Short Term Car Insurance - Are Rental Cars Covered Under Your Existing Policy?

Short term car insurance needs vary but probably the most frequently encountered 'short-term' need is insurance for a rental car. Frequent travelers may need to address this issue regularly but for many of us it may only be necessary once or twice a year. So when you rent a car, is it protected under the rental company's agreement or through your existing auto insurance policy?

It often depends on the specific rental agreement you sign with the company. The length of time you are going to be using the car and the terms of your own insurance policy are other mediating factors. The majority of short-term car rental agencies will have insurance coverage worked into their agreements (usually a minimum amount) and will also allow you to purchase additional short term car insurance coverage if you choose to do so.

It is important for you to know what types of insurance are covered in your auto insurance policy and whether short term car insurance like rental cars is covered under its terms. You will find this information in the coverage definitions. Be aware that most rental agreements require personal insurance to be primary insurance and rental coverage falls into the secondary insurance category. So you may not be covered adequately by the rental agreement alone.

If you are very young or are going to use the vehicle off-road you may be excluded from short term carinsurance at your rental agency. In addition, your personal insurance policy may cover short term use of private passenger cars but not longer-term leases on commercial vehicles.

Always check 1) your own insurance policy and 2) the terms of your rental agreement to establish what form of short term car insurance you are eligible for before renting any car.