Understanding Auto Insurance Coverage for Rental Cars







 When it's time to rent a car, common questions often arise regarding insurance coverage. In this article, we address two frequently asked questions:

  1. Do I need to buy the insurance offered by rental car companies?
  2. If I am in a car accident and need to rent a car, am I covered?

Let's explore the answers.

Insurance Offered by Rental Car Companies

Standing at the rental car counter, the choice to purchase insurance from the rental company can be pivotal. Consulting your ERIE agent before your trip is advisable, ensuring you're informed about potential coverage gaps.

While driving an unfamiliar vehicle in an unfamiliar area, the supplemental coverage from the rental car company can provide peace of mind. However, the decision is yours to make. Before accepting or declining, understanding the specifics of how the rental company's coverage functions is crucial. Variables like loss of use calculations, deductibles, and administrative fees vary between rental companies.

Consider asking your ERIE agent:

  • If I buy the rental company’s coverage and have a claim, will it prevent me from paying a surcharge on my personal auto policy?
  • In case of an accident, will the coverage assist in paying for a replacement rental car?
  • If I decline extra coverage and experience a total loss, would the rental company charge my credit card until my personal auto policy covers it?

Declining coverage at the rental counter doesn't leave you unprotected. Your personal auto insurance can cover specific situations while driving a rental, including liability claims and, if opted for, collision and comprehensive coverage for rental car damage.

Questions About Insurance and Rental Car Coverage

When considering rental car coverage, ask your agent:

  1. If I rent a car for a combined business trip and personal vacation, am I covered?

    • Your personal auto policy may not cover you, but your employer’s insurance might.

  2. If more than one person is driving the rental car, am I covered?

    • Your auto insurance likely covers only those on your policy, so rental company coverage could be necessary.

  3. If personal possessions are stolen from my rental car, am I covered?

    • Coverage varies; inquire about your auto policy and consider checking with the rental company regarding stolen personal property.

Insurance for Renting a Car After an Accident

For rental reimbursement after an accident, ERIE's comprehensive coverage often includes basic rental car coverage. Additional coverage, named Transportation Expenses, allows you to choose a suitable rental vehicle class based on your needs.

Turo and Insurance Coverage

Renting through Turo is covered by ERIE's auto insurance, but hosting (renting out your vehicle) is not. Transportation Expenses can also cover Turo rentals as a temporary substitute after an accident.

In conclusion, adding rental car expense coverage and consulting with your agent for personalized advice can enhance your understanding of auto insurance coverage for rental cars.

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