The information contained in this article serves as a general overview of benefits and should only be used for informational purposes. Coverage may vary based on destination, provider, or plan. Be sure to review the requirements for your specific destination before purchasing this coverage option.
Key Takeaways
- Rental car collision coverage limits typically range from $25,000 to $50,000, and this benefit sometimes has a deductible.
- This travel insurance coverage is often available as an optional upgrade.
- Coverage generally applies only to collision damage and theft of your rental car, not liability, personal property, or medical expenses.
Rental car travel insurance provides financial protection against damage to your rental car, whether from an accident, theft, vandalism, or natural disaster. But it’s not comprehensive car insurance, so it’s important to understand what this optional benefit covers.
What Is Rental Car Travel Insurance?
Rental car damage and theft is a travel insurance benefit that reimburses you for the cost of repairs or replacement if your rental car is damaged by events not in your control, or stolen and not recovered, during your trip.
Many comprehensive travel insurance plans offer rental car collision coverage as an add-on option. This will reimburse you, up to the maximum benefit, if the rental car is damaged by:
- Collision
- Fire
- Flood
- Hail
- Theft
- Vandalism
- Windstorm
Coverage limits typically range from $25,000 to $50,000, depending on the plan you select. You sometimes also have a deductible to meet, such as $100 or $250.
Reimbursement is typically the actual cash value of the car, less its salvage value, up to your coverage limit, after any deductible.
What Does Rental Car Travel Insurance Cover?
Rental car damage and theft benefits vary by policy, but here are common coverages and exclusions, from policies available on InsureMyTrip.
Typical coverage, up to your policy limit:
- Cost of repairs if damaged by a covered cause
- Actual cost value of the rental car, if totaled or stolen and not recovered
Typical exclusions:
- Damage to any other vehicle, structure, person, or property
- Damage to campers, exotic cars, motorcycles, moving trucks, off-road vehicles, or any vehicle rental with an MSRP greater than $75,000
- Damage occurring outside the covered travel dates
- Driving if you’re not on the rental agreement
- Driving in violation of the rental agreement terms
- Driving while intoxicated or under the influence of drugs
- Driving without a license
- Engaging in illegal activity at the time of the accident
- Failure to report loss to the proper local authorities and/or the rental company
- Medical expenses for injuries
- Negligence or abuse of the rental car
- Personal belongings inside the rental car
- War, declared or otherwise
- Wear and tear or mechanical breakdowns
What Is the Best Travel Insurance With Rental Car Coverage?
When comparing travel insurance plans with rental car coverage, consider these key criteria:
- Coverage limits: Look for a limit that matches the value of the vehicle you plan to rent, generally up to $50,000.
- Deductible amount: Some plans have no deductible, while others require you to pay a portion out of pocket, often up to $250.
- Vehicle type restrictions: Ensure the type of vehicle you plan to rent is covered.
InsureMyTrip tip: Once you have completed our quote process, you can filter the results to view only plans that offer rental car collision coverage. If you still aren’t finding something that meets your needs, call our licensed travel insurance representatives to narrow down your best options.
Frequently Asked Questions
Does Travel Insurance Cover Rental Car Damage?
Yes, many comprehensive travel insurance plans offer rental car collision coverage as an add-on benefit. This optional coverage reimburses you for repair or replacement costs if your rental car is damaged in a collision or stolen and not recovered, typically up to limits of $25,000 to $50,000.
What Is Car Hire Excess Insurance?
Car hire excess insurance is coverage often sold in Europe, the U.K, Australia and New Zealand. It reimburses you for the excess amount (your out-of-pocket deductible) you would owe to the rental company if the vehicle is damaged.
How Do I File a Rental Car Damage Claim?
To file a claim, you’ll need to document the damage with photos, obtain a police report if applicable, and get a damage report from the rental company. Submit this documentation, along with your claim form and rental agreement, to your travel insurance provider. Be sure to keep all receipts for any out-of-pocket expenses.
Disclaimer: The information contained in this article serves as a general overview of benefits and should only be used for informational purposes. Refer to your individual certificate of insurance for specific coverages, exclusions and benefits. When in doubt, please contact one of our licensed agents for additional assistance.
