Personal Liability Insurance: What Happens When Someone Gets Hurt on Your Property

Renting a car for a vacation or business trip seems simple enough. But before you decline the rental company’s insurance, it’s crucial to understand if your  personal auto policy  provides the coverage you need.

The short answer?  Yes, but with some limitations.  If you have  collision and comprehensive coverage  on your personal auto policy, that coverage generally extends to rental vehicles. However, there’s a catch—your policy  will not  cover  loss of use  fees that the rental company may charge if the car is damaged in an accident.

When you return a rental car damaged, the rental company loses money while the car is being repaired. To make up for this, they may charge you a  “loss of use”  fee. Unfortunately, most personal auto insurance policies  do not cover this fee , which could leave you with a hefty bill.

This is why  many insurance agents recommend purchasing the rental company’s coverage.  It may add extra cost upfront, but it protects you from hidden expenses later.

Some  credit cards offer rental car insurance  as a perk—meaning, if you use that card to pay for the rental, it may cover damages. However, not all cards provide the same level of protection.

✔  American Express (AMEX)  offers rental car coverage when you pay with their card. Some cards even allow you to purchase  Premium Rental Car Protection  for a small fee, which covers loss of use and damage. ( 🔗 Read more here )

✔  Visa and Mastercard  may also provide coverage, but the limits and exclusions vary. ( 🔗 Check Visa’s rental coverage here )

✔  Chase Sapphire Preferred  offers primary rental car insurance, which means it covers the damage  before  your personal auto insurance kicks in. ( 🔗 Chase benefits )

While your personal auto policy may cover a rental car, you need to ask yourself:

• ✅ Do I have collision and comprehensive coverage?  If not, you have  zero  protection for rental car damage.
• 💰 Am I comfortable paying out-of-pocket for loss of use fees?  If not, rental car coverage is a good idea.
• 💳 Does my credit card offer rental coverage?  Check the details before assuming you’re covered.

The best way to avoid unexpected costs is to  review your personal auto policy and credit card benefits  before renting a car. If there’s any doubt, purchasing the rental company’s coverage could be a smart move.

Want to double-check your coverage? 📞  Reach out to your insurance provider  to confirm the details of your policy.

📌  Related Resources:
🔗  Does Your Auto Insurance Cover Rental Cars? (Insurance Information Institute)
🔗  Rental Car Insurance Explained (NerdWallet)
🔗  Best Travel Credit Cards With Rental Coverage (The Points Guy)

By staying informed, you can rent with confidence—knowing you’re protected from  unexpected expenses and surprise fees.  🚗💨