary coverage for rental cars, including CDWs for $21.95 a day and no-deductible liability coverage for under $15 a day. Policies are available abroad.

Sure offers standalone rental car insurance with up to $100,000 in damage and loss coverage for the car and your belongings. Policies are underwritten by Chubb and include roadside assistance, but are not available in all states.

Credit card benefits

Many credit cards cover car rentals if you pay for the reservation with that card, are the primary driver and decline the car rental company's CDW. The benefit usually only covers the rental car itself — not damages or injuries to other cars or people — and it may exclude exotic vehicles, motorcycles or RVs.

The Chase Sapphire Preferred® Card (see rates and fees) and *Capital One Venture X Rewards Credit Card both come with primary coverage — so you don't have to go through your auto insurance company first if you're filing a claim.

Travel insurance

Many travel insurance plans offer rental car protection as an add-on. You'd still need liability coverage, however, either from your own car insurance policy or the rental car company.

Several of our top travel insurance companies provide car rental protection as an optional add-on: Allianz and Travel Guard both have CDWs of up to $50,000 and 24-hour roadside assistance.

Non-owner car insurance

If you don't own a vehicle but rent or borrow one frequently, non-owner car insurance could be a valuable asset. It includes:

• Liability insurance: Pays for damages and injuries to others, often up to the minimum amount required in your state.
• Uninsured/underinsured motorist protection: Provides coverage if you're involved in a collision with a driver who doesn't have adequate (or any) liability insurance.
• Personal injury protection (PIP): Pays for your damages and injuries after a collision, regardless of who is at fault.

Since it doesn't include collision and comprehensive coverage, a non-owner policy doesn't entirely replace rental car insurance. But it could cut down on the amount of coverage you'd need.

Several of our top picks for car insurance offer non-owner policies, including Progressive and Dairyland.

If you don't have car insurance, buying rental car insurance at the counter is worth it. If you have a credit card or travel insurance with rental car protection, you'll still need the liability protection a rental policy can provide.

If you do have full coverage car insurance, it should be enough to protect you, the rental car and anyone else on the road. But consult your policy to know what your coverage limits are so you can make an informed decision the next time you're at the rental counter.

And even the most robust personal auto policy doesn't cover every situation — like if you're on a business trip, outside of the U.S. or have personal belongings stolen from the rental.

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*For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.