Rental car collision coverage is an additional option that can be purchased with some travel insurance comprehensive plans. It provides coverage for loss or damage to a rented vehicle, meaning that you would not be responsible for the cost of repairs and replacements, up to the stated limit on the policy you choose. In some cases, you're also covered for loss of use.
Call ahead before buying
While rental car collision coverage can be a very helpful item to add to your travel insurance policy, some rental car companies will not accept it. If your particular car rental company requires you to purchase insurance through them, you don't want to be stuck with an additional collision coverage benefit on your travel insurance policy that you didn't need in the first place.
Rental car collision coverage is just that – collision coverage. It doesn't cover loss or damage to any personal property inside the car at the time of any incident, and it also doesn't cover things like damage to another vehicle, or medical care for any individuals who may be hurt in an accident involving the rental car. You should also be aware of actions on your part that might void your coverage.
For example, it would not be valid if you were intoxicated in any way at the time of an accident. It also does not apply if you are engaged in any illegal activity that damages the vehicle. Lastly, rental car collision coverage can't be purchased for some types of vehicles, such as RVs and motorcycles, so be sure to check the terms of any policy you're considering purchasing if you think you'll be renting a unique type of vehicle.